What are the risks of having Select Portfolio Services purchase your mortgage?


Quick Answer

Select Portfolio Services has a pattern of customer complaints regarding problems with payments posting incorrectly to customer accounts and other delays or errors with accounting, according to the Better Business Bureau. Additionally, some customers allege that the company is forcing homes into foreclosure unnecessarily. The BBB has received 236 consumer complaints regarding this company between 2012 and 2015.

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Full Answer

Getting a loan modification on a mortgage through companies such as Select Portfolio Services carries risks to the consumer's credit and fails to address the problems facing many homeowners, states Fox News. To qualify for a loan modification, the homeowner typically must be 90 days behind in making mortgage payments, but this can drop his credit rating as much as 100 points and make it difficult to refinance the loan or rent a home later on. Sometimes the bank asks for a several-month trial period of payments prior to finalizing the modification, but if the homeowner makes payments during this period, the bank concludes that his financial situation has improved and he no longer needs loan modification. Finally, loan modification adjusts the amount of interest due but not the principle, which may leave the homeowner still owing more than he can afford.

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