Consumer complaint received 2017-08-01
Company: Ditech Financial LLC
State: VA
Product: Mortgage
Sub-product: Other type of mortgage
Issue: Trouble during payment process

Complaint:
XXXX XXXX is the owner of my loan and they utilize a servicing company called Ditech to manage my account I refinanced with Ditech for a HARP Loan in or aroundXX/XX/XXXX. ( They were already the current servicer of my previous loan ) I have been providing them partial payments of {$500.00} for over 9 months every 2 weeks from XX/XX/XXXX to XX/XX/XXXX ( partial payments was a normal practice I adhered to on my previous loan ) My current mortgage due monthly is {$880.00} Ditech has been funneling bi-weekly payments into an account called unapplied funds account. ( Their policy is that partial payments are sent to this account until the full payment is received and then is to be applied ) They have not been adhering to their own policy and have accrued funds in their unapplied funds never applying to payments causing late fees. From XX/XX/XXXX XX/XX/XXXX, I called and spoke to representatives, supervisors, and directors and was told that the continued error that was made would be fixed. In XX/XX/XXXX, my accountant and I noted discrepancies on an issued XXXX from Ditech and it prompted an inquiry and a further review revealed additional errors being applied to my account. In XX/XX/XXXX, a director XXXX XXXX and a loan specialist explained to me that Ditech has no way to recognize partial payment or overpayments and it was contributed to an upgrade in their system. A reallocation of funds was conducted to apply payments correctly from the last 9 months. After the reallocation was completed, I was informed that my loan was paid up 1 month in advance. After the reallocation was applied, I noticed my principal balance increasing. The reallocation applied caused my account to go in default, caused additional late fees to accrue and again I was never made aware of. I was sent four collection letters and a representative came to my home. In XX/XX/XXXX, I received a notice stating my escrow was short and my monthly payments would increase. ( see attachment ) Ditech alleged my property taxes had increased. However, the city treasurer refuted that claim when provided in writing that my taxes had remained the same. Ditechs AVP alleged Ditech received my storm water bill from the city and would take over paying that. I have been paying my storm water bill on my own through web bill pay and was current on my bill. Another escrow analysis was completed on XX/XX/XXXX and I was sent a notice stating I was in surplus of {$380.00} and my monthly payments would be decreasing ( see attachment ) Another analysis was completed on XX/XX/XXXX and I was sent a notice stating Im in a shortage for {$240.00} and my monthly payments would be increasing ( see attachment ) They have contacted my property insurance company and requested the name of the mortgagee be changes to several names, one of which is listed as associated affiliates. They have ignored all requests for all the name of associated affiliates In recent reviews, it has revealed that Ditech has now been applying payments that is supposed to be applied per their mortgage contract incorrectly. The contract states that monthly payments of {$880.00} is to be received monthly with {$750.00} to apply to principal and interest with the remaining to Escrow. Ditech has not adhered to the payment allotment they set forth and have applied the remaining to principal in hopes to cause or support their alleged shortage in Escrow.  