Consumer complaint received 2015-10-22
Company: Ocwen Financial Corporation
State: CA
Product: Mortgage
Sub-product: Home equity loan or line of credit
Issue: Loan modification,collection,foreclosure

Complaint:
Our Home Equity Line of Credit ( HELOC ) account being serviced by Ocwen provided for interest-only payments for 10 years with the full balance due at maturity ( after 10 years ) on XXXX/XXXX/2015. I first contacted Ocwen in XX/XX/2015, before our HELOC was matured, to ask about loan modification. The representative sent me a package with a cover letter dated XXXX/XXXX/2015 that said to return the completed package by XXXX/XXXX/2015, which was after our HELOC 's maturity date ( copy of cover letter enclosed ). At no time did the representative tell me that I needed to submit the completed package before my loan 's maturity date. Had she done so, or if the cover letter had stated that fact, I would have made sure that the package was returned before XXXX/XXXX/2015. 
I had faxed the loan modification application package, including all the supporting income and employment documentation for me and my husband to Ocwen as requested, but ultimately our request was denied. The reason for denial was noted as, " Your loan has already reached its original maturity date. " I have had many conversations with Ocwen since my initial call to them in XX/XX/2015. I am supposed to have an assigned relationship manager, and when I speak with him, at least he knows my history. However, he often is not available, and I have to speak with someone else. Every time I speak with someone other than my relationship manager, I have to explain everything from the very beginning as to what has transpired in connection with our HELOC loan account. So frustrating! 
Additionally, the various Ocwen representatives that I spoke with often gave me conflicting information, so it has been very difficult to determine whether I am getting the " straight story '' or not. Among other things, I was first told to continue to make the interest-only payments ( my automatic loan payment stopped as of my loan 's maturity date, which I did n't realize at first since I only reconcile my checking account balance every few months ). Then when I made the past due interest-only payment, which totaled {$360.00}, the money was returned to me. Even worse, after the payment was returned to me, I received a Notice of Default, which stated, " Your mortgage payment are past due, which puts you in default of your loan agreement. As of XXXX/XXXX/2015, you owe the following : '' and then it listed " Principal and Interest '' in the amount of {$360.00} and " Late Charges '' of {$8.00}, along with a " TOTAL DUE '' amount of {$360.00}. It went on to say, " On or before XXXX/XXXX/2015, you must submit payment by XXXX XXXX, Bank Check, Money Order or Certified Funds for the entire total due amount stated above to the appropriate address listed at the bottom of page XXXX of this notices. Any payment ( s ) that become due in the interim must also be included. '' I called Ocwen to ask why the Notice of Default asked for the same amount that they just returned to me ( plus a new late charge ), and he said, " it 's just a form letter ... just ignore that it is asking for that same amount. " Also, during EVERY call I would tell Ocwen that it does not make sense for them not to work with us to modify the loan because due to the value of our home, a sale would possibly be enough to just payoff our first mortgage ( which is current by the way ), but not the HELOC. And, because CA law prohibits Ocwen from pursuing a deficiency balance ( i.e., Section 580d of the California Code of Civil Procedure prohibits a judgment for deficiency against the trustor when the real property collateral has been sold under a power of sale contained in the deed of trust ), Ocwen will get nothing out of the foreclosure. The only thing Ocwen will have done is ruin our previously good credit and make us lose our home. It just does not make any sense. I will attach the full complaint letter that I sent to Ocwen today, which provides additional information.

Company response to consumer: Closed with explanation