Consumer complaint received 2018-08-08
Product: Mortgage — Conventional home mortgage
Issue: Struggling to pay mortgage — 
Company: Onity Group Inc. (IN)

On XX/XX/XXXX, I purchased a townhouse with GMAC/XXXX XXXX XXXX XXXX. I was not represented by counsel and placed a {$20000.00} down payment. I used a hand written note from my employer to verify income. That was a non issue at the time. 
In XXXX, I defaulted on my payment due to loss of income. I asked my loan servicer if I could refinance or make partial payment and I was denied due to not having paystubs. Even though I was self employed and never provided one from the beginning. So I was subsequently foreclosed on without given options as to how I can keep my home. I turned off the power, winterized the property. Locked it up and moved before anyone could throw me out. I was never notified as to what happened with it. 
On XX/XX/XXXX, The forclosure was canceled but I was not made aware of this. 
On XX/XX/XXXX XXXX XXXX XXXX tried to file another forclosure action I was not aware of. 
On XX/XX/XXXX The forclosure action was canceled again, and without notification. 
On XX/XX/XXXX I filed Bankruptcy and was discharged of the debt which included house. 
On XX/XX/XXXX The loan servicer changed to Ocwen Loan Servicing LLC. They filed a forclosure action against me. But the action was not on the county records. I was never notified of the change in servicer or the action. 
On XX/XX/XXXX Forclosure was stopped due to statue of limitations. I was never notified. 
On XX/XX/XXXX I received a letter from XXXX XXXX XXXX XXXX XXXX XXXX. Attached was a check for {$1100.00}. I asked my bank to review the letter and I called XXXX. Ocwen was given a {$50000.00} consent order to pay anyone who had an open forclosure that was not finalized in XXXX. I asked if cashing the check would forfeit my right to any claim in the future and I was told No, because it was not a settlement. It was an order issued for violations that were made. 
On XX/XX/XXXX I called Ocwen. I spoke with XXXX XXXX and she stated that the forclosure action was completed on XX/XX/XXXX of XXXX. But she could not provide any documentation on that. When I asked why the action was canceled she stated she didn't have any information and I had the right to sell the property because I was still listed as the owner. I had no idea I was listed as an owner still. XXXX also stated property value was {$180000.00}. 
On XX/XX/XXXX I called Ocwen and spoke with XXXX XXXX. XXXX stated I would have to do a short sale in order to be released from the mortgage. {$4000.00} would go to pay the back due HOA which had not been paid in 7 years. The total HOA is  more than {$20000.00}. 
On XX/XX/XXXX I hired and paid {$3000.00} to XXXX XXXX with XXXX XXXX to negotiate with Ocwen on my behalf because I could not get a straight answer from the servicer. 
On XX/XX/XXXX I called Ocwen and spoke with XXXX  XXXX. He stated the modification was approved for {$160000.00}. I asked for him to explain what happened the last 10 years with the house and how come I was not told the house was still mine? He stated the bank could not find me and they were waiting for my bankruptcy to become inactive so they could file for foreclosure again, and that I should take the modification because its unlikely I'll get approved for a second one.  There are 3 things wrong with this. 1st is that in the 21st century it's not hard to locate a person. Especially if XXXX was able to do so. 2ndly, My bankruptcy attorney XXXX XXXX told me that discharging the debt allows the bank to reclaim the property unless there was something wrong with the original mortgage or the statute of limitations have run out. 
On XX/XX/XXXX I called Ocwen and spoke with XXXX XXXX and asked for her to explain the statute of limitations to me and she could not, but would submit a request to the research department on my behalf. It will take 10 days. 
On XX/XX/XXXX I called Ocwen and spoke with XXXX XXXX. I submitted a request to receive any documentation available on the previous loan servicer so I can find out what happened with the first 2 foreclosures. It will take 10 days. 

Being fed up I XXXX what the Statue of limitations are in NY. It states that 6 years after the acceleration event takes place, the bank has to forclose. It was shared with me that the event took place with the 1st action in XXXX. The bank had rights to forclose by XXXX. But the action was not completed. Which allows me to use that statue in defense. 

Acceleration can occur in three primary ways : The lender notifies the borrower that they intend to accelerate the debt ; The lender demands payment in full of the mortgage loan ; The lender files a foreclosure action in civil court. 

Any of the above actions will start the statute of limitation running and the lender will then have XXXXix years from that date to pursue a foreclosure action. If the lender fails to do so, they will lose the right to collect on any of that mortgage debt in the future through the courts, including seeking a foreclosure.

I found 2 similar cases posted in XXXX. 

Six years seems like a long period of time for a lender to file a foreclosure case, so it is natural to wonder when the statute of limitations may actually come into play. This is when we remind you of the often incredible length of the foreclosure process in New York. 

To best understand the role the statute of limitations can play in foreclosure cases, we will examine some cases in which it was successfully asserted in New York courts either as a defense or as an affirmative claim. 

XXXX XXXX XXXX and XXXX XXXX XXXX XXXX XXXX XXXX XXXX of XXXX this case, the full unpaid balance of the mortgage loan became due in XXXX of XXXX and the borrowers ( the plaintiffs ) did not pay the balance. When the lender ( defendant ) failed to file any action in court seeking a foreclosure through XXXX of XXXX, the plaintiffs filed their own legal action to have the balance of the debt canceled based on the expiration of the statute of limitations. Ultimately, the XXXX XXXX Supreme Court agreed thatthesubject mortgage should be extinguishedbecause the lender took no action within the statute of limitations.The mortgage payment obligations were then effectively ended. 

XXXX XXXX XXXX XXXX v. XXXX The borrowers ( defendants ) stopped making payments on their mortgage, so the lender filed an initial foreclosure claim to collect the entire mortgage amount in XXXX of XXXX. The case was never completed and the XXXX XXXX Supreme Court dismissed the case without prejudice in XXXX. In XXXX, the new owners of the mortgage filed a second foreclosure action and the borrowers asserted the defense based on the expired statute of limitations. The court dismissed the case, agreeing that the lender no longer had the right to seek a foreclosure of the mortgage Due to the loss of my home in XXXX. I have suffered from XXXX, XXXX and XXXX. At XXXX years old I gave every penny saved to be in my dream home and have suffered the loss of that since. If it's in my right to keep my home. I would like to do so. It was advised to me to not sign the modification. I will follow that advice.