Consumer complaint received 2021-06-19 00:00:00
Product: Mortgage — Other type of mortgage
Issue: Trouble during payment process — 
Company: SELECT PORTFOLIO SERVICING, INC.
State: GA

Complaint narrative:
On XXXX XXXX received a Contract for the sale of a Condominium residence that I own and occasionally occupy. 

Given that the Contract was for substantially less than what was owed on the property I decided to accept the Contract with a condition that it was subject to the approval of a Short Sale by the Servicer and the Investor of the Loan. 

On XXXX XXXX I submitted a request to the Mortgage Servicer to approve the Short Sale along with the request I compiled and uploaded a myriad of requisite documents including personal financial information, tax returns, bank statements, assets statements, copies of the executed contract, Pro-Forma HUD 1 Forms and other requisite information. 

From XX/XX/2021 through XX/XX/2021 I went through various reviews and corrections of materials provided at the request of the Servicer including at least four different HUD 1 Forms. The lengthy delay in this process was as a result of the services hard and fast rules for how correspondence is interchanged amount the parties and the fact that no-one if empowered to make decisions except for a handful of employees who are unreachable through phone calls or normal means of communication. This servicer does not allow for interchange of electronic communications between a designated representative except through broad portals and no direct contacts. This loan has been through 5 different services in 10 years and I have found this method of communication to be consistent with industry standards which delay business and decisions being done in reasonable and required time frames in time sensitive situations such as a real estate sale. There is a complete recording file with the Servicer of all of the communications related to this customary and normal process including a XXXX system that records and documents all phone communications in addition to the correspondence files. 

On XX/XX/2021 I received a written communication from the Servicer posted to my account on their portal advising of conditional approval of the Short Sale with an agreed upon price to release the lien of the Investor and a time frame of closing no later than XXXX XXXX. 

On XX/XX/2021 I accessed the Servicer Payment Portal to make the requisite payment on the said loan and was denied payment access. After a myriad of calls and communications I was advised that since the loan had been approved for a Short Sale that no payments were due on the loan in anticipation of closing and funding of the Short Sale. 

On XX/XX/2021 I was advised by my Broker that the property didn't appraise at an amount to support the purchase price for which the Short Sale was approved and the Buyer submitted a revised offer. I was advised to submit the revision to the servicer for further review and approval. 

On XX/XX/2021 I contacted the Servicer about the recent events asked for an extension and was told I would receive an extension by Friday of that week. I also expressed concern about the XXXX and upcoming XXXX payments as I did not want any delinquencies reported to the credit bureaus and again advised that no payments were due on the Loan, again given the working status of the Short Sale revised requests. 

Having heard nothing from the Servicer about the extension or process of the revised short sale I reached out and contacted the assigned relationship manager ( which by the way I have never been able to reach directly albeit they provide his direct number on the portal ) The relationship manager eventually called me back and informed me that the information submitted with the revised request did not include a proper HUD 1 Form and I would need to submit said form in order for the revised request to be considered. This was not the Servicer 's fault but was mine, however had I not reached out and inquired I would never had known that the information was deficient. I immediately updated the request with all requisite information upon being advised. In this conversation I asked one more time about the XXXX and XXXX payments and received same answer that no payments were due. 

On XX/XX/2021 I received a notification from my credit monitoring services of derogatory information posted to my accounts and researching the posting I learned that the Servicer showed my account as delinquent and reported it to the respective credit bureaus knowing all along had volunteered to make the payments when due advised they couldn't accept them and knowing that there was a revised short sale approval in process and under review. 

On XXXX XXXX I posted an e mail to the relationship management portal demanding the derogatory reporting be withdrawn and corrected. To date their is no answer to that demand and this is a matter that could and should have been corrected in a matter of hours or minutes and not days. All I am told is my demand has been escalated for review again anyone who is available to communicate with the client is not empowered to make decisions and drags out a relatively simple process. 

On XXXX XXXX I was advised that the revised short sale request was denied by the Investor of the Loan. That is there prerogative and I have no issued with the revised decision. What I do have an issue with is rather than a flat out denial why wouldn't anyone have contacted me to see if I wanted to go through with the transaction and complete the sale of the property with me paying the difference of some mutually compromised amount. No such communication existed. 

As a result of all of this the Contract for Sale of said property was terminated between the Buyer and the Seller. 

As a side bar and issues you should be concerned about in protecting the interest of consumers without regard to their net worth is the bureaucratic and cumbersome process mortgage servicer apply to communication processes. These include no direct contact with empowered employees, inability accept and respond to electronic messages on a direct basis, lack of information about the company and it's decision makers including names, addresses and phone numbers Look it up for yourself and you won't find any information on the company 's leadership or for that matter anyone ) and the myriad of XXXX from letters submitted after any request is made which say absoultley nothing. As mentioned I have been through 5 servicer with this loan since it was taken over from the Bank who originally made it and was placed into receivership by the FDIC. The loans including this one were deeply discounted and sold by the FDIC to Investors on either an auction basis or direct party negotiations and then subsequently packaged and securitized. This loan is part of a XXXX XXXX XXXX XXXX and given the change in Servicer 's I can only assume it has been sold and resold for profit on multiple occasions. 

I have asked repeatedly for information about the Investor and most importantly what the Investor has paid for the Loan and for which information has been denied to me by this Servicer and every previous servicer, given that I am responsible for the payments this would be information I would be allowed or required to receive, as an agency established to protect rights of consumers I would think you would have a concern about this as well.

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