Consumer complaint received 2024-10-08
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — Escrow, taxes, or insurance
Company: Onity Group Inc. (OK)

Our mortgage was sold to PHH mortgage company. We have had problems since. Our mortgage was originally roughly {$3200.00} on around {$400000.00} loan. It has gone up in total {$1000.00} in the span of 6-8 months. When it first went up, we previously had our mortgage payments set up to pay bi-weekly as to make an extra payment each year. They began not only collecting our bi-weekly mortgage payments of {$1600.00} but then were also auto-drafting an entire other mortgage payment now in the amount of about {$3800.00}. We basically paid a double mortgage of about {$7000.00} for 2-3 months before we figured out the issue. When I inquired about why they charged us an additional entire mortgage payment, they said that's what they do when a payment is made to them that isn't the full amount. I have since read that this is not a good faith practice. They did not return the money to us, or credit it to the current or next month. All additional money was applied to our principal. The first increase went up by {$600.00}, we were told this was due to the fact that we had not established our own home owners insurance, and they were charging us a very high amount to provide their own. When this issue was remedied, when the payment did not go back down, we were then told our property taxes had been reassessed and had increased. The mortgage then increased by another {$400.00}. When we inquired how that could be possible. We were told we had a deficient escrow account. A deficient escrow account despite the fact that we had missed no payments, and in fact payed almost double our mortgage amount for several months. We are looking into getting a lawyer as we do not feel that a {$1000.00} mortgage increase, where the reasons continue to change is legitimate. Clear answers are not given, and nothing is accomplished in our conversations. We have researched the company and it appears that they have had abundant litigation against them for reasons similar to our own situation. Which include continually increasing a mortgage payment through loopholes and technicalities until the owner eventually can't pay and is foreclosed on. We have also been made aware that the mortgage is again going to be sold. We have also read this is a common practice by PHH. Where they do these unethical or even illegal things, and then quickly sell off the mortgage before they are held accountable. While this increase has not caused us to ever make a payment, it has made our finances very difficult, and led to our savings being depleted, and us neglecting other financial responsibilities just to insure we make our mortgage payment each month. This is the third home we have owned, and we currently still own a second residence, and we have never ever encountered these difficulties or business practices. As a home owner you expect your mortgage to fluctuate somewhat and reasonably. This was our dream home which we saved for 15 years for, and they have now made it almost impossible for us to remain in this home long term.