Consumer complaint received 2025-02-28 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Struggling to pay mortgage — Trying to communicate with the company to fix an issue related to modification, forbearance, short sale, deed-in-lieu, bankruptcy, or foreclosure
Company: SELECT PORTFOLIO SERVICING, INC.
State: TX

Complaint narrative:
We are very frustrated with our recent dealings with SPS. We feel that we have been misled and it has put us in a difficult position as we are told we are facing foreclosure even though our hardship is resolved and we have the ability to pay. My name is XXXX XXXX and I have lived in this house my mother XXXX purchased in XXXX along with my wife and special needs son for XXXX  years. When we had income loss due to XXXX in XXXX and got a forbearance and then a loan modification we were very happy with how SPS handled the process. However, when we ran into additional problems due to multiple back surgeries and loss of work we ended up hitting a brick wall with SPS. Ultimately we were told we needed to make a lump sum payment of {$9000.00} and were promised that this amount would be applied directly to principal, which would make us eligible for a new loan modification. We made this good faith payment in late XXXX but were misled by the agents at SPS because this lump sum was processed as a regular payment so we were not technically caught up and had to apply for a new loan modification. We spent most of XXXX submitting and resubmitting applications for assistance. The agents we talked to kept telling us there should not be a problem with this, the numbers look good, we just need to get you into review. But after going through multiple reviews during this time our delinquent amount increased and ultimately we were told we do not qualify. Someone is screwing things up around SPS. I am back at work full time and my wife works full time as well and our financial circumstances have changed and our hardship is resolved. All we want to do is make this right and make our payments. Select Portfolio Servicing has made this difficult to do. 

We are contacting your agency because we would like some answers. What happened to the {$9000.00} lump sum payment we made? How was it applied? Why would an agent tell us that money was all going to go to principal and that once that happened we would be caught up and could resume our payment?? We dont understand. After we got the XXXX XXXX modification in XX/XX/XXXX we paid as agreed until I had to take time off work for a XXXX XXXXXXXX. We missed a couple of payments but were able to keep the loan on track by working out a deal where we were paying {$3000.00} per month instead of {$2100.00} for close to XXXX year until I got injured again and had another XXXX  XXXX and was out of work again. We fell behind again and then were told we could fix everything if we made the lump sum payment of {$9000.00}. The SPS agents misled us into believing we would be back on track after we made the good faith payment and could just move forward and make our regular payments. Instead we had to start the loan modification process again. It was a comedy of errors, documents misplaced, documents submitted and then told sorry we are not going to give you a new review, then another submission told we got the paperwork but now it is expired. We recently were told that we were denied for modification and that there were no options for us and that the foreclosure process would be starting soon. 

We find these findings hard to believe. Our hardship is resolved, our financial circumstances have changed and vastly improved and we have the ability to make our payment. Our issue is the past due balance of {$22000.00} that we need help with. We dont understand why SPS is obstructing our access to these programs that we believe we qualify for.

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