Consumer complaint received 2016-03-29
Company: Ocwen Financial Corporation
State: AZ
Product: Mortgage
Sub-product: FHA mortgage
Issue: Loan modification,collection,foreclosure

Complaint:
I purchased my house in XXXX XXXX through XXXX XXXX that was eventually taken over by XXXX XXXX XXXX. My interest rate was 7.5 % & I was approached by a company that offered to refinance my home & lower my interest by 2 % in XXXX XXXX. During that process I asked the loan officer if going through with this refi would effect my eligibility for the mortgage programs that were being offered by the Government at the time. His response was absolutely not, anything you are eligible for right now will still be offered for you after the close of escrow with the new mortgage. I had asked this same question several times & I was given the same answer each time. Additionally I had just left my employment & was not working so saving money was even more important at the time. Upon review of the loan documents a few years later I discovered that the loan officer illegally changed the loan documents to manipulate the underwriters for the new mortgage company by claiming I worked for a company that I did not work for and he added his own figures that were untrue. I specifically asked him how I would be able to qualify for a new mortgage if my income was comprised at that time & he told me that it was completely fine and it was a special program being offered by the government called a streamline refi & there was no income requirement because your already in a mortgage your just saving money by getting a cheaper interest rate. By the time escrow closed it was XX/XX/XXXX and when I attempted to sign up for the federal mortgage programs that were out due to the housing crisis I was denied & the reason given was that my mortgage needed to be dated XXXX XXXX and prior. So my worst fears of the refi making me ineligible were realized & that company who processed my refi had completely lied to me and XXXX me out of the very programs I needed to ultimately save my home. That meant that all of my neighbors received principal reductions & many of them purchased their homes for XXXX % of the cost of my house. As an example both of my neighbors have mortgages now of $ XXXX and mine is stuck at the original purchase price of $ XXXX. This translates into a difference in mortgage payment of {$900.00} per month which clearly puts me a financial disadvantage & I am not eligible for any assistance or relief. The reason my employment was comprised is due to XXXX. This lead me to file for Social Security XXXX in XXXX XXXX. I have been fighting for XXXX ever since & I only recently on XXXX XXXX XXXX had my hearing in which I am now waiting for a decision on that my attorney says could be another 120 days. Meanwhile my house is in foreclosure and is scheduled to be auctioned off on XXXX XXXX XXXX & I am completely distraught at the thought of being homeless with no where to go while dealing with such serious health problems in which I take more than XXXX different medications for. During the past few years I emptied my XXXX and maxed out XXXX credit cards and accounts & I have taken personal loans all in an effort to stay afloat while I wait for my XXXX case to be finalized. Had the loan officer and company not lied to me I would be completely secure because I would have been allowed to get a mortgage principal reduction & an interest reduction of up to XXXX additional % points which would have saved $ XXXX per month which would have allowed me to be able to afford my payments like everyone else around me effectively saving my home from foreclosure. What can I do about the lies that caused me to be ineligible for the federal programs that I would have otherwise been able to get & what can be done about the fraudulent paperwork they submitted to get the new loan? The Co. Name was XXXX in Ca. My current Mortgage Co is Ocwen who bought out GMAC which I had.

Company response to consumer: Closed with explanation