Complain about a product or service

Select Portfolio Servicing

Tonya of Waterford, MI January 26, 2010

My husband and I have a mortgage serviced by Select Portfolio Servicing (SPS); our mortgage payment was very high; we paid 1,336.00 per month which enclosed an escrow for property taxes and insurance. In January 22, 2009, my husband and I were offered a mortgage modification from SPS and we were given 2 options; #1 was to lower our principal balance by 40,000.00 which would lower our monthly payment to 652.00 and our escrow would be 323.00 for a NEW total payment of 975.00; #2 was they would take 50% of the current amount owing in full scarification of the mortgage. On January 24, 2009 my husband and I agreed to option #1, we signed all the documents and started the modification, and at this time my husband became unemployed. The modification was supposed to be completed with the new principal balance and payment effective April 15, 2009, it was not completed. On May 15th my company closed their office in Michigan and I was now unemployed, I called SPS and they said everything should be done by June, 2009.

We continued to make all payments they indicated needed to happen and finally on June 22, 2009 I received confirmation that the modification was completed. At that time I had been paying and continued to pay 975.00 per month which enclosed my mortgage, interest and escrow payment. In October, 2009 my husband and I were a little short on our payment for that month, I called SPS and they said that we could pay my mortgage & interest payment and not pay the escrow payment and if there is a shortage in my escrow, SPS would pay it and the shortage would be handled in 1 of 2 ways; 1 -- pay the difference in full or 2- spread the shortage over 36 months. I said okay and made only the mortgage & interest payment, and for the last 3 months I've been paying some of the escrow back. On December 15, 2009 we received an escrow analysis that indicated a shortage and a new 2010 project escrow payment which was less than our current amount. I was happy to see this. On Saturday, January 23, 2010 I received our 1098 tax form from SPS which tells me how much we paid interest for 2009 and how much taxes and insurance was paid in 2009, and the tax form showed 0.00 for taxes! On January 25, 2010 I called SPS and was told "it was a business decision to not pay your taxes" WHAT!!

I was never notified that SPS wasn't going to pay; our contract was never changed and then I found out that when we changed homeowners insurance companies, they were refunded the payment and never paid the new homeowners insurance premium. They cannot give me any truthful information. First they said they made this decision September, 2008; but they paid my taxes from our escrow account in December, 2008; then they said that they weren't paying because I didn't have a previous escrow account; we did. They are holding and accepting my escrow and not paying my taxes and insurance; they also are illegally changing our contract, neither my husband nor I agreed to any changes. I was never notified that SPS was negligently not paying; neither was my city's treasurer's office or insurance company notified that SPS wasn't going to pay. How can they get away with this? Also, in 2003 -- Fairbanks Capital Corp., -- now known as SPS; settled with the FTC on behalf of consumers for 40 million because of deceptive serving practices and fraudulent practices regarding loans and servicing. Is there anyone else who did not have their property taxes or insurance paid from your escrow?

C of Powder Springs, GA January 21, 2010

In acquiring a forebearance on mortgage loan it was never told to me that it would affect my credit rating and credit score. Now, after years of struggling to keep my credit A-1, and no help with mortgage company (paid all 3 months in full anyway), now my credit is down the tubes. I am appalled that these companies don't allow people to make the choice of credit or just keep paying monthly as usual.

They made me feel as i was receiving help, but instead i got the short end of the stick. I'm in the same situation i was in before I began the forebearance. Nothing changed but my credit rating. Now my banks are knocking me for something I didn't even know about. How can i get my credit score back to where it was 3 months ago, especially since I've never been late!

Thoma of Arizona City, AZ January 14, 2010

Wow, I feel so close to everyone here, like we're old friends...and this is why. Two and a half years ago, my wife started having medical problems. In the course of 1 and a half years, she was taken to the ER by ambulance over a dozen times, not exaggetrating. She was having crippling pains in her abdomen that would drop her to the ground. We got the usual run around by the doctors, IBS, obstructed bowl, swollen glands, diverticulosis and even appendecitis were all looked into. Her appendix was even removed, thats when they finally found the problem, she had endometriosis that was so bad, it ws wrapping around and pulling at all her internal organs. Two surgeries(appendectamy and full hysterectamy) and a few months later, shes completely normal.

