Consumer complaint received 2016-03-02
Company: Ocwen Financial Corporation
State: CA
Product: Mortgage
Sub-product: Home equity loan or line of credit
Issue: Application, originator, mortgage broker

Complaint:
I obtained a second mortgage on my house ( which I have owned for 26 years ) through my then brokerage firm, XXXX XXXX ( XXXX ). The loan was sold in approximately XXXX and Owen Loan Servicing was the servicer of the new loan. I called Owen when the loan was sold, and they assured me that all I needed to do was to keep making payments as I had been doing. The process with XXXX was easy and automatic. My broker never went into the real details of the loan. I was required to make interest only payments. What was not made clear, was the loan had a set term and would be called due in full at a certain date. I understood that seconds have a draw and then a pay down period. The second was called for full payment on XXXX/XXXX/XXXX. I called Owen to determine if there was a next step. The customer service representative at Owen suggested I apply for a " loan modification. '' I had every confidence that this was the right course of action. I thought I would keep paying on the loan and eventually pay the loan off, of course. I sent a payment in after my loan was called and Owen sent it back. I was stunned. I called Owen and they said that I could no longer make payments because I did n't have a payment agreement. I continued in good faith with the loan modification process, which I was wrongly put into in XXXX XXXX. After numerous requests for additional documentation, which stretched from XXXX to XXXX, XXXX, I was DENIED. I could n't believe it. In fact, the last letter from Owen dated XXXX/XXXX/XXXX asked for information regarding the Profit Loss Statement from my small consulting practice. I had already given them XXXX Profit Loss statements. I called and ALL the needed was a signature on the last Profit Loss statement. Then I received a letter on XXXX/XXXX/XXXX saying I was Denied because " the owner of your loan does not allow loan modifications. '' I was told, in writing, the owner of the loan was XXXX Bank. I called XXXX Bank and they told me that they DO allow loan modifications. However, they had no record of my loan. I called Owen back and Owen could find no record of my XXXX loan no. i became quite upset, my call was escalated and they said my loan holder was XXXX XXXX Bank. I found that XXXX XXXX Bank no longer exists. Up until XXXX XXXX, I fully believed that my " loan " modification process '' with Owen was conducted in good faith and would be successful. After all, all they needed was a SIGNATURE on the last document request. This has been a very frustrating and demoralizing experience, as you can imagine. I just want to make my mortgage payments and go on with my life. Unknown to me during this time, and MOST problematic, was that Owen had been reporting late payments to credit bureaus. Which I now understand is called a " rolling late. '' This rolling late has caused my credit scores to plummet and make it nearly impossible to obtain refinancing. Also, because Owen would not allow me to keep making payments during this period, I have now accrued interest on interest. I am trying to refinance this second with another lender, however, lenders will not accept refinancing with even XXXX late mortgage payment within a 12 month period. I feel like a " pawn '' stuck in the XXXX XXXX. My entire problem started with the first customer service representative that wrongly put me in a " loan modification process. '' I ask that you help me with this situation so that I can obtain a loan with a different lender. At this point Owen has hamstrung me! I have read many horror stories online about Owen putting other decent people in the exact same situation. Thank You.

Company response to consumer: Closed with explanation