Consumer complaint received 2025-05-21 00:00:00
Product: Mortgage — FHA mortgage
Issue: Struggling to pay mortgage — Trying to communicate with the company to fix an issue related to modification, forbearance, short sale, deed-in-lieu, bankruptcy, or foreclosure
Company: SELECT PORTFOLIO SERVICING, INC.
State: IN

Complaint narrative:
I received the following letter, accepted the agreement and made the 3 trial payment per terms of said agreement.

Congratulations! You are eligible for the enclosed modification. SPS has completed its review and is providing the attached final Modification Agreement, which reflects the proposed terms of the modification. 
As detailed in the enclosed Modification Agreement, your new monthly payment is due on the first day of each month beginning with the XX/XX/XXXX payment. This new monthly payment is comprised of principal and interest of {$250.00}, as well as escrow for property taxes, and insurance of {$540.00}. Please note that your escrow payment amount will adjust if your taxes, insurance premiums, and/or assessment amounts change. This means that your monthly payment may change over time as permitted by law. It is important that you make the modified payment of {$800.00} on time and in the correct amount. It may take an additional month for our monthly statements to reflect the modified account terms. 
We have enclosed a copy of the Modification Agreement. To accept this offer, you must sign and return the original wet ink Modification Agreement, to us by XX/XX/XXXX. If the Modification Agreement has notary provisions at the end, you must sign in the presence of a notary public and return the original notarized agreement to us. We encourage you to make and keep copies of the modification documents for your records. If you do not return the Modification Agreement by the above date, you must contact us if you still wish to be considered for this program and have your account modified. Please use the enclosed pre-paid return label and envelope, or you may mail the original signed agreement to : Select Portfolio Servicing , Inc . 
XXXX XXXX XXXX XXXX XXXX XXXX, UT XXXX Below is a summary of how we calculated your new monthly payment and the modified terms of your loan. 
The first step is to calculate the total amount outstanding on your account : Current Unpaid Principal Balance {$55000.00} Accrued but Unpaid Interest {$2000.00} Escrow Advance {$3400.00} Expenses Paid by Servicer {$4000.00} Less Borrower Credits {$850.00} Total Balance Included in Modification {$64000.00} Based on the Total Balance above, we have calculated your new payment with the following terms : Total Balance Included in Modification {$64000.00} Modified Interest Bearing Principal Balance {$64000.00} First Modified Payment Due Date XX/XX/XXXX Modified Interest Rate 3.62500 % Modified Interest Rate Type Fixed Rate Modified Maturity Date XXXX/XXXX/XXXX Amortization Term XXXX Your new monthly payment consists of the following : Principal and Interest {$250.00} Property Taxes {$320.00} Homeowner 's and Mortgage Insurance, if applicable {$150.00} Escrow Shortage {$65.00} Modified Monthly Payment beginning XX/XX/XXXX {$800.00} This letter was never mailed to me and was actually uploaded to the portal nor was there a return label as stated and I did not see it until XX/XX/XXXX or so when I was trying to make my payment on the new modified loan. I immediately called the servicer and explained the situation. I was told this is not a problem and they are very flexible with these things since I made the payments on time. I then received a letter that states the following again uploaded to my portal and not mailed to me On XX/XX/XXXX you were approved for a final Modification and the completed modification agreement was sent to you. 
As of the date of this letter we have not yet received back your signed modification agreement. It is a requirement that a signed modification agreement be received. If we do not receive your signed modification agreement by XX/XX/XXXX we will consider this as your non-acceptance of the modification and we will close out your request. This means your loan terms will revert back to the terms prior to the Modification. IT IS IMPERATIVE THAT YOU RETURN THE SIGNED MODIFICATION DOCUMENTS IMMEDIATELY. Failure to return the signed agreement by the date specified will result in your loss of your affordable payment, and could result in your account being referred for future legal action. 
If you have any questions, your assigned Relationship Manager, XXXX, can be reached toll free at ( XXXX ) XXXX x XXXX or by email at XXXX. 
Notice of Error or Information Request If you believe there has been an error with the account or you require additional information, you may send a written Notice of Error or Information Request. All Notices of Error or Information Requests must be sent in writing to the address listed below, as this is our exclusive address under Federal Law for these matters. If you send your correspondence to any other address, it may not be processed in accordance with Federal law.

