Fairbanks/Select Portfolio Servicing Nightmare

[Sharptowner]

Hello All,
I'm new so bare with me. I will make this as short as possible. In 2004 I filed a Chapter 7 bankruptcy. One of my conditions for following through was for us to be able to keep our house. The attorney we used walked us through the bankruptcy and told us we were fine and our house was spared. We bought our home in 1999 for $63,000. To keep our payment down the mortgage company had based our payments on a 30 year fixed but had a 10 year balloon at which time we have to refi $55,000. The balloon comes due in Feb 2009. In April 2008 we started the refinance process. Everyting was going fine until the loan officer wanted to know why I didn,t have a credit score concerning my home credit. After further investigation we found that our house in fact went into bankruptcy. We were mortified! Here's where it gets confusing to us. Just the first part of our loan (the first 10 years) is under bk, But SPS is saying the balloon is not, that we are still responsible for that. Now if the house went under bankruptcy why didn't the whole loan go under? Why not the balloon? I had done some research on Re-modifying the terms of our contract to pull the balloon into it, keep our current intrest rate and make the entire loan payable under a 30yr fixed rate. SPS(Select Portfolio Servicing Inc.) is the collection division of Fairbanks Capital. They reviewed our situation and agreed they could remodify the loan and sent us a application. Then they sent a letter and stated they could not assist us because: 1. Our loan was backed 100% by FHA. 2. We are current on our payments. 3. we are not low income. Everytime we talk to them we get a different person that has no idea what we have discussed with another rep before them. We have been told so many things we don't know what's right or wrong. So now I'm at the end of my rope. I don't know how to proceed or who to talk to. I am low income now. I became disabled in 2003 and receive Social Security. I make enough to pay my bills and mortgage payment but not enough to get an attorney. Can anyone give me some advise on this matter. Thank you for this website.
With Thanks,
Sharptowner

[Dan Bailey]

Sharptower, welcome to the forum and thank you for joining.
A moderator will come by soon and answer your questions..just wanted to tell you you're not alone in these mistakes that had been made. What state are you in? Because the applicable rule may change from state to state.

[Sharptowner]

I'm sorry. I live in Maryland.

[Moe Bedard]

Hi Sharptowner,

Welcome to the forum and thank you for joining..............

This is something that you might need the help with since the servicer is giving you a hard time......see if the Maryland Hope Line is able to help.

Maryland Hope Line
Home Owners Preserving Equity (HOPE)
toll-free number, 1-877-462-7555



Please keep us updated on your progress..............

[Sharptowner]

Thank you for your response. I will most definitely keep all informed. After reading all the post on this site it's a sad state of affairs that our government isn't stepping in more than they are to help people like us. The banking industry helped create this problem I think it only fair they help us get out. Please educate me. Why are the mortgage companies so hard nosed about re-modification of loans that would ultimately help them in this ever growing crisis? I would think that the banks would want people to be able to pay their mortgages rather than forclosing.