Consumer complaint received 2024-03-30 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Struggling to pay mortgage — An existing modification, forbearance plan, short sale, or other loss mitigation relief
Company: SELECT PORTFOLIO SERVICING, INC.
State: CA

Complaint narrative:
I am currently in a dispute with Select Portfolio Servicing ( SPS  ) that took over the servicing of one of my properties from XXXX, while I was under XXXX induced XXXX  forbearance program. Although I started making my full mortgage payments 3 months prior ( XX/XX/XXXX ) to the termination date of my forbearance ( XX/XX/XXXX ) program, SPS demanded a balloon payment of the balance incurred while under their forbearance program at the termination of my forbearance. This demand was contrary to what XXXX had offered me when I was evaluating my available options then. In my multiple communications with XXXX at the beginning of Pandemic, and while I was evaluating my available options at the time, I was assured that I will be able to request for deferment of the unpaid balance with a simple phone application process specially for borrowers with good standing and payment history like mine. This was a serious consideration in my decision-making processes since it was clear that a large balloon payment after such a crisis would not be an option since I was substantially impacted by the Pandemic. When the loan processing of the Subject Property was transferred from XXXX to SPS, I received notifications from both XXXX and SPS stating that this transition will not have any impact on the borrower and that SPS will honor and continue the same process and agreement as XXXX had made with borrowers. However, when I contacted SPS in XXXX of XXXX, I was told that their process is not the same as XXXX and I am required to complete an extensive application for loan modification if I want to have my forbearance related balance to be deferred. Even though, this was contrary to what XXXX and SPS had told me during the loan servicing transfer, I complied and submitted an extensive loan modification application with SPS on XX/XX/XXXX. 
Except the XXXX loan of the Subject Property that was transferred to Select Portfolio Servicing ( SPS ), my other XXXX loans with XXXX, after termination of the forbearance program, underwent a very simple and seamless process that included 3-months payment trial period, and it was subsequently approved for full loan deferment. XXXX delivered precisely as they had promised, and as they had described their process to the borrowers. 
On XX/XX/XXXX, after making XXXX  mortgage payments in full, and while being in SPS loan modification program process, SPS XXXXssued a notice of default demanding a balloon payment of the entire unpaid payment balance accrued while in forbearance program, for total amount of {$XXXX}. SPS  declined to accept my mortgage payments starting from XX/XX/XXXX. After informing me of referral for legal action in XXXX, SPS continued accepting my monthly mortgage payments for 2 months, XXXX and XX/XX/XXXX and then stopped accepting it from XX/XX/XXXX without providing me any letter or explanation despite my repeated request and while being under review for loan deferral. 
It took SPS almost 24 months to complete their review of my application. Within this timeframe, it is noteworthy to mention that SPS had issued the same Completion Notice letter at least 6 more times after the final one. However, soon after each being issued, SPS rescinded it with the pretext of needing additional information or document. Same information or document that they had previously requested, and that I had responded and provided. It certainly appeared that the process was built by design to dissuade the borrower from following through and simply to give up. 
On XX/XX/XXXX, after XXXX  months, hours of telephone conversations, and submittal of over XXXX  requested documents, SPS informed me that my application for deferral was denied without any clear and rational explanation except stating that their ( SPS  ) contract with the owner/investor of the loan ( that is their affiliate ) does not provide deferral as an option. After SPS denial of my loan modification and number of back and forth that are detailed below, XXXX agreed to provide me with a loan modification with a new payment that is about 20 % higher than my original payment. Considering the ongoing financial damage that this has already caused me with my other loans and financing requirements, I had no other option except accepting it and I did and made my first payment in XX/XX/XXXX for the amount of {$XXXX00}. 
Unfortunately, that was not the end of it. On XX/XX/XXXX, the day I received SPS trial modification payment plan, I was informed by the SPS Ombudsman representative that they had just reported two 90 days late payments and foreclosure to credit bureau. Even though it was SPS that refused accepting my payments after receiving my full payments for 16 months, SPS  unlawfully practiced dual tracking and placed me in their foreclosure process while processing my application for XXXX induced loan modification for the purpose of deferral of my forbearance balance. I am still in the process of resolving this matter with SPS. However, while in this process, it has substantially impacted my ability to finance my projects resulting in substantial financial damages.

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