Consumer complaint received 2025-08-12 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Closing on a mortgage — Changes in loan terms during or after closing
Company: SELECT PORTFOLIO SERVICING, INC.
State: IN

Complaint narrative:
XXXX and XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX, In XXXX XXXX XXXX XX/XX/XXXX Complaint Regarding Unexplained {$15000.00} Deferral and Failure to Release Mortgage Lien - Account XXXX - SPS Select Portfolio Servicing- XXXX To Whom It May Concern : I am writing to file a formal complaint against [ SPS XXXX regarding a highly concerning and unexplained {$15000.00} " deferral amount '' that has been applied to my mortgage account, [ XXXX ], despite the principal balance having been fully paid off. This issue is preventing the proper and timely release of the mortgage XXXX on my home. 
On or around [ XX/XX/XXXX ], I fully satisfied the principal balance of my mortgage loan. I expected at that time, or shortly thereafter, for the mortgage XXXX on my property located at [ XXXX XXXX XXXX XXXX, XXXX XXXX, XXXX XXXX ] to be released, indicating that my home was free and clear of this debt. 
However, I have since discovered an unexplained {$15000.00} " deferral amount '' tacked onto my account. I have no record, understanding, or agreement for such a deferral. This amount appeared without any prior detailed explanation or justification provided to me. 
I have already attempted to resolve this directly with [ SPS ]. On XX/XX/XXXX I sent a formal " XXXX of XXXX '' ( copy attached ) requesting a detailed breakdown of this {$15000.00}, deferral, its origin, and why it was applied. Despite this formal request, [ SPS ] has been unable or unwilling to provide any specific details or justification for this amount. Their inability to explain the deferral is unacceptable and indicates a significant servicing error. 
The presence of this unexplained {$15000.00} deferral is directly impacting the release of my mortgage XXXX and my ability to have a clear title to my home, which was fully paid for. 
Therefore, I request a investigate of this matter thoroughly and compel [ SPS ] to : * Immediately remove the unexplained {$15000.00} deferral amount from my account. 
* Promptly process and record the full release of the mortgage XXXX on my property, as the principal balance has been satisfied. 
* Provide me with written confirmation that the deferral has been removed, the mortgage is fully satisfied, and the XXXX has been officially released from the property records. 
I have attached copies of relevant documents, including my previous letter to the servicer, statements showing the deferral, and proof of my principal payoff. I am available to provide any further information required for this investigation. 
Thank you for your attention to this urgent matter. I look forward to your prompt assistance in resolving this issue and ensuring my property 's title is clear. 
Sincerely, [ XXXX and XXXX XXXX ] - XXXX XXXX ] [ XXXX XXXX XXXX XXXX ] [ XXXX XXXX In XXXX ] cell XXXX XXXX [ XXXX ] XX/XX/XXXX P.O. XXXX XXXX XXXX XXXX XXXX, UT XXXX Subject : Urgent Request for Detailed Information Regarding {$15000.00} Deferred Amount on Account [ XXXX ] Dear [ select portfolio, servicing XXXX XXXX XXXX I am writing to request an urgent and comprehensive explanation regarding a {$15000.00} " deferral amount '' that has reportedly been added to my mortgage account, [ XXXX ], after the principal balance was paid off on or around [ Date my paid off principal ]. 
As I understand it, my mortgage principal was fully satisfied at that time. I have no record or understanding of any agreement or reason for a {$15000.00} deferral to be applied to my account. This unexpected charge is highly concerning, and I require a detailed breakdown of its origin and purpose. 
Under my rights as a consumer and borrower, I am formally requesting the following specific information and documentation related to this {$15000.00} deferral : XXXX. Exact Date and Nature of the Transaction : What is the precise date this $ XXXX was applied to my account? Was it a single transaction or an accumulation of multiple amounts? 
XXXX. Detailed Breakdown of the Deferred Amount : Please provide an itemized list of what this {$15000.00} represents. For example, is it for : * Missed principal and interest payments? If so, for what specific months/periods? 
* Escrow deficiencies ( e.g., property taxes, insurance )? If so, please provide supporting documentation for these deficiencies. 
* Late fees or other charges? If so, please provide a detailed ledger of these fees and the dates they were assessed. 
* Any other type of charge or amount? 
XXXX. Origin and Justification : What is the specific event, agreement, or policy that led to this deferral? 
* Was this related to a forbearance agreement? If so, please provide a copy of the original forbearance agreement, including the dates it covered and the terms for repayment of deferred amounts. 
* Was this related to a loan modification? If so, please provide a copy of the loan modification agreement. 
* Was this related to any specific program ( e.g., XXXX relief, disaster relief )? If so, please provide details of the program and my eligibility. 
* If no prior agreement exists, what is the basis for tacking on this amount after the principal was paid? 
XXXX. Documentation of Notification : Please provide copies of any and all communications ( letters, emails, statements ) sent to me detailing this deferral, its purpose, and the terms of its repayment, prior to and at the time it was applied. 
XXXX. Terms of Repayment for the Deferred Amount : What are the current terms for the repayment of this {$15000.00}? 
* Is it interest-bearing? If so, what is the interest rate? 
* When is it due? Is it a balloon payment at a future date, or has it been re-amortized? 
* Are there any penalties or additional fees associated with this deferred amount? 
XXXX. Impact on My XXXX XXXX : How does this deferral impact my overall loan status, especially given that the principal was understood to be paid off? Is this now considered a new loan or a separate XXXX? 
I expect a comprehensive response to each of these points, along with all supporting documentation, within XXXX business days of the date of this letter, as per federal consumer protection regulations ( e.g., Real Estate Settlement Procedures Act ( RESPA ) Qualified Written Request ). 
Please send all documentation and your detailed explanation to the address listed above. I reserve all my rights to dispute this amount and take further action if a satisfactory explanation and resolution are not provided. 
Thank you for your prompt attention to this urgent matter. 
Sincerely, ( XXXX XXXX XXXX and XXXX XXXX ) Send all documents to my home XXXX XXXX XXXX XXXX, XXXX XXXX, IN XXXX with XXXX - The people who have the mortgage now are either a secondhand or thirdhand people who took over the mortgage - and this mortgage company has no idea except for its there

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