Consumer complaint received 2015-08-21
Company: Ditech Financial LLC
State: VA
Product: Mortgage
Sub-product: Conventional fixed mortgage
Issue: Loan servicing, payments, escrow account

Complaint:
This complaint is with Green Tree Servicing LLC. In particular, how Green Tree collected debt on my mortgage loan, reported my mortgage loan in the major credit bureaus, and came up with the balance of {$93000.00}. 

In XXXX XXXX, Green Tree sent me a letter ( attachment XXXX ) notifying me that I had been approved to enter into a Trial Period Plan under the XXXX Lien Modification Program ( XXXX ). 
In this letter, Green Tree told me to send the trial period payments instead of my normal monthly payments. Green Tree set me up with XXXX trial period payments of {$210.00} to be made on XXXX/XXXX/XXXX, XXXX/XXXX/XXXX and XXXX/XXXX/XXXX. I made all XXXX payments on time. At the conclusion of the trial period, a Green Tree representative informed me that I had met the qualification requirements ; therefore, approved for the XXXX. The representative further indicated that Green Tree Green was awaiting documents from the County before submitting the final modification paperwork. I was told to continue to make the payments of {$210.00} as this was my new monthly payment under XXXX. I continued to make payments of {$210.00} on time. 

In XXXX XXXX ( almost a year later ), Green Tree sent me a letter of denial and ineligibility for the XXXX Lien Modification ( XXXX ) program. Green Tree indicated the reason for denial was because I did not receive a modification on my XXXX mortgage. I disputed the denial of eligibility for the following reasons, 1 ) I received a modification on my first mortgage in XXXX, and 2 ) Green Tree had already approved me for the XXXX and accepted the new payments of {$210.00} for almost a year. 

In XXXX XXXX, Green Tree added interest, closed my account, and reported my account in the major credit bureaus as charged off. Next, Green Tree offered me a settlement of {$40000.00} on a debt of {$93000.00}. Later, dropped the settlement offer to {$30000.00}. 

It is my belief that Green Tree closed my account and attempted to collect a lump sum payment knowing that the entire balance was forgiven as part of the XXXX XXXX XXXX settlement with Department of Justice in XXXX XXXX. 

In XXXX XXXX, I received a letter ( attachment XXXX ) from Green Tree indicating that I will receive a full forgiveness of the remaining principal balance of {$93000.00} on my Home Equity account. This was a result of my previous servicer, XXXX XXXX XXXX settlement with the Department of Justice in XXXX XXXX. Green Tree indicated that I no longer owe the amount of {$93000.00}. Green Tree further indicated that they will report to the major credit bureaus that my account was paid and closed. As of XXXX/XXXX/XXXX, Green Tree is reporting my account as " charged off ''. As of XXXX/XXXX/XXXX, Green Tree is still trying to collect from me. 

I am hopeful that your office can resolve the issues I am experiencing. Green Tree had no right to add interest when they placed me on a new payment under XXXX. When my loan was transferred from XXXX XXXX XXXX XXXX Green Tree in XXXX, the loan amount was {$88000.00}. I do not understand how Green Tree came up with {$93000.00}. Green Tree had no right to charge off an account when I was making payments on time. If the XXXX XXXX XXXX lawsuit was settled in XXXX XXXX, why did he take Green Tree until XXXX XXXX to notify me? Why is Green Tree still trying to collect if the entire amount has been forgiven?

Company public response: Company believes it acted appropriately as authorized by contract or law
Company response to consumer: Closed with non-monetary relief