Consumer complaint received 2023-08-31
Company: Ocwen Financial Corporation
State: MN
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Struggling to pay mortgage
Sub-issue: Trying to communicate with the company to fix an issue related to modification, forbearance, short sale, deed-in-lieu, bankruptcy, or foreclosure

Complaint:
We are working with PHH mortgage for modification of loan on our home during this process PHH mortgage reassure us that as long as they are working on our application of our home It will not go in to foreclosure. 
Im writing to appeal the foreclosure legal action on my home. XXXX owns a construction business and business pretty much shut down during COVID. This loss of income impacted on our ability to make our payments on our house. We have sent numerous Mortgage Assistance Applications to PHH Mortgage. Each time, PHH Mortgage responded that they needed additional documents. We have promptly responded by providing the additional documents needed. We are frustrated that our efforts did not result in a loan modification that we needed to save our home from foreclosure legal proceedings. We have been informed that the Sheriff Sale was held on XX/XX/XXXX and our mortgage is currently in the redemption period. English is our second language and we tried to understand what was needed to fulfill the documentation requirements. We met with HUD Certified Housing Counselor, XXXX XXXX of XXXX XXXX XXXX in XXXX, MN on XX/XX/XXXX. We believe that PHH has failed to do their duty by dual tracking our loan modification request therefore we are appealing to PHH to reverse the foreclosure sale and filing a complaint with CFPB. 
Brief History : Missed first payment XX/XX/XXXX Sent first Mortgage Assistance Application via email XX/XX/XXXX to XXXX Received letter from PHH XX/XX/XXXX application is incomplete requesting one recent paycheck stub dated from XXXX within the last 90 days that reflect year-to-date income or two most recent bank statements dated within the last 90 days showing income deposits amounts. 

Resent 2nd Mortgage Assistance Application on XX/XX/XXXX with copies of paycheck stubs and 2 months of bank statements showing income deposit amounts per request via email to XXXX. 
Sent 3rd Mortgage Assistance Application on XX/XX/XXXX with bank statements and P/L statements to XXXX Sent letter via email to XXXX on XX/XX/XXXX with requested additional documents. 
Sent XXXX P/L Statement via email XX/XX/XXXX to XXXX. 
Spoke with account specialist on XX/XX/XXXX. Conversation was a mix of hope and anticipation. She shared that my loan modification was still undergoing a review, and advised me not to be overly concerned, but rather to grant them some time to meticulously assess the situation. She mentioned that the review process might take up to 30 days, and so I waited with optimism, hoping for a positive outcome. Getting in touch with the relationship manager has been a bit of a journey, often requiring 3-5 weeks of patience just to have an appointment conversation. Nonetheless, my commitment to cooperating with them has been unwavering. My partner and I diligently completed all the tasks requested from us, even taking on extra employment to demonstrate our sincere dedication. We genuinely believed that we were collaborating toward a viable solution, putting in not only hard work but also trust in PHHs efforts. 
Received email dated XX/XX/XXXX from XXXX XXXX, assigned case manager with appointment date of XX/XX/XXXX at XXXX pm XXXX. 
Spoke with XXXX on XX/XX/XXXX she conveyed some disheartening news the loan modification request had unfortunately, been denied on XX/XX/XXXX. Naturally, I was taken aback and needed to understand why this decision has been made. XXXX kindly explained that our current income wasnt sufficient to meet the qualification criteria. She emphasized the need for additional proof of income spanning three months- XXXX, XXXX, and XXXX. Trying to convey our commitment to resolving this, I shared that we had an extra income stream amounting to {$1200.00} per month XXXX requested these proofs on income. 
Received email XX/XX/XXXX from XXXX XXXX requesting updated income information, P/L for months of XXXX, XXXX and XXXX via email at XXXX or reply to this email. 

