Consumer complaint received 2019-05-15 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — 
Company: SELECT PORTFOLIO SERVICING, INC.
State: CA

Complaint narrative:
I found an unexplained fee of {$1700.00}. on our Mortgage Statement from Select Portfolio Servicing ( SPS ) on XX/XX/19. I called SPS and determined it was legal fee from a foreclosure under our original lender, XXXX XXXX. I reported to SPS that this fee was not something we were liable for. During the collapse of the housing market, we were deeply underwater. We called XXXX XXXX about the new federal HAP. They told us we had to let our payments fall behind by at least two months before they would even discuss the program with us. We followed their direction, withheld payment, and submitted all the forms as requested. We were told specifically that as long as we had submitted our application for the government supported program, and were in contact with our lender, which we were constantly, there would be no foreclosure process initiated. 

That's when someone knocked on our door asking to see the house because it was listed as for sale at an auction THE NEXT DAY! I got on the phone with XXXX XXXX, and was told nothing could be done over and over. I insisted on being passed to one supervisor after another. Finally, I got someone who stopped the sale. She acknowledged they had all our paperwork, and the foreclosure shouldn't have been initiated. My wife, young daughter, and I were some of the lucky ones. Our next door neighbors were not ; they lost their home the same way. 

I told all this to SPS, and he acknowledged that he had heard that this was a common thing. He said he would file a inquiry with their Ombudsman 's office. Today, I returned a call from them, and was told they found the fee was legitimate. They kept telling me I was in default, so the bank had a right to foreclose, and charge me the fees. I noted that we had followed XXXX XXXX 's own directions to the tee, applied for the government refinance program immediately, and were in constant contact with XXXX XXXX. We had no warning, and XXXX XXXX and others were bailed out by taxpayers ; were trying to steal our house out from under us ; have paid massive fines for illegal activity, though none have gone to jail. I will not the legal fees of the thieves we caught in our living room. My family was one day  away from homelessness. XXXX could not tell me who this fee would go to.

I've attached the letter from the XXXX Ombudsman, which refers only to the former servicer as XXXX, which took over the loan from XXXX XXXX. It is confusing, because it states that the obligation may have been discharged through a bankruptcy we filed. 

I just read about the founding of the CFPB in XXXX XXXX 's books. I hope you will help persuade XXXX, XXXX XXXX, XXXX, and whatever law firm is involved in this unscrupulous grand theft, to forgo the fees they are still trying to extort from innocent home owners, based on their own past nefarious schemes. 

Thank you.

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