Consumer complaint received 2017-05-24
Company: Ocwen Financial Corporation
State: OH
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Trouble during payment process

Complaint:
I am writing to complain that  Ocwen,  in spite of numerous complaints to both Ocwen and CFPB ; Ocwen continues to mishandle loan balances.   1. ) Ocwen misapplied borrower payments, failed to correctly process escrow and insurance payments, and failed to properly investigate and make corrections in response to numerous CFPB complaints and complaints filed through Ocwens Ombudsman. Because of the mishandling of my mortgage account I was forced to file bankruptcy in   XX/XX/XXXX  to  save my home.   2. )  Ocwen  was listed in my Chapter  XXXX  bankruptcy plan as a priority claimant but did not file a proof of claim within  90  days of bankruptcy filing as required by bankruptcy court procedure. Even though Ocwen was a claimant in an active bankruptcy I started receiving letters from Ocwen informing me that my home was in a pre- foreclosure status even though  Ocwen was  listed as a priority claimant on my chapter  XXXX  plan. In addition to the pre- foreclosure notification letters I also received loss mitigation documents via email and mail from  Ocwen    offering a loan modification.
3. )    Ocwen is one  of the largest Mortgage service providers in the United States and as such the mistakes and mismanagement of my account and non-compliance with Bankruptcy procedures should be not considered frivolous errors. As a result of the noted problems with Ocwen and their failure to file a proof of claim a sustainable payment plan and debt reorganization could not be managed properly through the bankruptcy court. I elected to have my current bankruptcy dismissed. A new Chapter  XXXX  plan was filed on   XX/XX/XXXX .  Ocwen is shown on the new chapter  XXXX  plan as a priority claimant. In an effort to prevent future noncompliance with Bankruptcy rules and procedures by Ocwen that could impact the new payment plan my legal team filed a proof of claim on Ocwens behalf.    4. )  Ocwens mismanagement of my mortgage account while in an active chapter  XXXX  bankruptcy has resulted in financial hardship. My new payment plan through the bankruptcy court of {$1600.00} per month is {$600.00} per month higher than my previous payment plan of {$1000.00} per month.   5. ) In a prior CFPB complaint Ocwen placed all subsequent payments for calendar year   XX/XX/XXXX  and  XX/XX/XXXX  i n a suspense account in the amount of {$8300.00} with no explanation. When the accounting adjustments were made by Ocwen the loan was not at that time in a delinquent status. No notification, explanation, or rationale for placing an entire year of mortgage payments in suspense was provided to the mortgagee, or the Bankruptcy Court prior to  Ocwen making the accounting changes. Additionally the accounting changes made by Ocwen o n the for-noted dates resulted in an increased IRS tax burden for the mortgagee because mortgage interest payments to  Ocwen  f or 11 of 12 m onths in calendar year   XX/XX/XXXX   could not be included as a tax deduction on the IRS tax form  XXXX .    6. )  Ocwen has demonstrated a practice of avoiding fileing a proof of claim as required in bankruptcy procedures, When legal offices representing the mortagee file proofs ' of claims on Ocwen 's behalf Ocwen objects, adds substantial fees to their claim, and tells the Judge that the reason it failed to file a timely proof of claim during the as required by bankruptcy court procedure was a frivilous mistake.   7. I can not verify the chain of custody of my original mortgage/note and the entity that owns it. I believe that I am a victim of  XXXX  mortgage and Note robo signing. Ocwen stated in a letter dated   XX/XX/XXXX   that  XXXX  owns my mortgage/note. I called  XXXX  on   XX/XX/XXXX  .  XXXX , to date has been unable to verify that they own or an possession of my mortgage/note documents in my name. Ocwen provided me with a copy of a note in my name bundled with notes from at least  XXXX  other persons that I do not know from different areas of the  United States..  These notes from unknown persons ' have their names, adresses shown on the notes. These notes can be view in my on-line account with  Ocwen and is objective evidence of poor and unlawful record keeping by Ocwen.

Company response to consumer: Closed with explanation