Consumer complaint received 2017-02-03
Company: Ocwen Financial Corporation
State: CT
Product: Mortgage
Sub-product: Other mortgage
Issue: Loan modification,collection,foreclosure

Complaint:
In XXXX of XXXX, Ocwen offered us a modification. We informed them that the monthly pay was still high and that we could not afford it. Ocwen promised to continue with its efforts to find us a more affordable modification. 
However, in XXXX XXXX, we received a denial letter from Ocwen denying us a modification and offered us a short sale. Despite the modification denial, Ocwen continued with it efforts to modify the mortgage. They would call or write to us several time to get more information from us which we willingly provided because we wanted to have the loan modified because the house was seriously underwater. {$420000.00} loan on a house worth at best {$280000.00}. 
In XXXX of XXXX, Ocwen revived the XXXX XXXX modification that they had initially offered to us in XXXX of XXXX. Keep in mind, that this is the one that we had told them that the payment was not affordable. But now, in XXXX XXXX, when Ocwen could not come up with a new modification, they offered us this modification that we had refused initially. 
Ocwen stated at that time ( XXXX XXXX ) that since the documents were already signed by us in XXXX XXXX, that it ( Ocwen ) would go ahead and implement it if we accepted it now in XX/XX/XXXX.They informed us that to get the modification implemented we have to come up with a deposit of {$3000.00} and pay our monthly payment on time and that they Ocwen would reduce the principal balance on the loan by {$91000.00}. This happened in XXXX or XXXX of the telephone calls with Ocwen in XXXX XXXX. 
Sometime towards the end of XXXX, we made an enquiry to Ocwen wanting to know why the principal balance as stated on the account monthly statement has not reflected any reduction in the principal balance. This was when we got the shock of our life. Ocwen now says that although paid the {$3000.00} deposit and have remained current in our payments, they would not waive the {$91000.00} as promised because by the time we made that first {$3000.00} deposit that they ( Ocwen ) required of us, to implement the modification, the loan was already considered late. Whoa. 
Keep in mind that the sole purpose of paying the {$3000.00} was to implement the modification. They now say that they can only defer that amount and not waive it as promised. There would be no reason or incentive for us to accept a worthless modification as Ocwen now claim, so they lied to us. Why would we consciously accept a modification that was already late ; pay {$3000.00} deposit ; managed to sustain the monthly payment to stay current on the loan with the knowledge that we would get nothing in return? It just do not make any sense. 
It should be noted that Ocwen knew that the first {$3000.00} payment that we paid in XXXX XXXX, XXXX and all the subsequent payments were made for the sole purpose of implementing the modification. We would never have made those payments but for the fact that Ocwen told us, albeit over the phone, that it was needed for the purposes of implementing the modification. 
We were intentionally misled because Ocwen knew then that there was no incentive for us to accept that modification if it did not include the {$91000.00} principal waiver. So they misled us. 
We ask that they fulfill their end of the agreement because we have done everything that they asked us to do.

Company response to consumer: Closed with explanation