Consumer complaint received 2017-08-31
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — 
Company: PHH Mortgage Services Corporation (VA)

In XXXX, I was an XXXX XXXX member of the United States XXXX XXXX. During this period, I received orders for a Permanent Change of Station ( PCS ) from XXXX Florida to XXXX New Mexico to serve as the XXXX of the XXXX XXXX XXXX XXXX XXXX, XXXX SXXXX XXXX XXXX XXXX XXXX XXXX. 

In XXXX XXXX, following my PCS to XXXX XXXX, PHH Mortgage Services initiated foreclosure proceedings against my property located at XXXX XXXX XXXX XXXX XXXX XXXX, FL XXXX. Although the foreclosure was initiated in XXXX, I was n't notified of any problems until after foreclosure actions were already in motion. More concerning, PHH continued to accept full mortgage payments even after they initiated legal action against me. None of the mortgage payments I made between XXXX XXXX and XXXX XXXX were applied towards my mortgage. Instead, all payments were directed to an escrow account where they remain today. 

If you look at my mortgage history, you will see that I consistently paid my mortgage on time while stationed at United States XXXX XXXX XXXX XXXX in XXXX FL. As already recorded, the housing industry in XXXX crashed between XXXX and XXXX and it was impossible for me to obtain any type of rent that even came close to my mortgage payments. Having to pay rent in New Mexico in addition to paying my mortgage in XXXX was difficult, yet I managed the best I could. I paid every mortgage payment in good faith but some of the payments were delayed. The miscommunication began in XXXX when I combined the XXXX and XXXX payment together ( {$5000.00} XXXX. From this point on, none of my payments were applied towards my mortgage. In addition to the above payments, I made delayed payments for XXXX XXXX {$2500.00} XXXX, XXXX and XXXX XXXX {$5000.00} XXXX due to missed payments by my tenant in XXXX and a hospitalization in XXXX for XXXX ruptured discs in my back ( medical paperwork attached ). By XXXX, I thought I was back on track with an on-time payment XXXX {$2500.00} XXXX. Unfortunately, unknown to me at the time, PHH initiated foreclosure in XXXX only days after they had received payments for XXXX, XXXX, XXXX, XXXX and XXXX. In mid XXXX XXXX, I received a phone call from the tenant renting my condo that I had been served foreclosure paperwork. Thinking this was an error because I had made all my payments, I phoned PHH only to learn that the nightmare was real and they had initiated foreclosure. Only after I phoned to clear up any miscommunication was I served with foreclosure documents in New Mexico. Despite this setback, I continued to make my mortgage payments all the way up through XXXX XXXX. At this point, PHH was sending me physical checks back instead of applying the payments towards my mortgage. They refused to apply any funds in their possession towards the mortgage payments. 

Today in XXXX, PHH Mortgage holds over {$24000.00} of payments intended to cover mortgage payments in escrow XXXX there 's a {$22000.00} surplus ). Three times after initial notification I attempted to reinstate the loan. The first time was on XXXX XXXX XXXX and the second time was on XXXX XXXX XXXX. Both times, PHH failed to accurately report that they were in possession of the payments they were seeking for reinstatement. Both times they were notified of this problem and both times they failed to adequately communicate the correct figures to the Florida XXXX XXXX XXXX ( See Attached ). The result, the reinstatement packages were thousands of dollars above the true amount required for reinstatement. Bottom line, PHH always provided incorrect numbers either out of incompetence or bad faith ... maybe both. Their sloppy book keeping, lack of interest or hostile intent prevented me from solving this issue early in the crisis through reinstatement which was my preferred method to obtain resolution to this matter. 

In XXXX, I attempted to resolve this issue through a Florida State ordered mediation. Discussions collapsed after the PHH representative insisted that the mediator was " taking my side '' and terminated the meeting. Despite their many, many errors ... PHH continued to heap on interest, legal expenses, title fees, recording costs, process fees, etc. etc. This was ludicrous because PHH was adding fees to payments they refused to accept. In XXXX XXXX, I made a third attempt to reinstate the loan only to learn that an additional {$45000.00} had been piled on destroying any chance I had of reinstatement. At this point, my only hope of saving my home was the court or loan modification. I preferred the loan modification option but PHH had a different opinion. They rejected every loan modification package I submitted and I submitted several. 

Today in XXXX, almost XXXX years after this battle began I continue to try to resolve this issue and PHH continues to heap on interest and fees while showing no intention of resolving this matter in a mutually beneficial way. Their latest payment figure include {$130000.00} in interest, a {$5800.00} escrow advance despite a {$24000.00} surplus in escrow and a {$7600.00} recoverable balance ... etc. etc. The total amount to resolve this issue? {$440000.00} on a property I purchased in XXXX for {$330000.00}. This interest, these fees and these penalties are neither reasonable nor moral. 

Today XXXX XXXX XXXX, I attempted to resolve this issue XXXX more time by proposing a settlement. I asked PHH to reduce interest, penalties and fees to under {$350000.00} to enable me to sell my condo without the need for a short sale. Since XXXX my credit has recovered to a respectable score of XXXX. In return, I would guarantee PHH would receive a minimum of {$350000.00} for my unit ( if it was less I would make up the difference, if it was more they could keep the additional money ). This is a fair deal. 

I was disappointed by their lack of willingness to entertain this solution. They did n't even take the time to send a representative with decision making authority. 

So, I spoke a lot about the money PHH wants to resolve this issue. Let me speak a little about this dollars I 've sunk into my home. {$110000.00} in payments made, {$53000.00} HOA payments XXXX HOA paid in full ), {$25000.00} in XXXX XXXX taxes ( out of pocket, fully paid ) and attorney fees {$10000.00} plus. All-in-all, {$190000.00}. This may not seem like a lot of money to PHH but to me this is all I have. Throughout this battle, I 've paid every single cent to everyone that would accept my payments. I would have paid PHH every single penny as well IF they would have accepted them. Let 's be clear PHH is a loan servicer that makes more money on a foreclosure then they do on reaching an agreement. They are not interested in working with their customers to find a solution ... they are the problem, and that 's unfortunate.