Anyone had Success with Select Portfolio (SPS) Loan Mod?

kitkat01

LoanSafe Member
Jul 1, 2010
261
4
18
Hi, just curious if anyone here had success with their loan mod with Select Portfolio (SPS). I am in the process of applying for a loan mod, I don't have to deal with them much as someone is helping me with the process (that's what she does, help people with Loan Mods and I've used her before and was success with Chase 3 yrs ago). Anyway, she's on them all the time, asking for status. They have been backed up lately so they told us give them till this certain date to receive my documents..... I was told that everything looks good and just waiting for docs to be done. I would love to hear your success story.. I have been doing lots of research on SPS and I would have to say that it terrifies me. They have so many bad stories than good ones that's why I'd like to hear if they actually approve lots of people. I have seen a couple of success stories here but that's all I found. Also let me know what your experience was, and were they horrible/easy to deal with??
 

Evan Bedard

Call 1-800-779-4547
Loan Safe Mortgage
Aug 26, 2007
18,837
48
48
San Diego, California
www.LoanSafe.org
Hello Kitkat,

I'm sure others will chime in here shortly with their experience. We definitely have many members who've received a modification from SPS and you should be able to find some in our Success Stories section. Of course there are many horror stories as well as with most servicers, but at least your mortgage is not serviced by HSBC. If that were the case the chances of achieving a modification are slim to none...
 

lifeinmn

LoanSafe Member
Mar 15, 2008
42
3
8
I am in the process of a modification with them right now. They are dragging their feet. I was told I would know last Friday if I was approved or not. Never heard from them. Them this week I got a letter saying I need to resend everything I already sent and I need to do it by a certain date. I thought there was a new law passed about mortgage companies playing games like this.
 

Evan Bedard

Call 1-800-779-4547
Loan Safe Mortgage
Aug 26, 2007
18,837
48
48
San Diego, California
www.LoanSafe.org
New laws did come into play to protect homeowners from wrongful foreclosures, but unfortunately none of the rules prohibit the lender from giving you the run around or request the same information over and over again.

Here's an overview of the new regulations from the CFPB:

Strong Protections for Struggling Borrowers
The CFPB’s mortgage servicing rules ensure that borrowers in trouble get a fair process to avoid foreclosure. Borrowers shouldn’t have to worry about mortgage servicers cutting corners or losing applications for relief. They should be told about their options and given time to apply and be considered for loan modifications and other alternatives. Most of all, they shouldn’t be surprised by the start of a foreclosure proceeding until they have had time to explore all available options. If they act diligently to seek alternatives, they should not face a foreclosure sale before their applications have been evaluated. The new protections for struggling borrowers include:

  • Restricted Dual-Tracking: Under the CFPB’s new rules, dual-tracking – when the servicer moves forward with foreclosure while simultaneously working with the borrower to avoid foreclosure – is restricted. Servicers cannot start a foreclosure proceeding if a borrower has already submitted a complete application for a loan modification or other alternative to foreclosure, and that application is still pending review. To give borrowers reasonable time to submit such applications, servicers cannot make the first notice or filing required for the foreclosure process until a mortgage loan account is more than 120 days delinquent.
  • Notification of Foreclosure Alternatives: Servicers must let borrowers know about their “loss mitigation options” to retain their home after borrowers have missed two consecutive payments. They must provide them a written notice that includes examples of options that might be available to them as alternatives to foreclosure and instructions for how to obtain more information.
  • Direct and Ongoing Access to Servicing Personnel: Servicers must have policies and procedures in place to provide delinquent borrowers with direct, easy, ongoing access to employees responsible for helping them. These personnel are responsible for alerting borrowers to any missing information on their applications, telling borrowers about the status of any loss mitigation application, and making sure documents get to the right servicing personnel for processing.
  • Fair Review Process: The servicer must consider all foreclosure alternatives available from the mortgage owners or investors – those with decision-making power over the loan – to help the borrower retain the home. These options can range from deferment of payments to loan modifications. And servicers can no longer steer borrowers to those options that are most financially favorable for the servicer.
  • No Foreclosure Sale Until All Other Alternatives Considered: Servicers must consider and respond to a borrower’s application for a loan modification if it arrives at least 37 days before a scheduled foreclosure sale. If the servicer offers an alternative to foreclosure, they must give the borrower time to accept the offer before moving for foreclosure judgment or conducting a foreclosure sale. Servicers cannot foreclose on a property if the borrower and servicer have come to a loss mitigation agreement, unless the borrower fails to perform under that agreement.
No Surprises
Mortgage borrowers should not be surprised about where their money is going, when interest rates adjust, or when they get charged fees. The CFPB’s rules help every borrower, whether struggling or not, by bringing greater transparency to the market with clear and timely information about mortgages. These rules include:

