Consumer complaint received 2025-09-05 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — Payment process
Company: Fay Servicing, LLC
State: TX

Complaint narrative:
b'Servicing acct.# XXXX XXXXTo Whom It May Concern: \nMy mortgage payments initially fell behind due to me ending up XXXX  after a severe motor vehicle accident. COVID-19 hardships increased and intensified my familys financial struggle and on XXXX XXXX XXXX I filed for bankruptcy to save my home from foreclosure.\nMy husband and I began receiving financial help from a family member as my accident trial date was scheduled for XXXX XXXX XXXX This family member agreed to offer my husband and me financial help up until XXXX XXXX XXXX During this time, I began researching programs that may be of help as my accident trial date being rescheduled several times between XXXX  and XXXX. My husband and I were unable to pay our mortgage without help for several months and missed payments from XXXX XXXX XXXX to XXXX XXXX XXXX, though we continued to pay the bankruptcy each month. \nFay Servicings attorney, XXXX XXXX, filed a motion on Fay Servicings behalf with the bankruptcy court asking that the stay be lifted so that Fay Servicing may proceed with foreclosure proceedings. This request was denied and on XXXX XXXX XXXX an Agreed Order Conditioning Automatic Stay Of Action Against Debtor was entered. This plan rolled the missed payments of XXXX XXXX XXXX XXXX into my bankruptcy. According to this order, my monthly mortgage payments initially to resume on XXXX XXXX XXXX At that time, If applied for assistance with the XXXX XXXX XXXX XXXX XXXX and was approved to receive this assistance. The XXXX  program paid $XXXX during the month of XXXX, which was the amount submitted by Fay Servicing as being due. \nDuring the months of XXXX XXXX & XXXX XXXX, I contacted Fay Servicing several times to inquire as to when I was due to resume my monthly mortgage payments. Fay Servicing acknowledged receiving the funds from the XXXX  program during XXXX XXXX, but stated that the information on when my payments were due to resume was not available at that time. After several calls that I made during XXXX XXXX and XXXX XXXX, I was eventually informed by Fay Servicing that the amount received from the XXXX  program covered the months of XXXX XXXX and XXXX XXXX and that my mortgage payments were due to resume on XXXX XXXX XXXXDuring the month of XXXX XXXX, my husband and I resumed making our mortgage payments to Fay Servicing, and that first payment was made on XXXX XXXX XXXXMy XXXX XXXX mortgage statement has the payment date as XXXX XXXX XXXX  the loan due date on this statement also has my loan as being due as XXXX XXXX XXXX This XXXX XXXX statement also lists the following payments on XXXX XXXX XXXXAll of the above payments are listed as four different payments under the Partial Payment (Unapplied) column. At that time, my monthly mortgage payments were $XXXX. The two payments listed in the amount of $XXXX were likely listed as payments for the months of XXXX XXXX  and XXXX XXXX  as all other payments during the year of XXXX  were either paid or rolled into my bankruptcy. \nI made the following payments during the year of XXXX. I have also attached proof of those payments to this statement.XXXX XXXX XXXX XXXX XXXX XXXX XXXXI realized no payment was made during the month of XXXX XXXX  as I gathered proof of my XXXX  & XXXX  payments. XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX No payment was made during XXXX My settlement negotiation meeting was held on XXXXXXXX XXXX. I was informed that it could take up to 14 days to receive those funds due to the bankruptcy court having to approve the settlement. I anticipated making my XXXX  payment from those funds, but I didnt receive those funds at that time & the family member providing financial assistance was no longer able to assist and began demanding that \nmy husband and I begin repaying the funds borrowed. XXXX XXXX XXXX XXXX XXXX XXXX I still hadnt received my settlement funds from my accident, but Id received a small settlement regarding another matter. I contacted Fay Servicing upon receiving these funds to inquire about amount due due to the missed payment in XXXX XXXX and the current month at that time of XXXX XXXX I was, again, informed that this information could not be provided as Fay Servicing still did not have authorization to discuss my mortgage account with me.\n\nBy this point, Id made several attempts to contact my bankruptcy attorney, XXXX XXXX  to have an authorization sent to Fay Servicing so that I may discuss my mortgage account. It had been very difficult to receive a call back or any responses from my bankruptcy attorney. Id left several messages that the firm never returned.