Consumer complaint received 2018-01-18
Company: Ocwen Financial Corporation
State: VA
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Struggling to pay mortgage

Complaint:
Re : Ocwen loan # XXXX First and foremost : I want CFPB to know that we are in a trial loan modification with Ocwen the official ending date for this trial loan modification is XXXX XXXX, XXXX. 
TodayXXXX XXXX, XXXX, while still in the trial loan modification we have been informed by that we are XXXX  days away from the 90 day foreclosure process to start. 

The agent informed me today that If I wanted to avoid foreclosure I should just sign the terms for the permanent loan agreement a loan agreement which has new terms of a 40 year mortgage where we would end up paying almost {$170000.00} more. 
We currently have XXXX years left on our mortgage. 

And again today we were also informed by an Ocwen Agent that we are XXXX days away from the 90 day foreclosure start. 

We also received a Loan Reinstatement Quote from Ocwen which state that we have to pay over {$4200.00} by XXXX XXXX. 

History : We entered a trial loan modification program unbeknown to us the foreclosure clock kept ticking. I ( XXXX ) only found out because I started to ask question when it was noticed that while in the trial loan modification Ocwen kept sending billing statements stating that we were delinquent and kept reporting us to the credit bureau with no mentioning of us being in a trial loan modification program. 

Once we found out that with the Ocwen permanent loan modification program we would have to agree to a new 40 year mortgage we informed Ocwen that we no longer wanted to continue to participate in the loan modification effective XXXX XXXX, XXXX. 
-We also requested from Ocwen for all payments that we sent to be applied to our past due mortgage and getting us out of risk of foreclosure. 
Our decision was based on the fact that participating in the loan modification would require us to sign paperwork renewing the mortgage for a 40 year term and end end up paying over {$170000.00} more. 
Thus again we sent a letter to Ocwen informing them that based on this we request removal from the program and we have not signed the paperwork required to enter the permanent loan modification program. 

We also have reason to believe we do not owe this whole debt because the amount is incorrect and the funds we have paid have been misapplied. 

-We were part of an Ocwen trial loan modification program and we have been paying the amount required by Ocwen every month on time.Our normal mortgage is {$1000.00} a month. It is unfortunate and misleading for us to have paid Ocwen on time monthly {$920.00} as part of an Ocwen trial loan modifications program. Presented by Ocwen as a program ( designed to help the homeowners with financial difficulty and avoid foreclosure ) just to at the end of the trial loan modification to end up worse then when we entered the program. 

Other events questionable practices by Ocwen but not limited to : - In XXXX my spouse XXXX XXXX even made 2 loan modifications payment of {$920.00}. He made the extra payment because Ocwen informed us that they did not receive the 1st check send which he mailed 1 week before the due date of XXXX XXXX. To ensure our compliance in the trial loan modification program my husband rushed out and paid another {$920.00} through XXXX XXXX. We asked the Ocwen representative to not cash the other payment ( check ) when received because it would put us in a financial bind. She informed us that Ocwen was going to cash it anyways and if we put a stop payment on it we would charged a fee by Ocwen. 

-Ocwen cashed the extra payment ( the check ) which they claimed they received a couple days later. 
Instead of applying this extra payment to our mortgage past due and thus reducing the number of days towards foreclosure, Ocwen applied it to the next month trial loan modification program and ended up calling it a forbearance payment. Prior, it was referred to as a loan modification payment but Ocwen for some reason now was referring to it as a forbearance payment. 

- Today according to Ocwen we after months of having participated in the trial loan Modification program we now own {$4200.00}! ** -And now today we found that we are according to new Ocwen verbal statement at day XXXX at the 90 day start of foreclosure. 
- It also appears that Ocwen also start separately billing us for XXXX. It appears by the confusing statements sent that our payments were not applied to this and the regular monthly Mortgage owed.. 
-And again Ocwen switched from calling it a Trial Loan Modification plan payment to referring to it as a  forbearance payment. But under correspondence that Ocwen sent us they have forbearance and loan modification listed as 2 different programs. 
- Which program are we in and how is it allowed for Ocwen just to switch us to a different program, then the one we signed up for? 
( We signed for a trial loan modification ) Additional information : -Also on my last phone-call when I called to dispute the debt an Ocwen representative informed me that although Ocwen would record our phone conversation with or without my permission, I was forbidden from taping this same conversation. 

