Consumer complaint received 2018-07-18
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — 
Company: Ditech Financial LLC (HI)

Ditech is putting me through a collection process for a late fee of {$120.00}. I incurred this late fee because they held my payments in a Funds in Suspense status. I have paid {$22000.00} towards my 2018 mortgage obligation of {$19000.00} ( {$2800.00} due on the first of every month ). I calculate that as an overpayment, however the overpayment is being held as Unapplied Balance while they put me through their collection process. 

I used to use Ditechs Bi-Weekly Mortgage program which auto debited my mortage in partial payments that occurred every other week. They discontinued this program in XXXX and their website does not offer any other type of autopay except for full payment on due date. My finances and due dates for other financial obligations are set up around the bi-weekly payment plan because my mortgage is my largest one payment. I set up auto pay through my own bank bill payment system to continue the bi-weekly payments as I have been making them through Ditech. The payments I made were then held in Funds in Suspense and show that I was delinquent in my payments at the same time they money was collected from my bank account. Entire payment would be applied to principal as extra principal payment and they would attempt to collect an additional payment from me and go through a collection process. 

There must be some policy against this. My mortgage balance is $ XXXX, and my house is valued at $ XXXX. Are they using unfair practices to put me in a collection cycle to gain my home? 

Any payment balance should be applied in a way that protects the consumer always. Any money collected should go to : Balance due ( oldest to newest ) ; Escrow ; Fees ; Principal only when other balances have been collected on. Or at the very least you should be able to allocate your own money to these categories on their website. If the company decides where to allocate payments, by law it should be in a way that protects the consumer, not potentially puts them in a foreclosure. This company stinks of unethical practices! 

I called and spoke to XXXX on XX/XX/18. I was scolded for making partial payments, even though I did so previously through a Ditech sanctioned program. And made each partial payment PRIOR TO THE DUE DATE for the balance due. I tried to rectify the situation and was given no solution but the pay the full amount on the due date, NOT BEFORE THE DUE DATE IN INCREMENTAL PAYMENTS or the payments WOULD always be misapplied. So I adjusted my due dates on other financial obligations to do this. I am still going through collections for a late fee and have an Unapplied Balance on my account which is an overpayment that just sits in suspense it doesnt go to my balance, my principlal or my LATE FEE. It just sits there. Meanwhile they send me to their collections division. I went ahead and sent a check ( no option to pay online other than the mortgage amount ) for the LATE FEE to suspend the collection process. How is this legal that a mortgage company can hold my money and NOT APPLY IT TO MY ACCOUNT in a way that is in MY BEST INTEREST. This has got to be illegal, besides being incredibly unethical