Consumer complaint received 2025-06-22 00:00:00
Product: Mortgage — Home equity loan or line of credit (HELOC)
Issue: Trouble during payment process — Trying to communicate with the company to fix an issue while managing or servicing your loan
Company: SELECT PORTFOLIO SERVICING, INC.
State: CA

Complaint narrative:
Here is the timeline to the best of my knowledge. XXXX XXXX XXXX  holds our first and will be referred to as XXXX  from here on out, Select Portfolio Servicing holds out second and will be referred to as SPS from here on out. 

XX/XX/XXXX we moved into the house. After what was supposed to be a XXXX  day escrow stretched into a XXXX  day escrow with XXXX not giving us the final approval for our loan until AFTER our house had already sold and we had to beg the buyers to let us remain in it until our loan finally closed. The day before the end of the deadline where we would lose the house we were buying and be homeless because our previous house sold, our mortgage rep told us there was a new program she was putting us in that would split the jumbo loan into XXXX conventional loans and it would end the long back and forth process. We agreed without fully understanding it because we were down to the wire. It was only AFTER the loans closed that we found out that our second was through SPS. 

First payment isn't due until XXXX. 

In XXXX we call for our loan numbers and were told none are generated yet. At this point XXXX payments were made to our insurance ( XXXX  ) and XXXX was refunded to us in XXXX. XXXX is telling me these were from the close of our house ( XXXX XXXX ) and from our first ( XXXX  ). SPS is saying XXXX payment was from them. 

XXXX we get statements from both XXXX and SPS, both showing an escrow account attached. Only XXXX escrow account is required. We contact XXXX and they go back and forth with SPS to get it resolved. In the meantime we pay the duplicate escrow with SPS for XXXX and XXXX. 

We are told around this time that when the SPS escrow account was opened it contained a {$1100.00} positive balance. This dollar amount was " refunded '' and pulled from the account in XXXX. SPS can not tell me where this positive balance came from or where the refund was sent. They are unsure if it was a simple clerical error or if the sale of the house accidentally added to the balance and then was refunded back to XXXX XXXX. 

XXXX paid each month is ( roughly ) {$1100.00} for a total of {$2300.00}. ( Not including the mystery positive balance that was in the account when it first opened. ) While paying, we called weekly to work on getting the escrow account closed. Every week we were on the phone or emailing with other SPS or XXXX to the point where I would joke I needed to be added onto payroll for spending HOURS doing their jobs for them. 

In XXXX I am finally able to get SPS to recognize that they are the second mortgage, and to close the escrow account. Around this time they take the {$2300.00} that we paid for XXXX and XXXX, and without our permission apply this dollar amount to the principle of our loan. I can not find a record of them alerting us of this other than an amended document that does not explain where the funds came from so we had no clue up until this point. 

This leaves our escrow account at a negative balance since they have ( according to them ) paid the insurance payment in the amount of {$2900.00} and moved the money in the escrow account that would cover it to the back end of principle for our loan. Due to this shortage on the closed escrow account our mortgage payment goes up approx {$150.00} a month to cover the shortage. 

This is where each department is telling me a different story, The ombudsman department is saying XXXX is the payment that is affected, the SPS customer support line is telling me XXXX is. 

In XXXX we notice that our XXXX payment is not showing applied to our loan and our escrow balance sits at a negative of about {$2400.00}. I called and spoke to someone who asked for proof of payment. On XX/XX/XXXX I sent a screenshot of our bank account showing the amount was paid. 

On XX/XX/XXXX I spoke to SPS customer service line again and they told me the screenshot was not enough, they needed a whole bank statement. This was submitted, but they marked us as past 30 days due on the XXXX payment and canceled our autopay for XXXX without our knowledge. This is when I spoke to the Ombudsman department. They were able to see that we had paid each month, but was not sure where the payments were since they were not applied to the loan. XXXX in that department said he was not sure why the escrow account shortage was messing up all the monthly payments and he opened a ticket to see if the XXXX are connected and to see where our money went. 

I spoke to XXXX again this morning to see if there was an update and there was not. 
We made a manual payment on XX/XX/XXXX which they applied to XXXX. Now they have marked us as unpaid and past due for XXXX. 

On XX/XX/XXXX I spoke to a supervisor that said the loan payment for XXXX was " reversed '' but did not know where it went. I was told that we could file a dispute with them and that would take 30 days to investigate and 60 days to fix the credit reporting. 

Let me know if anything needs clarification or more details.

Company public response: Company believes complaint is the result of an isolated error
Company response to consumer: Closed with explanation