Consumer complaint received 2021-04-06 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Struggling to pay mortgage — 
Company: SELECT PORTFOLIO SERVICING, INC.
State: UT

Complaint narrative:
I have worked with Select Portfolio Servicing since the onset of COVID regarding my traditional mortgage. XXXX XXXX is the investor. Our family has been seriously and negatively impacted by Covid 19. My husband 's company is in the XXXX XXXX and his earnings were seriously altered because of the lack of travel due to the pandemic, and I lost one of my two jobs significantly impacting our ability to pay our mortgage. We have been in constant communication with the mortgage company the whole time. Initially our loan was placed in forbearance. During the forbearance period we communicated with several representatives of the lending company in order to work out what the next steps would be. We repeatedly spoke with them asking for assistance and tried to make sure that we would not be put into a situation in which we would have to pay a balloon payment at the end of the forbearance period or be forced into a repayment plan that was unaffordable. On XX/XX/XXXX, we had an extensive conversation with an SPS representative named XXXX regarding the next phase of the program they were asking us to sign. We were offered a 4 month payment plan of {$1000.00} per month. At the end of the plan ( in XXXX ), the paperwork called for a balloon payment, which was the specific nature and subject of our call. We repeatedly asked for assurances from the SPS representative that we would NOT have to make an unaffordable balloon payment ... that some other option would be available to us to remain in our home. We asked repeatedly if we would be able to extend our existing loan, under the current payments, to include the unpaid balance. XXXX stated emphatically that those options would be available to us, and there was no way we would be forced to pay the balloon. He even said the law would prevent SPS from enforcing the balloon payment. We have the entire conversation on tape, and have included that for your review. 

Beginning in XXXX, we started reaching back out to SPS to understand our options per the previous plan. We went through another lengthy review, submitting new documents etc. We made clear that we were able to resume making our mortgage payment. Instead we were denied all assistance or workout options in XXXX of XXXX. We were told that we must either pay the balloon or our house would go into foreclosure or short sale. This is in direct contradiction to what they told us would happen and in bad faith. We have filed an official appeal with SPS and included our appeal letter as an attachment. 

Put simply, the point of these programs was to give homeowners effected by COVID a little breathing room to reorganize their finances, find new jobs as possible, and return to their mortgage payments. The simple intent is to keep homeowners in their homes. 

We were severely impacted by COVID. We reorganized our finances in XXXX, as we told SPS we would, and are now prepared to resume our mortgage payments and stay in our home. The program was designed for people like us ... and it worked. Instead, SPS is threatening to throw us out if we don't come up with our entire deferred amount. What a cruel and tone deaf response. 

We have engaged XXXX XXXX as a a HUD approved counselor ( we found her through CFPB ). She is active on this issue and also insists that SPS and XXXX XXXX are acting in bad faith. It is my sincere hope that they return to their senses and simply start to accept the {$5100.00} mortgage payments we have resumed sending every single month.

Company public response: Company believes it acted appropriately as authorized by contract or law
Company response to consumer: Closed with explanation