Consumer complaint received 2016-01-14
Company: Ocwen Financial Corporation
State: PA
Product: Mortgage
Sub-product: Conventional fixed mortgage
Issue: Loan modification,collection,foreclosure

Complaint:
We have a loan serviced through Ocwen. We did a temporary modification in XXXX and they advised if we paid on time every month, in XXXX of XXXX they would do a permanent modification. In XXXX or XXXX XXXX they requested updated documents for modification and we provided them. They came back and refused an additional modification and advised a balloon clause was on the temporary modification and payment was due in full XXXX/XXXX/XXXX. This was obviously surprise. They refused a modification initially. We tried to get them to allow a possible short sale or deed in lieu. They refused all attempts to resolve it and demanded payment in full. They also would not allow us to make any further payments on the loan. Their only option was to accept another modification that would have extended it 4 months, but added XXXX ( {$9000.00} + ) of dollars to the payoff which be due in full XXXX/XXXX/XXXX. If we accepted that we would have pay {$500.00} by XXXX but a balloon payment was still due XXXX/XXXX/XXXX. A few months ago we listed the property to try and sell it and cover the loan. We finally ratified a contract and let them know we were selling around XXXX XXXX XXXX with a settlement in XXXX XXXX. We requested a payoff and they advised they could only offer a payoff for 30 days ( as they have been each month ). They also let us know that the loan would be going 120 days late XXXX and foreclosure could start, but said they could put a hold on the foreclosure proceedings since we signed contract to sell. They sent us a payoff but it was only good till XXXX XXXX. Fast forward to XXXX and we called to let them know that with money from family we were actually paying the loan in full with the applicable per diem interest and would be sending it overnight. Unfortunately we got a letter from an Attorney the same day, but oddly that later was dated XXXX XXXX, 1 day before the payoff expired. That letter demanded a payoff amount with over {$9000.00} in attorney fees now added. They then claimed that they could not put a hold on the foreclosure and multiple people advised they never even heard of that process. We contacted the obudsmen 's office and they advised they would investigate and did. He said the individual that told us the foreclosure could be put on hold was never promised. Ocwen advised they now need to do another appraisal on the property to even release a payoff quote. Which of course we will be charged for. They said they are now temporary holding the foreclosure but have not provided an updated payoff. We have been trying for a week now to pay this in full and they continue to say the attorney fees are due in addition to the loan payoff, but we can not get an actual payoff until we agree to that other appraisal. And that payoff will only be good for 30 days, but for some reason the last payoff was only good 17 days. Its our opinion they short changed the payoff in order to have the attorney produce the letter and collect additional money. The request is for approximately {$9000.00} in attorney fees from the letter on XXXX/XXXX/XXXX, yet the earliest the attorney could have been advised of the foreclosure was XXXX/XXXX/XXXX due to the new year holiday. How does that happen when we an outstanding payoff good till XXXX and how can they claim {$9000.00} in attorney fees after only having it referred 1 day previously and producing 1 letter. 

We want this resolved by honoring the payoff that was produced prior to the attorney fees being added and we will gladly include the per diem interest.

Company response to consumer: Closed with explanation