Consumer complaint received 2017-02-01
Company: Ocwen Financial Corporation
State: VA
Product: Mortgage
Sub-product: FHA mortgage
Issue: Loan modification,collection,foreclosure

Complaint:
I bought my house in XX/XX/XXXX for approximately XXXX dollars. I missed 4 or 5 payments in the first few months of the loan due to losing my job. The mortgage company that I got the loan through contacted HUD for assistance. I met with HUD and was entered into a forbearance agreement with HUD. HUD stated that with the forbearance agreement I would continue paying monthly payments to them and that over time I would see a slight increase in the monthly payments. On my original payment plan sheet it showed that I would be paying about XXXX dollars a month near the end of the loan but I ended up paying about XXXX dollars a month. I was told that they would pay the real estate taxes and I would be responsible for paying my home owners insurance. HUD also told me that as long as I made my monthly payments my house would end up being paid off at the end of 30 year loan in XX/XX/XXXX. Somewhere during the thirty years HUD transferred the loan and it ended up with a company called Litton Loan Servicing LLC to whom I continued making my monthly payments. When Litton had the loan they paid the taxes and insurance. Around XXXX or XX/XX/XXXX I was contacted my Litton and was told I had to pay them about the full amount of the loan in order for it to be paid off. I checked with a small mortgage company and we called Litton to see what they were talking about and when we asked for copies of the paperwork they said I had signed we were told they would not going to send me anything. I was advised to contact a lawyer but could not find one that knew had to handle this type of case. In the meantime Litton kept sending me billing statements and I continued to my the monthly payment. Then around XX/XX/XXXX Litton transferred my loan to Ocwen Loan Servicing LLC and they contacted me saying I needed to pay about XXXX dollars for the loan to be paid off. I asked them to send me the billing statements and I would continue making payments until I found a lawyer. They refused to send any statements and they never contacted me again. Then in XX/XX/XXXX on a Wednesday I received a letter from them saying my house would be sold at a foreclosure sell 4 days later. I called a friend and she contacted a lawyer that knew what to do and I went to see him. He was able to stop the sell. I took him all the paperwork I could find, but a lot of it was missing, because I had a house fire in XX/XX/XXXX and some of it was destroyed. Since then my attorney has tried to see if this is a fraud case by going to federal court and tried to reach a settlement with Ocwen, but he did n't get anywhere. Then again in XX/XX/XXXX Ocwen had my house going to a foreclosure sell again and the only way I found out is when a lady came to our house and told my wife she wanted to see the house, because there was a notice in the news paper about the sell. I contacted my lawyer and he quickly stopped the sell by filing a bankruptcy notice. My attorney contacted Ocwen and found out the pay off is now close to 60,000 dollars. The bankruptcy did not get approved at this time and Ocwen has started calling every few days. I have thought of selling the house in order to pay them off but found out the value of my house is not enough to paid off XXXX dollars and start over again especially since Ocwen has my credit all messed up. I am also going to check into getting a reverse mortgage to see if I can keep my house. I have tried to contact HUD about the original forbearance agreement but was told that only my mortgage company could request that information. I THINK MY ORIGINAL MORTGAGE IS FHA

Company response to consumer: Closed with explanation