Consumer complaint received 2022-02-14
Company: Ocwen Financial Corporation
State: FL
Product: Credit reporting, credit repair services, or other personal consumer reports
Sub-product: Credit reporting
Issue: Incorrect information on your report
Sub-issue: Account information incorrect

Complaint:
PHH Mortgage is our mortgage servicer. They purchased our loan from the original company OCWEN which initiated the loan modification in XXXX. In XXXX Ocwen mortgage company was to remove the forgiven amount of {$350000.00} from our account. Ocwen mortgage company refuses to remove loan modification forgiven debt from our account because they say we were 3 months late on mortgage payments which voided the contract for the loan modification. Ocwen has since deferred the forgiven monies of {$350000.00} and added that amount to our total mortgage amount. Until that forgiven monies gets removed from our account we are unable to refinance. The home has a 2nd mort in the amount of {$120000.00} which was not included in the loan modification add to that the FORGIVEN amount of {$350000.00} and then the principal owed of {$190000.00} bringing the total owed on this house of XXXX. The house is valued at {$400000.00}. We did receive a 1099 for forgiven {$350000.00} amount and had to claim this amount was forgiven to the IRS. When the mortgage company was questioned on why they would not remove the forgiven amount I was told it was due to being 3 months late and to get with the IRS and have THEM undo the tax return regarding the forgiven monies we had to claim. I have provided doc which says we were never 3 months late as stated by Ocwen which is their reason for not honoring the loan modification. The only reason we late at was due to the insurance issue and Ocwen not allowing us to make any payments. I have provide the attached documents proving we were never 3 months late and therefore Ocwen needs to remove the forgiven monies in the amount of {$350000.00} from our account as agreed on in the loan modification contract. 
On XX/XX/XXXX we paid {$1800.00} for XX/XX/XXXX payment. 
On XX/XX/XXXX we paid {$1800.00} for XX/XX/XXXX payment. 
On XX/XX/XXXX we paid {$1800.00} for XX/XX/XXXX payment. 
see attached doc These payments were trial payments that had to be made in order for Ocwen to approve the loan modification. In XX/XX/XXXX contract doc from ocwen stated mortgage would be $ 1250 monthly and we all signed doc completing the paperwork for the loan modification the XXXX of XX/XX/XXXX. In XX/XX/XXXX we received our 1st statement and the payment was {$1900.00}. This statement never said I owed for XXXX and was paid on XX/XX/XXXX. In XXXX the statement was higher and I was told it was due to insurance premium. I found another insurance company and the new premium is {$1400.00}. ( see attached ) XXXX payment was paid XX/XX/XXXX, due to that was when Ocwen allowed new insurance to take effect and altered our payment amount. The XXXX payment was paid on XXXX XXXX. ( see attached ) When we tried to pay the XXXX payment a week later we were told that Ocwen would not accept the XXXX payment and if I paid it they would send it back. Ocwen stated that I was behind 2 payments ( XXXX and XXXX ) and they would only accept the 2 payments together. At this time XXXX I owed XXXX and XXXX. On XX/XX/XXXX we paid {$6100.00}, because we had just done this loan modification we didn't have 2 months mortgage monies on hand. We had to take a loan from our TDSP in order to straighten out the 2 months ( XXXX & XXXX ) NOT XXXX & XXXX owed with Ocwen that is why it took until the middle of XXXX to complete. In order for the loan modification to be in default we needed to be 3 months late and it had to be late by the END of the XXXX month per the contract. This never happened as XXXX, XXXX and XXXX payments were paid XX/XX/XXXX. Ocwen wouldn't allow us to pay XXXX payment and then the XXXX payment in XXXX. They wanted both payments paid at the same time. That was just one example of the bank not working with us. Three payments of XXXX x XXXX = {$5600.00} we paid {$6100.00} please see attached doc. 
Ocwen needs to honor the modification contract and remove the forgiven {$350000.00} amount from our account as agreed to.

Company response to consumer: Closed with explanation