Consumer complaint received 2019-04-25
Company: Ditech Financial LLC
State: GA
Product: Mortgage
Sub-product: FHA mortgage
Issue: Trouble during payment process

Complaint:
To CFPB My name is XXXX XXXX XXXX, I had a loan with XXXX XXXX XXXX, lost my job around XX/XX/XXXX and applied for a load modification. My loan modification went though, and I was making my mortgage payment with no issues. Then XXXX XXXX XXXX sold my mortgage to Green tree/Ditech. I NEVER MISSED A PAYMENT, ANOTHER FORECLOSURE WAS PLACE ON MY HOME AGAIN ( XX/XX/XXXX ) IM ASKING DITECH TO STOP THE FORECLOSURE ON MY HOME Ditechs records show that you agreed to a loan modification in XX/XX/XXXX, while this loan was being serviced by XXXX XXXX XXXX XXXX ( XXXX XXXX XXXX ). On XX/XX/XXXX, the servicing of your loan was transferred from XXXX XXXX XXXX, to Ditech. The transfer in servicing did not alter or change the original contract. The modification agreement had not been applied to your account as of the date of the transfer. Ditech applied the modification to your loan on XX/XX/XXXX. In response to your complaint, Ditech contacted XXXX XXXX XXXX in order to assist with reviewing the application of your payments prior to the application of the modification. Ditech determined that {$1800.00} had been received prior to the application of the modification and was not appropriately applied to payments due after the effective date of the modification. This left the account past due after the application of the modification. The enclosed payment history shows that you have been submitting payments that are short of the total amount due. Please note that Ditech is unable to apply partial payments to your loan. Any payment received that is insufficient to satisfy one full loan payment is placed in unapplied funds ( UAF ) until enough funds are received to make a full loan payment. The partial payments have also contributed to the delinquency on your account. Due to the delinquent status of your account, Ditech referred your account to foreclosure in XX/XX/XXXX. Once a loan has been referred for foreclosure, Ditech may deny any payments that are insufficient to bring the account completely current. Ditechs records show that funds were returned to you on two occasions after the loan was referred for foreclosure : {$960.00} on XX/XX/XXXX, and {$910.00} on XX/XX/XXXX, for a total of {$1800.00}. Ditech advanced {$1800.00} to your account on XX/XX/XXXX, to correct the modification payment application error at the time that the loan was transferred to Ditech. This amount was applied to the UAF balance on the account. The account now reflects that it is past due {$1700.00}. If you resubmit {$1700.00} of the {$1800.00} that was returned to you in XX/XX/XXXX and XX/XX/XXXX, the account will be brought current. Ditech apologizes for any inconvenience you have experienced as a result of this issue. Ditech has ceased our foreclosure activity, waived any late fees or foreclosure fees, and once we have received the {$1700.00} to bring the account current we will be issuing a correction to the credit bureaus to reflect that your account has been current since the effective date of the modification. Please contact your Ditech account representative XXXX XXXX at XXXX XXXX XXXX with additional questions or concerns. Sincerely, XXXX XXXX   XXXX XXXX XXXX Paralegal Enclosures cc : CFPB Portal MONETARY RELIEF AMOUNT XXXX XXXX XXXX Onsite Support P : XXXX Email : XXXX XXXX

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