Consumer complaint received 2017-02-01
Company: Ditech Financial LLC
State: CA
Product: Mortgage
Sub-product: Home equity loan or line of credit
Issue: Loan modification,collection,foreclosure

Complaint:
In XXXX 2016, we received our monthly bill from Ditech. When I opened the bill, our payment was {$1500.00} more than we had been normally paying. I contacted Ditech and we were told that we had finished our interest only term and now our payment went up to pay the principal owed on the loan. We could not afford that payment and asked if we could refinance the loan. We were told by Ditech that we could apply for a modification. We gathered all the information that they requested and returned the documents to them requesting a modification. We were denied the modification on the premise that we could afford the payment based on the information we provided. In the meantime, I contacted other lending companies to see what we could do to refinance our first to include the Ditech second. Since property values and dropped dramatically and they had not fully recovered, we owed more than our property was worth so refinancing was not an option. I called Ditech again trying to get answers on how they determined that we could afford a {$1500.00} payment increase. I finally got to talk to someone who was somewhat helpful and I was told that since the loan was only in my name, I did n't need to include my wife 's income on the modification request and I could resubmit the modification request. I was also told that they would n't even consider a modification unless our payment was past due. This was very hard for us to allow the payment to become delinquent. Our credit is/was impeccable. We had never been late on a payment. During the process of letting the account go delinquent and resubmitting our application for modification. We were bombarded with phone calls from Ditech wanting us to pay our bill. It was embarrassing and frustrating because this was not a position that we would voluntarily put ourselves in, but we had no choice. At the end of XXXX 2016, we were approved for a modification. It was n't what we had hoped for and it was still going to be a struggle to make those payments, but we accepted the offer with our first payment being due on XXXX/XXXX/16. We began making the new payments and have continued to make those payments each and every month since, but I am still receiving letters and phone calls from Ditech offering modification and requesting payment since our account is past due. I have called Ditech numerous times to find out why our account is delinquent and the response I get is that they have received our payments, but they have a " glitch '' in their system that is not recording our payments correctly. I told them that explanation was unacceptable and asked them how they would respond if I told them my payment was late because I had a " glitch '' in my system? They told me that they are working on the issue, but as of today ( almost 8 months later ) my account is still showing past due on the bills I receive and on my credit report. I think I have been more than patient with them and have allowed them ample time to correct this " glitch ''. I am now in a position where I can refinance my home to get a better payment, but now my credit score is tainted by the false information Ditech is providing to the credit bureaus. Ditech is reporting an incorrect monthly payment amount to the bureaus and that we have not made payments in the last 7 months.

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