Consumer complaint received 2018-11-06 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Struggling to pay mortgage — 
Company: SELECT PORTFOLIO SERVICING, INC.
State: CA

Complaint narrative:
To SPS ( servicer ) and XXXX XXXX ( investor ) To Whom It May Concern, SPS letter dated XX/XX/XXXX states : SPS has received and responded to these same or similar disputes from you. We feel these issues have been addressed through our previous communications. On XX/XX/XXXX, SPS responded to your concerns. A copy of the Response Letter dated XX/XX/XXXX, is enclosed. Response : SPS has not addressed our disputes in previous communications. SPS mentioned letter dated XX/XX/XXXX ( enclosed ) points out a previous Short Sale denied XX/XX/XXXX ( enclosed ) and XX/XX/XXXX ( enclosed ) stating unable to gain access. This is not true and will be covered further in this response. SPS also points out a DIL : SPS initiated a Deed in Lieu of Foreclosure review on XX/XX/XXXX ; however, this was closed by request on XX/XX/XXXX, after contact with borrower. Response : DIL request was opened on XX/XX/XXXX and closed on XX/XX/XXXX ( same day ). Borrower called SPS requesting to be reviewed for a DIL. Borrower also told SPS that she was not sure about the DIL and would like to call back if decided to cancel the request. SPS stated there would be no problem if later decide to cancel and switch to a Short Sale. After further thought, borrower called SPS back a few hours later that same day XX/XX/XXXX requesting to switch the DIL to a Short Sale review. SPS said there was no problem to switch to a short sale review and that the DIL had not been processed. Therefore, we were never reviewed for a DIL, it was never fully initiated, it never went through due to being switched to Short Sale review the same day. The above mentioned DIL and Previous Short Sale review are not a part of our disputes. SPS brings these unrelated events forward as a way avoid the main issue. The main issue is the Short Sale submitted XX/XX/XXXX, which was in review at the time SPS foreclosed XX/XX/XXXX, which is Dual Tracking. 
SPS letter dated XX/XX/XXXX again states : SPS initiated a Short Sale on XX/XX/XXXX. As outlined in the enclosed Short Sale Denial Letter dated XX/XX/XXXX, SPS did not offer an -approval on this review because we were unable to gain access to the property in order to complete an interior valuation. Response : Again, SPS brings up this unrelated previous short sale review to the forefront to avoid the Dual Tracking on the most current short sale event. In response to the unrelated previous short sale review, which SPS also wrongfully handled and accuses borrowers of not allowing access. We would like to shed truth with the enclosed screen print of text messages dated XX/XX/XXXX from appraiser to borrower from XXXX to XXXX showing we allowed access to the property and the appraiser stated SPS cancelled the request. SPS cancelled our appointment with the appraiser as reflected on the text messages. SPS cancelled our short sale stating unable to gain access, which is not true as proved in the text messages. 
SPS letter dated XX/XX/XXXX further states : In your inquiries, you indicated that SPS did  not acknowledge a Short Sale offer on XX/XX/XXXX. Please note that on XX/XX/XXXX, SPS initiated an Assistance Review Application for a retention offer and not a review of a Short Sale. Response : We are aware that the Assistance Review Application Decision dated XX/XX/XXXX reflected a retention Repayment Plan ; however, SPS continues to leave out the part of the letter ( enclosed ), which states If this payment is not affordable, we offer home non-retention options for which you may be eligible, which are described below. Non-Home Retention options : Short Sale and  Deed in lieu of foreclosure. A Short Sale Acceptance form was also attached as an option, which states : Send this signed form with your Property Listing Agreement ( signed by all borrowers ) and the enclosed Authorization Form by XX/XX/XXXX to start the process. You dont need to send a payment at this time. After we receive the documents above, we will contact you with information about the specific details about the sale process. Response : The payment was not affordable ; hence, we submitted the Short Sale Acceptance form on XX/XX/XXXX ( enclosed ) as offered and received an email receipt from SPS on XX/XX/XXXX ( enclosed ). In addition, we received several subsequent correspondence verifying receipt of the Short Sale Acceptance form as follows : XX/XX/XXXX ( enclosed ) SPS letter states : received paperwork and it was being directed to the appropriate department for handling ; XX/XX/XXXX ( enclosed ) SPS letter states a foreclosure sale date scheduled for XX/XX/XXXX further states SPS still reviewing for foreclosure prevention ; XX/XX/XXXX ( enclosed ) SPS letter states the foreclosure sale was postponed until XX/XX/XXXX while SPS continued to review us for foreclosure prevention ; XX/XX/XXXX ( enclosed ) SPS letter states the sale cancelled while they review us for foreclosure prevention. SPS never contacted us to notify us of any further required documents for the Short Sale Acceptance form and when we called them, they stated it was in review and that no further documents were required at the time. 

