Consumer complaint received 2015-07-29
Company: Ocwen Financial Corporation
State: PA
Product: Mortgage
Sub-product: Conventional fixed mortgage
Issue: Loan servicing, payments, escrow account

Complaint:
Ocwen Loan Servicing , LLC is continuing the misconduct that was the subject of the federal complaint and Consent Judgment against them. My loan that was serviced by Litton Loan Servicing before its acquisition by Ocwen, had an unexplained inflated balance when I tried to attain loan modification in XXXX after I became delinquent on my mortgage as a result of a XXXX diagnosis which necessitated XXXX surgery and a lengthy recovery. Ocwen played games in the processing of the loan modification by saying after having acknowledged receipt of a complete loan modification package that documents that had been submitted were mysteriously missing and needed to be resubmitted in order for the loan modification to proceed. After months of playing the delay game with the modification processing which only extended the delinquency and resulting costs, Ocwen finally proffered a loan modification for my acceptance which included an inexplicably inflated principal balance and the addition to my loan of a balloon payment at the end of the loan despite the fact that my loan never had a balloon payment requirement. The inflated principal balance that Ocwen maintained was still due on the account was almost {$5000.00} more than what the balance should have been for the loan according to the loans amortization schedule, especially because the loan was never delinquent or in default before XXXX XXXX XXXX precipitated delinquency. Ocwen when I confronted them with my discovery of the inflated principal balance, they took the position that I was liable for the erroneous principal balance since I did not contest within 30 days the inflated balance represented in a XXXX letter sent to me notifying me of the transfer of servicing from Litton to Ocwen after Ocwen acquired Litton. The principal balance as reflected in the notice was already {$4000.00} more than it should have been when compared to the loans amortization schedule. Ocwen refused to provide justification for the inflated balance and they also refused to correct it. As a result, I could not accept the loan modification which I desperately needed because me signing the agreement with the inflated principal balance would have legally constituted my acceptance of the inflated balance as valid. Ocwen insisted that if I did not accept the unjustifiably inflated principal balance and the loan modification that I would surely face foreclosure. They engaged in a highly exploitative extortion by threatening that I either accept their fraudulent account balance or else I would lose my home to foreclosure. Because of their accounting misconduct, I was denied the loan modification I was qualified for under the law. 
Fortunately, because of a XXXX insurance, I was able to later bring the loan current by paying all of my missed payments along with penalties, additional interest and costs related to the Ocwen-extended default, and then Ocwen reinstated the loan. The inflated principal remained uncorrected by Ocwen. I made all of my remaining payments as required until my final scheduled payment due XXXX XXXX, XXXX. At that time I maintain that I had made all of my XXXX payments on the loan as agreed in the terms of the promissory note, and in fact I had paid well in excess of what the note required when factoring in the additional interest, penalties and costs arising from the XXXX default. I have refused to make any more payments because I have fulfilled my obligations according to the promissory note and the loan has been fully repaid. Ocwen has refused to provide justification for the inflated balance, and they not surprisingly have also refused to record a satisfaction of mortgage. They are now threatening foreclosure. 
Please help as Ocwen is continuing the very accounting misconduct that was the subject of the CFPB federal action and Consent Judgment against them.

Company response to consumer: Closed with explanation