Consumer complaint received 2015-08-27
Company: Ocwen Financial Corporation
State: AZ
Product: Mortgage
Sub-product: Conventional fixed mortgage
Issue: Loan modification,collection,foreclosure

Complaint:
Our office represents the borrower iin foreclosure and deed in lieu XXXX DIL ) representation. 

The borrower was unable to maintain her mortgage payments 7 years ago and was forced to miss payments. She moved out of the property and told the bank the house needed to foreclose. She could not sell or refinance the property because it 's nearly {$200000.00} underwater. 

Ocwen Loan Servicing is now the servicer for the loan. XXXX started contacting our office and the Borrower regarding foreclosure and DIL options. Our office confirmed that foreclosure and DIL could occur simultaneously as we needed the fastest result. 

The DIL application was sent to Ocwen on XXXX XXXX, 2015 and all additionally requested information was sent on XXXX XXXX. Ocwen confirmed receipt but XXXX did not review the file until XXXX XXXX. XXXX advised that the file was complete and she would send the file to an attorney. I was told the process would be done in 2-3 weeks. 

On XXXX XXXX XXXX tells me that the file has been preliminary approved, but that the file still was n't assigned to an attorney. She said once assigned would take 2-3 weeks. It was n't until XXXX XXXX, nearly three months after submission, that we were advised that the title report came back clean. XXXX put in a request to have the DIL documents drafted. 

On XXXX XXXX I called Ocwen and I was told no activity had occurred. On XXXX XXXX I contacted Ocwen again and was told by XXXX that the file was still with the attorneys and no documents had been sent. When I asked to confirm the Trustee 's Sale would take place on XXXX XXXX, she stated that the Trustee 's Sale had been put on hold. XXXX advised that Ocwen always put Trustee 's Sale on hold during DIL processing. XXXX then shared that the loan was being service transferred XXXX XXXX. 

On XXXX XXXX, I contacted XXXX XXXX phone number XXXX ) in the Ombudsman Office requesting assistance. He advised that he would reach out to the foreclosure department to check into reinstatement and would also reach out to the DIL department about status. XXXX did not call our office back until XXXX XXXX, at which time he stated that he could n't get an answer from either department. I asked him to escalate the DIL with the attorney 's office. He advised that the DIL department had already sent an escalation but he would initiate one as well. 

On XXXX XXXX, after failing to hear from XXXX, I called and left him a voicemail. He returned my call on XXXX XXXX, at which time he tried claiming that the bank 's attorney 's office sent the documents out on XXXX XXXX directly to the borrower, but did not have a tracking number or a copy of the documents. He also stated that the attorney 's office tried to contact the borrower directly in spite of the attorney representation our office has on file with the bank. This is a serious ethical violation if it occurred.I asked XXXX for the contact information for the attorney 's office so I could coordinate getting the documents, but after on hold for nearly XXXX minutes, XXXX advised that he could not find the information and would have to call me back. I stressed that time is of the essence as the transfer occurs in less than two weeks. 
Ocwen has engaged in intentional misrepresentation by advising that they would continue processing the foreclosure sale even while processing the DIL ( as we advised we wanted whichever could happen first ). Ocwen then spent 4 months inappropriately handling the DIL processing and application. Then Ocwen became blatantly dishonest by claiming to have sent documents that multiple individuals confirmed were never sent. This claim could not even be supported by tracking information or copies of the documents. Then they admit that Ocwen has continued trying to contact the borrower in spite of known attorney representation.

Company response to consumer: Closed with explanation