Consumer complaint received 2015-08-14
Company: Ocwen Financial Corporation
State: CO
Product: Mortgage
Sub-product: Home equity loan or line of credit
Issue: Loan servicing, payments, escrow account

Complaint:
In XX/XX/XXXX, my mother and I got a home equity loan from Homecomings Financial/GMAC for $ XXXX. The terms were 6.75 %, interest only, amortized over 30 years, with principal payments to start if we still had the loan after 10 years. Due to health and job losses, we were unable to keep up with these payments ; we eventually declared bankruptcy. We agreed to a loan modification that lowered the rate to 6 %, keeping it interest only for the remainder of the loan ( XXXX ). We agree to add interest payments we had missed and escrow shortages, as well as late charges to a new unpaid principal of {$270000.00}. 

Ocwen purchased my loan from GMAC after modification ; I confirmed Ocwen has the loan mod docs. I have been making payments on time per the modification since XX/XX/XXXX. My usual payment is {$1500.00}. In XX/XX/XXXX, Ocwen told me my payment is changing to {$2200.00} because the interest rate went up to 6.75 % and now I have to pay interest. They also added {$250.00} in late fees incurred BEFORE the loan modification, even those fees were rolled into the new principal amount when the loan was modified. 
There are also errors & undocumented fees reflected on my payoff. For example, the new principal if for interest portions from XXXX/XXXX/XXXX to XXXX/XXXX/XXXX, but GMAC 's own records show I paid the XX/XX/XXXX amount. The escrow shortage reflected is also incorrect ( GMAC doubled the amount, and initially charged me double ( $ XXXX/mo ) after the loan modification until they caught the mistake about six months later ) .. 

Finally, I have been trying to get the payoff corrected since XX/XX/XXXX, and have provided them documentation but they do not respond to what I have presented and refuse to resolve this. Their payoff shows legal fees, but the only legal fees were incurred AFTER the loan was modified and when I was in compliance, so it would not have been reasonable to hire a lawyer to foreclose or take any action against me at that time. They also, AGAIN, are trying to charge for late fees already rolled into the principal. rOn XX/XX/XXXX, I had a friend help me talk with an Ocwen agent who went through every aspect of this case in a call that lasted over an hour. He agreed that there was a clear error by Ocwen and said that we should fax a letter and the issue regarding the monthly payment and the payoff would be addressed in no more than 10-15 days. We faxed a detailed letter, with copies of all loan mod docs and proof of their errors ( attached to this complaint ). 

I called last week and was told it would take another 30 days. They have several times told me 30 days, then another 30 days, and nothing is ever fixed. I can not afford to pay this amount, and more importantly, I do not owe this amount. I am trying to refinance, but ca n't because they are threatening me if I do n't pay what they are asking and they will not correct my payoff. Thank you very much for your help.

Company response to consumer: Closed with explanation