Consumer complaint received 2025-01-01 00:00:00
Product: Mortgage — Other type of mortgage
Issue: Trouble during payment process — Paying off the loan
Company: Fay Servicing, LLC
State: NC

Complaint narrative:
I had a loan tied to two investment properties. During COVID -19 Pandemic there moratoriums that were put which led to Tenants not paying hence helping service the mortgage. During this time the lender put me/my company in foreclosure proceedings. During the time I scooped the most I could and sent them the money based on the agreed terms while I worked on the refinance. I finally got a loan approved to pay them off and they delayed to release the pay off and forced the foreclosure while they knew very well that I was attempting to pay off the loan. The process was erroneously done because my lawyer went to tender payment and he was not allowed to do so. I asked them to split the properties so that I could pay of one at a time in a span of a week because I had funds for one with the lawyer they refused. When they refused tender of payment they split the two properties something they had refused to do for me.I filed a law suit which prompted them to Release one of the properties after sourcing funds and paying a fees to the highest bidder in addition to the pay off on one property. The Deed of one property was transferred back on condition that I sign a release that I could not sue the lender or their affiliates. I later engaged in working on getting the other property back and worked with an attorney who negotiated and I was able to get the rights of the bid assigned to my company after paying the Highest bid Deposit amount to the clerk of court and paying the bidder a transaction fee is about XXXX and XXXX to the clerk of court. After the assignment of the bid I worked on getting a loan to pay of the property but there were a few violations that I needed to address with the city before the loan could close. I worked very had and addressed them. The biggest issues was, while I was working on sourcing the loan to pay off the second property they forced a foreclosure and demanded that being now the highest bidder I should come up with the whole loan amount without giving me sufficient time to do so. I negotiated with them to accept an amount minus alot of fees that were unjustly added on to the loan considering that it was during the pandemic and offered them a pay off which they declined. I threatened them to file Bankruptcy if they did not accept my payment. They refused to accept the pay off and I FILED Bankruptcy the Day that the sale was to confirm. I now now dealt with the Bankruptcy court and they were denied stay from the court two times. I finally got a loan approved to them off and requested a pay off through the lender and their Attorney and myself. They refused to tender the payoff with the 7 day mandated time frame while they were pushing to sale the property. Their Attorney sent them emails copied to me of them requesting pay off and that the sale will confirm at a certain date but they never complied and sent a wrong one nine days later which was not acceptable to my lender because it had the wrong property address and loan number and the wrong amount. They later sent the true copy of the pay off after the confirmation of the sale which denied me the opportunity to redeem the property because my closing Attorney needed an update pay off for my lender to release the funds but they refused or deliberately held it back to allow the sale to confirm. During the course of getting funds to pay off the loan I transferred the property to an Entity I owned to enable funding of which they also did not give property service as it was the owner on record when the proceeded to foreclose and sale the property. I believe they used deceptive and unfair business practices to steal my hardly earned assets denying me income and a valuable Asset. Doing my research after the sale I realized that the company that ended up buying the property is the same company that was in the previous purchase as a highest bidder and came back again to effect what they had started. This particular company is tied with the lender and it seems that these are things that they have been doing to people. FAY SERVICING , LLC AND XXXX XXXX XXXX XXXX. This action was again repeated on my other 3rd property where they told me to pay XXXX to reinstate the loan they received the money and still proceeded to sale the property, kept the all the proceeds from the sale because it sold more than the balance and still kept my reinstate amount which they have acknowledged that is in Escrow. I have demanded for it but they have still kept it. I filed a law suit myself due to lack of funds but it was dismissed because I am not a lawyer to file a law suit on behalf of my company. I therefore believe that : 1. They refused to accept pay off by refusing to tender the pay statement in 7 days when the funds were available and Knew that I was trying to pay off the loan.

2.My company was still in the open Bankruptcy court and DENIED them stay 2 times.

3. They did not serve Notice the company on title paperwork before proceeding to sale. I have suffered irreparable harm financially, my family and partners due to stress, loss income and valuable assets. I have documented evidence and communications and payments in regard to my grievances. I have ran out of money to finance this fight.

I hope that I will get an expedited assistance to alleviate my suffering.

Company response to consumer: Closed with explanation