-We dispute the amount owed and us being only XXXX days away from foreclosure while still in a trial loan modification. This is the start of our formal complaint against Ocwen for providing false and misleading information to us the consumers about the loan Modification program and the status of foreclosure proceedings. 

-Furthermore that this program was misused by Ocwen to get us further into debt and closer to foreclosure. 
Because the whole time while in the trial loan modification the foreclosure clock was still ticking.And Ocwen took extra payments we made and instead of applying it to past due delinquent amount applied it to future payments not even due yet. 
-Why does Ocwen does not inform the consumer that while in loan modification the countdown clock towards foreclosure continues to tick? 
Why does Ocwen not tell consumers that they may require the consumer to sign a 40 year unconventional loan at the end of a successful trial loan modification? 
-Why does Ocwen as part of a trial loan modification or forbearance program does not provide a repayment plan or any arrangement that will address repayment of the delinquent fees. 
Instead Ocwen left the deliquent fees sitting and took it a step further started on the the amount by adding on fees, late charges, home inspections, and it appears insurance and tax payments. etc. 

-What was the benefit of going into an Ocwen loan modification program if at the end of the program ( the  program ends XXXX XXXX ) we will be at risk of foreclosure. 
Ocwen knows knows that we do n't have {$4200.00} to pay and is now telling us if you do n't want the house to foreclosed sign for our new 40 year mortgage agreement presented to you and this will stop the foreclosure process from starting. 

-Again, we would not have signed up for a trial loan modification if we had been informed that in order to be granted a permanent loan modification Ocwen would require us to sign a XXXX months mortgage loan. Which would add an additional 20 years of payments to the house and in the end, end up having to pay over {$170000.00} more! 

-We would like to bring to light to the public and governing agencies that Ocwen after the trial loan Modification has presented to us homeowners, with a new mortgage paperwork for XXXX months this is a XXXX year mortgage!! 
For a house we only have 20 years left to pay. 
-This after participation in the trial loan modification program again a program normally designed to help the homeowner. 
Ocwen loan modification terms actually leaves homeowners worse off. And I see how there are so many horror stories against Ocwen and them using the loan modification to instead of helping struggling homeowners, use this program to foreclose on peoples houses. 
-We do not agree with the amount owed -We do not want to participate in the Ocwen permanent loan modification program with their shark loan terms and therefore have not nor will sign the permanent loan modification paperwork sent home.

-Based on the conditions of the permanent loan modification we request to be removed from the program and all our payments to be applied to getting us out of risk of foreclosure and payment to be applied to the delinquent amount/ mortgage payment ( s ) past due. 

We informed Ocwen that we had not nor would sign the permanent loan Modification paperwork sent to us by Ocwen which again would leave us with a XXXX year mortgage and owing approximately {$170000.00} more!! 
thus if Ocwen does put us in this program, its against our will and without our permission nor our signatures required by Ocwen to participate in this program. 
-In closing Ocwen has sent us confusing and misleading information, sending us paperwork for a trial loan Modification but then referring to our agreement as forbearance agreement and payments. 
Were we in a trial loan modification program or a forbearance program? 
Because we signed paperwork to be enrolled in a trial loan modification program. 

-And again the end result of us participating with Ocwen trial loan modification program and misleading terms, have left us according to Ocwen rep XXXX days away from foreclosure while still in the trial loan modification. 
-We seek assistance from governing agencies and anyone who has monitored the Ocwen malpractices and legal professional ( s ) who can help us with this. 

Thank you, XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX VA XXXX XXXX XXXX

Company response to consumer: Closed with explanation