Consumer complaint received 2023-10-20
Company: Ocwen Financial Corporation
State: WI
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Struggling to pay mortgage
Sub-issue: Applying for or obtaining a modification, forbearance plan, short sale, or deed-in-lieu

Complaint:
We had a bankruptcy in the past but it fell delinquent due to our health issues. The bankruptcy was dismissed. Shortly after that, PHH declined taking our payments. They repeated told us to apply for modifications and that there would be no reason that we wouldn't be eligible. We applied so many times and were denied every time. We were told there was no way to talk to the underwriter department and we had to wait to talk to our specialist. Appointments were usually several weeks out. This only meant that while waiting for each modification review ( and the results ) and waiting to hear from our specialist, we only had more money delinquencies as the months stacked up. We applied for the Help For Homeowners and were found to be eligible for a substantial amount. We called PHH and indicated as such and we were told that they would take the money towards the arrears and would divide the remaining arrears over 2 years so we could get caught up. The state was indeed ready to send the funds only to have PHH also request even more copies of the previous copies they already had. PHH talked with our state specialist and informed them, as well, that PHH would be accepting the payment and working with us. After MANY more months we have only received hang up phone calls from PHH. We again were told to send in income letters, proof of employment, etc. to PHH. We again did that as a " formality ''. We shortly thereafter received notification that PHH will not be accepting the money or working on any repayment plan. They plan on resuming the foreclosure from where they left off about 2 years ago. By not taking a single payment from us for 2 years we are now not only behind the original amount but now add in the additional {$20000.00} that has been adding up while " working with '' PHH. PHH also felt the need to add an additional {$12000.00} for attorney fees. The amount of time that has passed has not only been so much unneeded stress but has resulted in the inability to file for a XXXX XXXXXXXX as the monthly payments would be too high. It's our understanding that if you file bankruptcy you are not entitled to the money offered thru Help For Homeowners and that would put our house payment well over {$2500.00} a month when you include our current payment along with the arrears. The value of the home is only {$160000.00} and we lived here 25 years. Our state worker has even submitted modification paperwork on our behalf as she, also, wasn't getting answers from PHH. We believe and feel strongly our case has been " dragged out '' needlessly from PHH as they didn't want to work with us at any level. Had the denial happened 2 years ago, we could have filed and saved the house. Now with all the time that passed and more arrears mounting, PHH basically is planning on taking our home as we can no longer file and make that bankruptcy payment.

Company response to consumer: Closed with explanation