Consumer complaint received 2015-09-04
Company: Ocwen Financial Corporation
State: PA
Product: Mortgage
Sub-product: Conventional fixed mortgage
Issue: Loan servicing, payments, escrow account

Complaint:
My name is XXXX XXXX. I am looking for someone who can help my mother file a suit against Ocwen Financial for predatory lending practices, ideally on a contingency basis. My mother is a victim of predatory lending practices from Ocwen Financial Corporation. I am trying to find a way to help her save her home and help her get some restitution for the strain Ocwen has put on her health and life in general. I have been trying to do some research on this company and there has been many claims of predatory lending practices. 

The practices of the company forced my mother into foreclosure. Once I found out about what was going on, I was able to help get her a PA HEMAP loan ( where Ocwen received a payment of XXXX from the state ) in 2013 to bring the mortgage current. Part of the HEMAP program was that Ocwen had to sign a reinstatement agreement which had an agreed upon monthly escrow ( {$81.00} ) and principle/interest ( {$510.00} ) amount. Everything was fine for two months or so but then Ocwen starting using the same practices that put her in that situation in the first place. Things like charging her for property taxes when we have documentation that they were paid to the city, charging her for homeowners insurance when she was already paying insurance on her own, and sending her checks back when she would pay the correct amount due. Her monthly payments ( fees included ) was supposed to be {$590.00}. It exploded to over {$800.00} dollars due to the escrow shooting up to $ XXXX.Because of this she was charged constant late charges. Even though she was sending in the correct amount due, they would not apply it to her account. Eventually this kept adding up into insurmountable amounts. I believe this is a violation of the " Truth In Lending Act '' and the " Pennsylvania Unfair Trade Practices and Consumer Protection Law ''. Additionally I think it is a clear breach of the Reinstatement Agreement that they signed with the HEMAP re-modification. 
My mother is on a fixed income from her XXXX. I had her call the save your home hotline and public legal services but they just want her to do another loan modification ( I believe it is HAMP ). This modification says she would have to pay a balloon payment of XXXX after paying XXXX over 20 years. My mother has already paid the value of the house and then some. No one is addressing the root of the problem ... which is that these practices leading to my mother being charges arbitrary and unsubstantiated fees ( on a fixed mortgage ) and therefore causing her to go to default. Over and over. I was hoping you can direct to some legal ramification to stop the predatory lending because I know she does n't want to give up her home. Really it is all that she has. What she really want is to invalidate the loan completely and receive damages for all the payments she has made and what constantly battling with this company has done to her health. Thanks in advance for any help you may be able to provide.

Company response to consumer: Closed