Consumer complaint received 2015-05-17
Company: Ocwen Financial Corporation
State: VA
Product: Mortgage
Sub-product: Other mortgage
Issue: Settlement process and costs

Complaint:
According to a letter dated XXXX from a mortgage servicing company, it stated thefollowing " We have reviewed your loss application and the financial information you provided. 
Your loan has been evaluated for all loss mitigation options available. We are pleased tooffer you more affordable payments and the opportunity to stay in your home, with the enclosed Home Affordable Modification. 
The Terms stipulated that I contact the company within l4 days of this notice. The terms stipulated that I submit XXXX ( XXXX ) monthly payments in amount of {$2500.00} for XX/XX/XXXX, XX/XX/XXXX and XX/XX/XXXX. I responded timely with a statement agreeing to thethe modification and attached a XXXX XXXX payment. 
I submitted all of the above XXXX ( XXXX ) trial payments timely and was assigned a Relationship Manager, including monthly phone conferences. After the XXXX trial payment was submitted, I finally inquired about the Final Modification Agreement document. 
During each monthly conference, I was told that their agency was experiencing some technical difficulties, but that it would be submitted as soon as possible. 
In meantime, I continued making monthly timely payments and speaking monthly with aRelationship Manager. On XX/XX/XXXX, I spoke with a relationship manager who basically gave me a summary of what the Final Modification Agreement entailed. He first assured me that a prior debt was discharged in a Bankruptcy. He went on to tell me that my home was appraised for {$710000.00} in XX/XX/XXXX. I told him that I got a copy of the Appraisal and that the Market Value was at {$590.00} ( Appraisal Report copy dated XXXX ). He listed some other high figures and mentioned something about a balloon payment, of which I was not familiar with how all these high figures came into play and the " balloon payment. I wanted to first wait and read this Final Modification Agreement to get a better understanding of what was going on. 
Fast forward, almost one year later to the date in which I received my initial modification approval letter, - a phone conference was held on XX/XX/XXXX with a Relationship Manager. I was informed that my regular Relationship Manager was temporarily unavailable. This particular manager informed me that I would finally be receiving a Final Modification Agreement. He summarized the terms as follows : # l ) Interest Rate 2.0 % # 2 ) Modified Unpaid Principal Balance - {$520000.00} # 3 ) Payment {$2400.00} ( reduction from {$2500.00} ) effective XXXX # 4 ) Maturity Date of Modification - XX/XX/XXXX # 5 ) Remaining Months of Modification is XXXX months from XX/XX/XXXX ( 2l years ) Trial Payments : XX/XX/XXXX XX/XX/XXXX and XXXX XXXX. ( DISPUTE : MY ORIGINAL LETTER DATED XXXX - just informed me of my approval of the mortgage loan modification. which had requested that I make XXXX ( XXXX ) trial payments for XX/XX/XXXX, XX/XX/XXXX and XX/XX/XXXX. ( customer copy of letter on file ). # 6 ) Discount of {$24000.00} to be applied if in good standing, then each year ( l ) part of the Discount will be deducted from unpaid balance of the principal balance for three consecutive years. # 7 ) BALLOON PAYMENT AT MATURITY ( XXXX XXXX, XXXX ) Amount Due {$490000.00} ( DISPUTE : Final Modification Agreement states the balance at Balloon could be more ; and that it does not matter what the market value is at that time, either pay in full, refinance or lose home to foreclosure ). 
COMPLAINT : Furthermore, if my home was appraised at {$590000.00}, yet my unpaid principal balance is {$520000.00} and my interest rate is 2.0 % - Why am I having to pay a large BALLOON PAYMENT of {$490000.00} or possibly more in XXXX years? Is this typical, of most modifications? In XXXX years, I will mostly be retired and on fixed income. The inflated appraised value of my home, the large balloon payment is not helping.

Company response to consumer: Closed with explanation