SPS letter dated XX/XX/XXXX also states : As outlined in the enclosed Assistance Review Decision Notice dated XX/XX/XXXX, SPS offered a Streamline Repayment Plan. SPS sent the enclosed Application Withdrawal dated XX/XX/XXXX, because we did not receive any of the payments as outlined in the approved Streamline Repayment Plan. Response : XX/XX/XXXX Application Withdrawal ( enclosed ) letter states : SPS now consider our assistance request withdrawn because you were offered a streamline repayment plan but did not accept the offer of loss mitigation assistance by the established deadline. SPS continues to outline the Assistance Review Decision based on us not accepting the repayment plan, neglecting to  acknowledge their repayment plan letter also stated If this payment is not affordable, we offer home non-retention options and You dont need to send a payment at this time. After we receive the documents above, we will contact you with information about the specific details about the sale process. The withdrawal letter does not address the Short Sale Acceptance form. Although SPS confirms ( in the many letters mentioned above ) we were being reviewed for foreclosure prevention ( short sale being the only other option we submitted documents for ) SPS foreclosed XX/XX/XXXX. Which is Dual Tracking. SPS failed to properly review or simply neglected the Short Sale Acceptance form option they offered us, we never received an approval nor denial for the Short Sale Acceptance form. We were in review and then foreclosed upon on XX/XX/XXXX while pending this review decision. SPS later rescinded the XX/XX/XXXX foreclosure claiming unclear language in letter dated XX/XX/XXXX ( enclosed ) states : We understand the language of the enclosed Application Withdrawal Letter sent on XX/XX/XXXX, may have been unclear. As a courtesy, we have agreed to rescind the foreclosure sale that took place on XX/XX/XXXX. SPS  denies dual tracking, again this was dual tracking and SPS should allow us a proper short sale review. I feel SPS should take full responsibility for our inability to save our home as this is what we have been going through with SPS for many years. Hence, the reason we are so behind on payments is due to years of trying to get SPS to give us a proper review. 
SPS letter dated XX/XX/XXXX states : We were unable to offer you a Proprietary Trial Modification, including an interest rate reduction, because we were unable to create an affordable payment without changing the terms of your account beyond the program requirements. Response : for the past 8 years SPS has denied us any modification, including any government HAMP programs when they were available. SPS letter dated XX/XX/XXXX Regulatory Notice of Non-Approval - Deferral Plan : Pursuant to the servicing agreement governing this account, the owner of your mortgage has a right of approval and has denied this option based on a business decision, We feel that the business decision is discrimination, we are being discriminated against by SPS and XXXX XXXX based on our ethnicity and property location. Every time we call SPS we are most harshly treated, it is an awful experience to speak to SPS. SPS has made it impossible to resolve anything the entire time they have serviced our loan. Even to this point, they refuse to accept fault and respond with baffling untruths and add unrelated events in order to disguise their dual tracking and other servicing errors. SPS letter dated XX/XX/XXXX ( attached ) is just another example of their servicing errors. In the first paragraph under Short Sale it states SPS does not have record of a short sale being offered in XX/XX/XXXX, yet on the third paragraph SPS states SPS did receive your listing agreement and signed Short Sale acceptance form. Then lists items missing that were not applicable for the review in the first place. It is not our fault that SPS does not have record of a short sale being offered in XX/XX/XXXX, we have enclosed the email receipt and letters showing receipt that SPS received our Short Sale Acceptance form offered on XX/XX/XXXX, and submitted on XX/XX/XXXX. 
