Consumer complaint received 2017-08-12
Company: Ocwen Financial Corporation
State: TX
Product: Mortgage
Sub-product: Other type of mortgage
Issue: Struggling to pay mortgage

Complaint:
In XXXX XXXX I purchased my home for {$90000.00} at an interest rate of 7 %. I was on an adjustable rate mortgage. I fell into some hardships in XXXX and requested a modification to assist with lowering the mortgage payment which had now gone up to 13 % interest rate. The representative advised me that in XXXX I agreed to a Balloon Fixed mortgage with the same maturity date of XXXX XXXX but my maturity date is actually XXXX XXXX. I was not aware of this until I read the paperwork received after my first installment, I was young and had no clue too. I went ahead and accepted the new rates with the impression that it would remain at the low payments, but it did n't it gradually went up through the years. In XXXX my fianc fell ill and we were not able to pay for the mortgage at the rate it was going to be. I submitted a request to the mortgage and they advised me that they would send out a modification packet for me to complete. I completed the packet and submitted it for review in XXXX of XXXX. They advised that I had the option of getting on what was available at the time, the Home Affordable Act, where they dropped my interest rate to the lowest possible at the time dropping my monthly mortgage. I agreed and submitted everything they requested. I sent the same paperwork a good 3-4 times before my relationship manager advised that he had finally received everything he needed/requested. On XXXX XXXX XXXX I was advised by the relationship manager that I would no longer be able to use the offered modification as the mortgage was no longer participating in the " Obama program ''. So he had me reapply for another loan modification thus, adding additional " inspection and re modification fees '' to my principle balance. On XXXX XXXX I received confirmation that the application was received and all the information needed was in the system pending " review '' by this time the home was set for foreclosure and the foreclosure had been put on " hold '' since I was attempting to re modify the loan. I continued to touch base and send all the required documents to my relationship manager and sent the trial payments. By XXXX of XXXX I was yet again being asked to resubmit another application because the application received was no longer " valid ''. I resubmitted the application as requested adding additional " inspection and re modification fees '' to my principle balance. On XXXX XXXX I was faced with another letter of foreclosure and was asked to reapply. I submitted it and the trial modification was approved but the payment for the mortgage did not go down it went up instead from {$600.00} to now {$700.00} due XXXX XXXX. The relationship manager advised that after looking at the underwriting information he realized that the income used was incorrect and not what I had shown on the pay stub. He advised me to go ahead and continue the loan modification " payment schedule '' that began on XXXX XXXX. but not to sign the agreement as it would mean I was agreeing with the incorrect income on XXXX XXXX. I paid the XXXX payment immediately after being told to do so, made the XXXX payment. For the payment in XXXX I called in and they told me not to make the payment as the mortgage no longer showed that it was on a " trial plan '' as I never submitted the signed application approval ( which I never got from my relationship manager and I followed up with several calls ). The service representative made me an appointment with my relationship manager, whom you guessed it told me I HAD to reapply, adding yet another set of thousands of " fees '' to my principle loan. On XXXX XXXX I received an " Ocwen Streamline Modification TRIAL PERIOD PLAN NOTICE '' advising me that they had approved me for a trial plan of 3 payments for {$760.00}. I called in to speak to my relationship manager to advise that this monthly payment was ridiculously higher than I had originally started with. The representative on XXXX XXXX advised me that she would submit the modification plan to the underwriting department to have them review the modification plan and see about lowering the payment as requested. Another appointment was set to speak to my relationship manager on XXXX XXXX. I received a call from a relationship manager but it was not my assigned relationship manager, this is something that happens often. As I was reviewing the information received on the modification offer with the representative I started to feel as she was strong arming me to " sign the contract and just make the payment ''. When reviewing she advised me that the reason why the principle amount on the home had increase was because of the " fees '' associated with the modification process and an increase in escrow amount due to an increase in insurance rates ( the representative before advised me that the escrow was high because they wanted to " over collect to cover the coverage needed on the home in the future '' ). She then advised me that due to " technicality issues '' when I adjusted my mortgage back in XXXX there is also additional rates accrued due to that process. I was shocked to hear that I had been added thousands of dollars to my principle balance and had signed a contract for a " balloon '' amount at the end of the term. The representative then advised me that I had spoken to my relationship manager on XXXX XXXX XXXX advising him that I would " accept the offer '' when I had never received a call from him, I consider this fraud as I never agreed to this new agreement nor did I receive a call from the company. The relationship manager advised me to submit a request to the research department so that they can investigate the calls that the relationship manager noted he had made as she feels herself that the manager is " not doing his job correctly '' and " has not been doing it thus far ''. I am now being told that I " have to sign the contract and make the payment, please ''. I am not wanting to do this as at this point it is a ridiculous amount of money that they are adding to my loan when I followed what they requested of me and never requested to have all of these " fees '' associated with the process nor was I ever notified by any representative till now. The representative advised me that I do not need to sign nor make the payment until XXXX XXXX XXXX. If I do not do either they would take it as I am " declining the offer '' and would have to be set up on a " repayment plan '' in which I would have to come up with {$8700.00} in 3 months and continue to make the monthly payments that they now have on file of {$690.00} for XXXX-XXXX XXXX and XXXX and XXXX for {$750.00}?! Help, I need to get this mortgage fixed and I need it ASAP.

Company response to consumer: Closed with explanation