Consumer complaint received 2019-02-06 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — 
Company: Fay Servicing, LLC
State: KY

Complaint narrative:
Every 6 months or so, every since loan was sold to XXXX, and serviced by first XXXX ( from XXXX XXXX to XX/XX/XXXX ), and then transferred to Fay Servicing in XX/XX/XXXX until present, we are threatened with foreclosure proceedings and told we have missed several months in payments. After providing proof ( Bank statements ) of the so-called missed payments, the motion for relief of automatic stay ( we were in bankruptcy for the first 3 threats of foreclosure ), the motions are dismissed but attorneys fees are added to our loan balance ( several thousand dollars in attorney fees thus far ). However, this last time ( beginning in XX/XX/XXXX ), we were actually served with foreclosure papers, as we have no attorney, and had our bankruptcy dismissed this past XXXX ( XXXX ), in hopes of at least attempting to save our home. We are once again being told that we have not made a payment since XX/XX/XXXX, despite bank records proving that we have made the payments. Included in the paperwork from Fay Servicing, however, is a breakdown of our payments and how they are being applied. It seems that when a payment ( a full payment, as I have never made a partial payment, and have in fact except for only 2 or 3 times, paid more than our regular monthly payment ), the majority of payment is put in a suspense account, as well as a corporate account?? These payments made on time, are held for months at a time before they are ever applied to a payment. Currently Fay says we only made 4 payments in XXXX, XXXX, XXXX, XXXX, and XXXX ( which is not true ), but the tax statement showing what is reported to the IRS for the XX/XX/2018 year shows a total of {$5800.00} paid in interest, and principal payments of {$1100.00} These amounts are also faulty however, due to the fact that when added together they total the exact amount of what our payments would be for the whole year had we made all 12 reg. monthly payments ( example XXXX x 12 = {$6900.00} ). As I have always paid more than reg. payment ( {$580.00}, or {$600.00} ), these figures are false also. Ironically, the payments Fay Servicing say we have not made and are now in default over, and the reason for this latest foreclosure ( XX/XX/XXXX-XX/XX/XXXX ) show up in their ( Fay Servicing ) accounting ( please see documents attached ) as being paid for the months they were due, but as usual held in suspense until months later. We have tried repeatedly to resolve this issue with Fay Servicing, to no avail. We have also ask repeatedly why our payments are held in suspense and no one can tell us. The last time we spoke with Fay we were told that the problem is not with them but due to the fact that we haven't made our payments, even though their own records show the very payments they say we've missed. I am also attaching a petition that XXXX 's attorneys prepared the last time they did this ( XX/XX/XXXX ) that says we cured our arrearages since the filing of the motion ( XXXX ), a blatant lie, as my bank statement would attest to, and that if they ( XXXX ) found us in default again they would foreclose on our house without even going to court. Of course we did NOT sign this, as this is a company that says we are in default every 6-8 months when we are NOT. I am also including the payment ledger I received  from XXXX XXXX ( a former employee of Fay, and our loan manager ( until shortly after him sending this document to me ) at which time he was no longer with the company we were told. In this ledger you can see an alleged payment of over {$3200.00} showing up on XX/XX/XXXX that was applied to the payments they said we had not made. The fact that I did NOT pay this amount at one time, but it somehow miraculously showed up after the account was investigated just prior to the court date, proves these monies were there all along, and just not properly applied. I feel that the dishonestly and faulty servicing practices of this company more than speaks for itself, and to be honest, I do NOT see how a company such as this is allowed to continue such illegal practices. The fact that we can NOT refinance with another bank, due to the dismissed bankruptcy, and our negative credit score thanks to Fay servicing 's practices we are stuck with a company that seems determined to take our home. Please HELP US!!!!

Company response to consumer: Closed with explanation