Loan Modification with SPS - HELP

lifeinmn

LoanSafe Member
Mar 15, 2008
42
3
8
Back in 2008 we were with Countrywide and thanks to this page I was able to get a loan modification for 5 years. During that time our loan went to BoA and then they sold it to SPS. In July 2013 our modification ended and our mortgage went up almost an additional $600. We were able to struggle and pay until this January. Now we are 3 months behind. I have sent SPS everything they requested 2x. We got a letter this week requesting everything again. I just got off the phone with them and they need an additional copy of a bank statement. I was also told they are starting to work with an attorney on our case because it is 3 months behind and asked if we could pay anything because that will help back off the attorney. In my hardship letter I explained why we can't pay and also mentioned car repairs my husband is currently having to pay. Not sure where they expect me to pull money from. I am so confused. If we are not behind they will think we don't need a modification when we are behind they get an attorney after us after 3 months. I have a feeling I will send them another bank statement and then they will say one more thing is missing and play this game for months. Suggestions on what to do?
 

Evan Bedard

Call 1-800-779-4547
Loan Safe Mortgage
Aug 26, 2007
18,837
48
48
San Diego, California
www.LoanSafe.org
Welcome and thanks for joining the LoanSafe community Lifeinmn.

Let SPS know that they're dual tracking and this is strictly prohibited under the CFPB's new rulings. They are playing the "missing paperwork" excuse in order to move forward with foreclosure proceedings while the loan modification is under review. I would not be concerned about the threat of an attorney, they're just playing hard ball and are trying to squeeze as much $$ out of you as possible. Send them everything they request immediately and be prepared to send in updated bank statements/pay stubs every 60 days.

Also, no need to mention anything about car repairs. These lenders have no morals and will want to see a long-term hardship such as a loss of income or increase in payment, which obviously has occurred in your case.

If it were myself I would not hesitate to file a complaint for their threats and refusing to abide by the dual tracking laws.

http://www.loansafe.org/forum/threads/how-to-file-a-complaint-against-your-mortgage-servicer.73488/

From the CFPB:

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.
 

lifeinmn

LoanSafe Member
Mar 15, 2008
42
3
8
Thank you so much! I know I can always count on Loan Safe. They have not said the word "foreclosure" yet, but why else would they need an attorney, right? Should I still file the complaint because they are trying to bully me with telling me they are contacting an attorney?

Actually, I have been a member here since 2008. Not sure why my avatar says I am a new member. I was one of the 1st 100 people to get a modification on this board. They had a list. I forget I think I was in the 80s.

Thanks again!
 

Evan Bedard

Call 1-800-779-4547
Loan Safe Mortgage
Aug 26, 2007
18,837
48
48
San Diego, California
www.LoanSafe.org
My pleasure Kerri! We just changed int a new forum software so that may be the reason it shows you as a new member.

I would definitely still file a compliant, don't let them strong arm you and threaten you with foreclosure while you're actively pursuing a modification.
 

lifeinmn

LoanSafe Member
Mar 15, 2008
42
3
8
I started to type up a letter to SPS to let them know their threats and stalling is dual-tracking and it is illegal. However, wont this work against me if they were to work out a loan modification?
 

finalchapter

LoanSafe Member
Dec 14, 2013
42
3
8
Arizona, foreclosed home in MI
Welcome and thanks for joining the LoanSafe community Lifeinmn.

Let SPS know that they're dual tracking and this is strictly prohibited under the CFPB's new rulings.

From the CFPB:

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.

Is it considered Dual-Tracking if they are taking foreclosure actions (demand letters, threats and DIL or short sale offers etc) while the denial is being disputed? SPS has not responded to the dispute and they have sent foreclosure alternative options (as noted). I think they have denied the file for the purpose of foreclosure and I predicted their foreclosure department would move forward regardless... and I was right.

The fight continues...

