Consumer complaint received 2015-05-22
Product: Mortgage — Conventional adjustable mortgage (ARM)
Issue: Settlement process and costs — 
Company: Onity Group Inc. (IL)

I want to file a formal complaint against Ocwen Loan Servicing , LLC, XXXX XXXX XXXX, XXXX XXXX, XXXX XXXX XXXX, FL XXXX. 
We refinanced our home mortgage in XX/XX/XXXX when housing prices were up. Unfortunately, are now in an underwater mortgage because of the real estate market dropping several years ago. We applied for the HARP and HAMP loans, but we were denied because we make our payments on time EVERY month and currently we make enough money to pay our mortgage. We want to eventually downsize, but we ca n't sell our house at the current amount that is owed. I spoke with a mortgage consultant at XXXX XXXX XXXX. He informed us of a program that is a short payoff refinance through FHA. We had our house appraised and it is now valued at {$110000.00}. Our mortgage balance is {$160000.00}. I, along with the mortgage counselor at XXXX XXXX contacted Ocwen Loan Servicing , LLC . We explained to them that our house was appraised by a certified appraiser and there is a program specifically for our situation and that Ocwen Loan Servicing does participate in this program. We offered them the amount that the house was appraised at, which was {$110000.00}. On or about XX/XX/XXXX, we received a letter from Ocwen Loan Servicing indicating that they are accepting the " Discount Payoff '' for {$110000.00} and it was valid until XX/XX/XXXX. We continued working with XXXX XXXX XXXX by submitting all of the documentation that was requested of us. They had already approved us for the mortgage based on our credit scores as well as our income. Time was starting to run short and so our mortgage counselor requested additional time so that we would have ample time to make sure that everything was submitted to their specifications. Once we requested additional time, Ocwen started sending us letters that the discount payoff agreement was denied. Ocwen never submitted the payoff quote for the correct amount which was agreed upon, but instead they submitted it with the total amount which is currently owed on the loan. Our mortgage counselor as well as his manager made numerous phone calls to Ocwen and they were on the phone for hours trying to get the correct documents so that we could close on the new loan and also so that we could meet the deadline of XX/XX/XXXX. We were told that they would see about extending the date for a few days, but they would not put that in writing. The underwriting team from XXXX XXXX XXXX would not release funds without it being in writing for fear that Ocwen would reject the EFT. Because Ocwen kept transferring us to the wrong department all along and they will not submit the correct paperwork, we have now lost out on this agreement. A few times we were told that we need to talk to the short sale department and we did do that, but they kept saying that we were not approved for the discount payoff, when in actuality, we were. They have reneged on the agreement because of deliberately stalling and not submitting what was asked of them so that we could finalize everything by the termination date of the agreement. I feel they have been very unethical and also unprofessional.