\n\nDuring the process of getting the bankruptcy court to approve my settlement, my accident attorney, kept me aware of the status of my settlement. Several mistakes were made by my bankruptcy attorneys office, The XXXX XXXX, during the months of XXXX to XXXX XXXX. \nMy accident settlement was eventually approved by the bankruptcy court and I agreed/authorized to have my settlement funds placed into a structured so that I may receive a monthly check for the next the next 18 years due to me being left XXXX  and unable to work. Id also received a small amount of cash from this settlement, but before any funds were dispersed to me all attorneys, the trustee, and my creditors were paid. In order to receive payment, all parties were required to submit a Proof of Claim and Fay Servicing failed to do so. Before I received those funds in XXXX XXXX the following administration fees were paid:\nAttorney fees paid through the plan $XXXXTrustee expenses & compensation $XXXXTotal administration fees paid $XXXXI also paid an additional $XXXX in attorney fees.\nThe above information as well as creditors and the amount owed and paid to those creditors will be attached to this statement. Though these payments/fees were paid in XXXX XXXX, having to file for bankruptcy a second time in XXXX, many of these fees are due again due to human error that Im left footing the bill again.\nThe following payments were made during the year XXXX I contacted Fay Servicing via phone to make a payment. I inquired about how much was due and I was informed that Fay Servicing still did not have authorization from my bankruptcy attorney, XXXX XXXX, to discuss my mortgage account with me. During this call, I authorized a payment of $XXXX asking that the $XXXX  payment be applied to XXXX XXXX XXXX XXXX & a part of XXXX XXXX  At this time I assumed that I was due for these months at that time.XXXX XXXX XXXX I made an online bill payment from my checking account. in the amount of $XXXX in which Fay Servicing returned with no explanation as to why on XXXX I contacted Fay Servicing and authorized a $XXXX  ACH payment\nNote:. XXXX I received a Certificate of Default from the bankruptcy court. I didnt understand what was going on or why I received it because I had been making my mortgage payments. I contacted XXXX XXXX and informed a female staff member, who I assumed was either an attorney or paralegal\n, I and informed her of the documents that I received and informed her that the information was inaccurate because Id been making my mortgage payments and that I was unsure as to why I was receiving this paperwork and what I needed to do. She instructed me to send the papers to  mycase@XXXX and that the attorney would take care of it. I did so and I assumed that I had nothing else to worry about as I had no idea how this happened and what I needed to do on my end.\n I did email this information even though the documents showed that this information had been sent to XXXX XXXX as well. Id also found a letter from the trustee stating that they had not received proof of my mortgage payments made from XXXX XXXX to XXXX XXXX. Though I attempted to contact XXXX XXXX even after this date, I didnt receive an answer when I called or a returned call. This was usually the case throughout my bankruptcy case, but I didnt worry about it as I trusted that I would hear from XXXX XXXX should important issues arise. Id left several voice messages from XXXX XXXX requesting that XXXX XXXX  provide Fay Servicing with authorization so that I may discuss my mortgage with Fay Servicing. At some point this authorization was finally submitted. XXXX XXXX XXXX payment was made via XXXX Bank account. This payment was returned by Fay Servicing, and I was informed that this payment was returned because XXXX  Bank sent a copy of the check and copies of checks arent accepted. XXXX payment was made via XXXX  Bank account. Fay Servicing denied receiving this payment and I was encouraged to call back on a later date because sometimes it may take a few days for them to receive payments. XXXX I contacted Fay Servicing to inquire as to whether the $XXXX mortgage payment that was made on XXXX  had been received and Fay Servicing continued to deny receiving this payment. During this call I authorized a mortgage payment in the amount of $XXXX to cover the previous and current month mortgage payments which I assumed was XXXX XXXX & XXXX XXXXDuring the earlier part of XXXX XXXX I started receiving phone calls, mailings, & unannounced visits from investors. I was being told that my home was in foreclosure. During this time, I also received correspondences from Fay Servicing stating that my mortgage payment for XXXX XXXX XXXX was delinquent. I contacted Fay Servicing at this time. At