Recently I sent a payment for my XX/XX/XXXX payment in the amount of {$880.00} and the bank confirms that the check was received and cashed on XX/XX/XXXX and on XX/XX/XXXX Ditech alleges the payment has not been received on XX/XX/XXXX I logged onto Ditech Intranet and no notation of payment received. The following is the payment sent and how it should have been applied to one 's account date of payment payment amount prin/ interest next payment due escrow principle XX/XX/XXXX {$880.00} XXXX XX/XX/XXXX {$120.00} XX/XX/XXXX {$500.00} XX/XX/XXXX {$500.00} XXXX XX/XX/XXXX {$120.00} {$110.00} XX/XX/XXXX {$500.00} XX/XX/XXXX {$500.00} XXXX XX/XX/XXXX {$120.00} {$110.00} XX/XX/XXXX {$500.00} XX/XX/XXXX {$500.00} XXXX XX/XX/XXXX {$120.00} {$110.00} XX/XX/XXXX {$500.00} XX/XX/XXXX {$500.00} XXXX XX/XX/XXXX {$120.00} {$110.00} XX/XX/XXXX {$500.00} XX/XX/XXXX {$500.00} XXXX XX/XX/XXXX {$120.00} {$110.00} XX/XX/XXXX {$500.00} XX/XX/XXXX {$500.00} XXXX XX/XX/XXXX {$120.00} {$110.00} XX/XX/XXXX {$500.00} XX/XX/XXXX {$500.00} XXXX XX/XX/XXXX {$120.00} {$110.00} XX/XX/XXXX {$500.00} XX/XX/XXXX {$500.00} XXXX XX/XX/XXXX XXXX XXXX XX/XX/XXXX {$500.00} XX/XX/XXXX {$500.00} XXXX XX/XX/XXXX XXXX XXXX XX/XX/XXXX {$500.00} XX/XX/XXXX {$500.00} XXXX XX/XX/XXXX XXXX XXXX XX/XX/XXXX {$500.00} XX/XX/XXXX {$500.00} XXXX XX/XX/XXXX XXXX XXXX XX/XX/XXXX {$1000.00} XXXX XX/XX/XXXX XXXX XXXX XX/XX/XXXX {$880.00} XXXX XX/XX/XXXX XXXX XX/XX/XXXX {$880.00} XXXX XX/XX/XXXX XXXX However, the following is how Ditech has applied payments Date Description Principal Interest Escrow Other Total Payment Principal Balance XX/XX/XXXX Payments {$350.00} {$520.00} {$0.00} {$0.00} {$880.00} {$140000.00} Details XX/XX/XXXX Payments {$330.00} {$520.00} {$130.00} {$0.00} {$1000.00} {$140000.00} Details XX/XX/XXXXPayments {$340.00} {$530.00} {$120.00} {$0.00} {$500.00} {$140000.00} Details XX/XX/XXXX Reallocation ( {$3700.00} ) ( {$4800.00} ) ( {$1100.00} ) {$0.00} {$0.00} {$140000.00} Details XX/XX/XXXX Payments {$0.00} {$0.00} {$0.00} {$0.00} {$500.00} {$140000.00} Details XX/XX/XXXX Payments {$340.00} {$530.00} {$120.00} {$0.00} {$0.00} {$140000.00} Details XX/XX/XXXX Payments {$220.00} {$530.00} {$120.00} {$0.00} {$500.00} {$140000.00} Details XX/XX/XXXX Payments {$0.00} {$0.00} {$0.00} {$0.00} {$500.00} {$140000.00} Details XX/XX/XXXX Payments {$340.00} {$530.00} {$120.00} {$0.00} {$0.00} {$140000.00} Details XX/XX/XXXX Payments {$220.00} {$530.00} {$120.00} {$0.00} {$500.00} {$140000.00} Details XX/XX/XXXX Payments {$0.00} {$0.00} {$0.00} {$0.00} {$500.00} {$140000.00} Details XX/XX/XXXX Payments {$330.00} {$530.00} {$120.00} {$0.00} {$0.00} {$140000.00} Details XX/XX/XXXX Payments {$340.00} {$530.00} {$120.00} {$0.00} {$500.00} {$140000.00} Details XX/XX/XXXX Payments {$0.00} {$0.00} {$0.00} {$0.00} {$500.00} {$140000.00} Details XX/XX/XXXX Payments {$330.00} {$530.00} {$120.00} {$0.00} {$0.00} {$140000.00} Details XX/XX/XXXX Payments {$450.00} {$530.00} {$120.00} {$0.00} {$500.00} {$140000.00} Details XX/XX/XXXX Payments {$0.00} {$0.00} {$0.00} {$0.00} {$500.00} {$140000.00} Details XX/XX/XXXXPayments {$330.00} {$530.00} {$120.00} {$0.00} {$0.00} {$140000.00} Details XX/XX/XXXX Payments {$220.00} {$530.00} {$120.00} {$0.00} {$500.00} {$140000.00} Details XX/XX/XXXX Payments {$0.00} {$0.00} {$0.00} {$0.00} {$500.00} {$140000.00} Details XX/XX/XXXX Payments {$330.00} {$530.00} {$120.00} {$0.00} {$0.00} {$140000.00} Details XX/XX/XXXX Payments {$330.00} {$530.00} {$120.00} {$0.00} {$500.00} {$140000.00} Details XX/XX/XXXX Payments {$0.00} {$0.00} {$0.00} {$0.00} {$500.00} {$140000.00} Details XX/XX/XXXX Payments {$670.00} {$1000.00} {$250.00} {$0.00} {$500.00} {$140000.00} Details XX/XX/XXXX Payments {$0.00} {$0.00} {$0.00} {$0.00} {$500.00} {$150000.00} Details XX/XX/XXXX Payments {$630.00} {$1000.00} {$250.00} {$0.00} {$500.00} {$150000.00} Details XX/XX/XXXX Payments {$0.00} {$0.00} {$0.00} {$0.00} {$500.00} {$150000.00} Details XX/XX/XXXX Payments {$330.00} {$540.00} {$120.00} {$0.00} {$0.00} {$150000.00} Details XX/XX/XXXX Payments {$330.00} {$540.00} {$120.00} {$0.00} {$0.00} {$150000.00} Please note the following attempts were made yesterday on XX/XX/XXXX to the following : 5th designated case worker at XXXX XXXX named XXXX LVM no response XXXX XXXX XXXX XXXX LVM no response XXXX XXXX at XXXX LVM since XXXX XXXX no response XXXX XXXX at XXXX LVM no response, multiple emails sent no response XXXX XXXX XXXX XXXX LVM no response Spoke with XXXX XXXX ( she was conveniently unavailable ) assistant XXXX XXXX he would have someone call no response yet

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