Consumer complaint received 2018-05-23
Product: Mortgage — Other type of mortgage
Issue: Struggling to pay mortgage — 
Company: Onity Group Inc. (MA)

My loan was originally with XXXX XXXX XX/XX/XXXX. It was a predatory loan. that state of XXXX AGO sued XXXX XXXX XXXX   and came to a settlement in XX/XX/XXXX.

I have been working with the AGO and XXXX XXXX foreclosure prevention for years. XXXX XXXX   serviced my loan until American Home Mortgage bought out their servicing.

We were in default and had done a loan modification agreement with American Home Mortgage dated XX/XX/XXXX that was filed with the XXXX  registry of deeds it is not the correct modification on file. Back in XX/XX/XXXXAHMSI sent out a modification agreement after a trial period. This WAS NOT in light of the XXXX XXXX Settlement the XXXX XXXX consent judgement was XX/XX/XXXX. There was no loan forgiveness, all fees were charged, it was not a HAMP modification, or a modification that was a waterfall. It was a negative amortization. AHMSI added over {$28000.00} to my principal balance in error. Two things happened.

1. They had the wrong principal balance on the loan modification that was recorded 2. They never changed the terms of the previous loan in their system. So the XX/XX/XXXX modification was not filed in their own system. When I made payments, they were applied to the old loan. When I discovered that they had the wrong principal amount and they had never changed the loan terms in their system I sent a letter. It took AMHSI until XX/XX/XXXX to send out corrected paperwork for the principal balance, and longer to fix the terms of the loan in the AHSMI system. They never recoreded the corrected modification in the registry in the registry of deeds. When I made a payment it went against the old loan. Made my account look as though it was in default a the time. They would not accept payments, put me in foreclosure, I have a print out of my AHSMI online account access from XX/XX/XXXX from my own account access with AHMSI. My husband and I filed bankruptcy to save our home in XX/XX/XXXX. We were products of the subprime crisis, XXXX XXXX loans were set up to fail. We first went to the XXXX AGO in XX/XX/XXXX to clear this situation. With no progress we then filed bankruptcy.

XXXX XXXX from XXXX XXXX for XXXX XXXX XXXX and XXXX XXXX attorney for XXXX XXXX filed a motion for relief of stay in XX/XX/XXXX.

1. XXXX XXXX has the fair market value of the real property ( our home ) at {$310000.00} and liquidation value of the real property is {$290000.00}. This is way under valued by {$100000.00}. Estimated fair market value as of XX/XX/XXXX for my home was over {$400000.00}. the home has been completely updated before this date. This was not the market value my property in XX/XX/XXXX. My husband is a XXXX.

2. It says that the debortors XXXX and XXXX owe XXXX XXXX pre petition arrears of {$29000.00}. Our pre-petition amount due to the loan was {$29000.00} which of {$25000.00} was paid to the trustee to XXXX XXXX and XXXX XXXX. ( have a print out from the trustree of our case ) XXXX XXXX claims we have no equity in our property and it is not necessary to an effective reorganization contemplated by 11 U.S.C. 362 ( d ) ( 2 ) ( B ). This is not true, as stated above they had it under valued. Attached to this motion was the mortgage, promissary note, and an Assignment of Deed of Trust from XX/XX/XXXX from XXXX XXXX XXXX assigning my mortgage to XXXX. in the state of XXXX  County XXXX that was never filed in the XXXX  XXXX County Registry of deeds. The assignment that was recorded from XXXX XXXX XXXX   to XXXX XXXX for our mortgage was from XX/XX/XXXX by Vice President XXXX XXXX  XXXX XXXX. How are there 2 seperate assignments but only one recorded? XXXX XXXX   suposedly bought my mortgage XX/XX/XXXX American Home Mortgage serviced my loan until XX/XX/XXXX transferred service to XXXX XXXX/XXXX XXXX XXXX XXXX transferred service of my loan to XXXX XXXX  XX/XX/XXXX XXXX XXXX transferred service of my loan to XXXX XXXX XX/XX/XXXX.

XXXX XXXX the investor of my loan denied me a loan modification three times.