this time, Fay Servicing was able to discuss my account with me as they stated theyd received authorization from my XXXX XXXX  to discuss my mortgage. \n\nFay reiterated that my mortgage payment was due for XXXX XXXX. I disputed this information and was told that Fay Services had no proof of payments from me. Fay Servicing also informed me that my home went into foreclosure on XXXX XXXX which was three days before I made the $XXXX payment over the phone with a representative on XXXX XXXX and the representative did not tell me that my home was in foreclosure.I was also informed that my only option to save my home from the foreclosure would be to pay the delinquent payments and all legal fees related to Fay Servicing filing for foreclosure. \nAt this time, I contacted XXXX XXXX and spoke with a paralegal regarding my home being in foreclosure and I was informed that Id completed my bankruptcy and that my bankruptcy was discharged on XXXX XXXX XXXX and that all of my creditors were paid in XXXX XXXX  and that Fay Servicing failed to submit a proof of claim. I expressed that I did not know or understand what happened to have my home end up in foreclosure while having an attorney and making my mortgage payments. I also expressed concerns of losing my home especially after completing a bankruptcy to save my home form foreclosure. I was informed that I wouldnt lose my home because I would be able to put it in another bankruptcy. \nI contacted Fay Servicing and requested a reinstatement quote as well as a ledger to show the payments that I made and how those payments had been applied to my account as well as how the XXXX  funds were applied. Fay Servicing informed me that these payments that I stated that I made were not showing on my account. I was informed that I would have to prove to Fay Servicing that I made these payments. Fay Servicing continued to suggest that I was still due or XXXX XXXX XXXX and that I hadnt been paying my mortgage. This representative eventually acknowledged receiving my XXXX XXXX payment in the amount of $XXXX. The representative also stated that the $XXXX  was only applied to one month and not two as Id requested. At one point \n I was also given the option to file bankruptcy again and that I would have to pay for XXXX XXXX  to research what happened and/or help me figure out what happened and why I ended back up in foreclosure. \nUpon following up with Fay Servicing and again requesting information on options including paying the amount still owed to save my home from forclosure. I was again informed that my only option at this point would be to pay the funds stated on my reinstatement quote including the legal fees to have my mortgage reinstated was my only option because the foreclosure sell of my home was less than 45 days away and that the sale of my home was scheduled for XXXX XXXX The reinstatement quote received stated that the reinstatement quote was good until XXXX XXXX XXXX  and that after XXXX XXXX if I wanted to reinstate my mortgage I would need to request a new reinstatement quote. Fay Servicing had my sell date at XXXX XXXX XXXX. Also, I received a letter dated XXXX XXXX XXXX  informing that my mortgage was delinquent and listing options to save my home from foreclosure. Though the letter was dated XXXX XXXX my home was placed in foreclosure on XXXX XXXX XXXX with a scheduled sell date of XXXX XXXX XXXXI requested an itemized ledger showing all payments made by myself and the XXXX XXXX XXXX in XXXX XXXX totaling $XXXX and how those payments were applied to my mortgage. During the days leading up to the scheduled sell of my home, several investors and companies offering help were constantly coming to my home. I gave authorization to XXXX XXXX of XXXX XXXX XXXX to assist me with options to save my home. Fay Servicing provided XXXX XXXX with the reinstatement quote and a ledger of payments which differed from the one I received from Fay Servicing.\nAs of XXXX XXXX XXXX I reluctantly filed for bankruptcy to save my home from foreclosure with my previous bankruptcy attorney as I assumed my previous bankruptcy attorney would already be familiar with my case. I was also informed that my case would be filed with some of the bankruptcy fees being waived by XXXX XXXX. No fees were waived. After filing for bankruptcy a second time, I was informed that I would have to pay the attorneys aside from this bankruptcy should they research how my loan ended up in foreclosure though I was still in bankruptcy. \nIve also included confirmation of all payments made beginning XXXX XXXX XXXX XXXX Ive also attached many of my monthly mortgage statement. Please note the due dates and the months due as well as the month received.'

Company response to consumer: Closed with explanation