However, the incurred medical expenses, even with insurance, her time off from work and my lighter hours at work(to deal with kids and house stuff), proved to be too much for our already tigh budget. We were gonna loose the house.

Our loan at the time wasnt too bad, 30yr fixed @7.5. Manageable, but left no wiggle room. We defaulted on our mortgage and were considering bankruptcy. Then, while trying to work out an agreement with the mortgage company, who was pretty helpful at the time, notified me that they couldnt do anything or make changes, my loan was sold in a lot to another mortgage company Select Portfolio Servicing......

So, I googled the name. A few bad reports, a few good. At the time, they didnt stand out as "horrible". Immediately called them, explained the situation and the statsus of the loan they just bought. They cant talk to me for 2-3 weeks, they still needed to recieve and review all my paperwrork.

In late jan, early feb of '09, Finally spoke to them, explained the situation and that we were filing for bankruptcy. The person on the phone was very nice, said don't do bankruptcy untill they've exhausted all options. They said with all the government programs and programs within they're own company, they've been doing alot of modifications, theyre main goal was to keep people in theyre homes and paying on mortgage. I told them I wasn't expecting a miracle or anything amazing, i just wanted the past due(alot at this point) on the end of the loan and the interest at a more manageable level. Gave them all our financials, bills, income, everything they asked for. Our mortgage was supposed to drop from 1442 to 960 a month according to financials. Time for the contract...

They told us we would have to pay them a forbearance for 3 months in the amount the financials said we could pay. they were constantly saying they dont have our proof of income, so every two weeks, on a friday, I faxed in my wife and my paystubs and verified they're reciept on the following monday. I honestly can't even guess how many calls I made and how many minutes were spent on the phone with them. Every single step of the way I as told our income looked good, our financials were great, our payments were on time and were certified funds, we were prime candidates for the modification. At 3 months, they started telling me that they were doing so many modifications, the review process was backed up and they were working day and night to get caught up. They constantly reassured us we were on the right track and all fit perfect for us to get the modification. They then said the best thing we could do was to keep paying our forbearance to keep up a good history of payment and intent.

At 6 months, we were told that our loan mod was up for review and in underwritting, everything fit perfectly into whatever criteria they required and that we could expect a new contract in about 3 weeks...AWESOME!

3 weeks later, we recived a letter of denial and were asked to pay the past due amount in 14 days. I called them, they said they couldnt verify our income! WTF! I politley explained that we sent it to them every 2 weeks for approximately 4-5months. She said oh, yeah, you did. It says youre income didnt match financials. we reveiwed our financials and everything still matched perfectly! I was pretty upset at this point, but still maintaining some level of decency, and she was so damn nice on the phone, it made me feel worse! She said we could resubmit our financials again, which were exactly the same. I said I've already payed you so much forbearance, 6 months when 3 were contract required, I dont feel comfortable sending more money untill I know whats up. She said she would resubmit for modification and that NO MORE MONEY was required for resubmittal. Everytime I talked to them since, I was told its in review and to pay more money!

3 weeks later, we recived another letter of denial. .....but they were so damn nice on the phone! Ok, so, I called SPS today to see where we're at. If any options are availible to us and what our timeline looks like. They told me we were denied due to my proof of income having overtime. Ok, so?(this is different from the last couple reasons they have given me) I have given them about 8-10 of mine and my wifes paystubs, our financials and proof of income perfectly match what I've told them we make. They said I average about 10 hrs of O/T per month. Why would this look bad? I dont count on o/t, as its not gauranteed, but it has always been on my check stubs when I actually get o/t and I've never hidden it from them.

