Consumer complaint received 2019-01-29
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — 
Company: Ditech Financial LLC (OR)

Ditech Complaint - Several Issues : 1. OVER CHARGED INTEREST : [ Refer to Letters dated XX/XX/XXXX, XX/XX/XXXX, and receipts dated XX/XX/XXXX, and statements dated XX/XX/XXXX to XX/XX/XXXX ] I made a {$40000.00} payment on XX/XX/XXXX, the day before my normal payment was due. My husband and I spoke with a Ditech rep that same day and they were supposed to apply it towards the payment that was past due and the current payment, and the remainder would go towards the principal. I was told it would take a few days to process but that the payment date would be reflected correctly, as XX/XX/XXXX. That didn't happen, they waited until XX/XX/XXXX to apply this payment even though they had the funds on the morning of the XXXX ( this was verified by our bank manager ). Then, for the subsequent two months, I was still paying the large amount of interest until the XXXX billing statement came out, almost {$500.00} in interest each month. In XXXX it finally dropped to {$150.00}. 

I have called several times. I always got a low-level representative that totally agreed it's all wrong, and they would refer it to a supervisor. Eventually I received a letter ( letter dated XX/XX/XXXX ). They stated they applied the funds correctly, and they sent an updated amortization table. I believe this table is incorrect. I wanted to speak with the department that was in charge of this mistake so they could explain their resoning. But as I said, whenever I call I only get someone who knows nothing. About 30 % of the time when I do call, I get placed on hold and then disconnected. It happened again tonight. 

2. UNEXPLAINED AND UNAUTHORIZED REALLOCATION OF FUNDS : [ Refer to XX/XX/XXXX and XX/XX/XXXX statements ] On XX/XX/XXXX I made the XX/XX/XXXX payment. It was late, I had been waiting for the interest issue to get taken care of. I finally just had to pay it so it wouldn't reflect negatively on my credit. This payment was applied as expected. 

But then I made the XX/XX/XXXX payment on XX/XX/XXXX, a day later, and this is where the problem is. They only applied XXXX towards the regular payment, which is normally XXXX, and the remaining amount, XXXX was applied towards the principal. The next statement showed me owing a past due amount of XXXX ( and I am not sure where the difference of {$30.00} went ). I could not figure out the logic here. I called, again, and the rep could not figure it out either. They were totally baffled. They referred it up the chain. Again. On the XXXX statement, it appears to have been reversed. However, on XX/XX/XXXX I was assessed a late fee of {$5.00}. But my payments at that time were current. 

3. THEY SENT ME A LETTER OF DEFAULT, SAID I OWED SEVERAL MONTHS : [ Refer to letters dated XX/XX/XXXX, XX/XX/XXXX, XX/XX/XXXX, & XX/XX/XXXX ] Even though I had been making ALL of my payments, I received the letter of default on XX/XX/XXXX and was unable to reach their office by phone due to the holiday weekend. I sent a fax letting them know how upset I was. I also called them the next business day. I was told that they had a software upgrade, and everyone got those letters, not to worry. Of course I was worried, I pointed out that they did not send a followup letter of explanation so I had no reason to disregard that letter. And I was concerned about my credit ratings. I considered filing bankruptcy proceedings to stop the foreclosure they threatened me with. Also, I had previously received some letters stating I was eligible for counseling, so I don't really buy into the " software glitch '' story. 

4. UNEXPLAINED AND UNAUTHORIZED RE-ALLOCATION OF FUNDS FROM PRINCIPAL BALANCE INTO DEFERRED BALANCE : On XX/XX/XXXX there is a " Deferral/Rate Mod Partial Pays '' $ XXXX charge, and a " principal + Interest Payment of {$2300.00}. It looks like they took funds from the principal and moved it to Deferred Balance. Are they charging me interest on that too? I have no idea what this is or why. I called tonight talked to a rep named XXXX who of course was clueless, he thought it was very strange, and he finally placed me on hold to refer it to his supervisor. Then, of course, they disconnected me. 

It just never ends. 

I would like to know which government entity oversees/regulates this company. 

I would also like to know if there is an advocate resource available to me. 

I've included the statements going back to XX/XX/XXXX, and the letters I've received. 

Thank you in advance.