XXXX denial letter for loan modification XX/XX/XXXX XXXX Denial letter for loan modification XX/XX/XXXX XXXX   denial letter for loan modification XX/XX/XXXX We were told investor will not modify and there is no other alternative to foreclosure or total amount due. They would NOT except monthly payments. All of the above denials were from the investor of my loan XXXX XXXX. At this time we worked with a foreclosure prevention sponsored by the State of XXXX called XXXX XXXX. We worked with XXXX XXXX. Who had a law background, and sent us back to the AGO because she had concerns with how they were handling the case. She also said our loan was not in the guidelines of the XXXX XXXX   Settlment and felt our loan did fall under the settlement. Which under the XXXX AGO Facts settlement page, says if you had a previous modification with AHMSI before the XX/XX/XXXX settlement, YES you can have another modification. We started working with the AGO XXXX XXXX, who was having a hard time hearing back from XXXX XXXX   who was now servicing the loan for XXXX XXXX. We then left the AGO and hired a private attorney. We then applied for loan modifications two more times on our own with XXXX XXXX and were denied and told no other alternative to foreclosure. We were denied XX/XX/XXXX and XX/XX/XXXX they said I did not send in all paperwork. They were looking for business taxes which I explained I had a XXXX XXXX not a seperate taxes, they denied me modification saying I did not send in the correct paperwork. After a few demand letters and trying to come to a solution with a private attorney, our attorney reached out to the AGO and we were told that our loan did fall under the settlement. At that point stopped using a private attorney as of XX/XX/XXXX and started working directly with the XXXX. AGO. We had a foreclosure date of XX/XX/XXXX. I was not sure of the progress with the AGO I was not given any information, except that our foreclosure was postponed until XX/XX/XXXX while they continued discussion XXXX XXXX. Mid XX/XX/XXXX I received an email/ call from XXXX XXXX from XXXX XXXX that she was emailing me a Loss Migigation Package to fill out. I filled out all necessary paperwork. Again, I received an email that my package was incomplete, for the same reason stated above. They said no proof of income for me because they were looking for business tax returns. I again, explained that it is a XXXX XXXX filed with my XXXX. Finally they said that the package was complete. Within a week I received a call and email with an offer as follows : Here are the terms we offered as a loan modification for loan # XXXX : Good faith payment of {$30000.00} to be received in certified funds by XX/XX/XXXX.

We will defer the remaining outstanding interest, fees and advances to be part of a balloon due at maturity.

The amortizing principal balance will be {$350000.00}.

Rate = 3.00 % Amortizing Term = 480 months Balloon payment due at the current maturity date of XX/XX/XXXX.

Total payment ( including taxes and insurance ) estimated at {$2000.00} per month.

6 month trial period to start XX/XX/XXXX.

XXXX XXXX saw our financials, know we have been paying an attorney to save our home, know we have been trying to work out a solution since XX/XX/XXXX with XXXX XXXX. XXXX XXXX   and XXXX know they have intentionly denied us 5 loan modification over 3 years. Then they approve and offer with a trial period and put a {$30000.00} good faith payment to prevent us from keeping our home. The XXXX AGO asked for them to allow us to start the trial period while we discuss other options for the good faith payment. XXXX the investor denied us and foreclosed on my home on XX/XX/XXXX with a starting bid of {$480000.00} and the home went back to the bank. XXXX XXXX is correct we refinanced our home in XX/XX/XXXXwith XXXX XXXX XXXX, and we could not make the monthly payments on a predatory loan that was a adjustable rate at 9.9 %. It was set up to fail. The state of XXXX  filed a law suit against XXXX XXXX for predatory lending. American Home Mortgage, reputation was the same. I have owned this home for 20 years. Why is XXXX XXXX   and XXXX XXXX allowed to deny 5 loss mitigation packages over 3 year period, then when the AGO gets involved they give an offer that would have worked out for me and my husband to finally be able to make monthly mortgage payments, but intentionally add a huge good faith payment of {$30000.00} with no other option for me to get them that payment. I offered to pay an extra {$500.00} a month for the first 60 months to get them the good faith payment. They auction off my home started at {$480000.00} which no one would bid on that and XXXX  took the home back instead of allowing us to prove we can do the trial period. I even asked since my husband was a XXXX if we could sell the home on our own. They said only if we could close within 3 days before the 14th. So what is the purpose of intentionally draging this out for 3 years with no intention of letting us keep our home? This home was not worth {$310000.00} in XX/XX/XXXX. This home was completely done over and was worth over {$400000.00} I have grafts from this time frame to prove that. I also have original copies of all paper work denial letters. Account print outs from AHMSI, I am in the process of hiring an Mortgage Fraud Analytical Firm. XXXX XXXX monthly statement for my loan as of XX/XX/XXXX says total Amount Due : {$75000.00}. XX/XX/XXXX total amount due {$160000.00} and last statement XX/XX/XXXX Total Amount due {$170000.00}. These statements show a {$2000.00} to $ XXXX  monthly legal fees. XXXX XXXX has not addressed any of my issues. Why did XXXX XXXX purchase a loan that was predatory and in bankruptcy and refuse for 3 years to work with us. Denied by XXXX 6 times and they foreclosed on our home taking every bid of equity we had.