FC
 

Michael Naz

Michael Naz
Jan 9, 2011
2,965
38
48
Southern California
dual tracking can occur in the appeals stage and sps is pretty lousy right now about correspondence due to the volume of cases they are handling. dual tracking is not ok during the appeals stage.

have you tried emailing them the appeal and requesting specific actions to be taken?

should you need help on the appeal - feel free to contact for an appointment if you know you qualify from the 14 inputs:

http://www.loansafe.org/forum/threads/find-out-now-if-you-even-qualify-for-a-loan-workout-solution-post-your-situation.40270/


-michael
 

pennygram

working for consumers
Sep 29, 2010
583
88
28
I would suggest the following:

Request For Information to obtain your servicing file so you can review what actually has happened and then follow up with a notice of error on anything you think is not accurately reflected

Notice Of Error saying that you believe you have provided a completed loan modification application several times and do not understand why they would foreclose on you without providing you with a decision on your case nor asking for any additional docs if they do not understand something you submitted.
 

lifeinmn

LoanSafe Member
Mar 15, 2008
42
3
8
Thank you for the replies. I submitted a complaint (with CFPB) as Evan suggested on 3/28. I got a express UPS letter reply back today (4/14) from SPS. They are putting the blame on me saying they requested additional info (that I sent them 3x now) and they never received it. The did not make not to what I mentioned of the 2x I called and the customer service rep mentioned my account potential being turned over to an attorney. I don't take well to scare tactics. They did mention that They sent us a Notice of Default/Right to Cure on 2/19 which expired 3/22 and they however, have not referred the account to initiate the foreclosure process. They are saying I am incorrect with me saying they are dual tracking. As I was typing this I got a call from SPS. I answered and was told we are now 4 months behind and they are still waiting on info and if we do not send it they will turn the matter over to an attorney, yada yada yada. I said I sent the info again last month and will send it again tomorrow. I am ready to lose my mind with this company. I then asked so this will take another 7-10 business days for this to be reviewed correct? She said, yes or it could be less but we won't go into foreclosure proceedings until then. How are they helping me? Tossing the words attorney and foreclosure at me during a modification is so wrong in my mind. Am I incorrect?
 

pennygram

working for consumers
Sep 29, 2010
583
88
28
This may help clear up some of the confusion:

Dual tracking provisions

Servicers must not make first notice of filing required for foreclosure process until mortgage loan is more than 120 days delinquent

If borrower submits complete loss mitigation application during the 120 day period or before servicer has made first notice or filing, a servicer shall not make first notice or filing to initiate foreclosure process

This provision, 1024.41(f)(1) preempts state foreclosure timelines to the extent they allow an earlier commencement of foreclosure

What is the first notice of filing required by applicable law for foreclosure process?

Where judicial foreclosure the earliest document required to be filed with court

Where nonjudicial foreclosure the earliest document required to be recorded or published

Where no court filing or document required to recorded or published the earliest document that sets her schedules a foreclosure sale date

If borrower submits complete application after first notice or filing but more than so 37 days before foreclosure sale servicer may proceed would foreclosure process but shall not

Move for foreclosure judgment or order of sale or conduct sale until a decision given or borrower rejects offer fails to perform

Make a dispositive motion such as motion for default judgment, judgment on pleadings, or summary judgment which may directly result in a foreclosure judgment or order sale

Is such a motion has been made before receiving a complete application servicer must take reasonable steps to avoid a ruling or issuance of an order

In other words... the servicer can not process a foreclosure sale, nor file a lawsuit, nor sell property during a loan mod IF you ahve submitted a COMPLETED APPLICATION FOR LOSS MITIGATION!

This is why it is extremely important for homeowners to start immediately understanding how a request for information, a notice of error, and a QWR can help them achieve their desired goal.

Whenever a mortgage servicer is doing what a homeowner feels is inaccurate, inappropriate or just downright wrong they need to stay off the phone and follow the law by writing letters. You can expect the law to help you if you're not doing what it says and the law does not support phone calls.
 

dualtrackman

LoanSafe Member
Jul 22, 2014
1
0
1
60
lifeinmn, I'm in a very similar situation. SPS is playing the missing paperwork game with me. I filed a CFPB complaint already and they are still playing around.

SPS is notorious for forcing people to deal with them by phone, then demanding weird things and making threats over the phone, then playing innocent in their written letters.

pennygram is right. SPS uses the phone to skirt around the law. Make them follow the law.
 

