Consumer complaint received 2017-06-14
Company: Ditech Financial LLC
State: NM
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Trouble during payment process

Complaint:
I am trying to help my mother pay down the principal on her mortgage payment and have been sending extra payments to help with this. Each time since  XXXX , any extra money gets applied to future interest and I have had to call each and every time to get the money appropriately applied to principal. It happened to the payment in  XXXX   2017   ( e lectronic payment th at STILL h as NOT been applied to principal ), another in  XXXX  that was finally rectified ) and  the one  in  XXXX  also had to be fixed. I stopped sending electronic forms of payment because they still have not fixed that amount that was sent in  XXXX  and instead have been sending checks since then - ea ch one wrapped with a note saying " PRINCIPAL ONLY '' in black sharpie.  The last check sent in  XXXX  also had this written on the check in  two plac es- I have an image of the check I can submit. She has electronic statements so there is no payment coupon that I can indicate for principal only on.     So I have now kept records of each and every phone call that I have had to make starting on  XXXX   XXXX , 2017- called about {$310.00} that was again misapplied and asked again about the {$40.00} sent on  XXXX   XXXX  electronically that has STILL NOT been applied to principal. They said they would fix and would take up t o 10 business days. 10 business days seem illegal. Also asked for a supervisor to call me because there should have been a note indicating any additional payments go to principal - I never received a phone call. ( this was a 15 minute phone call )   XXXX   XXXX ,    2017  - account now showing it is a partial payment. The representative supervisor,  XXXX   (  ID is  XXXX  ) told me that they have until the  XXXX  to do a reallocation, but that they would expedite it. Also inquired about the electronic {$40.00} that still had not been applied correctly. Told again that there would be another note indicating any extra should go to prinicipal. This is now th e THIRD note that should be on this account indicating this ( 25 minute phone call ).       XXXX   XXXX ,    2017  - funds still not reallocated. They eventually were.      XXXX   XXXX ,  2017  - received an email indicating that the funds I was inquiring about in  XXXX  were for payment not principal and that 's why they were applied as such. I never questioned the  XXXX  payment of {$760.00} dollars that is my mom 's PAYMENT. I understand that, and never inquired about it. It also said that moving forward, that any additional payments would be applied to principal.      XXXX   XXXX ,    2017  - the check they received has  " PRINCIPAL ONLY '' written on it in 2 places, it was also written numerous times on the note it was wrapped up in. I can retrieve images of the check from my bank if need be. Moving forward I will also be taking pictures of how exactly the check is wrapped in a note indicating PRINCIPAL ONLY also. This again was applied to interest. Called Ditech again, and this time it took them longer because they could not find the account number, they could not find the account with parents phone number, they finally found it after I gave my father 's social security number. I was told it will take 5 business days for them to reallocate the funds, and there will be a note indicating that any extra should go to principal - so now 4 to 5 notes indicating this and it still does n't help?      Each day t hat Ditech illegally misappropriates funds is more money that they make because they are charging interest on the principal. I have never had any kinds of issues with my mortgage company, but then again they are n't  of questionable business and moral business practices.

Company public response: Company believes complaint is the result of an isolated error
Company response to consumer: Closed with explanation