Consumer complaint received 2018-04-25
Company: Ocwen Financial Corporation
State: CA
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Closing on a mortgage

Complaint:
It started out that we put our house up for sale and received an offer on XX/XX/XXXX. We signed the offer and we were set to close escrow in 25 days. Making it possible to buy the home in Oregon that we had already made an offer and it had been accepted. The title company started doing there diligence shortly after and requesting payoffs from my Mortgage companies. My first loan is held by Ocwen bank. Ive had my loan with Ocwen almost 11 years and they have been very difficult from the beginning. In XX/XX/XXXX, my loan was set to go up to some crazy high interest rate due to loans back then being very awful! I had called and called Ocwen begging them to please help! They just kept putting me on hold and said I could try to get a modification and to fill out the paperwork. That was a nightmare!! Horrible experience!! Lots of time on phone with Ocwen just to be told they never received my paperwork or it was incomplete. It was one thing after the other. But just kept getting the run around for months! I went to an all-day seminar for people trying to save their homes. This was when a lot of people were forced to foreclose on their homes and the banks refused to help. Well in the end of this all day event. I learned that Ocwen would never approve my modification unless I missed at least 2 payments! That's right. I had to miss 2 payments first before they would even consider my loan. They said at this seminar. If you make your payments the banks assume you can still afford it and they wont modify your loan till you show you cant afford it by missing payments. Crazy!! So that's what I did and 2 months later I finally got a modification. Praise XXXX! The modification that I got with Ocwen was called a SAM modification. Only offered with OCWEN! It was basically them reducing the balance of my loan to what my house was worth at the time and they said they would forgive the difference. I received tax forms to fill out and show this forgiven amount over the next 3 years. I had to make every payment on time for 3 years or I would forfeit the modification. I of course made all my payments on time from then on. But in the contract it said when I go to sell my house, they would get 25 % of the appreciation value but to never be more than the forgiven amount. Also they would recognize certain improvements made to the property after modification. They would minus these improvements from the amount owing. 
So now that brings us to today and us waiting for this payoff from Ocwen so we can close escrow at the end of the month as stated in the purchase agreement. But now we are again waiting for Ocwen to give us a payoff! The title company 1st requested the payoff on XX/XX/XXXX and Ocwen replied with an email on XX/XX/XXXX stating they needed an appraisal or a final purchase agreement 1st because this was a SAM modification and they needed to know the value of home. So of course the title company emailed them the purchase agreement ASAP and waited. And waited. Ocwen then sent out an email on XX/XX/XXXX stating they are working on a payoff and it would take additional time and expect delays. What? How long could this possibly take? Iam thinking? They have the purchase agreement and what could take so long? We included some receipts of big improvements we have done to house. All with receipts and dates and amounts. Very clear! But they are insisting on calling every contractor to verify work. Even with a receipt. Of course they leave a message and tell them to call the XXXX # and hold. No contractor has time for that? Its a dirty rotten plan to post pone a payoff and to not have to credit the customers for their improvements. We are waiting for this payoff to be able to finalize the sale of our home. We only have a few days left and the buyers will walk if we cant close escrow! I ve explained this to Ocwen over and over and still nothing? We need help! And Fast!!

Company response to consumer: Closed with explanation