Consumer complaint received 2019-03-01
Company: Ditech Financial LLC
State: TX
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Applying for a mortgage or refinancing an existing mortgage

Complaint:
I had a XXXX XXXX loan on my condominium. After Hurricane Harvey, I was offered a deferral period due to my home being flooded and needed extensive rehab before it was livable again. A person that I talked with told me that at the end of the deferral period, I would be given a modification and the interest rate would be reset to current market rates. This would have been a good deal for me, so I did accept the deferral as ( 1 ) I had no idea what kind of money was going to be needed from me to rebuild and ( 2 ) the current market rates were much better than the rate that I had. About 2.5 % better on the average. 

My rebuild took much longer as the storm damage was so extensive in our area that it was hard to have materials delivered without a long wait. Thus, I didn't get a fully livable condominium until about XXXX or XX/XX/XXXX. I was out of my house for a full year. 

Ditech came forward with a modification agreement asking me to sign where they added past due interest of {$4400.00}, eligible servicing expenses of {$18.00} ( why? ) and taxes and insurance of {$1100.00} ( double why???? ).  Taxes and insurance are part of my escrow account, not part of financed money. And I don't escrow my insurance anyway, I pay it with my HOA dues and to XXXX myself. It doesn't go through the mortgage company. 

What is most shocking though is they have amortized the loan out another 40 years (!!! ) when I had only 15 years to pay on my original mortgage. And they did not lower my interest rate, and they re-started amortizing the loan as a totally new loan. I would think a modification only modifies some of the terms, it should not start over as a completely new loan. They lowered my payment a little, but I did not ask for this and I did not need it. 

If I had continued to pay my old loan, I would have paid {$31000.00} in interest from XX/XX/XXXX to the end of the loan. With the modification, I will pay {$95000.00} in interest. 

I did ask a rep if they had lowered anyone 's interest rate, and I was told that yes, if the balance owed was already a large amount, they lowered the interest rate to make it easier for the mortgagee to pay. 

Now Ditech is in Chapter XXXX bankruptcy. I feel very much held over a barrel to pay all this extra interest just because I deferred payments for a year, and based on inaccurate information. 

It seems that I could continue to pay as if my old mortgage was in place and get out before 40 years pass ( I hope so since I am already XXXX years old! ). However, this is just wrong, They should not be able to do this to a consumer whose mortgage was not behind. 

I have tried to refinance, but my credit score is just beneath what lenders want, so I am unable so far to do so. 

Possible I would be forced into a sale and get rid of my mortgage, but then I would be faced with a market with real estate prices much higher than when I bought this place, so it is all out of my reach now.

Company public response: Company believes it acted appropriately as authorized by contract or law
Company response to consumer: Closed with explanation