Consumer complaint received 2026-06-10 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Closing on a mortgage — Closing disclosure or other related disclosures
Company: SELECT PORTFOLIO SERVICING, INC.
State: TX

Complaint narrative:
* * CAUSE NO. _____________________ * * * * XXXX XXXX & XXXX XXXX, * * * * Plaintiffs, * * * * v. * * * * SELECT PORTFOLIO SERVICING, INC., * * * * Defendant. * * * * IN THE DISTRICT COURT OF * * * * XXXX XXXX, TEXAS * * * * ______ JUDICIAL DISTRICT * * -- - # # PLAINTIFFS ORIGINAL PETITION FOR WRONGFUL FORECLOSURE, DECLARATORY JUDGMENT, AND IMMEDIATE RESCISSION OF FORCED FORECLOSURE SALE * * TO THE HONORABLE JUDGE OF SAID COURT : * * Plaintiffs, XXXX XXXX and XXXX XXXX, appearing pro se, file this Original Petition against Defendant, Select Portfolio Servicing , Inc. ( SPS ). # # # I. PARTIES AND JURISDICTION * * 1.01 * * Plaintiffs XXXX XXXX and XXXX XXXX are individuals and reside at the subject property located at XXXX XXXX XXXX, XXXX XXXX XXXX. * * 1.02 * * Defendant Select Portfolio Servicing, Inc. ( SPS ) is a mortgage servicing company subject to the Real Estate Settlement Procedures Act ( RESPA ), 12 U.S.C. 2601 et seq., and Regulation X, 12 C.F.R. 1024.41. * * 1.03 * * This Court has jurisdiction over the subject matter because the action involves title to real property located in XXXX XXXX, Texas, and damages exceeding the minimum jurisdictional limits of this Court. * * 1.04 * * Plaintiffs intend to conduct discovery under Discovery Control Plan Level 2 pursuant to Texas Rule of Civil Procedure 190.3. # # # II. PROPERTY DESCRIPTION * * 2.01 * * The property at issue is legally described as : XXXX XXXX XXXX XXXX XXXX XXXX XXXX, Phase II, an addition to the City of XXXX, XXXX XXXX, Texas ( Recorded in Volume O, Page 313, Map Records, XXXX XXXX, Texas ). # # # III. FACTUAL ALLEGATIONS * * 3.01 * * Defendant Select Portfolio Servicing, Inc. ( SPS ) conducted a forced foreclosure sale of the subject property while Plaintiffs had an active, open, and fully documented loss mitigation application under review. * * 3.02 * * The foreclosure sale occurred on or about XX/XX/XXXX. * * 3.03 * * Plaintiffs possess substantial equity in the property. A certified Uniform Residential Appraisal Report dated XX/XX/XXXX, values the property at {$600000.00}. The outstanding principal balance is approximately {$150000.00}. The total equity at risk is approximately {$440000.00}. * * 3.04 * * Plaintiffs are in the final underwriting stages of a Home Equity Conversion Mortgage ( HECM ) through XXXX XXXX XXXX XXXX XXXX XXXXXXXX, Loan Officer XXXX XXXX ( NMLS # XXXX ), Loan Number # XXXX. * * 3.05 * * On XX/XX/XXXX, Plaintiffs completed HUD-certified reverse mortgage counseling, as evidenced by the official HECM Counseling Certificate . * * 3.06 * * On XX/XX/XXXX, Defendants Consumer Ombudsman Department confirmed in writing that a hold was placed on the foreclosure file to allow Plaintiffs to complete the reverse mortgage process. * * 3.07 * * On XX/XX/XXXX, and XX/XX/XXXX, XXXXXXXX XXXX XXXXXXXX provided written updates directly to Defendant at XXXX regarding the status of the pending loan. * * 3.08 * * Despite the active hold and pending payoff, Defendant proceeded with the foreclosure sale on or about XX/XX/XXXX. * * 3.09 * * After the foreclosure sale, Plaintiffs received a 3Day Notice to Vacate dated XX/XX/XXXX. * * 3.10 * * Defendant did not post a 30day notice on the property door prior to acceleration or the foreclosure sale, in violation of Texas Property Code Chapter 51. # # # IV. CAUSES OF ACTION * * COUNT 1 VIOLATION OF RESPA, 12 C.F.R. 1024.41 ( g ) ( Dual Tracking ) * * * * 4.01 * * Defendant violated 12 C.F.R. 1024.41 ( g ) by conducting a foreclosure sale while Plaintiffs had an active, complete loss mitigation application under review. * * 4.02 * * A mortgage servicer is prohibited from moving for foreclosure judgment or conducting a foreclosure sale while a borrowers complete loss mitigation application is pending. * * 4.03 * * Defendants conduct constitutes prohibited dual tracking and is a per se violation of federal consumer protection law. * * COUNT 2 WRONGFUL FORECLOSURE * * * * 4.04 * * Defendants foreclosure sale was wrongful, inequitable, and conducted in bad faith. * * 4.05 * * Plaintiffs have substantial equity and a ready, imminent means to fully satisfy the debt within 30 days. * * 4.06 * * The foreclosure sale causes irreparable harm to elderly, vulnerable borrowers. * * COUNT 3 BREACH OF SERVICING AGREEMENT/ OMBUDSMAN HOLD * * * * 4.07 * * Defendant explicitly agreed to place a hold on foreclosure proceedings to allow Plaintiffs to complete a reverse mortgage. * * 4.08 * * Defendant breached that agreement by proceeding with the XX/XX/XXXX foreclosure sale. * * COUNT 4 DECLARATORY JUDGMENT * * * * 4.09 * * Plaintiffs request a declaration from this Court that the foreclosure sale is void ab initio due to Defendants violations of federal and state law. * * 4.10 * * Plaintiffs further request a declaration that any deed or transfer resulting from the unlawful sale has no legal effect. # # # V. REQUEST FOR EMERGENCY RELIEF * * 5.01 * * Plaintiffs request an immediate temporary restraining order and preliminary injunction to : - Stop all eviction proceedings ; - Prevent transfer of title to any third party ; - Preserve the status quo pending final resolution. * * 5.02 * * Plaintiffs request a 30day stay to allow the XXXXXXXX XXXX XXXXXXXX HECM loan to close and fully satisfy Defendants claim. # # # VI. PRAYER FOR RELIEF Plaintiffs respectfully request that this Court grant the following relief : * * A. * * Immediate rescission and reversal of the XX/XX/XXXX foreclosure sale ; * * B. * * A declaration that the foreclosure sale is null, void, and without legal effect ; * * C. * * A temporary restraining order and preliminary injunction against eviction ; * * D. * * A 30day stay to allow completion of the HECM reverse mortgage; * * E. * * Dismissal with prejudice of any related Rule 736 proceeding ( Prior Cause No. XXXX ) ; * * F. * * An order directing Defendant to correct and purge all negative credit reporting related to this foreclosure; * * G. * * All other relief to which Plaintiffs may be justly entitled.

Company response to consumer: Closed with explanation