How Sps Handles Loan Modifications

If you're struggling to keep up with your mortgage payments, you may be considering a loan modification. SPS offers loan modifications, but it's not an easy process. You'll need to provide various documents, including tax returns, pay stubs, and bank statements, and you may have to wait several weeks for your application to be processed. If you're already working with a different lender on a modification, SPS will work with you to continue the process with minimal disruption. However, you may need to start the process from scratch and provide updated documents. It's important to stay on top of the process and contact SPS regularly to ensure a smooth service release.

SPS loan modification problems and solutions

If you're facing SPS loan modification problems, you're not alone. Here are some issues and solutions to help you navigate the process:

Problem: Receiving a "Goodbye Letter" During the Modification Review

It can be distressing to receive a "goodbye letter" from your mortgage servicer, informing you that SPS is taking over your file mid-way through the modification process.

Solution: Be proactive. Start tracking your loan with SPS immediately and call them every 48 hours. Don't wait for them to contact you, as this could take several weeks. Get a head start by requesting a blank copy of their loan modification application and begin working on it.

Problem: Delays and Disruptions in the Modification Process

When SPS takes over your loan, you may experience delays and disruptions.

Solution: Treat the service release as if you're starting the process from the beginning. Gather updated financial documents, including recent pay stubs and bank statements. Contact SPS's loss mitigation department and stay in regular communication with them. Create an online portal to access all your loan-related documents and check it frequently to stay updated.

Problem: Incomplete or Missing Documents

SPS may deny your modification attempts, citing an "incomplete package" without specifying what's missing.

Solution: Utilize SPS's escalation procedures and ask to speak with a supervisor. They have the authority to get your file moving forward. Stay persistent and ensure all requested documents are submitted.

Problem: Transitioning Back to Normal Payments after a COVID-19 Forbearance Plan

If you took a COVID-19 forbearance plan with SPS due to financial hardship, you may be concerned about resuming regular payments.

Solution: If you have a qualifying investor backing your mortgage (FHA, VA, USDA, Fannie Mae, Freddie Mac) and were current before March 1, 2020, you have options. SPS can offer a payment deferral, where missed payments are added to the end of your loan, or a partial claim, where a subordinate lien is created for the lump sum of missed payments.

Remember, SPS has a dedicated customer service team that can assist with any questions or disputes regarding your loan. Don't hesitate to reach out and utilize the resources available to navigate through any SPS loan modification challenges.

SPS loan modification denial

If you have received an SPS loan modification denial, there are several steps you can take to understand the reason for the denial and explore alternative options. Firstly, carefully review the denial letter sent by SPS to understand the specific reasons for the rejection of your modification request. Contact SPS to discuss the denial and inquire about potential alternatives to foreclosure. During this conversation, ask about any options for reconsideration and whether additional information or documentation can be provided to support your modification request.

It is important to be proactive and not wait for SPS to reach out to you. Start tracking your loan status with SPS and contact them regularly to catch the exact moment when your loan has boarded their system, as you will need to resubmit your documents at that time. Additionally, treat the service release as if you've started the process from the beginning. Gather your updated financial documents, including recent pay stubs and bank statements from the last 30-60 days, and obtain the updated loan modification application from SPS.

If you had a COVID-19 Forbearance Plan with SPS, you may have options to transition back to normal payments if you meet certain criteria. These include having a qualifying investor backing your mortgage (FHA, VA, USDA, Fannie Mae, Freddie Mac), experiencing financial hardship due to the pandemic, and being current on your mortgage before March 1, 2020. In this case, SPS may offer a payment deferral or a partial claim to help you resume regular payments.

Finally, explore alternative solutions such as a forbearance agreement, repayment plan, or other loss mitigation options. Review your bankruptcy documents to identify any relevant clauses that may impact your current situation. Consult with a legal professional to discuss options like filing for quiet title, which establishes clear ownership of the property, to determine if it is a viable course of action in your specific case.

