Consumer complaint received 2019-04-25
Company: Ditech Financial LLC
State: OK
Product: Mortgage
Sub-product: Other type of mortgage
Issue: Struggling to pay mortgage

Complaint:
In XXXX of XXXX, I was behind a couple of months in my mortgage. It was suggested by the company rep that I spoke with to apply for a loan modification and to hold off on making a payment because if it was approved it would bring me current and possibly lower my monthly payment amount. Since having bought my home in XX/XX/XXXX I had became XXXX and my husband had taken a 50 % cut in hourly wage due to losing his job after an on work injury. I filled out the necessary paperwork that was required for this application to start this process. I was then told to call weekly to see if there was any kind of an update on the application. After a couple of weeks, I had called and was told that the dept that handled those applications was 7 weeks behind on their work and to continue to call back weekly. Every week I called this company and it was only during those calls that I would find out anything about the processing of my application. During those calls were the only time I would find out if the company required any other information from me. As you can see by the attched file I was still sending Ditech additonal information on my loan modification. During the prior months, I had to repeatedly resend the same information to the company and had filled out the application 4 different times, once because I was sent the wrong application to fill out. Due to the company 's delay in processing this application, I had to resend current pay stubs and bank statements because they wanted the most current. Many times I was unable to upload the required documents to their website on my account because their website was having problems, thus I was forced to send them to the company via email. I had to pay my payments in 2 parts during the months previous and I had made a partial in XX/XX/XXXX to complete the amount they had in unapplied funds for full payment. In XX/XX/XXXX I was speaking with a rep from their company to get an update, which at that time they were still processing my application, and I told the rep that I needed to send a payment to them. I was told NOT to send any money because it would be returned to me due to the fact that I was in pre-foreclosure. I had not received any notification of this prior to this conversation. It seems that they claimed that I had received something back in XXXX or earlier. I was left hoping that the company would hurry up with my application and that things could get back on track. I repeatedly told them all I wanted to do was to start making my payments again. I had previously tried to set up an auto bank draft for my account using their website but the website would not allow me to do this without being current. I explained my problem with one of the reps and was told yeah you have to be current to do this, which made no sense to me because setting up a bank draft would have assured the company that they would at least be getting monthly payments. They had set up bank drafts in the past to debit my account for 1-time payments several times without me being current. My home was built in XXXX and it had already had 3 previous owners that this company had foreclosed on. I continued to call weekly about the modification application. Then in XX/XX/XXXX, I had an insurance claim made on my home for my roof. The company had put insurance on the home when my husband was out on workers comp and we found out that the insurance company we had was not taking the insurance premiums out of the workers comp check, the same company that paid the workers comp payments was also the same company that we had our homeowners insurance with. We were issued an insurance check for the replacement of the roof and it was sent in our name and that of Ditech. We were instructed by Ditech to sign that check and to return it to Ditech and that they would pay the contractor. Ditech later sent us a portion of that check made out to us and the contractor. We signed that check and gave it to the contractor. Ditech still is holding a portion of our insurance check in the amount of {$1600.00}. I have repeatedly requested that they send us the remaining amount that they are holding so the contractor can be paid. Ditech continues to change their mind as to what they need in order to send us that check. Both the contractor and myself have sent Ditech the paperwork that they request several times with it always being the same paperwork. I was told once that we needed and inspection before they could release the money and after 2 or 3 weeks and not hearing from Ditech or an inspector I called Ditech and was told that I didn't need an inspection. Then they would request the same paperwork from me again. Both the contractor and I would send the paperwork both through email and through fax. Now here we are in the last part of XX/XX/XXXX and I was told we need an inspection. So far no one has come to do any kind of inspection. I was told that I would hear from someone in 10 days. Ditech made the contractor sign a release form preventing them from putting any kind of lien on the home before they would release the first portion of the insurance check. Now I have someone wanting to buy my home and I am not sure how I will get Ditech to release their claim on the home. I had received notice from an attorney sometime back stating I needed to pay x number of dollars to prevent the foreclosure. I requested from that attorney the name and address of the original creditor, which I sent that request certified mail. It took a few months before I even got that information from the attorney. Now Ditech has filed chapter XXXX once again and prior to this being information being made to us we received notice that Ditech had canceled our homeowners ' insurance. I called Ditech to find out why this was done. I was informed that it was because I was being assigned a new account number and that once their system was updated that my insurance would be put back in place with no lapse in coverage. My original contract states that if Ditech has to place insurance on my home that the amount of coverage that they are allowed to place and charge me for will be in an amount no greater than the amount that is the balance of what we owe on our home. Ditech has placed and charged us for insurance premiums on insurance that is double in the amount that we owe on the home. When I questioned Ditech about this I was told that that was all they could get and that they had to put that amount on there. This is a breach of contract and we have been paying for coverage that we should not have been charged for. I need someone to help me and others like me to stop this company and their thieving practices. I'm sure that because my home was financed with the same company by the previous owners that they were foreclosed on for similar reasons.

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