Consumer complaint received 2017-10-26
Company: Ocwen Financial Corporation
State: AZ
Product: Mortgage
Sub-product: Other type of mortgage
Issue: Closing on a mortgage

Complaint:
Never thought Id lose my home and all our money/savingsXXXX form last 19 years all spent that put into a home would be lost having to start over at XXXX XXXX XXXX from ( 0 ), How investment bank+ mortgage servicer company can get away with these overpriced mortgage modifications un underwater homes is beyond me, This just encourages home owners to foreclose or had the keys back to the bank .. We gave up hope to save and buy a new home for me and my family that has a realistic ( LTV ) ( Loan to Value ) .. My story should be in the news .. 

So here is what happened in detail, Over the past years we called Ocwen to ask how much we owed on the house, they always gave us only the principle amount and never told us about the balloon amount we thought we only owed XXXX, so XXXX we need to get some home repairs done and tried to get an equity loan to make major repairs, The bank told us you have no equity, in fact your property XXXX ( Loan to Value ) is way underwater by XXXX or more, You still owe {$370000.00} so I called Ocwen they told me you have a balloon payment ( XXXX ) on top of the XXXX principle amount, Said how can that be since I was to get XXXX in principle reduction with my loan modification?, Ocwen said I missed a payment and you did not get it, I said I was in bankruptcy and was not working you guys knew this ..Sorry XXXX XXXX you did not qualify .. So I get to pay off an overprice house with no money or equity for major repairs, Sorry was  their reply, you can apply for new loan modification so we can help you, So I did as there was no choice, then when new loan modification came it was higher monthly payment so how did that help me? 
With that we placed the home on the market,, nothing happened over 5mths so we lowered to what we owed on the loan plus reality commissions, everyone said we were way overpriced, an offer came in almost for XXXX under what we required without reality commissions, I called the bank they said could not accept. 
At that point, I called Ocwen, because Since we have spent our money paying off equity loans and bills on the house using our XXXX, we had no funds to make repairs .. So went into payment plan with XXXX XXXX XXXX had just purchased a new central Heat/AC system as without that we could not live there for XXXX, and now the roof was collapsing and called roofing company they said it needed a complete replacement since it at max layers of shingles, and some trees needed to be cut down as they were protruding into the house and roof causing more damage.., So at this point me and my wife had it,, called Ocwen asked for deed in Lieu, The guy on the phone told me, Sure XXXX XXXX I understand you can Get XXXX for a deed in Lieu,, I said ok lets do it, Ast least that will help pay for moving and the new Heat/AC system I just had put in the house. 
Ocwen sent me the paper work and form I filled + deed sign over them out sent them back they gave us date to move out. few weeks before the deed in Lieu was to happen Id asked when will they send me the check for XXXX, Oh sorry XXXX XXXX our rep must have read you a program that ended last year, you can get up to max of XXXX. 
I said that does not help me at all nor would it fully cover the new Heat/AC system Im paying off on the property. or help at all with moving expenses .. 
Frustrated as I was I said, how can Ocwen pay the XXXX for Heat/AC system, Rep said you can still do a loan modification if you like XXXX I said NO youre only going to charge me more and will not help and you also told me you can still foreclose or demand loan payment in full .. No lets just get the deed in Lieu done, Im done with dealing with you and your company Ocwen.. 
After that we just sold everything we owned, and the for rest of our belongings we called packrat and got a rental out of NJ, we moved to AZ .. 
Now months later after we have done the deed in Lieu done, Im still paying off that Heating/AC system have another {$5900.00} left to pay on that, and now Im getting water and sewer bills from the township asking me to pay bills on a home I no longer own and its the mortgage service company thats using that water and heat and AC system,, is that fair? 