  • Clear Monthly Mortgage Statements: Servicers must provide regular statements which include: the amount and due date of the next payment; a breakdown of payments by principal, interest, fees, and escrow; and recent transaction activity.
  • Early Warning Before Interest Rate Adjusts: Servicers must provide a disclosure before the first time the interest rate adjusts for most adjustable-rate mortgages. And they must provide disclosures before interest rate adjustments that result in a different payment amount.
  • Options for Avoiding Costly “Force-Placed” Insurance: Servicers typically must make sure borrowers maintain property insurance and if the borrower does not, the servicer generally has the right to purchase it. The CFPB’s rules ensure consumers will not be surprised by this insurance, which often can be more expensive than the insurance borrowers buy on their own. The rules say servicers must provide more transparency in this process, including advance notice and pricing information before charging consumers. Servicers must also have a reasonable basis for concluding that a borrower lacks such insurance before purchasing a new policy. If servicers buy the insurance but receive evidence that it was not needed, they must terminate it within fifteen days and refund the premiums.
No Runarounds
When mortgage servicers make mistakes, records get lost, payments are processed too slowly, or servicer personnel do not have the latest information about a consumer’s account, the consumer suffers the consequences. The CFPB’s rules will require common-sense policies and procedures for handling consumer accounts and preventing runarounds. These rules include:
  • Payments Promptly Credited: Servicers must credit a consumer’s account the date a payment is received. If the servicer places partial payments in a “suspense account,” once the amount in such an account equals a full payment, the servicer must credit it to the borrower’s account.
  • Prompt Response to Requests for Payoff Balances: Servicers must generally provide a response to consumer requests for the payoff balances of their mortgage loans within seven business days of receiving a written request.
  • Errors Corrected and Information Provided Quickly: Servicers must generally acknowledge receipt of written notices from consumers regarding certain errors or requesting information about their mortgage loans. Generally, within 30 days, the servicer must: correct the error and provide the information requested; conduct a reasonable investigation and inform the borrower why the error did not occur; or inform the borrower that the information requested is unavailable.
  • Maintain Accurate and Accessible Documents and Information: Servicers must store borrower information in a way that allows it to be easily accessible. Servicers must also have policies and procedures in place to ensure that they can provide timely and accurate information to borrowers, investors, and in any foreclosure proceeding, the courts.
 

Michael Naz

Michael Naz
Jan 9, 2011
2,965
38
48
Southern California
lifeinmn and kitkat01 - please send me the 14 inputs found here on the "Find Out Now if You Qualify" thread so i can see if you are waiting for a denial or you should be approved and to standby if you need help on a wrongful denial.

evan - thank you for the post about the CFPB - we are helping file complaints for homeowners, advocates, brokers and other mortgage professionals as well as providing expert evidence for mediation, conciliation or litigation.
-michael
 
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Shweebies

LoanSafe Member
Sep 15, 2013
29
2
3
I did get a mod finalized through SPS. It was pretty painless. But I didn't start with SPS. My mortgage was with chase. I made an appointment with someone in their home ownership center (most are now closed) last August. I had all my paperwork pretty much done and ready to go, there were a few things that I faxed to her. She worked directly with the underwriter. A couple of weeks after I met with her, I got a letter from Chase saying they were transferring my loan to SPS. I frantically called her. She seemed to put a rush on approving the trial mod. The trial got approved the day before the transfer. SPS went along with the trial and I got approved for the final mod almost 4 months after the trial. I really didn't have a problem with them, but I do think working with the lady in the home ownership center made a difference. I never had to resend paperwork in.
 

kitkat01

LoanSafe Member
Jul 1, 2010
261
4
18
Just wanted to give an update on my case. I would have to say that after reading all BAD things about SPS it did scare me. Even if I was already approved for a trial payment, I could not wait until I pay my 3rd trial and get my final package. My last trial payment was Aug 1st. Made my payment on time. I was expecting to pay a 4th trial payment as many people say it takes about 6 weeks for them to review and get the final package out but I'm happy to say that after 7 days, the FINAL package came in the mail via FEDEX and WOOHOO!!!! I'm approved for a final MOD!!! Thank GOD my life is back to normal again. Payment is VERY comfortable for us. My CHASE payment was $3400 (from our last modification 3 yrs ago) but went up a bit due to property taxes etc, but now, my monthly payment went down and saving a little more than $1K... New payment is now $2600, principal/interest, insurance and tax. I couldn't be any happier!

The process went pretty smooth. I missed payment back in Nov 2013 and like I've mentioned before, Ive gotten help from this lady that helps people with their loan mods. She helped me with my 1st one with Chase and that was successful as well. We applied for Loan Mod with SPS and after resubmitting paychecks a couple times, I was approved for a trial to start June 1st 2014. It was pretty painful process except for that waiting game and getting anxious if you're approved/denied or ??.

My maturity date of May 2036 did NOT change. Interest bearing Principal Balance of $567,417.00, w/ interest rate of 2% as of Aug 2014. 6th yr is 3%, 7th yr is 4%, 8th yr is 4.125% w/ a payment of $3262 which is on year 2021. They did defer Principal Balance of $185,600.00, will be due as balloon payment on the earlier of, payoff of the Interest Bearing Principal Balance but I'm ok with that. By that time, my kids will be much older and who knows what the market and life will bring. If we end up selling the house, I'm sure by then we have much more equity and everything will be good with me. With the payment of $3262, I'm still good with is as my payment before the modification was around $3600.

I am really happy that we were approved. We do have a little equity now and even when they sent a guy to take pics for the appraisal, our appraisal came with about a few thousand dollars of equity so I was a little concern but everything turned out good.
 
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Shweebies

LoanSafe Member
Sep 15, 2013
29
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Congrats! I know how relieved you are. I lost a lot of sleep waiting for our approval. I am so happy for you!!
 

Michael Naz

Michael Naz
Jan 9, 2011
2,965
38
48
Southern California
kitkat01 - congratulations on the MHA HAMP mod style modification :) don't forget you get $1000 reduced in principal each year for the first 5 years as a reward for paying on time.

and in may 2036 the home should be worth double to quadruple what its worth today so that balloon will be minuscule in comparison to home value.
 

kitkat01

LoanSafe Member
Jul 1, 2010
261
4
18
@LoanModHelpCenter.com - thanks and great to know aboutthe $1000 reduce principal each year for first 5 yrs for paying on time. That was not on the docs that they sent me. Is this something that I need to ask them once I'm in good standing?
 

Shweebies

LoanSafe Member
Sep 15, 2013
29
2
3
You shouldn't have to ask about it. It is automatic. On my sps mortgage statement it say I get an $83.xx incentive for paying on time. That is the $1000 principal incentive. If you don't see that on your statement, then you should ask.

Congrats!!