Consumer complaint received 2023-11-05
Company: Ocwen Financial Corporation
State: FL
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Trouble during payment process
Sub-issue: Trying to communicate with the company to fix an issue while managing or servicing your loan

Complaint:
Situation : Our Florida Townhouse ( XXXX ) was put on sale in XXXX, so we could be with Family in XXXX, they didn't want us living in XXXX  alone after my husband XXXX 's sudden passing away on XX/XX/2023. 

Lot of potential clients for XXXX kept asking if mortgage is assumable. 

Thus, I called my PHH mortgage. They said they will review and communicate back in writing. 

XX/XX/XXXX, XXXX weeks later, they sent a letter saying yes it is assumable based on .... see attached letter. 

I was pleased to hear assumable mortgage. In light of interest rates being so high, it eased the possibility to secure a sale. 

It had no mention of blood relatives, cousin, friend, family stranger etc..as long as financial obligations were met for party that wanted to assume the mortgage. 

We had family friends come in to buy, they went in escrow for XXXX. Purchase price XXXX. My mortgage owed is XXXX for 2.6 % for XXXX yrs. They got appraisal and home inspection all went OK. Financially strong family. 

On XX/XX/XXXX, we got on phone with new buyers and our real estate agent and spoke for an hour on phone that we want an application sent to us so paper work for assumable mortgage can begin. Teleconference all went ok. 

On XX/XX/XXXX, they sent a letter saying mortgage is NOT Assumable. Which shocked all of us for them to go back on XXXX letter that said mortgage is assumable. 

Last 3 days have been on multiple phone calls with PHH about it. They agree their letter was misleading. But as they are mortgage servicer and mortgage provider is XXXX XXXX and XXXX XXXX  is saying it is not assumable. 

I said their assumable department review made a mistake. From the very begining should have not told me it's assumable. I would be ok with that. As very rarely they are. They led me down the wrong path. A rabbit hole, promising path. I could be sued for wrong false advertisement by clients advertising my property as assumable mortgages. As my agent went around saying it's assumable and said that in good faith. PHH has been misleading confusing to us now. 

The sellers were in for the deal as it was assumable. The sellers have backed out on sale now. 

So after all these months the sale is lost. Got to know this loss of sale today. 

House has been put on sale again today. 

Interest rates are worse. Property in good location. Thus still challenging. 

PHH erroneous stance and misleading wrongly issued letter has costed me the sale. Caused stress to the agent, to the buyers, to me at my time of grief I have this undue stress from PHH. 

I have repeatedly asked them to honor their first letter as they sent the assumable letter or I will seek legal recourse. And that is where we are at, they say they cant honor their first letter. 

Please review XXXX letter saying it is assumable. And XXXX letter it is not assumable. 

I am serous about pursuing legal actions. 

They keep saying sorry for the mistake but they can't honor their first letter approving it to be an assumable mortgage. 

Please let me know your thoughts. 

Thank you. 

XXXX

Company response to consumer: Closed with explanation