SPS loan modification documents

Select Portfolio Servicing (SPS) is the biggest servicer of non-agency residential mortgage-backed securities. SPS offers loan modifications, but the process can be challenging and complex. Here is some information on SPS loan modification documents:

SPS Loan Modification Package

The SPS Loan Modification Package, also known as the RMA (Request for Mortgage Assistance), includes the SPS Hardship Affidavit. This package typically has nine sections and totals about seven pages. It is important to note that the paperwork for this package changes frequently, so it is advisable to use the latest version and check with someone familiar with the process.

Required Documents

When applying for an SPS loan modification, you will need to provide various financial documents, such as pay stubs and bank statements from the last 30 to 60 days. It is recommended to have these documents readily available and updated to avoid delays in the process.

COVID-19 Forbearance Plan

If you had a COVID-19 forbearance plan with SPS due to financial hardship, you may have options to transition back to normal payments. SPS may offer a payment deferral or a partial claim to help you resume regular monthly payments.

Customer Service and Support

SPS has a dedicated customer service department to assist with any questions or concerns about loan modifications. They can be reached by calling 800-258-8602. Additionally, you can contact their loss mitigation department by calling 888-349-8960, faxing 801-269-4459, or emailing [email protected] for document submissions.

It is important to note that SPS may purchase the servicing rights to your mortgage during your loan modification review, which can cause disruptions. Staying proactive and regularly following up with SPS is crucial to ensure a smooth process.

SPS loan modification alternatives

If you are facing issues with your SPS loan modification, there are several alternatives you can explore. Firstly, don't wait for SPS to reach out to you. Be proactive and start tracking your loan status with SPS regularly. Call them frequently to inquire about the progress of your loan modification and to provide any necessary updates or additional information.

Additionally, explore alternative options to a traditional loan modification. Here are some possibilities:

• Forbearance Agreement: A forbearance agreement gives you a temporary break from making mortgage payments without facing foreclosure. This can provide some breathing room while you work on a more permanent solution.
• Repayment Plan: Enter into an agreement to resume regular mortgage payments, plus an extra amount to gradually pay off your missed payments. Once you've caught up, you can continue with your regular monthly payments.
• Loss Mitigation Options: Contact SPS's loss mitigation department to discuss your situation and explore possible alternatives. They can be reached by phone (888-349-8960), fax (801-269-4459), or email ([email protected]), and they have enough customer service representatives to handle high call volumes efficiently.
• Review Bankruptcy Documents: If you have a history of bankruptcy, carefully review your documents to understand if there are any clauses or information that could impact your current situation and provide leverage in negotiations.
• Quiet Title Action: Consult with an attorney about filing for quiet title, which is a legal action to establish clear ownership of a property. While it may not be directly related to loan modification, an attorney can advise if it is a viable option in your specific case.

Remember, each lender has a different application form and process for loan modifications. Be prepared to start the process from the beginning with SPS, gathering updated financial documents, pay stubs, and bank statements from the last 30-60 days. You can request a blank copy of their loan modification application to get a head start on preparing your submission.

SPS loan modification agreement

An SPS loan modification is a new loan with new terms that allows you to resume mortgage payments without having to pay everything you owe all at once. Usually, your missed mortgage payments are added to your total principal balance and become due at the maturity date of the loan. It is common for loan modifications to offer reductions in interest rates, extended maturity dates, and sometimes lower monthly mortgage payments.

To apply for an SPS loan modification, you will be required to submit a "complete loss mitigation package." This is the lender's application form plus all the required financial documents that they require. You can contact SPS's loss mitigation department by phone, fax, or email. It is recommended that you create an online portal so that you have access to all the documents SPS issues related to your loan.

If you are in the middle of a loan modification review with your old lender, don't expect the process to fully transfer over. You should treat the service release as if you've been pushed back to the beginning of the process. Gather your financial documents, and get the updated application from SPS as soon as you know about your service release.

Once you have submitted your application, it may take up to 30 days for SPS to review your account and determine your eligibility for all available home retention options. If you are offered a modification, the decision letter will include a trial modification packet. Once you successfully complete the trial period, the account is reviewed for final modification. At that time, SPS will mail the final modification documents to you for signature. Once they receive your signed modification agreement, they will permanently change the terms of your account.

Frequently asked questions