Consumer complaint received 2016-08-27
Product: Mortgage — FHA mortgage
Issue: Loan servicing, payments, escrow account — 
Company: Selene Finance LP (OH)

Selene Finance began servicing my mortgage loan XXXX XXXX. It was previously serviced by XXXX XXXX XXXX and I had applied for a HAMP modification but they had sold it to Selene Finance 5 months into the process. The HAMP modification was finalized with Selene Finance in XXXX XXXX, my new payment was {$500.00}. I had been making payments since XXXX XXXX to the amount of {$5500.00} and {$1500.00} of that were FHA HAMP trial period plan payments. In XXXX XXXX {$4000.00} was applied to my loan, escrow, insurance premiums. In the actual modification it states that any past due amounts, including unpaid interest, real estate taxes, insurance premiums and third party assessments will be added to my mortgage loan balance. In bold it states that if I fulfill the terms of the trial period, Selene will waive all late charges that have accrued. I understood that the payments being held in a suspense account with Selene Finance would be dispersed and the HAMP modification would bring the loan current. Somehow, the escrow account is still negative as of XXXX XXXX even after the suspense account of {$5500.00} was dispersed, {$750.00} in fees was deducted on XXXX/XXXX/XXXX and an unexplained deduction of {$260.00} on XXXX/XXXX/XXXX and I am unable to locate any record of where the three trial payments of {$500.00} were allocated. Whatever balance remained from the {$4000.00} that was dispersed in XXXX XXXX was deducted to pay back Selene Finance Advancements. XXXX XXXX, XXXX I received an Annual Escrow Account Disclosure Statement. It projected that in order to prevent an increase in mortgage payment from {$500.00} to {$610.00} a shortage amount of {$1000.00} would need to be received by XXXX, XXXX. I paid it in full. Our new payment is now {$530.00}. Then on XXXX XXXX, XXXX I received another Annual Escrow Account Disclosure Statement showing incorrect projections and the current escrow payment of {$210.00} will be reduced to {$180.00} and to avoid the payment being increased to {$540.00} a shortage amount of {$530.00} would need to be received by XXXX XXXX. Not only is my escrow account still behind, I 've learned that the county taxes have been late and shorted. I had to call and speak to Selene 's Tax department for them to pay the remaining balance. Selene has n't charged me for the late fees that I am aware of. I 'm concerned that I have to make this new payment starting in XXXX and then possibly receive another escrow account statement in XXXX XXXX. I ca n't keep up with these large sums of money just to keep our mortgage payment down. We received a {$150.00} reduction through HAMP and now I fear through these odd practices by Selene Finance, the mortgage payment will gradually be increased putting me in the same position I was in, not being able to make my mortgage payments, rendering the HAMP modification pointless. I 've been calling Selene Finance since XXXX XXXX with no actual answers from customer service or the escrow department. I was advised to send a written letter with my questions, a letter being faster and better documented. I sent an email providing both escrow account statements on XXXX XXXX. I received a written response that Selene Finance received my correspondence requesting information about my loan and that they must respond within 30 days of receipt, or less. I 'm still calling weekly to check if the escrow department has noted my account with their response. I last called XXXX XXXX. I sent a letter to Congressman XXXX XXXX 's office and was advised to contact CFPB.