Consumer complaint received 2016-07-19
Company: Ocwen Financial Corporation
State: SC
Product: Mortgage
Sub-product: Conventional fixed mortgage
Issue: Loan servicing, payments, escrow account

Complaint:
I have problems with loan servicer Ocwen on how my account was billed and payments were credited to the account. Also, the additional charges and fees after the account was brought current as it took over 9 months for a payment of {$42000.00}, to be credited to the account. 

I requested a payoff quote dated XXXX XXXX, XXXX was {$55000.00} ( I have a copy ), Interest was due {$9900.00} per the payoff statement and at the end of the year XXXX I received a corrected Mortgage Interest Statement ( I have a copy ) for {$19000.00}. Also, IRS document reflects an additional {$9700.00} more interest from XXXX XXXX to XXXX XXXX, XXXX, in less than 10 months. My question is how a loan at XXXX per cent interest on a principal balance of {$29000.00} as of XXXX XXXX, XXXX accrue an additional {$9700.00} in 10 months? I would like someone to explain that to me. 

I sent a wire transfer of {$42000.00} on XXXX XXXX, XXXX ( I have copy ) was not credited as it was held as " UNAPPLIED FUNDS '' and not credited until XXXX XXXX, XXXX, 9 months after you received the funds of {$42000.00} per the Mortgage Account Statement dated XXXX XXXX, XXXX ( I have copy ). The Mortgage Account Statement also included additional charges for foreclosure costs, inspection costs and late charges that would not have been due if the unapplied funds had been applied to the account. Once the unapplied funds were applied on XXXX XXXX, XXXX the due date on the statement was XXXX XXXX, XXXX. This is incorrect as the payment and escrow was current by your records you faxed me and was on the XXXX XXXX statement. Per the enclosed print out and statement dated XXXX XXXX, XXXX there was {$27000.00} applied to the account from the original amount of {$42000.00} after the account was current. {$27000.00} applied as follows ; Principal {$8500.00}, Interest XXXX, Escrow XXXX. 

Also, on XXXX XXXX, XXXX less than two weeks after Ocwen received the wire for the {$42000.00} we request a payoff and received a payoff good until XXXX XXXX, XXXX ( I have copy ) in the amount of {$18000.00}. Wired funds were received by Ocwen in the amount of {$18.00}, XXXX on XXXX XXXX, XXXX before the XXXX XXXX, XXXX payoff expired. The {$18000.00} funds were held by Ocwen and returned that it was short of the payoff. XXXX my father contacted The Consumer Ombudsman, XXXX XXXX and received a payoff dated XXXX XXXX, XXXX to pay in full {$18000.00}. XXXX XXXX, XXXX Ocwen received the XXXX and final wire from XXXX XXXX in the amount of {$18000.00}. Again they sent the wire back after holding XXXX XXXX 's money for 90 days with the only explanation that it was not enough to pay loan off. 

I would like to believe that this was done in error as the mortgage was current on XXXX XXXX, XXXX payment to Ocwen in the amount of {$42000.00} and the additional payments paid in advance. The funds should have not been held in a separate unapplied funds account for over 9 months as the account accrued interest, foreclosure fees, late fees, inspection fees and attorney fees. 

This account was paid on XXXX XXXX, XXXX and if had been credit properly would not be in foreclosure at this time.

Company response to consumer: Closed with explanation