Consumer complaint received 2025-05-20 00:00:00
Product: Mortgage — FHA mortgage
Issue: Struggling to pay mortgage — Applying for or obtaining a modification, forbearance plan, short sale, or deed-in-lieu
Company: Fay Servicing, LLC
State: MI

Complaint narrative:
I became delinquent on the mortgage in the beginning of the year before my XXXX XXXX was sold to Fay Servicing. my current job did not provide the expected income that I was anticipating. Due to this, I fell behind on my payments. I have taken a new position with a new company. This new position comes with considerable pay raise in which my start date is XX/XX/XXXX. In mid XXXX I reached out to seek a modification to my mortgage to allow me to keep my home. I filed this request with Fay servicing ( the new owner of my mortgage ). they denied me of any assistance or of a modification to the loan. 
After calling in to talk to someone I was informed that I had till the XXXX of XXXX to catch up the loan in the amount of {$10000.00}. 
on the XXXX of XXXX I had a phone call with a Fay servicing rep desperately seeking an alternative or a payment plan to catch up and keep the home. I asked the rep why i was denied a modification, she said my debt to income ratio was good enough and that " An FHA loan is extremely difficult to modify '' ... I told her that I was able to make a full payment on the XXXX to bring the loan under XXXX  days delinquent. She said that I wont be bale to do that and that I will be locked out of the Fay portal and unable to submit any type of payment after the XXXX. Also mentioned that if i were able to get a payment processed that they would just mail a check back to me and not accept it. the only way they would accept payment is if I paid the full amount due. 
After talking back and forth for XXXX minutes she finally said that they would be able to stop foreclosure proceedings if I were able to make XXXX full payments that day. I told her ok and that I will start making arrangements to borrow the amount of an additional payment from a friend ( {$2500.00} ) .. she abruptly placed me on hold for about XXXX minutes ... when she returned, she said I'm sorry, but I will actually need all XXXX payments to stop foreclosure proceedings from starting. I expressed to her how frustrating this was and how I felt mislead. She then mentioned that in the letter they sent out it stated what the terms were and that I was only ever approved for a short sale of the home. I absolutely NEVER received any documents outlining any sort of mitigation options or reasonings on why i was denied a forbearance or a loan modification. when i told her this she again said they sent XXXX out. The conversation was left at this, I had no answers, no guidance on what to do next as I wouldn't even be able to submit a payment after the XXXX... 
Fast forward to the XXXX, I received a fay servicing letter Dated XX/XX/XXXX that I was approved for a short sale of the home and that I had to accept it by XX/XX/XXXX. I didn't receive this letter until XX/XX/XXXX!!! 
I dont know what to do... I can afford my home and my hardship has passed. All Im asking is to be able to make a single payment and have the delinquent payments moved to the back of the loan. I feel like I am getting denied because of the equity in the home. I have over $ XXXX equity and I feel like I am being taken advantage of because of the hardship and being delinquent. I did resubmit a borrowers assistance form for review in hopes they will reevaluate it and offer me a solution. 
Please HELP!

Company response to consumer: Closed with explanation