Consumer complaint received 2015-04-26
Company: Ocwen Financial Corporation
State: MI
Product: Mortgage
Sub-product: Other mortgage
Issue: Loan modification,collection,foreclosure

Complaint:
In the year 2000, I made the mistake of signing a predatory loan with XXXX. It had a 10.25 interest rate and although I thought it was a XXXX year mortgage it turned out to be XXXX year mortgage with a balloon payment at the end. The loan was immediately sold to XXXX Loans who eventually sold it to Ocwen. The underwriter is XXXX XXXX. The loan was due XXXX XXXX, 2015. This last year my wife and I tried to refinance the home before the loan matured. It took a long time due to a problem the mortgage company had with the appraiser they hired. By the time the XXXX appraisal happened, we were very close to the loan 's maturity date. Unfortunately that appraisal revealed that our house was worth {$15000.00} less than we owned. The mortgage company pulled out. Working through HUD, we found a program that would help right-size our home, but they needed us to be current on our loan, which had matured by that time. They suggested that I contact Ocwen and ask for an extension. Around the XXXX part of XXXX, I contacted Ocwen and asked for an extension of the balloon so we could apply to the program and then refinance. They sent us paperwork. We filled it out and returned it, and they applied the paperwork to a HAMP application and rejected us because we can afford to make our monthly payments. I asked once again for an extension, and even sent an email to their loss mitigation department. They told me to resubmit the paperwork. A couple of XXXX later, I received a letter showing that they had once again applied our paperwork for the HAMP and once again rejected us for the same reason as before. Feeling frustrated, my wife contacted XXXX. An agent helped me call Ocwen a XXXX time. This time the customer service person admitted that the underwriter did allow extensions. They said they could use the paperwork I had submitted previously to apply for the extension. By this time it was the end of XXXX, and the loan had officially become delinquent. On XXXX XXXX, they told me my application had once again been rejected, but they could not tell me why. Apparently, a letter had been sent out on the XXXX. To this date, I have not yet received the letter in question. However, on XXXX XXXX, I was told that in order to get an extension I needed to have applied before the loan matured. The representative encouraged me to do a short sale, which will still leave me with a financial obligation even though I no longer have the house. To add insult to injury, when I checked my credit rating, I discovered that Ocwen has reported me nine months delinquent instead of three, completely trashing my credit. 

This is all very frustrating. We had a plan that would have gotten them all of their money, and allowed us to keep the home. All we needed was a three month extension. Also, if I needed to have applied for an extension before the loan matured, why could n't Ocwen have told me that in the XXXX place instead of stringing me along for three months applying me for programs I did n't ask for or qualify for? It looks as if they never intended to work with me, and were just creating an illusion of trying to help in order to comply with the government 's desire that mortgagers attempt to keep the buyers in the home. Now we are losing our home, and the reported delinquencies will make it very hard to find a good place to rent. In the meantime, Ocwen has sent us a notice that they are starting foreclosure proceedings on XXXX XXXX, 2015.

Company response to consumer: Closed with explanation