Consumer complaint received 2021-03-03
Company: Ocwen Financial Corporation
State: OH
Product: Debt collection
Sub-product: Mortgage debt
Issue: Took or threatened to take negative or legal action
Sub-issue: Threatened or suggested your credit would be damaged

Complaint:
Due to the COVID19 pandemic in XXXX, I was able to place my mortgage on a 90-day forbearance plan with PHH Mortgage services. This would be for XXXX, XXXX, and XXXX, which then was extended to XXXX and XXXX. After doing research, I found that this could be done, and the loan could be modified to add the forbearance months to the end of the VA 30 year loan, with no negative reporting on my credit. After consulting with PHH case manager, it was agreed that 3 trial mortgage payments would be made starting XX/XX/XXXX. I made the payments as agreed for XXXX, XXXX, and XXXX. At the end of the trial period, PHH began the process of loan modification, which they said could take up to 45 days. I continued making my monthly payments in XXXX, XX/XX/XXXX, and XXXX. I also continued dialogue with PHH on the loan modification status.

PHH finally sent the loan modification documents ( 2 sets ) in XX/XX/XXXX. I received them on XXXX XXXX, and noted three items : The date of the documents was XXXX XX/XX/XXXX. 
The first payment of the loan mod was due XXXX XX/XX/XXXX. 
The due date for return of the loan documents, after signature and notarizing, was XXXX XXXX. 

I immediately contacted PHH, explained the situation, and it was agreed by PHH to extend the return date to XXXX XX/XX/XXXX. It was also agreed they would send a notary to my residence, which took place on XXXX XX/XX/XXXX. The notary showed up at the appointed time, and after all documents were signed and notarized, she was instructed by PHH to mail one set of documents back, while I retained the other. 

XXXX XXXX came and went, with no word from PHH. I contacted them on XXXX XXXX for a status update, only to be told that the loan mod had been rejected due to not having been received by the XXXX. Please note that in conversations with PHH on XXXX XXXX, no mention was made to have the documents returned via expedited courier service. PHH even admitted to this on XXXX XXXX when I contacted the case manager who then escalated the case for decision reversal, only to find out on XXXX XXXX that the appeal had been denied. It was also stated, as well in a letter form, that the loan was being transferred to another company. 

So what this has to do with my credit report? I checked my experian account on XXXX XX/XX/XXXX, while speaking with the case manager at PHH, and come to find out that PHH has reported XXXX and XX/XX/XXXX as being 120 days past due, which in turn has negatively impacted my credit. I made my feelings known to the case manager, who was at a loss for words. He stated that he would escalate to get it fixed, but I do not trust PHH.

In short, because of circumstances beyond my control, a short-term solution was offered. Please note that I did explain to PHH that a VA loan was eligible for the type of forbearance and loan modification. I then did everything on my end to ensure payments were made, dialogue was maintained, and to get all required paperwork promptly returned, ONLY TO HAVE MY CREDIT GET ROYALLY SCREWED IN THE PROCESS. 

What I want is for PHH to correct the negative reporting, that payments were made as agreed. And so instead of working with me to get the mortgage modified, they sold it to another company. This tells me they do not care about their customers.

Company response to consumer: Closed with explanation