Consumer complaint received 2025-07-09 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Struggling to pay mortgage — Applying for or obtaining a modification, forbearance plan, short sale, or deed-in-lieu
Company: SELECT PORTFOLIO SERVICING, INC.
State: FL

Complaint narrative:
XXXX XXXX XXXX XXXX purchased a home in Alabama with a loan from XXXX XXXX.  Initially, the loan broker, XXXX XXXX, assured me that I could roll in the costs to repair this house,  but then he stated that this would be impossible and that he would just assist me in getting a loan after we closed. It was much better to just quickly close.  The house was in need of substantial repairs and upgrades. The flooring was bare subfloor in the loft, and there was a crack in the fire box, the flooring was decrepit, and the balcony upstairs was rotted, the inside of the house was very dated as well. And there were things that needed to be repaired such as leaks in the plumbing. At that time, I did not worry about acquiring the loan for the repairs because he guaranteed that he would help me to get the loan sorted out for the repairs after closing. That never happened. His company, it turns out, sold my loan immediately, right after the ink was dry. And then I could not contact him for three weeks because he was out of town. He wouldnt even allow me to delay payment for a month because he said it would cause accrual of more interest.  So he started payments immediately.   And then left town for three weeks it impossible to contact him   And when he got back in town, he told me that my loan was sold. And, when he calculated my debt to income ratio, he said that it was impossible for his company to give me a loan, which I am sure that he had figured out before he gave me the loan in the first place but did not inform me.  It felt like he got me the loan, all the while planning to sell it right away and make a quick buck.  He said he felt terrible so he gave me the name of an associate that he felt sure would give me the loan.  Millenium bank could not give me a loan either. Then I asked my bank, XXXX XXXX. My bank may have been able to give me alone, but she told me that they have a rule that one has to own the home for six months to get the loan. So, I have been using my HELOC on my primary residence and on a second home that I own to support of my disabled sister and her disabled husband and, their very sick daughter (who just died at XXXX XXXX XXXX  recently), her son, and our disabled mother who also died (a few years ago).  I have supported my sister, giving her $100,000 and housing over the last 10 years.  And I used my tiny 401(k) to get this house to try to invest so that I may someday be able to retire. But I am rapidly running out of money and I have not been able to rent the house in the shape that it is in. So I have been having to pay XXXX  a month for the mortgage and, because I put new flooring inXXXX XXXX a month for that. When I asked Select Portfolio Services to please allow me to wait three months to make further payments, so that I could make the needed repairs, and that as soon as the house was finished, and it was rented, I could resume payments. I predicted about three months, as it takes time to make the repairs, its a six week wait to get it painted. It is a very reasonable request. Especially in light of the fact that I have a good credit rating, and I have been able to work six days a week to maintain the ability to keep up with the payments. I have gone through this very arduous process of requesting their assistance, which was very distracting from my job, but I was able to give them the paperwork multiple times. Because they did not look in certain files to see that I had already submitted the financial paperwork that they requested. This whole process took a couple of months. And they make it very difficult to contact them. Some of their links are broken or they dont work half the time.  You have to contact them through the ombudsman.  It was a very difficult and lengthy process, only for my request to be rejected. Of course they tried give helpful abdvice, recommending that  I should offer it as a short sale. I am not interested in losing XXXX of my investment in a short sale. It is almost as if this thing was planned from the beginning. They knew that it was a high risk loan when I did not.  Interestingly of the first few payments that I have made $11,000 has gone towards interest and $1000 has gone towards principle.   I think that my faithfulness to make payments should count for something. And if things didnt work out, I could always do the short sale after they hold off on three months worth of payments. And also if I decided to sell it myself they are going to penalize me $22,000 which is twice with the average mortgage company charges as a penalty for early pay off. I feel like I have been backed into a corner. All I asked was for them to hold off on three payments and tack them on at the end and they simply refuse to do it. It makes me feel like theyre just wanting me to default on the loan so they can take my house. This is everything that I have to retire on. I have nothing left in my 401(k). The house was $550,000. The loan was for $440,000. I used my 401(k) as the down payment and the HELOC for the closing cost. (And $10,000 from the HELOC towards the rest of the down payment) as Mr. Byram had suggested. And now I borrowed $22,000 for the flooring. $8000 of my HELOC for the Countertops, $900 to fix the porch. $1000 to fix one single toilet, which was still leaking after he assured me that he fixed it. I also had to pay to have it cleaned. and I have to pay $9000 to have it painted. Inside only. This is not include the $30,000 for the boat house which I consider as a luxury at this point. I will have to pay all of this money back even if I do the short sale. So I am not interested in using all of my investment and then be settled with a huge lump of debt. I also have to pay to have the fire box fixed. All of these things if I had gotten the loan, I would not have had to scrape and work extra, although I dont mind working extra. I am a hard worker. I have worked 90 hours a week for decades. I only recently took a job working 55 hours a week.   But now I have to work Saturdays and the holidays to try to keep from losing the home. I asked them to allow me to hold three payments.  This is a reasonable request. It feels like they are just trying to take my home. Like they planned it. And they were in cahoots with the original Lender.    I dont even know if this house will sell now in this market. So now I have to work terribly hard not to lose this house. Not to lose everything that I have worked hard for. As it is, I cannot retire till Im 70. It looks like I wont ever be able to retire if I Lose this house. And I dont want to lose the ability to support my sister. I believe that people should take care of their family and I have been doing it for decades now.  I dont know if you can ask them to please allow me to delay three payments or not. But it certainly would be helpful and I would be grateful. You might want to investigate the practices of these two lenders. Cross Country Mortgage and Select Portfolio Services.  Perhaps I was nave, and maybe even foolish, but it certainly smacks of something being a awry in this situation.  Thank you for your kind assistance.'

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