Consumer complaint received 2024-03-04
Product: Mortgage — VA 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. (NV)

To Whom It May Concern, I am writing to formally file a complaint and lawsuit against XXXX XXXXXXXX/PHH Mortgage Service , the current servicer of my mortgage loan # XXXX. My complaint is based on the predatory lending, dual tracking, real estate law violations, and fraud that your company has committed against me and my family. 

Despite my repeated attempts to work with your company to save my home and provide a secure environment for my family, I have encountered numerous obstacles and have been subjected to harassment and unethical practices. Your company has repeatedly sent brokers and individuals to my home who have acted in a dishonest and intimidating manner, creating a hostile and unsafe living environment for my family. Your company has offered a meager sum of {$5000.00} through a " cash for keys '' scheme, which is an insultingly low amount considering the value and significance of our home. 

Furthermore, your company 's continuous harassment of my family and specifically targeting my XXXX mother, who is XXXX years old, by informing her that the property is in foreclosure and will be sold at auction, is both unethical and predatory. It is unacceptable that you would try to manipulate and exploit vulnerable individuals, especially when there are a veteran and an active service member residing in the home. This behavior demonstrates a lack of respect for those who have served our country and highlights your disregard for the sacrifices made by military personnel and their families. 

I have been diligently attempting to negotiate with your company for the past three years, urging you to consider alternatives to a foreclosure sale, but your only response has been to insist on a sale through auction, completely disregarding the fraudulent nature of the original loan. I have consistently disputed the integrity of this loan but have been met with intentional obfuscation and changes in lenders and services to prevent me from pursuing this line of questioning. 

Now that our loan has been transferred to XXXX XXXX, I implore you to cease the sale immediately and rescind the Notice of Default filed in XX/XX/2023. I beseech you to offer us a modification that will not only reduce the overinflated loan balance but also ensure that our monthly payments do not exceed {$2000.00}. This modification would provide a lifeline for my family, allowing us to keep our home and gain some much-needed stability in our lives. 

Your company 's refusal to provide a fair and reasonable loan modification that aligns with the current market values and my financial capabilities is a clear indication of your intention to continue engaging in predatory lending practices. The loan, commonly known as a negative amortization loan or interest-only loan, was not sustainable or affordable. The exorbitant interest rates of over 10 % ensured that my minimum payments only covered the interest accrued, resulting in negative amortization. It is essential to understand that the inflated loan balance was not a consequence of my failure to make payments but rather a result of AHMSI, who filed for bankruptcy and is no longer a lender. Therefore, it is only ethical and reasonable to forgive me for this exaggerated amount and provide a loan modification that is commensurate with my financial capability. 

I assert that your company has engaged in dual tracking, a practice that undermines legitimate efforts to save homes by pursuing foreclosure while at the same time pursuing loan modification. This practice is illegal and violates the Consumer Financial Protection Bureau 's ( CFPB ) rules. Your company has also failed to comply with the Real Estate Settlement Procedures Act ( RESPA ) by not providing me with a written acknowledgment of documents received or failing to provide me with an accurate response within 5 days of receiving my Qualified Written Request/ Notice of Error ( QWR ) letters. 

Additionally, I accuse your company of fraudulent practices including offering unfair and inadequate loan modification options and exploiting and manipulating vulnerable individuals for your financial gain. Intentionally obfuscating and changing lenders and services to prevent me from pursuing my questions about the fraudulent nature of the original loan and your company 's insistence on a sale through auction despite the fraudulent nature of the original loan is a clear indication of your willingness to distort the truth for your financial gain. 

Given the aforementioned violations against my loan, I have no choice but to pursue legal action against XXXX XXXXPHH Mortgage Service . My complaint is based on the following causes of action : 1. Predatory Lending Practices Your company offered me a flawed loan that was not sustainable or affordable. The loan 's terms ensured that my minimum payments only covered the interest accrued, resulting in negative amortization. 

2. Dual Tracking Your company engaged in dual tracking, a practice that undermines legitimate efforts to save homes by pursuing foreclosure while at the same time pursuing loan modification.

3. Real Estate Settlement Procedures Act ( RESPA ) Violations Your company has failed to comply with RESPA by not providing me with a written acknowledgment of documents received or failing to provide me with an accurate response within 5 days of receiving my Qualified Written Request/ Notice of Error ( QWR ) letters.

4. Fraudulent Practices Your company has acted fraudulently by offering unfair and inadequate loan modification options, exploiting and manipulating vulnerable individuals for your financial gain, intentionally obfuscating and changing lenders and services to prevent me from pursuing my questions about the fraudulent nature of the original loan, and your company 's insistence on a sale through auction despite the fraudulent nature of the original loan. 

In light of these violations, I demand that XXXX XXXX/PHH Mortgage Service immediately cease any attempts to foreclose on my property and rescind the Notice of Default filed in XX/XX/2023. I also demand a fair and reasonable loan modification that aligns with the current market values and my financial capabilities. 

I implore you to consider the severity of my complaints and take immediate action to address them. I expect a prompt response detailing the steps you will take to resolve this matter and prevent further distress to my family and me. Additionally, I request that you discontinue any attempts to foreclose on my property and offer a fair and reasonable loan modification that aligns with the current market values and my financial capabilities. 

Failure to respond to my concerns or provide a satisfactory resolution within a reasonable timeframe will leave me with no choice but to escalate this matter further, including but not limited to publicizing the unethical practices employed by XXXX XXXXPHH Mortgage Service and seeking redress through legal avenues. 

Sincerely, XXXX XXXX