Consumer complaint received 2023-09-20
Company: Ocwen Financial Corporation
State: MD
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Struggling to pay mortgage
Sub-issue: Applying for or obtaining a modification, forbearance plan, short sale, or deed-in-lieu

Complaint:
COMPLAINT REGARDING FINAL MODIFICATION TERMS XXXX / Sent XXXX XXXX XXXX To : XXXX Tue, XX/XX/XXXX at XXXXXXXX XXXX Dear XXXX XXXX ( Account manager ), I hope this letter finds you well. I am writing to express my deep concern and dissatisfaction regarding the final modification terms of the loan agreement I have with PHH Mortgage Services. After I had sought many avenues of information concerning my situation, I immediately knew there was something wrong with the final modification terms and conditions. The particular issue I would like to address pertains to the balloon note, which stipulates an amount almost as higher than the outstanding balance that is owed. Another issue is meeting the conditions of the final modification. It stated that mortgage assistance needed to be applied by a third party, in the amount of XXXX XXXX dollars by XX/XX/XXXX. Last, the amount of time that was given to meet the deadline and respond to this offer no later than XX/XX/2023, was unattainable. 

As a responsible borrower, I have diligently fulfilled my obligations throughout the loan period. I have had financial challenges and hardships along the way. I did what I needed to do to help save the house that I have lived in for over 24 years. I am still raising children with as many out of XXXX who have known this as the only house they had lived in. I understand the marketing and the predatorial practices that can consume your property right from underneath you. 

However, the conditions associated with the final modification specifically the disproportionate increase in the balloon note amount appear to be unreasonable and unfairly biased against me. I believe that these terms do not align with the principle of fairness and mutual benefit that should underpin a borrower-lender relationship. I applied for mortgage assistance in XX/XX/2023 with the Maryland Homeowner Assistance Fund. I was approved and a check was made out to PHH Mortgage in the amount of XXXX XXXX Dollars only to be sent back to MHAF. 

I find this absolutely absurd, that in the final modification it states that I would need to apply for mortgage assistance and if XXXX XXXX dollars is not received by XX/XX/XXXX, the mortgage assistant option may be declined. It took months to complete the application process for MHAF and now it should be completed again in a week 's time. I fulfilled the trial period plan for the months of XXXX, XXXX, and XXXX. A final modification was received on XXXX XXXX. I had to respond to this offer no later than XX/XX/XXXX. Modification 's purpose is to support borrowers in difficult situations in the hope of making it work better. 

I kindly request a thorough review and reconsideration of the final modification terms in light of the following points : XXXX. Justification of Balloon Note Amount : I request a detailed breakdown and explanation of how the revised balloon note.has been determined. Understanding the rationale behind this increase will help me evaluate the fairness of the proposition.

2. Comparison with Market Standards : I encourage you to provide information regarding current market practices and standards for loans of similar nature. This will enable me to assess whether the revised terms align with prevailing industry norms. 

3. Financial Hardships : Please take into consideration my financial circumstances and the potential hardship that the revised terms may impose.

4. Good Faith Negotiation : I am open to engaging in constructive dialogue to find a mutually acceptable solution. I believe that by working together we can reach an agreement that reflects our shared interests and ensures a sustainable resolution.

I kindly request a prompt response to this letter, preferably within 14 days to initiate the resolution process. Should I fail to receive a satisfactory response or acknowledgment of my concerns, I may have no choice but to explore alternative avenues to protect my rights as a borrower. 

I trust in your commitment to fairness and customer satisfaction and hope for an amicable resolution to this matter. I look forward to your prompt attention and a mutually beneficial resolution. 

Thank you for your understanding and cooperation. 


Sincerely, XXXX XXXX

Company response to consumer: Closed with explanation