Select Portfolio Servicing , Inc . 
XXXX XXXX XXXX XXXX XXXX XXXX, UT XXXX by this time I had already spoken to the servicer and explained the situation and had placed the letter in priority mail with tracking on XX/XX/XXXX. According to the tracking the completed paperwork was delivered to them on XX/XX/XXXX. I received a denial saying the offer was closed on XX/XX/XXXX stating the paperwork was not received. I then filed an appeal that just came back as a the appeal was denied because I did not accept the agreement in time. I contacted the servicer again, escalated the complaint to the supervisor who confirmed everything was correct and received on time this was also confirmed by the first person I spoke with, their supervisor, and the companies ombudsman who stated yes it was marked as received but for some reason was not scanned in when it was received. In the meantime I continued to make the modified payment amount as advised by the people I spoke to. The ombidsmans office then told me they would escalate this immediately to try to get the file reopened because it was an error on their part but it could take up to 30 days for a response and that the only way to keep my home out of foreclosure at that time was to file for another modification while I wait for the decision but to still make the modified payment amount. I never received a response and called the the ombudsmans office back about 28 days later. I was then told yes it was their error because the system automatically closed the offer on XX/XX/XXXX because they had not updated that the paperwork had been received but since it was a govenment loan they are not able to reopen it. I was then informed my new modification was approved for more than {$600.00} a month over what the initial one had been. That information is as noted below SPS is pleased to inform you that you have been approved for a Trial Modification Plan ( Plan ). The terms of the Plan, including payment amounts and due dates, are listed below. In order for SPS to convert this trial modification plan to a permanent modification of your mortgage, you must timely remit all of your payments under the Plan.

Your monthly plan payment is based on a calculation of what we project your new monthly payment will be under your permanent loan modification, if you make all payments under the trial plan. This payment consists of a monthly principal and interest payment of {$840.00}, plus a monthly escrow amount of {$550.00}, which equals a total monthly payment amount of {$1300.00}. The Plan payment was calculated based on the projected outstanding principal balance below : Current Unpaid Principal Balance {$53000.00} Unpaid Accrued Interest {$3000.00} Escrow Advance {$8900.00} Expenses Paid by Servicer {$4000.00} Less Borrower Credits {$300.00} Projected Unpaid Principal Balance {$69000.00} Please note : the amounts listed above are subject to change. You will be provided the specific terms of the permanent modification when you have completed your Trial Modification Plan.

Plan Acceptance To accept the Plan, you must make your First Payment by the date indicated below. The Plan will become active and valid only if SPS receives the First Payment by the scheduled date of your First Payment under the Plan.

Plan Payments Your Plan payments will take the place of your normal monthly mortgage payments during the term of the Plan. You must make each of the below-listed payments by or before the listed due dates, or the Plan will be cancelled. Your monthly Plan payments and due dates are as follows : Payment Due Date Amount First Payment XX/XX/XXXX {$1300.00} Second Payment XX/XX/XXXX {$1300.00} Third Payment XX/XX/XXXX {$1300.00} I was told that this was the only option that I had or to lose my home. I confirmed the wiring information and the payment was confirmed as received on or before XX/XX/XXXX. I then get another letter stating thanks for your payment, please contact your homeowners insurance company for them to collect payment, which I did. Yesterday I received a letter stating that my file was incomplete, I contact the servicer who tells me that there was another modification made with a payment of around {$1500.00} a month now. I asked how this happened since I made the XXXX payment and was told they received the payment but did not apply it to the modification, they applied it as a regular mortgage payment so it showed in their system that I did not accept the agreement and they did another one on their own and that the payment is due for this one on XXXX but I have yet to even receive that and was only told because I called to inquire about the letter stating they were missing documents.

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