Consumer complaint received 2015-08-09
Company: Ditech Financial LLC
State: GA
Product: Mortgage
Sub-product: Conventional fixed mortgage
Issue: Loan servicing, payments, escrow account

Complaint:
Green Tree Servicing and Mortgage ( GT ) has put me in a vise. They have fraudulently billed me for a debt I do not owe, and have filed a complaint to at least XXXX credit bureau, making it impossible for me to contract with another mortgage company. At the same time, GT is refusing to apply my on-time mortgage payments until their completely-fabricated debt is paid. I have provided GT with proof that this debt is not owed. I am now half-way to the number of days, of non-applied payments, before GT can foreclose on my home. I sent these non-applied payment, on time, to GT via certified mail. 
I have owned XXXX homes and have never been late with a mortgage payment, insurance payment or taxes. I have never had the least problem with a mortgage holder before GT. On XX/XX/XXXX, XXXX XXXX sold my mortgage to GT. On XX/XX/XXXX, GT billed me for {$1300.00} with no explanation other than " for expenses. '' I responded with a letter asking for an explanation and itemization of expenses. I got no response from GT, so I followed up with a similar letter in XX/XX/XXXX. In a letter dated XX/XX/XXXX, GT stated the amount was for insurance paid by my previous mortgage servicer. It is ridiculous to imagine that my previous servicer, XXXX, would have covered such a debt and never mention it to me. If GT is trying to use the {$1300.00} to establish an escrow account, to which I never agreed, they are ignoring my mortgage contract, which contains an escrow waiver. To supposedly substantiate their claim, that I own them {$1300.00}, GT enclosed a GT-generated spread sheet with a highlighted line. The only thing on the line was date XX/XX/XXXX, and a negative - {$1300.00}. I responded with XXXX XXXX Declarations Pages, which is incontrovertible proof of my on-time insurance payments since owning the home. In my correspondence, I referenced my mortgage contract waiver for an escrow account. GT has a copy of my contract. I sent the correspondence and Declarations Pages to GT via certified mail, as I have all my correspondences to GT. They DID receive the evidence. They NEVER acknowledged it. GT continued to bill me for {$1300.00}. Each time I received a bill, I responded that they already have proof of on-time, monthly insurance payments since owning my home. I discovered, XX/XX/XXXX, that GT filed a complaint with at least XXXX Credit Bureau, stating that I have an outstanding debt of {$1300.00}. Before this bogus complaint, my average credit score, among the XXXX major Credit Bureaus, was XXXX. Despite a lifetime of developing good credit, Green Tree 's complaint makes it impossible for me to get another mortgage company. My XX/XX/XXXX statement from GT included the legitimate XX/XX/XXXX payment amount, a fee of {$25.00} ( towards the {$1300.00} they fraudulently claim I owe ), and an illegitimate charge for my XX/XX/XXXX payment, with a late-fee added. As with all my mortgage payments, all my life, the XX/XX/XXXX payment was made on-time. On this XX/XX/XXXX statement, GT stated they are not applying my mortgage payments until I pay the {$1300.00}, or make payments towards that debt. They made this non-application retroactive to include my XX/XX/XXXX payment. In Georgia, foreclosure can occur after 120 days of non-payment of mortgage. At the time I received this XX/XX/XXXX statement, I was already half-way to the time required, before GT can foreclose. I sent the XX/XX/XXXX payment with a demand that they apply the XX/XX/XXXX and XX/XX/XXXX payments. I did not include the {$25.00}, towards the {$1300.00}, because I can not agree that I owe it. Green Tree 's practices are fraudulent, exploitive, and have done deep damage to the lives of many people. Even more disturbing, is that they seem to get away with it. Something is very wrong!

Company public response: Company believes it acted appropriately as authorized by contract or law
Company response to consumer: Closed with explanation