Consumer complaint received 2025-08-27 00:00:00
Product: Mortgage — Conventional home 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: DE

Complaint narrative:
The borrower ( my sibling ) is deceased. Therefore, I am the next of kin and was appointed the XXXX Representative of XXXX and XXXX of XXXX by the county/state. I submitted a complete XXXX package on XXXX separate occasions ( XX/XX/XXXX and XX/XX/XXXX ) for loan modification and assumption. After submitting the XXXX package, I received a complete XXXX XXXX XXXX dated XX/XX/XXXX and XX/XX/XXXX respectfully. I also received a confirmed successor of interest notice / acknowledgement form from Select Portfolio Servicing XXXX XXXX ( SPS ) dated XX/XX/XXXX. I was denied the assumption and modification on XXXX separate occasions ( XX/XX/XXXX and XX/XX/XXXX ) because of the same reason listed below : Insufficient Payment Reduction We are unable to offer you this program because in performing our underwriting of a potential modification we could not reduce your principal and interest payment, or the payment reduction achieved did not meet the payment reduction that is required for your account. 

SPS requires a calculation of the net present value ( NPV ) of this account in order to evaluate for a possible modification. The XXXX calculation takes into consideration certain financial information about your income and the mortgage. When combined with other data, these inputs estimate the cash flow the owner of the mortgage is likely to receive if the account is modified and the owners cash flow if the account is not modified. Although you were not denied an assumption and modification because of the XXXX  results, we have included these results with this letter. 

You XXXX have other options SPS is committed to home retention and offers many assistance options designed for customers who are experiencing temporary or permanent hardship. These options are offered at no cost and XXXX include structured repayment plans or account settlement alternatives. If you would like information on other alternatives please contact us as soon as possible at the phone number listed below. These other alternatives to foreclosure XXXX be available : Other modification programs. Depending on your situation, we XXXX have other options for you. If you have already been evaluated for these programs, you XXXX have to show a change in your circumstances in order to qualify. 
Short Sale. With this program, the property is listed for sale at fair market value, even if that value is lower than the lien balance. If a buyer is identified and the property is sold, the proceeds from the sale are applied towards the account. 
XXXX XXXX XXXXXXXX of Foreclosure. With a XXXX XXXX XXXX you agree to transfer the title or ownership of the property to the owner of the account in order to avoid foreclosure sale. 

I was not evaluated for any other programs in regards to the loss mitigationprocess. For example, the servicer of the loan ( SPS ) did not conduct a thorough step-by-step waterfall process to resolve the current loan delinquency, in which the borrower ( deceased ) would have been evaluated for various home retention options in a specific order. SPS failed to evaluate other options such as Reinstatement, Forbearance, Repayment Plan, Partial Claim, Principal Forbearance, etc. 

Per federal XXXX, I am entitled to the same benefits/loss mitigation procedural protections as the borrower/deceased since I am the next of kin/successor in interest. Therefore, I am allowed to assume the mortgage and/or pursue/apply for loss mitigation options such loan modifications, forbearance and other loss mitigation options to avoid foreclosure. A confirmed successor in interest is considered a " borrower '' for purposes of the XXXX  escrow account requirements and all of XXXX XXXX XXXX XXXX XXXX regardless of whether the successor in interest assumes the mortgage loan obligation. XXXX XXXX of XXXX XXXX includes provisions relatedto servicing transfers, escrow payments and balances error resolution, information requests, force-place insurance, policies and procedures, early intervention, continuity of contact and loss mitigation. 

Per the ability-to-pay rule ( XXXX XXXX XXXX in XXXX  XXXX  requires creditors to make a reasonable, good faith determination of a consumer'sability to repay a mortgage loan. The XXXX stated that the XXXX rule does not apply to a successor in interest who has previously acquired title to a property and subsequently agrees to be added as an obligor, or substituted for the existing obligor, on an existing mortgage loan. The XXXX would not consider such a case to be an " assumption '' for purposes of XXXX  XXXX, and so the lender XXXX recognize the successor in interest as the new borrower without evaluating his or her ability to repay the mortgage loan. 

Per state law, the property was acquired via probate throughthe XXXX XXXX. 

" THE REGISTER OF WILLS OFFICE SERVES AS THE CLERK FOR THE XXXX XXXX, WHICH HELPS IN MANAGING THE DISTRIBUTION OF A DECEASED PERSON 'S ASSETS TO THEIR HEIRS. XXXX OF OUR PRIMARY RESPONSIBILITIES IS TO ASSIST IN THE TRANSFER OF OWNERSHIP OF REAL ESTATE PROPERTIES THAT BELONGED TO THE DECEASED. 

FOR SOLELY OWNED PROPERTIES : IF THE PROPERTY WAS OWNED SOLELY BY THE DECEASED, THE TRANSFER OF OWNERSHIP WILL TYPICALLY GO THROUGH A MORE DETAILED PROCESS KNOWN AS FULL PROBATE PROCEEDINGS. 

ONCE WE RECEIVE ALL THE NECESSARY DOCUMENTS, WE ENSURE THAT THESE CHANGES ARE OFFICIALLY UPDATED IN XXXX XXXX XXXXXXXX XXXX XXXX  XXXX. THIS UPDATE REFLECTS THE NEW OWNERSHIP STATUS OF THE PROPERTY IN THE PUBLIC RECORDS. 

AFTER PROPERTY OWNERSHIP IS UPDATED, YOU HAVE THE OPTION TO OBTAIN A NEW DEED. HOWEVER, PLEASE NOTE THAT THIS IS NOT REQUIRED. '' I appealed the first decision on XX/XX/XXXX and second decision on XX/XX/XXXX. After appealing the first decision I was denied althoughI provided regulations in which I mentioned above amongst others. 

Lastly, I have called SPS and spoke with numerous customer service reps, supervisors, Relationship Managers, etc and expressed my concerns. They have all stated they will look into the matters and provide notes on the account for the underwriters and appropriate personnel to review. I have also mentioned they need to look into the regulations regarding this matter, however, I don't believe they have. There were several Relationship Managers who stated they did not know any of the regulations regarding these issues which is unexceptable.

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