Consumer complaint received 2026-01-02 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Struggling to pay mortgage — Applying for or obtaining a modification, forbearance plan, short sale, or deed-in-lieu
Company: Fay Servicing, LLC
State: IL

Complaint narrative:
I was never offered loss mitigation options, or any real assistance in attempting to remain in my home. The mortgage was originally a XXXX XXXX loan. It was sold and Servicing transferred in late XXXX. I was hospitalized on multiple occasions, beginning XX/XX/XXXX. XXXX of the most significant being developing XXXX due to XXXX XXXX XXXX following an XXXX XXXX XXXX, and XXXX XXXX. The second after multiple XXXX XXXX XXXX XXXX, and being immobilized for XXXX months, after being XXXX from the hospital. To make matters worse, my health insurance was cancelled due to non-payment, in error XX/XX/XXXX. I filed an appeal and won, in order to regain my health insurance. Nevertheless, I had fallen behind on my payments, and had been struggling to keep up, since the servicing was transferred to Fay. 

I had previously been able to bring my mortgage current, but this last time I could not pay the past due amounts. Now that I have my health insurance again, my expenses have gone down, and I can again resume making my monthly payments. Fay has filed for foreclosure. My county has a mandatory mediation program, which Fay terminated. I asked in mediation about XXXX XXXX requirements. The representative from Fay stated, the loan was owned by a private investor, and they didn't have to follow XXXX XXXX requirements. They referenced a modification that was offered, and requested mediation be terminated. 

While the loan is now owned by a private investor, it was a XXXX XXXX loan. Fay is required to follow the requirements Fannie Mae conditioned into the sale. I have requested the specific information involving the sale of my mortgage, but the Fay representatives I spoke with, had no idea what I was asking about. The best I can determine, based on the timing of the sale, the servicer listed, and the other information found in the press release, my mortgage was part of a Reperforming Loan Pool sale. I am including a fact sheet discussing the requirements of purchasers of these mortgages from XXXX XXXX. Whether it is a non-performing or reperforming, purchasers are required to offer a " waterfall '' of loss mitigation options to borrowers who are currently, or become delinquent on their mortgage, for XXXX years, following the sale. 

The main difference being, Reperforming loans where borrowers can make payments equal to what they were previously paying, but not able to resolve the past due amounts, the past due amounts are deferred until the end of the loan. 

For borrowers who can not make payments equal to their previous payments, a loan modification is offered. The loan modification must provide a benefit to the borrower, and have the potential to be sustainable, throughout the term of the loan. 

The only loss mitigation option I have been offered was a loan modification, which raised the payment by nearly {$1500.00} per month. The interest rate was increased by XXXX %, the past due amounts added to the balance, and the loan kept the same maturity date. 

A loan modification that increases the payment by {$1500.00} in order to keep a maturity date that is XXXX plus years away is of XXXX benefit to a borrower experiencing a financial hardship. By default, a loan modification lowers the monthly payment. Increasing the payment at all, let alone by {$1500.00} has no potential for sustainability. Why? Because if the borrower could afford the original payment amount, deferment is first offered in the " waterfall '' heirarchy. 

Needless to say, the offer made does not meet the intent of loss mitigation, or the requirements conditioned into the sale. I was experiencing a hardship. That hardship has resolved. I want to keep my home. I can make the original payments. I would simply like the opportunity to do so. 

I should mention, after mediation, Fay encouraged me to fill out a borrower assistance package, which I did. They would then review it. After review, Fay told me they would not be offering any loss mitigation options. The following reasons were given. 

Deferment- My loan did not meet the delinquency requirements set by the owner. 

Modification- I had exceeded the number of modifications allowed. 

I Appealed the denial of loss mitigation, but that has been unresponsive, as of yet. Not an acknowledgement of my communication, not a mention of an appeal in the denial letter. My Questions are : What delinquency requirements? What criteria is used in this evaluation? What is the limit for modifications? XXXX? I was never made a real offer. How could I have exceeded the limit? Again the only offer made was {$1500.00} higher per month, for the next XXXX plus years. 

How is that a benefit? Or sustainable? 

I am filing a complaint because I can't get anywhere with Fay and I want to keep my home. Fay won't let me make my normal payment. They want the entire amount. It truly feels like they have no interest in working with me to save my home.

Company response to consumer: Closed with explanation