SPS letter dated XX/XX/XXXX states as follows : SPS received your Listing Agreement and signed Short Sale Acceptance form. However, we did not receive the signed General Third Party Authorization Form or a written offer, which were also required. Response : According to the Short Sale Acceptance form submitted XX/XX/XXXX, a signed General Third Party Authorization Form was not applicable as there were no third parties involved, all communication was solely between SPS and borrowers. A written offer was not a required document on the Short Sale Acceptance form ( enclosed ). Furthermore, if any documents were missing SPS never mentioned this to us over the phone nor in writing prior to foreclosing, this is the first we hear of such missing items. 
SPS letter dated XX/XX/XXXX states : There is a foreclosure sale scheduled to occur XX/XX/XXXX. Response : SPS refuses to review us for Loss Mitigation or Foreclosure Prevention and plan to foreclose without giving us the right to Short Sale, DIL or home retention based on a business decision, which they will not disclose details of. They simply refuse to practice Fair Lending. 
As mentioned on OCC.treas.gov and HUD.gov site : The Fair Housing Act ( FHA ) and Equal Credit Opportunity Act ( ECOA ) protect consumers by prohibiting unfair  and discriminatory practices. 
https : //www.occ.treas.gov/XXXX  -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- The Fair Housing Act makes it illegal to discriminate against someone because of race, color, religion, sex, familial status, national origin or XXXX at any stage of the mortgage process, including : Approvals and denials Property appraisals Servicing Home loan modification assistance https : //www.hud.gov/XXXX SPS practiced Dual Tracking on our loan as mentioned on www.consumerfinance.gov site : The CFPBs mortgage servicing rules ensure that borrowers in trouble get a fair process to avoid foreclosure. Borrowers shouldnt have to worry about mortgage servicers cutting corners or losing applications for relief. They should be told about their options and given time to apply and be considered for loan modifications and other alternatives. Most of all, they shouldnt be surprised by the start of a foreclosure proceeding until they have had time to explore all available options. If they act diligently to seek alternatives, they should not face a foreclosure sale before their applications have been evaluated. ( We were diligently seeking alternatives, as reflected on all enclosed supporting documents while SPS foreclosed on XX/XX/XXXX. ) The new protections for struggling borrowers include : Restricted Dual-Tracking :  Under the CFPBs new rules, dual-tracking when the servicer moves forward with foreclosure while simultaneously working with the borrower to avoid foreclosure is restricted. Servicers can not start a foreclosure proceeding if a borrower has already submitted a complete application for a loan modification or other alternative to foreclosure, and that application is still pending review. 
https : //www.consumerfinance.govXXXX -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- Note : As previously mentioned, we were pending review of the Short Sale Acceptance form offered in XX/XX/XXXX while SPS foreclosed XX/XX/XXXX prior to completing the Short Sale review. 
-- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- SPS letter dated XX/XX/XXXX states : Please contact SPS regarding relocation assistance options relating to this property. Interest Rate - In the inquiries, you also questioned the interest rate on the account. Your account is an Adjustable Rate Mortgage, which means that your interest will adjust periodically based on the Adjustable Rate Note you entered into at origination. A review of the enclosed Adjustable Rate Note shows that the interest rate is reviewed and, if necessary, adjusted twice a year. Enclosed is the most recent Adjustable Rate Mortgage Change Notice dated XX/XX/XXXX, which states that as of the XX/XX/XXXX, payment, the interest rate will adjust to 7.625 %. Response : We are aware of our interest rate being an adjustable, we did not request an explanation of the terms, we brought it up to show how SPS has denied us any help including leaving us in an adjustable rate this entire time, unwilling to consider us for a lower fixed rate modification, allowing us to accumulate high interest rate charges. To note : we entered into this adjustable interest rate at origination in XXXX prior to the recession in XXXX, leaving us unable to refinance into a fixed rate as we hit one of the hardest recessions of our time, which was out of our control, caused by the mortgage crisis that took place. 
SPS letter dated XX/XX/XXXX states : However, your account is due for the XX/XX/XXXX, payment. As of the date of this letter, the account is due for XX/XX/XXXX, or 117 payments past due. Response : This is due to the mortgage crisis that took place and we have not been able to get help of any kind, not even through government programs when they were available due to lack of proper servicing by SPS and XXXX XXXX. 
We request that SPS and XXXX XXXX allow us the opportunity to prevent foreclosure as this will have a huge impact in our ability to move forward in finding an affordable future home.

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