Consumer complaint received 2022-12-05
Company: Ocwen Financial Corporation
State: CA
Product: Mortgage
Sub-product: Reverse mortgage
Issue: Closing on a mortgage

Complaint:
Our home suffered water damage on XX/XX/2022, so we filed a claim with our insurance company, which paid out XXXX. Since we had a reverse mortgage with XXXX Mortgage, ( shortly after it was sold to PHH Mortgage ), the checks were required by law to be sent to PHH Mortgage, the lien holder. As work would get completed and inspected, PHH would dole out small amounts to us to pay the contractor. Trying to get paid would require phone calls constantly and weeks would go by without any payment. We spent hours trying to get paid out which should have been a clear cut process. On XXXX XXXX, 2022, the final work was completed by the contractor and inspected by the County. PHH would not send anyone out for their final inspection until XX/XX/XXXX. After PHH deemed all work was completed and passed their inspection the final disbursement check should have been sent out. It is now XX/XX/2022, and we still have not received the rest of our money, {$36000.00}. After countless phone calls, all we receive are stall tactics. ( Such as " We've been told they are just waiting on billing to send out the check, they can't help us because they are going through a computer migration '', ( it was a 2-week migration ) and upon finishing it up most of our documents were lost. ) Their response to my complaint with the XXXX  was they sent us a check for {$22000.00} and that they have resolved the situation with the customer. 

I am attaching canceled checks of the funds PHH Mortgage has been holding and the ledger from our contractor. You will find two checks that are for {$6400.00} and {$66000.00} which total {$72000.00}. This is the amount XXXX XXXX XXXX paid us to rebuild back from the water damage claim. This is the amount that the construction company is due for their work. 

PHH Mortgage release funds twice after their inspections. XX/XX/2022, check # XXXX for {$22000.00} and XX/XX/2022, check # XXXX for {$14000.00}, leaving a balance of {$36000.00}. The final disbursement of {$36000.00} was to be paid out after they completed the final inspection, which they did Thursday, XX/XX/2022. The inspector they used was XXXX XXXX, XXXXXXXX XXXX XXXXXXXX XXXX, XXXX. 

As weeks passed and we never received the final check we continually called. They never seemed to have an answer. Then they told us they were going through a computer migration over the weekend and would get back to us in a few days. The migration turned into XXXX weeks of PHH Mortgage not giving us any information about our account nor could we access the portal. 


On XX/XX/2022, I was able to access the portal and pull up my account. According to my account, they were missing documents that would prevent them from processing the check. But after working with several people at PHH it was concluded that during their migration they failed to correctly move over the documents and that they would waive this step and proceed with the check processing. Again, this never happened. 

We are approaching 3 months now of their delay tactics and stonewalling to send us out our money. My contractor is demanding payment. PHH Mortgage 's response is always the same, " We are looking into it. '' In all my 90 years I have never dealt with a company that seems so underhanded and disorganized. 


We have recently received a form letter advising us that they are looking into it, but nothing more than that. We do not want a response in 60 days, we've already given them 90 days. 

Any urgent help you can give us will be greatly appreciated.

Company response to consumer: Closed with explanation