Consumer complaint received 2024-10-11 00:00:00
Product: Mortgage — Other type of mortgage
Issue: Applying for a mortgage or refinancing an existing mortgage — Trying to communicate with the company to fix an issue with the application process
Company: Fay Servicing, LLC
State: CA

Complaint narrative:
I initially recieved a interest only Private loan for XXXX on XX/XX/XXXX from XXXX XXXX with a 8.99 % interest rate for 1 year for an investment property. Fay Servicing LLC was the servicing company. I intended to refinance immediately. I tried to refinance out of the private loan into a FHA loan for a better interest rate. I was having DTI issues due to a hike in interest rates. I attempted to qualify with several financial institutions and I was unsuccessful. In XXXX I recieved an extension which carried me to XX/XX/XXXXXXXX XXXX Communication became difficult and I continued my on time mortgage payments and was informed that my loan has mutured. I requested to restucture and or modify the loan and It became difficult to communicate or recieve timely response. I was told that the company does not restructure or modify loans. I recieved inflated amounts added to my XXXX loan. I recieved notice that my loan was now XXXX over XXXX over my original loan amount. XX/XX/XXXX I attempted to make my XXXX mortgage payment and it was refused and the loan was now deafaulted for the full amount of XXXX plus daily charges. With the current loan amount the banks woud not qualify me for a FHA loan because there was not enough equity in the property due to the added inflated loan amounts and loan to value. I later found out the loan was sold to XXXX XXXX, and Fay Servicing is still the Servicer. I attempted to sell the property, I requested to modify the loan, I attempted to qualify the tenants to buy the property so the property would not go into foreclosure and destroy my business endeavors. I attempted to use many financial agencies for assitance to try to get a modification. Fay Servicing continued to send regular mortgage statements, while refusing payments. They also refused 3 different sale offers acting as if they were willing to negotiate. They purposely prolonged resolution and charged me high fees which made qualifying for bank loans challenging for lower interest bank loans. 
The tenants at my property qualified for the $ XXXX loan to get FHA owner occupied loans, but Fay Servicing refused. This would have resolved and paid the loan in full. It is unfortunate my tenants and I tried extensively to resolve this issue. Since the loan was in default, many agencies were unable to assist. I was never late with my mortgage payments, but because the loan matured they did not want to negotiate and refused payments. 
Several agencies and attorneys have informed me that this behavior is typical of Fay servicing. I am not trying to avoid my contracted payments. I am only requesting to resume payments to continue with my business venture while keeping my tenants from being unhoused. 
Fay is intentionally making this situation difficult once they started denying my mortgage payments. I requested a breakdown of the fees I was being charged, and they refused to provide me this information. 
This behavior is financially abusive. The need to be stopped! 

Best Regards, View full complaint

Company response to consumer: Closed with explanation