Consumer complaint received 2019-05-20
Company: PHH Mortgage Services Corporation
State: MI
Product: Debt collection
Sub-product: Mortgage debt
Issue: Took or threatened to take negative or legal action
Sub-issue: Seized or attempted to seize your property

Complaint:
We were behind on our mortgage because of hospitalization. We caught up, but went behind again in XXXX because of a XXXX and more hospitalization. We got behind again with another stay in hospital for a month and numerous trips for follow-up. XX/XX/XXXX, we received a letter stating that the mortgage co. received a letter stating that they received our request for help on the 7th and that the account was incomplete and I have until the XXXX of XXXX to send necessary docs in to complete. On XX/XX/XXXX we received a letter from the Mortgage co saying that the account has been referred to an attorney to begin the foreclosure process. XX/XX/XXXX we received a letter from an attorney that they are proceeding with the foreclosure. On the XXXX of XXXX, I faxed the profit and loss statement ( they wanted this because my husband 's check stubs did not have the year to date earning on them ) and on the XXXX I faxed the hardship letter. These were the two things they said that I was missing. I ended up sending these docs many times because they stated that they either did not get them or I sent them to late and they were outdated. Finally, XXXX XXXX XXXX the mortgage co. sent a letter saying that the package was complete as of XXXX XXXX XXXX and it could take up to 30 calendar days from the date of completion. I had discussed during this time about foreclosure with their team members and was told that as long as the package was complete, foreclosure would stop. XX/XX/XXXX the mortgage co. informed us by letter that we did not qualify for any assistance. One of the reasons was a valid long term hardship was not documented. My hardship was temporary and we are both back to work now, I just assumed that it was benefit us for assistance if we could make payments without having a long term hardship? The other reason was " we verified the account gross income as {$0.00}. Both my husband and I are working full time. The letter also stated if we wanted to appeal that no foreclosure sale will be conducted during the 14 day appeal process where you send in a written explanation and supporting documents. I sent the appeal in with all the documents, including re-sending what I had originally sent. I received many letters stating that they needed more time to decide and I called the mortgage co. during this time and they assured me that foreclosure would/is stopped while they are making their decision. The last letter was XX/XX/XXXX and they still needed more time ... ..a written response would be sent by XX/XX/XXXX. I called later that week when I still heard nothing and still was told they have not made a decision. On XX/XX/XXXX I received a call from my son stating that he saw the house was sold at auction. I called PHH and indeed, it was. I asked how could this be since I was still waiting for the appeal decision and one of the team members told me they ran out of time, it was sold at auction so the appeal was denied., I talked to a lawyer and they said the foreclosure should have been stopped throughout the appeal and that when and only when they made a decision would it be back on foreclosure and that it was illegal to foreclose on an appeal. I just want our house back. Some tell me there is nothing I can do once it is sold other than buy it back and others say I can get a lawyer and sue. I want our home back and don't feel I should have to buy it back, since I was not represented properly. When I talked to PHH about the foreclosure being stopped during an appeal, they stated " It is not PHH 's policy to stop a foreclosure during an appeal '' I do not think they did their job to help me resolve this issue, I could have started making payments months ago if they would have approved us in the first place, like I said, both my husband and I are working full time. Thank you for your time

Company response to consumer: Closed with explanation