So now that I gave the home back to the bank have issue with the bank, We signed the title over in XXXX, Now we are getting utility bills for water and sewer. So I called the township the advised me that back has not filed ownership with county clerks office and Im still responsible for taxes and property maintenance or fines as well. We did the deed in Lieu with the bank in XXXX and gave up the ownership and keys as of XX/XX/XXXX, Even called the XXXX XXXX tax assessor and he advised the bank failed to apply ownership for the property, When I called the mortgage service company OCWEN they said give us two weeks, we had some issues with deed for power of attorney, That was back inXX/XX/XXXX, now itXX/XX/XXXX.. Still house in in our names, So this leaves me and my wife responsible for a home we are no longer own after almost 4.5 mths now still in our names. the water bill even shows someone is using the water on the property and I get the bill I called yesterday day they said we should have it fixed in three more weeks having issues with title and internal departments on property, I just hung up the phone I refuse to pay any more on this property .. Also the investment bank and Ocwen say the house is worth XXXX, so the government allows then to make up prices so I can get hit with the deficiency by IRS , and they get to write it off as a loss, Already on a IRS payment plan from owing money to pay equity loans out of my 401K on the house and missed mortgage payment Ill never see a tax return ever again .. 

ORIGINALLY PURCHASED THIS HOME FOR {$420000.00} BACK IN XXXX, AFTER XXXXAMP MOD IN XXXX NEW PRINCIPLE BALANCE REMAINDER WAS XXXX + BALLOON PAYMENT DUE IN OR ON YEAR XXXX Bank /investment firm that was bailed out in XXXX had refused to grant or reduce any of the principle loan balance nor help in reduction to current fair market value for previous home owner under HARP program paid for by taxpayers homeowner forced to give up overpriced debt. HARP program funds for homeowners principle reduction vanished at same time Bank/investment firm received bonuses. THIS HOME INCLUDES NEW ADDITIONS- ( IN GROUND POOL INSTALLED FROM SEASONAL WORLD FOR {$30000.00} PLUS KITCHEN UPGRADE {$15000.00} PLUS NEW CENTRAL HEAT/AIR CONDITIONING SYSTEM {$10000.00} + ADDITIONAL UPGRADES= {$63000.00} ) Our Total underwater investment = XXXX WE lost over XXXX since XXXX with purchase+new additions and all equity loans paid in full, Remaining balance on note/mortgage was {$370000.00} with balloon payment due in XXXX, " the property is FORECLOSED and now XXXX HOUSE NOT FOR SALE, -Note : Ocwen has taken over property XXXX We still paying off the bill for new central heat air conditioning system as there was no equity in home and unable to transfer any home system or XXXX & XXXX warranty until the reaming balance of {$4900.00} is paid on the new central system or until its paid in full for full amount of XXXX -- -- - Bank /investment firm that was bailed out in XXXX had refused to grant or reduce any of the principle loan balance nor help in reduction to current fair market value for previous home owner under HARP program paid for by taxpayers homeowner forced to give up overpriced debt. HARP program funds for homeowners principle reduction vanished at same time Bank/investment firm received bonuses. 

Theres no laws governing what a Home LTV must be in range with for loan modifications, Basically mortgage servicing company is allowed to give modifications leaving home owners deep underwater on property values, Leaving homeowner with no equity in case of major home repairs or room to sell the home until principle balance is paid off or when market has picked up in 10 year period if the house is still standing because no equity was available for repairs. No law states Ocwen must lower principle balance to meet acceptable current market rates and off set in equity value. 
Also Ocwen is allowed to evaluate the property for higher than market price than its worth so they can write off that deficiency to report loss to IRS, while pervious homeowner gets hit with a gain being reported on a home worth less than what it would even sell for XXXX And also allow the pervious homeowner to get stuck with XXXX bill for AC/Heating central airs system in a house they no longer own, or for water and sewer + Utility bills they cant turn off because the deed or title is not registered with the town ship ..so pervious homeowner still paying bills on home they no longer own. 
In addition Ocwen can apprise this property for XXXX when it might be only worth XXXX give current conditions and repairs need boggles me, another Lic appriser should be called out on this with major electrical and plumbing leaks, garage door system needed, new yard fence needed, along with {$35000.00} dollars in landscaping maintenance with trees growing into home and dead tree removal, includes leaky roof falling through needs complete replacement, costly dangerous mold issues and all aluminum wiring through the home major fire hazard, termite/rodent damage. home requires aluminum wiring insurance for fire hazards, in total home requires at least $ XXXX in repairs, how is that home worth XXXX K, and why am I still paying bills on that house? 



Best Regards, XXXX XXXX XXXX : XXXX Email : XXXXXXXXXXXX

Company response to consumer: Closed with explanation