Consumer complaint received 2023-06-22 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Closing on a mortgage — 
Company: SELECT PORTFOLIO SERVICING, INC.
State: TX

Complaint narrative:
Dear SPS, We purchased a home and through title office paid off the seller 's mortgage serviced by SPS who accepted funds matching XXXX XXXX. The following week, SPS later conducted an illegal foreclosure. We have been told through our title company that the Foreclosure XXXX has unwound that foreclosure but as of this writing we have no proof of that ). As buyers, we were also pressured after closing to pay $ XXXX additional above and beyond the seller 's payoff statement or they would return our payoff wire and keep a much larger amount from the highest bidder at foreclosure auction. 

Below are the relevant facts : SPS Servicing refused to provide payoff statement to borrower good through the foreclosure date as required by Texas law despite repeated requests beginning 14 days in advance. 

SPS refused to provide breakdown of $ XXXX escrow impound. 

SPS conducts the auction after they have accepted payoff funds in the amount of XXXX payoff and the deed is recorded. 

Despite also declaring at the auction that the payoff opening/credit bid was $ XXXX same as XXXX payoff, SPS then threatens to return the $ XXXX payoff and keep the $ XXXX winning bid unless we increased our $ XXXX to $ XXXX by immediately sending {$4800.00} Additional funds had to come from the buyer by that point. Below is a summary of the relevant facts to this illegal foreclosure : XX/XX/XXXX Property under contract XX/XX/XXXX Phone call to SPS Servicing w/Seller and Buyer to request Payoff, Reinstatement Good thru XXXX XX/XX/XXXX Received $ XXXX Payoff Statement but is only good thru XXXX. SPS is requested to provide GT XXXX XX/XX/XXXX XXXX XXXX XXXX form sent to SPS again requesting payoff valid thru XXXX Also requesting breakdown of $ XXXX Escrow impound part of payoff statement XXXX Various calls to SPS for payoff GT XXXX. Despite submittal of XXXX XXXX XXXX, SPS refuses to discuss or provide information XX/XX/XXXX Buyers and Sellers sign/notarize closing docs XXXX early morning lender sends funds to Title XXXX afternoon Title sends funds to SPS XXXX SPS Receives XXXX Funds XXXX Deed and Deed of Trust Recorded XXXX XXXX Clerk XXXX Foreclosure Trustee Auctions off the house anyway declaring opening bid of $ XXXX XXXX Seller has spent {$400.00} to date in various rent application fees and being denied largely bc of foreclosure auction XXXX SPS claims the payoff increased in one day XX/XX/XXXX by $ XXXX to $ XXXX for property insurance. Suggests if we dont pay immediately they could return the $ XXXX and move forward selling to bidder at auction for $ XXXX XXXX Buyer through its lender wires an additional {$4800.00} to SPS XX/XX/XXXX SPS confirms receipt of funds and advises foreclosure trustee of receipt of funds While our Title company assures us that the illegal foreclosure has been unwound, the seller still has nothing to mitigate against reputational damage and is therefore unable to obtain approval to obtain housing. 

Buyer is out the additional {$4800.00}. Buyer also can not take possession of property until seller is able to get Landlord approval beings denied due to illegal foreclosure.

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