Michael Naz

Michael Naz
Jan 9, 2011
2,965
38
48
Southern California
we must concur, stay off the phones as much as possible with SPS unless you are speaking to the ombudsman's office and you have a case open.

if you work with the loss mitigation team by yourself without asking specifics, or you keep re-applying without a clear reason how the application is different from last request for assistance, the situation is further troubled.

just had a loan mod evaluation take from feb 20 to july 10 for an SPS in house mod after hamp perm mod at 2% rate the borrower accepted and defaulted on after 12 months due to further hardship.

borrower is qualified for in house mod, but the net present value data input chart for in house mod shows zero income validated as well as missing other date inputs and this conflicts with that was validated for the HAMP Tier 2 mod.

borrower denied due to not in the investor's best interest (NPV negative) because erroneous and missing inputs were used in evaluation for both hamp tier 2 (shows she does not qualify, but evaluation was done incorrectly due to erroneous and missing inputs).

needless to say this is an appeal and this should get modified since the borrower qualifies for an in house proprietary mod if they just enter the right values like they are supposed to do.

in this case the borrower will dual track SPS by re-applying while appealing the wrongful denial because she now has more income and more savings from missing the payments.

the borrower should be given the better mod terms whether its on the new application or the appeal, whichever is better, should be the one the borrower gets.

and the home value is now higher as well.

mistakes like data entry errors happen 10 to 20% of the time across servicers, the key is to document where the mistakes are in servicing and attempt to rectify them through documentation and correspondence.
 

pennygram

working for consumers
Sep 29, 2010
583
88
28
dualtrackman "SPS is playing the missing paperwork game with me I filed a CFBP complain already in they are still playing around"

Please send SPS a letter immediately certified mail return receipt requested titled notice of error that simply says

I am writing you today in regards to my loss mitigation request. For some reason I provide to you all of the paperwork required and instead of processing the paperwork it always comes up missing. I do not understand how this is happening.

I have provided to you the requested paperwork on the following dates;

List which you provided, the date you provided, how you said to to them, and if you have proof they received it.

Please investigate the above dates and find my missing paperwork so that you can process me for any and all loss mitigation options. If you cannot find my missing paperwork please provide to me everything you used in your investigation.

You can mail to me your investigative results at

Sign your name
 

pennygram

working for consumers
Sep 29, 2010
583
88
28
thanks for pointing out my spelling shortcomings - not my strong suit...

fax and emails are fine but please remember that a fax or email will not withstand a lawsuit

QWR, RFI and NOE have to be mailed to the address given and is usually located on your mortgage statement. IF you do not mail it as directed then the servicer is under no requirement to respond...

IF anyone needs a proper address let me know and i can post the address - I do have a master list but am unable to post it to the public... sorry

Select Portfolio Servicing

P.O. Box 65277

Salt Lake City, UT 84165-0277

Notice of Error / Request for Information / Qualified Written Requests
 

Michael Naz

Michael Naz
Jan 9, 2011
2,965
38
48
Southern California
pennygram -we did not mean to point out your shortcoming by pointing that misspelling out in your title for your avatar.

we are not trying to argue with you, but you are wrong about the fact an error notice letter must be certified mail only from numerous cases of loan mod correspondence and lawsuits regarding it as well since 2007.

the error notices must be specifically detailing what is wrong, from what previous date of correspondence and what fields are incorrect or not being addressed by the servicer.

too many times, servicers do respond back in writing, but its not an accurate response and homeowners get upset and give up instead or writing back to correct the errors.

the errors always work to discourage the homeowner from the application process.

we have seen the emails and faxes work just fine in lawsuits they hold up as long as you have third party reliable proof of the fax confirmation or the email received.

email read receipts or delivery receipts work just fine as do confirmation pages of the fax transmission.

anyone can easily certify blank pages and send it to them and have proof of mailing too.

ultimately, you could fax blank pages and blank email attachments or blank pages via certified mail and have proof of mailing.

the important thing is to confirm receipt and acknowledgment and that is where a phone call comes in handy to check to make sure its been received and then document the call in a follow up letter as well and send that in too.

bottom line is to have tangible proof the information was submitted and received and acknowledged and ultimately applied correctly and exactly into their data information systems.

we always get read receipts when we send to [email protected] and [email protected] and that is acceptable for error notices as well.

using a non-profit HUD counselor could be helpful if for no other reason than to have a witness present for a phone call as well, especially if you are not using an attorney or other professional to assist.

sending the error notice to the CFPB.gov website regarding a complaint about an error along with emailing to SPS at the same time would also work to provide an outside free resource to monitor the error notice.

they will forward the complaint on behalf of the homeowner to the servicer and the servicer will respond back to them.

