Consumer complaint received 2024-12-23 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: Fay Servicing, LLC
State: FL

Complaint narrative:
FAY SERVICING The address of the property is : XXXX XXXX XXXX XXXX, XXXX XXXX, FL XXXX. 

Urgent Request for Investigation and Enforcement of Legal Violations by Mortgage and Insurance Companies Good Afternoon, My name is XXXX XXXX, and I am the owner of a property management company based in XXXX XXXX, Florida. I am reaching out to bring attention to a series of unlawful actions taken against my business and properties by Fay Servicing and our insurance provider, XXXX XXXX XXXX XXXX, which have severely disrupted our operations and threatened our financial stability. These actions have left us facing significant losses and jeopardized our ability to operate. 
Background Due to the devastation caused by Hurricanes XXXX ( XX/XX/XXXX ) and XXXX ( XX/XX/XXXX ), we sought assistance from Fay Servicing for the loans we hold. The President declared a major disaster for Florida on XX/XX/XXXX, in response to the damage caused by these storms. Despite filing insurance claims promptly, we have yet to receive any payments for necessary repairs on our properties. 
However, instead of assisting us in our recovery, Fay Servicing has initiated numerous foreclosure actions against us, causing a significant financial loss. Fay Servicing has imposed excessive fees, sent notices indicating a lack of active insurance policies, and refused to process our claims, claiming they could not proceed without updated insurance information. 
Furthermore, property preservation companies, hired by Fay Servicing, have unlawfully entered our properties, changed locks without permission, and disturbed tenantsactions that have harmed both our business operations and tenant relationships. These violations have continued despite our bankruptcy filings and compliance with all relevant bankruptcy provisions. 

Issues with Insurance Companies Fraud and Statutory Violations XXXX XXXX XXXX XXXX XXXX XXXX XXXX has committed fraud by withholding funds and refusing to pay out claims for our properties. Despite legitimate claims and verified damages, they have delayed payments, withheld insurance funds for years, and failed to disburse any payments for necessary repairs.

The actions of our insurance company constitute clear violations of state and federal insurance regulations, including : o Florida Statutes 627.70131 ( Prompt Payment of Claims ) This statute requires insurers to initiate an investigation within 14 days and conclude investigations within 90 days. The insurers extended delay and refusal to pay for legitimate claims constitute clear violations of this statute. 
o Florida Unfair Insurance Trade Practices Act ( 626.9541 ) This statute prohibits unfair claims practices, including failing to promptly settle claims where liability is clear and committing acts of bad faith. The insurers delay in disbursing funds or communicating timelines is a violation of this statute.

Current Issues with Fay Servicing Foreclosure Actions and Fees Instead of assisting us during this difficult time, Fay Servicing has initiated numerous foreclosure actions against us, causing a significant financial loss. These actions have resulted in the imposition of excessive fees and late charges, placing further strain on our business. Additionally, they have sent notices claiming that the lack of an active insurance policy has prevented them from processing our claims, despite the fact that we have valid insurance in place. 
Unlawful Entry by XXXX XXXX XXXX Fay Servicing XXXX XXXX XXXX XXXX, which unlawfully entered our properties, changed locks without permission, and disturbed tenants. These actions have further harmed our business, especially as we were under a bankruptcy plan. These violations have been exacerbated by the financial hardship caused by the hurricane damage and the failure of mortgage companies to provide assistance. 
Further Damage from Recent Hurricanes Our business suffered additional damage from Hurricanes Helene ( XX/XX/XXXX ) and Milton ( XX/XX/XXXX ), which has severely disrupted the repairs we were able to initiate after the previous storms. The ongoing damage from these hurricanes has compounded the difficulties we are facing, and we are still awaiting necessary insurance payouts to begin repairs. 
Legal Violations We have documented several violations of federal law committed by Fay Servicing, insurance providers, and their agents. These include : Bankruptcy Plan Violations These companies have violated discharge injunctions by sending default notices, initiating foreclosure procedures, charging excessive fees, and hiring property preservation companies to trespass on our properties. This constitutes a direct violation of the protections afforded to us under bankruptcy law.

Violations of Automatic Stay ( Sections 5, 6, and 7 of Section 362 of the Bankruptcy Code ) o Fay Servicing has refused to accept our payments, returned checks, and ignored requests for assistance.

o They have added unjustified fees to loans during the active bankruptcy plan. 
o They have sent default notices despite our compliance with the terms of the plan, including making timely payments. 
Failure to Meet Obligations Under Federal and State Laws Post-Disaster o Our mortgage lenders have failed to provide loan term modifications, as required by the Consumer Financial Protection Bureau ( CFPB ) and the Florida Office of Financial Regulation in disaster scenarios.

o They withheld insurance funds, even though checks were payable to me, XXXX XXXX. 
o They have not provided any loss mitigation or forbearance options during or after the hurricanes, in direct contravention of the CARES Act provisions.

Legal Basis for Violations In addition to the violations noted above, several other legal provisions have been breached, including : Trespass to Property o Legal Basis : Florida law defines trespass as unauthorized entry onto another persons property, especially where " No Trespassing '' signs are posted. 
o Violation Details : Property preservation companies entered properties without consent, despite visible " No Trespassing '' signs, resulting in unauthorized access.

Illegal Lock Changes and Tenant Interference o Legal Basis : Under Floridas Residential Landlord and Tenant Act, unauthorized lock changes and interference with tenants possession of the property are illegal without a court order.

o Violation Details : Locks were forcibly changed on multiple properties while tenants were legally in possession, disrupting tenant rights and property control.

Civil Theft and Conversion o Legal Basis : Conversion occurs when unauthorized actions deprive the property owner of their personal property. Civil theft involves intentional control or deprivation of property.

o Violation Details : Property preservation companies removed personal property, including " For Rent '' signs, and changed locks without authorization, depriving us of rightful control.

Breach of Peace in Enforcement Actions o Legal Basis : Florida law mandates that any enforcement actions, including repossessions or foreclosures, must occur without a breach of peace. 
o Violation Details : Breaking into homes, forcibly changing locks, and creating disturbances constitute breaches of peace during property enforcement actions.

Florida and Federal Statutes Governing Repetitive and Excessive Actions Florida Statutes : o 95.11 : Establishes the statute of limitations for foreclosure claims.

o 83.67 : Governs illegal actions such as unauthorized lockouts or interference with tenants ' rights.

Federal Laws : o Fair Debt Collection Practices Act ( FDCPA ) : Prohibits harassment, unfair practices, and repetitive legal actions by creditors or their agents attempting to collect debts.

o Dodd-Frank Act : Requires mortgage servicers to follow strict procedures when handling properties, especially in foreclosure, including respecting legal stays and avoiding excessive or unlawful property entries. 
Request for Enforcement Despite our efforts to engage attorneys and resolve these matters, Fay Servicing and XXXX XXXX XXXX XXXX have continued to violate our rights, causing severe damage to our business operations. We are on the brink of failure due to these actions, and we urgently request government enforcement to hold these companies accountable. 
The impact of these violations has left us without income, severely damaged our ability to operate, and further delayed our recovery from the hurricanes. We ask for your immediate intervention to ensure these companies face the appropriate consequences for their actions. 
Please feel free to contact me directly at ( XXXX ) XXXX or via email at XXXX. Thank you in advance for your attention to this urgent matter.

Company response to consumer: Closed with explanation