Consumer complaint received 2023-03-02
Company: Ocwen Financial Corporation
State: CT
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Struggling to pay mortgage

Complaint:
We are in Foreclosure and have a law day scheduled for XX/XX/XXXX. Our original note was XXXX of XXXX. Similarities exist in regards to other previous complaints in addition to a landmark class action suit by XXXX and XXXX, where XXXX bank XXXX now PHH was fined by the SEC for securities fraud and ordered to pay damages in XXXX. Here a few similar complaints to oursXXXX for not accepting payments, XXXX for denying forebearance and not accepting payments, XXXX for misapplying payments by wire, XXXX payment not posted but cleared. It seems our good credit was used with many other loans to reconfigure their balance sheet and make a group of loans re-sellable to the secondary market after their demise in XXXX of XXXX. 

In XXXX of XXXX I was contacted out of the blue by XXXX XXXX of XXXX for a loan Modification. XXXX XXXX XXXX now works for XXXX in XXXX Texas where part of XXXX was located. When I questioned why are we so lucky to receive a rate reduction he explained just in case something happens to assist you moving forward. I also asked whats the catch, XXXX went further to describe only the rate changes. This is predatory lending and a bait and switch Where the Mod was turned into a REFI, with high pressure to sign quick before rates change or the terms expire. I have a pre approval and approval letter dated the same day. Application with many items prewritten or boxes pre-checked off was sent and this note was signed in Florida with notaries rather than an attorney. even though we live in CT. We never received a signed note and the green cards appear unsigned. Upon PHH submitting the note as evidence for a summary judgement I noticed everything changed from discussion and we basically took their word for it and signed our rights away with new and changed terms, more in line with a Modification. In all mediation sessions the XXXX note was always referred to as a Modification. The Application documents have been attached. 

In the app documents you can see where XXXX changed ( wrote ) the Assets by doubling the overinflated appraised value ( XXXX ), then listed it twice. The loan to value was calculated at 62 %. The approval letter states they may sell the loan but a decision was not made yet. XXXX XXXX was assigned prior to origination somehow, which is before the merger date or origination of funds. This is a XXXX XXXX XXXX and does not require a 4506T, but XXXX asked for one, making this also look like a MOD and helped them to ascertain where my good credit at the time fit to resell a group of loans. They never verified my income as well. The RESPA and truth in lending appear to not be signed and the submitted court documents have signatures blacked out? After job loss and family medical, the loan did get difficult to pay and we had Mods in XXXX, XXXX and XXXX. These Mods have similar terms and structure to the bogus note from XXXX. 

In XX/XX/XXXX we were denied Forebearance after a Disaster Declaration was activated in CT for a Tornado. We had cleanup damage that would not be covered by insurance which caused hardship. In XX/XX/XXXX Forebearance was mysteriously approved with the same income. XX/XX/XXXX a service transfer from XXXX XXXX to PHH occured. My 4th Forebearance payment was not accepted by phone according to PHH written instructions. In good faith, I submitted my payment to the last servicer and the payment posted late, ending our Mediation from their error. The mediators report reflects misguided payment. 

We wish to keep our home which is owner occupied. We also belong to more than one protected group in addition to family medical where out of pocket expenses also caused hardship. We are in a better position now to repay the original terms that XXXX stole after failing in XXXX of XXXX. Since XXXX til now this has been beyond stressful to me and my family and got in the way of acquiring meaningful and rewarding employment. How we sustained this long is a miracle and we have numerous blessings to count.

Company response to consumer: Closed with explanation