Consumer complaint received 2019-11-20
Company: Ditech Financial LLC
State: SC
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Trouble during payment process

Complaint:
In XXXX, I owed {$38000.00} on my house when I left chapter XXXX bankruptcy. Under advice of my attorney, I did not reaffirm the loan due to house not being worth the loan value. Over the next couple of years, I tried to negotiate with XXXX  XXXX XXXX to keep my house. I filled out several loan modification applications and submitted them to the bank. In XXXX, I hired an attorney to assist with the loan modification process because of their constantly making me redo the application. That same year XXXX  XXXX XXXX foreclosed on my property and during the foreclosure they transferred the loan to Green Tree Servicing. My attorney submitted the application to Green Tree several times and in XXXX, they denied my application. My attorney advised me that Judge XXXX had setup a portal to monitor the banks handling of the process and I was forced back into bankruptcy. We had to make trial payments before being accepted into the process and on XX/XX/XXXX I signed the modification. 

At this same time The FTC entered into a settlement agreement with Green Tree which was signed on or about XX/XX/XXXX. In this agreement Green Tree entered into settlement in part for Green Trees misrepresentation of inaccurate amounts reported against loans they serviced. On XX/XX/XXXX, Green Tree signed the modification and increased my loan from {$38000.00} to {$59000.00}. 

I have not received any money from the settlement even though servicing of my loan by Green Tree fell within that time period during foreclosure they did not honor the in-process loan modification from XXXX  XXXX XXXX. 

We continued to struggle, and we had to have the loan modified again. Our loan was now being handled by Ditech and on XX/XX/XXXX the new modified agreement was increased to {$62.00}, XXXX. 

During the whole time we tried to get Green Tree and/or Ditech to explain why this extra money was added to our account. On XX/XX/XXXX of this year, I had to let the house go and I signed a deed in lieu of foreclosure. When I signed the papers, I was upset because I bought this house when I was XXXX years old and lived in for over 30 years.. I asked for copy of notarized paperwork from the notary who told me that he was under orders not to give me a copy. To date, ditech has never sent me a copy. 
In XXXX, Ditech filed foreclosure against me with my loan now being {$68000.00}. I filed a counter claim against Ditech ( see attachments ). On XX/XX/XXXX I received notice from one of Ditechs attorneys that I have no right to sue for Ditech misrepresenting money owed on my loan and/or previous violations of the FTC settlement which they have intentionally ignored and misrepresented amount of my loan plus reported these inaccurate amounts on my credit report. 

In Summary, when I left bankruptcy in XXXX the loan was {$38000.00}. The court would not approve the amount as it was higher than the actual value of {$20.00} - {$25000.00}. Instead Green Tree/ Ditech have used the loan modification process to obtain more than my loan was valued and more than the bankruptcy court would allow to reaffirm the loan. Furthermore, the Hamp program was offered to consumers to save their home which included the following provisions : 1.  Reduce Mortgage Principal 2. Reduce Interest Rate 3. Temporarily postpone or offer forbearance 4. Extend terms of current loan On XXXX of XXXX, XXXX XXXX   made available to consumers principal reduction modification which I would have been eligible for in the second modification but was never offered in my second loan modification. 

Despite knowledge of the requirements imposed through the Consent Order that was settled on XX/XX/XXXX, Green Tree - Ditech have continued to defrauding consumers by : 1. False representation of amount owed on my property through the loan modifications 2. Failure to abide by the order and issue money to me in accordance with the settlement 3. False or inaccurate information being reported on my credit report 4. Not abiding by modification rules to reduce principal Finally they have misrepresented to the bankruptcy court that they are acting in good faith but they are using the court to cause willful and malicious injury to the consumer by not allowing them due process in filing counter claims to preserve their rights to sue for damages arising out of their continued and willful violation of the Consent Order signed with the FTC on XX/XX/XXXX. 
Please also note the facts and evidence attached with this complaint. 



XXXX XXXX XXXX XX/XX/XXXX 1. Loan_Principal_XXXX { PLEASE NOTE REFERENCES ARE TO ATTACHED ATTACHMENTS } 2.  Br_notes_Redacted 3. dismissal_loan_mod 4. Judge_XXXX & Guidelines Bankruptcy Judge 5. Loan mod 6. XXXX XXXX. Complaint-foreclosure 8. Counter Complaint 9. XXXX 10. Principal increase 11. HAMP 12. XXXX 13. Bankruptcy stay

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