addresses for SPS departments are listed on their contact us page as well as other useful addresses for other matters.
 

pennygram

working for consumers
Sep 29, 2010
583
88
28
loanmodhelpcenter - I am glad you pointed out my misspellings because I am a terrible speller... they made spell check just for me LOL

"we are not trying to argue with you, but you are wrong about the fact an error notice letter must be certified mail only from numerous cases of loan mod correspondence and lawsuits regarding it as well since 2007."

no argument from me - I am here to bring my knowledge to the table and help. Some will find it helpful and some will take issue but I am hoping that we all can achieve a better level of encouraging others to fight back so we all will win in the end.

now to this notice of error - it seems you are pointing out the qwr (qualified written request) since the notice of error is effective Jan 10, 2014. The qwr as we knew it prior to Jan 2014 is defined as you have outlined. But now there are two additional written request we can use.

"On January 17, 2013, the CFPB issued a final rule to amend Regulation X(78 Fed. Reg. 10696)(February 14, 2013). The final rule
included substantive and technical changes to the existing regulations. Substantive changes included modifying the servicing transfer notice requirements and implementing new procedures and notice requirements related to borrowers’ error resolution requests and information requests.

The notice of error is not defined like the QWR is. Matter of fact it is mostly a catch all to encompass the myriad and diverse types of errors that borrowers may encounter. It covers 10 listed categories including this catch all category.

You are absolutely correct that certified mail is not necessary IF you want to hope they receive it - certified mail is your proof protection that they did in fact receive it.

I am not sure what lawsuits you are referring to but the circuits have become clear that in order to prevail on a QWR (and I would believe the new RFI and NOE) you must send to the servicer's designated address. Check Berneike vs Citimortgage to name one off the top of my ehad. There have also been one or two so far this year as well. Faxes and emails can hold up BUT why not do it right the first time so you can utilize all the laws available because believe me you need your arsenal loaded to fight back in court.

Needless to say there is much litigation gearing up to be filed in the coming weeks over these new regs...
 

Michael Naz

Michael Naz
Jan 9, 2011
2,965
38
48
Southern California
pennygram - we read your background bio thanks for sharing your experience with the forum was curious about your level of expertise so now we appreciate your perspective even more.

we wanted to makes sure people didn't stress out if they didn't certify mail their QWR or Error Notice.

speaking to the the broader public, a QWR is a qualified written request for information about your loan addressed to your lender or servicer and a type of QWR is the notice of errors as a notice of error.

having emailed in to SPS or faxed in or mailed are all totally acceptable forms of communication as long as there is some sort of verifiable proof that the request was received such as message delivery autoresponder or fax confirmation or delivery confirmation in the form of certified mail tracking number in your example.

for a QWR to be effective it has to reach the servicer and/or the lender sometimes they are the same as you know and its easy to check to see if the request for information was received.

from our numerous cases of different interactions, the servicers including SPS treat all written inquiries such as email, fax or certified mail the same way.

any court will look at each delivery method the same way as long as there is proof of delivery is all we are trying to communicate and enter a request for information regarding the loan.

avoiding lawsuits is the way to go to settle cases or settling them before trial of course.

we have found the complaint and appeal and error notice process to be highly effective in resolving disputes and achievement workouts that prevent foreclosure.

but we hope to see many more cases like the $16M verdict as well.

it would take 100 cases like that one above to reach $1.6B in damages and 1000 cases to achieve $16B in damages against due to be paid by the serivcers/bankers/lenders/mortgage investors.

we know with good probability that there are roughly 30,000 potential cases that are similarly egregious as the $16M verdict case and the banks have better attorneys and more money than homeowners and will avoid roughly $480B in damages if those roughly 29,999 other homeowners received the same $16M verdict.

when citi gets hit with a $7B fine on $1,894B in assets and chase with a $12B tax deductible fine on $2,476B in assets, then you know we are all talking about things that mean very little in the big picture to the servicers/lenders/bankers/mortage investors.

appealing errors and disputing facts through effective complaints (another form of QWR) without having to litigate is cost effective but sometimes people have to sue their servicer in the end.

by all means do certify mail any specific written requests (otherwise they will be treated as not qualified) for information it is anyone's right to.

we are saying try email or online login or faxe at the servicer first before spending money on certified mail was our main point.