SPS has quickly become the worse company to work with. I have not seen such widespread incompetence and lack of knowledge since the 2008-2009 BOA days. I got a SPS short sale after the loan was serviced released to them in the Fall of 2012... it has been a nightmare ever since.

The seller qualifies for HAFA (non -GSE) and sent the RMA to get the file opened, valued ordered, etc... every call after has been both miserable and laughable. No one who answers the phone at that company has any understanding of HAFA, short sale or Real Estate in General.  I have enough material to write a book but I leave you with a few highlights of their lack of knowledge instead...

As I mentioned above, this started as short sale with BoA that was sold off to Select Portfolio Servicing last October. I sent in all the documents SPS required for HAFA review, confirmed they were received, and when we called to see how the review is going. We spoke to 3 different reps, each knowing less than the last.

The 1st rep we spoke to told us that the Seller is not eligible for HAFA because seller hasn't been in the property in over 12 months. This is not a GSE Backed Loans. I refreshed my memory by reading over the HAFA Guidelines and it confirmed that there's no occupancy requirement. So we called back and were told that the Seller can be reviewed for HAFA but can't receive the relocation incentive (which is fine), but they would not start the review until we went under contract. I disputed that and got off the phone while we searched for the exact spot of the guidelines it says that's not the case (4.1). We called back and spoke to the 3rd rep who just plain doesn't understand what HAFA is. She actually asked me if the Seller is interested in doing a payment plan as part of the HAFA program. Seller was current and not interested in a payment plan. She had to move out of the state for work, and she would like to short sell the home.

I went into excruciating detail about the 2 paths for HAFA (pre and post offer), telling her the difference between a SSA + RASS, versus an ARASS. She had never heard of an SSA before and she claims to be in the HAFA department. She put me on hold to investigate and came back a few minute later telling me that there's no way they'll review for HAFA prior to receiving a contract, I explained it all to her again to no avail.  The servicer needs to review a Seller for HAFA within 45 days of the Seller's request to be reviewed. The entire point of the pre offer path is to get pre-approved so we're not guessing at everything. If the servicer is refusing to do this when we have a proactive Seller, what's the point of this program? I then got off the phone with them and escalated the file to the Treasury.. that helped a little bit.

The Seller could not (and didn't) stay current forever because she had relocated for work and has to pay rent in VA so she had to default and once she did SPS notified me that they will not approve the seller for HAFA until she makes payments of 31% of her income... which agreed to, and is borrowing the money, in order to be in the HAFA program... BTW.. the 31% she is paying to be in the HAFA program is MORE than her mortgage payment was... absurd.

Fast forward several months and many painful calls, the home is under contract and the RASS and supporting documents were received by SPS on 02/02, according to the HAFA guidelines they had 10 business days to issue a response, of course they did not. I have called several times pointing out their delay and that is violates HAFA guidelines only to be told that "they try to meet the guidelines but they are not set in stone"... what?!  There is no real way to escalate the file with SPS, you NEVER get to speak with the negotiator, I have NEVER been contacted by my Single Point of Contract and during my call today, I was told that they could not accept the Prem-HUD because it was not signed by the buyer and seller... I seriously lost it... I cannot help but wonder if their delay is just a tacktic to continue to receive the montly payments since once the short sale closes, the payments will stop.

I have been doing short sale since 2007 and I have never got to this point that after dealing with them for over 5 months I can tell you I will not accept a listing where SPS is the servicer, they are just horrific...

Patty Da Silva, CDPE, RESS®, AHWD®, e-PRO®, GREEN, CFS, TRC, GRI, RSPS