But wait, theres more! After hearing for months that my financials were great, we could afford and they would accept 960/month, they suddenly came back and said our financials were 1,800 negative each month! Now how in the hell can our budget be 1800/ month negative?(no politician answers please) With my wife and I both working, our credit cards and debts payed off, we only have one personal loan and regular utility bills, we're in pretty good shape for the first time in years! I asked for the break down, sps wouldnt give it to me. I said what about the 6+months of financials saying i can afford 960/month and you guys accepting that, she simply re-iterated we were 1800 short each month.

About of my wifes income. They said they never received her proof of income for the resubmittal process. Ok, she worked for one clothing store during the initial 6 months. Then moved to another store, she was making the same money, but has gotten benefits and vacation time, which was the main reason for her changing jobs. This didnt make any changes to our financials at all. All the income and costs/bills were the same. We never notified them of her job change! Heres the fun part, they insist we didn't submit her income, yet here the lady is, calling my wife's new job by name and reciting to me the approx amount of her first paycheck! The only way they can possibly have this information is if they actually received the proof of income and entered it into they're system!

So the battle goes on. . . .

Susan of Goose Creek, SC December 10, 2009

We purchased our home in 2006. Our first mortgage was Equifirst, but that was quickly sold to SPS. My husband lost his job in July of 2007, and it took us quite a few months to get things back in order, but we entered into the first of several "helpful" forbearance plans. We were told several months ago that we qualified for the HAMP modification. In August, 2009, we submitted our first HAMP trial period payment, and were so excited that we might be able to keep this dump of a house (we were at 911.23 for a 108,000 home at 9.55% interest), not including taxes and insurance. This home is 1008 square feet, 1br, 1ba, and quite frankly, in one of the "seedier" areas of our town.

We were unable to refinance our ARM as the bottom fell out (as if it was waiting on us to leave the closing table), and we did not have anywhere close to the 90% loan-to-value ratio. I am now staying home with my son who is no longer covered by insurance because of his age, and is plagued with tonic-clonic seizures that are still not controlled. We submitted ALL paperwork that SPS requested on time, every time. ALL of our HAMP trial period payments were paid on time. We received the HAMP modification paperwork via UPS, and we were expecting the 565 or so that we were quoted at the beginning of the trial mod, and page 1 says "Congratulations! You are approved for the HAMP program!", and page 3 says "Your new modified payment will be 1165. per month".

After 1.2 million calls to SPS, and every single agent saying that they could NOT understand the reasoning behind it, they put it into a "review" for a week. I finally contacted someone that told me that my loan was actually owned by CSMC Heat, and they would NOT allow SPS to reduce the 9.55% interest rate. Something to the effect of "an S and P" on my loan..whatever that is. THAT was the modification. So now, my 3 bedroom, 1 bath house is going to be sold for approx. 60K because they would rather have that than modify us into a payment that we can afford. I now know that homeownership is a scam. It's the American Dream? This has been a nightmare. I have friends that rent BEAUTIFUL homes for 300 less than our payment. I have three sex offenders on our street, pit bull dog breeders, dope dealers, but we thought that we could refi, put up a privacy fence eventually, and at least have a dump to call our own. It was not meant to be. If you have SPS as a servicer on your loan, you might be one of the lucky 5% that are helped, if the number is even that good. If not, you're on the streets as we are. We have effectively been "priced out of the ghetto". They can have it. They want money, and they want it NOW.

Renee of SandSprings, OK December 8, 2009

My story is very similar to the ones already here. However, I had a mortgage payment that was 31% of my income. I found out I was pregnant, and being the only person in my home working, quickly fell behind due to pregnancy complications and childbirth. All I asked of them was to lower my interest rate and put me on a forebearance so I could eventually be caught up.

Instead, I received a "in house modification" with the same interest rate, an increase to my principle of 12000.00, and an increase in my payments of 400.00 a month (in addition to the forebearance that added 200 a month) grand total, my mortgage went from 850 a month to 1400 a month, "because now it's 31% of your income!"

They did not take into consideration ANY of the paperwork I sent them, the fact that I was unemployed for 3 months, or the fact that I support 6 people on my income. Going to lose my home to these thieves. They don't want me to keep it, they want to sell it for a penny and charge me for the house I won't have.

