Select Portfolio Servicing - Fairbanks Capital Making short sale of our home to avoid foreclosure very difficult! ripoff Salt Lake City Utah

We 1st dealt w/ Fairbanks Capital and had many problems. Then came the class action suit, they changed name to SPS, Inc., and things went smoothly for a while.

Because of job losses, less income and a defunct sale to a family member in Fall 2005, we got behind in payments 2 1/2 yrs ago. Entered into a forbearance Jan. 2006 and paid regularly until my husband lost his job mid-March 2007. Made March pmt. but couldn't keep up with pmts. that had virtually doubled! We're now 2 pmts. behind.

Decided to try a short sale through a local real estate broker, who submitted documentation and bid (overnighted to SPS). The next day, SPS instigated foreclosure proceedings, though our broker said his short sale proposal would stop that process. It almost seems that they sped up the process to block our efforts! That action on their part added a handy $1,000+ in atty. fees to what is owed.

Among other things, our broker was told at first that SPS would send out a rep. to take interior and exterior pix to determine property condition. Today we were informed in a conference call that this was a Bank of America loan and they don't allow this. So it's up to us to submit pix of house and property condition as proof that the amount they're wanting to ask for the short sale is too high.

SPS claims that through tax reports in this area, they've determined our house is worth far more than it really is. Furthermore, the man my husband spoke with yesterday wrote in his summation of their conversation that my h. had requested that we retain our $20,000 equity, which h. complete denies.

I was not aware that a mortgage servicer could demand any monies over and above what is owed on the actual loan, including late fees and atty fees related to foreclosure and forbearance issues.

This "feels" personal on their part, and being our credit, it certainly IS personal for us. This house is old, in need of many repairs and updates (the utility bills are horrendous!) We only want to walk away, even at a loss, so that we can downsize, simplify and get a fresh start!

In an effort to avoid the pain and embarrassment of a foreclosure, we decided on this short sale. Our broker, who's been in this business since the '70's and owns 100+ commercial and residential rentals, is perplexed at this company and their practices, and he says he's never dealt with a company like this before! We thought the short sale would benefit all parties, including SPS. My guess is that our broker's offer is much better than what SPS would receive on the foreclosure auction block. And yet they seem hell-bent on making this difficult to impossible.

Time grows short. Our foreclosure sale is set for July 3, 2007 (gives Independence Day a whole new meaning!) If anyone can help in a substantial way with info or actual assistance, please let me know!

Lisa
Waxahachie, Texas
U.S.A.