Consumer complaint received 2024-02-26
Product: Mortgage — Conventional home mortgage
Issue: Struggling to pay mortgage — Trying to communicate with the company to fix an issue related to modification, forbearance, short sale, deed-in-lieu, bankruptcy, or foreclosure
Company: Onity Group Inc. (NJ)

The last communication between myself and PHH mortgage ; the company stated that they have done everything correctly. They also kept asking for information to support my claim which I provide each time. Lastly, they gave advise that I speak to my Tax accountant or Tax attorney. I am actually very glad they suggested that. I spoke to my company 's tax accountant, a tax attorney and a real estate attorney. The outcome of which was very informative. 

On a conference call they all concurred with one fact. PHH is allegedly committing fraud. PHH cancelled 1st the amount of XXXX under a 1099C. They then cancelled a second amount of XXXX, also under a 1099C. The last amount was for XXXX under a 1099C. I did all agree that the mortgage company has the right to cancel debt on a loan under the guidelines of the Mortgage Debt forgiveness act. Which states that a debt maybe cancelled for event that has occurred, foreclosure or that the mortgage company believes that they will never collect the amount of the mortgage owed. There was a modification done several times on this account. The last one was during the Cares Act where we requested assistance like every other American facing hard times during covid. While I was deathly ill, PHH only sent over a Modification form for us to sign. which we assumed was the forbearance and assistance. Like so many others we were wrong. PHH was not attempting to help with assistance but to gain profit. However, as the conference call went on, they all advised if PHH ( if it be when they were Litton, Ocwen or whatever ) can't collect or trade negative debt. Negative debt can not be forwarded. Our Original mortgage amount was XXXX. If you add the total amount of the current 1099C forms. That would add up to a total of XXXX. That would be XXXX over the amount of the loan. 

My account checked my IRS transcript and there in black and white was the cancellation which would place it on my IRS account as income. Signifying that PHH took a loss and wrote the amount off to gain a credit. They have never corrected the write off and they have kept it on our IRS transcript. Fortunately, the government place the mortgage debt forgiveness act in place for Homeowners to not have to pay the income tax on their home they reside within. Part of the issue with this write off and modification is that they have us continuing to pay on a mortgage of XXXX. That was modified to that amount in 2018. Currently still displaying on our credit report for at least my wife and I still owing XXXX. This amount appears to only have been decreased by XXXX, 6 years later. ( XXXX credit evidence included ) So adding that amount to the Cancellation amount, PHH stands to gain XXXX. By the credit cancellation and payments from my family into the mortgage account. They also do not have the measurements for my property correct. Which they can check with the county records. The square footage of my property is actually XXXX Square Feet. Which would make the value of my home much higher than their estimate. 

Since they sent all the paperwork to use last time we filed a complaint. It actually assists us in filing a lawsuit if we decide to. Our next course of action if this matter is not corrected will be to do so. We will also send all the paperwork and correspondence to the US Attorney General 's office, the NJ State Attorney General 's Office, The NJ Department for Banking and Insurance and file a lawsuit in the superior court for the state of New Jersey. Proving Alleged double dipping, false reporting, income tax fraud, false reporting, fraud with the mortgage modification and deception under the Cares act. There will be no further discussion. Legal action will be taken if there is no form of settlement communication or correction of these issues.