My utmost concern was the looming possibility of foreclosure. The thought of losing our home and the impact it would have on m XXXX XXXX XXXX daughter who was born in this home in XXXX. We are concerned what would happen to her school? She is a straight A student, with her education and stability left me deeply worried. We built this house in XXXX we bought the lot separately from the house motgage, we have upgrade and finished the basement adding 1bed room, and 1 bath, dining room, bar, home theater, classical dance studio, the PHH value our house at about {$450000.00} with out going inside the house. We can not give up our equities on our home. And our home is one of the biggest house on that area and close to our home the smaller house sold for about {$390000.00}, Our house is not only our home but also served as None Profit 503c XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX  that I trained my student to preserved XXXX cultural and heritage for community. Where would I train my student now, Why would they want our home? We built our home for us to live there for the rest of our lives. 
With these anxieties pressing on my mind, I decided to ensure the security of the application by emailing it to both XXXX and XXXX the requested documents on XX/XX/XXXX ( same day ). 
XXXX requested documents again to XXXX on XX/XX/XXXX simply to guarantee that they had received everything they needed from my end. A follow-up call provided reassurance that the information was indeed received and I was asked for some more patience as they undertook their review process. 
Each time I communicated with a PHH mortgage specialist, my main concern was avoiding foreclosure. The specialists I spoke to consistently assured me that as long as PHH was actively engaged in the loan modification process, my home would not face the threat of foreclosure. This consistent message cultivated trust in me. I believed that PHH was genuinely invested in working alongside us. In these trying times, my hopes are intertwined with the notion that PHH recognizes the urgency of our situation and the emotional toll it was taking on my family. I placed my trust in their commitment to assisting us in securing our home and find a feasible solution. 
Emailed third time requested documents to XXXX on XX/XX/XXXX. 
Received letter dated XX/XX/XXXX from PHH indicating that they will review the application to determine whether it is complete. 
Sheriff Sale held XX/XX/XXXX XX/XX/XXXX brought an unexpected and deeply unsettling event to my doorstep. A real estate agent 's knock delivered the shocking news that our home had been sold at the Sheriff 's sale auction on XX/XX/XXXX. The abruptness of this revelation caught us entirely off guard. The belief that we were still actively engaged with PHH Mortgage to explore a loan modification solution adds another layer of confusion to the situation. Reacting swiftly, I contacted PHH Mortgage on the very same day for clarification. Despite the disconcerting news I had just received, the account specialist agent conveyed that our house was still in the process of being modified. Seeking further assurance, I probed the possibility of a foreclosure sale. Reassured by the mortgage specialist agent 's response that our house was indeed undergoing modification and not foreclosure. However, after they put me on hold for 10 mins, the subsequent conversation with a different PHH representative took a sudden and unexpected turn. Learning that our house had been sold and someone had already purchased it, undoubtedly brought about a whirlwind of emotions. Attempting to convey our ongoing commitment to finding a modification solution, only to be met with a sense of finality and the notion that it was too late, was incredibly disheartening. 
We were left feeling as if an essential line of communication had been abruptly cut off. The referral to consulting a lawyer for further guidance added a new dimension to our journey. It's clear that even the lawyer, while empathetic, was limited in their ability to provide comprehensive information due to the complexities of the situation. The Lawyer referred us to contact the loss mitigation department. I explained my situation to the loss mitigation person. He said there is nothing he can do all he can say is to get a lawyer. He said he told all the customers in the same situation, like us to get our own lawyer. The weight of uncertainty and the loss of control over our living situation is incredibly distressing. My concerns about the future of our home and the emotional toll on our family are entirely valid. In navigating these difficult circumstances, I am still seeking the necessary support and resources to find the way to obtain our house back. We dont want to lose our home. 
PHH Mortgage has failed to stop foreclosure proceedings. MN Statute 582 subd 6.c requires that if the Servicer has received a loss mitigation application after the foreclosure sale has been scheduled, but before midnight of the seventh business days prior to the foreclosure sale date, the Servicer must halt the foreclosure sale and evaluate the application. 
On XX/XX/XXXX, XXXX XXXX of XXXX XXXX XXXX in XXXX, MN spoke with XXXX ID XXXX XXXX of PHH. XXXX said that there just wasn't enough time to review the loan modification. He said normally it takes 37 days to review the loss mitigation packages. XXXX argued that if that was the case then why did the case manager arrange a phone meeting on the XXXX and requested 3 months of income then. He said that they were hopeful that the modification dept can be completed within timeframe and they were instances in the past which could have been completed swiftly and they do not require the entire time period to review them. She said that is not fair when one person gets their loan modification reviewed in time, but not for us. He then provided information on how to appeal. 
XXXX asked if we have received any information regarding HAF funds through HomeHelpMn program. We have never heard of this program. Had we been made aware of this program, we would have applied for it. The HomeHelpMN program closed XX/XX/XXXX. We have been made aware that PHH is a participant of the HAF program. Per CFPB, PHH is required to provide borrowers accurate information about the loss mitigation process, including, when applicable, accurate information about PHHs participation in the HAF program and how to communicate with PHH throughout the HAF application process. 
We have made and received many phone calls to and from PHH. Attached is the phone log. 
A complaint with Consumer Financial Protection Bureau ( CFPB ) has been filed on XX/XX/XXXX. We are asking PHH Mortgage to reverse the foreclosure legal proceedings due to their violation of dual tracking. They did not halt the foreclosure while reviewing our loan modification request and to help us find a solution to help us stay in our house whether it is a loan modification or partial claim.

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