Talib of Jonesboro, GA October 21, 2009

I spoke with a representative several times about not being able to afford my Mortgage. I lost his job in March of 2009 and his salary was 53,000. My wife's is 52,000. My other expenses are so high that I need a lower payment so that I can afford the house. I am also not receiving any unemployment. I am currently 2 months behind. I have not been behind in a long time. I just want my mortgage adjusted by 200 so that I an afford to pay it. Please help.

Michelle of 11260 S. 212th East Ave, OK October 17, 2009

We fell behind on our mortgage and entered into a forebearance with Select Portfolio Servicing. They called us in May and told us that we qualified for the Obama plan and if we made payments of 1845 for three months the payment would become permanent and the outstanding balance on our loan would be tacked onto the end of our mortgage.

We made the payments on time as required and began receiving paperwork in September stating that our forebearance was cancelled we did not qualify for the modification. We were told that we could afford a payment of 2800 per month for 10 months to satisfy the outstanding balance. We told them that we couldn't afford that and were assured that things would work out and we should just send the 1845 payment which we did.

We received a letter from SPS on October 14 (the letter is dated September 29) saying that they were proceeding When I called SPS their agent told us that our account had been referred to an attorney on August 17, 2009 which was during the time we were supposedly on our three month trial modification. I was also told that our September payment was in a "suspended account" and to cure our default we needed to send 10046 immediately.

Anna of Oakland, CA September 27, 2009

I also was told that SPS could not do a modification at all and I needed to place the house on the market for short sale. Placed the property on the market for 140 days. Finally got a buyer. Once the appraisal was finish the buyers loan would not go through. Something about the appraisal and FHA requirements. So I called SPS and ask what alternative do I have? They offered me a modification accepted the payments for 5 months. I was told it would take 3 months for an answer.

After calling monthly to get a solid answer I was told the underwriter said NO after 5 months. They now want to double the payment and send me through the Home Affordable Program. I do not trust them. I think they are trying to recoup as much money they can before going ahead and foreclosing once the market value goes up. I am so disgusted. I am at a standstill and I do not want to walk away and foreclose.

Frederick of Macon, GA August 28, 2009

My wife and I had some financial hardships that caused us to be late on our mortgage payments. SPS recommended that we do a loan remodification. We initially completed all of the necessary in March of 2009. We were told that we had 30 days to complete and return the paperwork to be considered for the loan remodification. I faxed the paperwork to the office on March 28, 2009. I had a delivery confirmation and I also called to verify that the paperwork had been received. I called back two weeks later and I was told that they had not received the paperwork. I spoke with a supervisor and he permitted me to re-fax the information while he was on the phone. He told us that our loan remodification would go into effect on April 14, 2009 temporarily reducing our payments from 1,240 a month to 866.44 a month. Making the mortgage payments on time was a part of being considered for the loan remodification. They also told us that it would take 30 days to be processed. We were never late during this period. We received a letter 90 days later saying that we were not approved. We were not given a legitimate reason why we were denied. We were misled by Select Portfolio Servicing. I don't know what type of boiler room organization that SPS is operating but they have made our mortgage situation worst than what it was to start with.

John of Morrisville, PA August 8, 2009

Select Portfolio Servicing drafted a fraudulent Mortgage Contract on my property. after forcing the contract with threats of criminal charges of a fraud charge against me.Since they sent out a pay off check before the claimed closing.Then starting with the first month they altered the due date of the claimed payments in there computers.So that each payment sent on time was listed as late. this was done for three years.

Then there is the contract violations, now through out the documents there is three different amountslisted as the borrowed amount.None of which are true amounts since the first claimed bills that they did not pay and they inflated the pay off amount of the former mortgage. In all they added about 15,000.00 undisclosed.Plus they also added unlawfull fees in the thousands. Then they tried to get my house to be sold at a tax sale so they could buy it without my knowledge, But that failed.

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