Consumer complaint received 2016-01-07
Product: Mortgage — FHA mortgage
Issue: Loan modification,collection,foreclosure — 
Company: Ditech Financial LLC (WI)

Bottom-line : my husband and I had financial troubles in XXXX which ultimately lead to us losing our home to a foreclosure. We had a lot of issues with this process starting in XXXX through XXXX between the loan medication, the attempted short sale, and anything in between, that I feel were all unfair and deceptive on the part of XXXX and XXXX. Then ultimately the foreclosure happened in XXXX. However, that is not what this complaint is about, but more give the baseline of where we had been to where we are now. In XXXX we pulled a credit report ( dated XXXX ) so we could start to rebuild our lives post foreclosure. We paid off debts and started to rebuild our financial situation in hopes that we would be able to repurchase a home again. According to the credit report the debts that were related to the foreclosure ( XXXX and XXXX ) were reported as foreclosure and charged off. So we assumed they both were charged off with the foreclosure. Since we receive no information with either XXXX or XXXX to indicate otherwise we moved forward with all the other negative information impacting our credit report. So you can imagine our surprise when we got a call in XXXX XXXX to find out there was a company, Green Tree, that was claiming that we owed the for a debt that XXXX sold to them. After a lot of conversations about the validity of this debt we got comfortable about considering to settle the debt, and move the conversation to settling. Obviously, our main concern was how this was going to impact our credit since nothing was currently being reported on our credit report by this company. We were told that the debt was going start being reported on our credit report as of XXXX XXXX, and we needed to settle the debt if we wanted to prevent this. So we agreed to settle the debt on the condition that nothing would get reported to the credit reporting agency since what was already being reported was an accuracy reflection of what happened with our foreclosure, and Green Tree agreed to the terms. When we went to settle we asked to get the settlement in writing we were told that they would get a copy of the agreement once the funds ( paying the debt ) cleared. The funds cleared and low and behold we never got a copy of the agreement and the debt is now being reported on our credit report. When I went to follow up with DiTech ( formally known as Green Tree ) they indicated that they have no record of the agreement and ca n't remove the report the reporting from our credit reporting agency " per requirements ''. Even though they are reporting the debt as settled, in XXXX when we went to get a loan for a home purchase ( since we are now eligible per HUD ) and are now able to get a loan because of the settlement with DiTech. Our mortgage guy quote " I believe what happened was, you had the foreclosure and the XXXX mortgage went away. But that somehow was sold as " bad debt '' to another servicer, as this was transferred from servicer to servicer, they lost track of the details on where the debt came from. So they called in an attempt to collect the debt ( they get it sold to them for pennies on the dollar ) using intimidation tactics and threatening your credit, they scared you into making a settlement, this happens all the time because people want to put the past behind them and move on. You, thinking you were doing the proper thing, and agreeing that you 'd settle if they did n't report the instance on your credit, made an agreement. They then blatantly lied and went ahead to report it. Legally they have to report all information to the credit reporting bureaus, or else they get in trouble. '' I feel these tactics were used against us and want what was agreed upon in the original settlement agreement. If that means you have to pull phone records the recall the original settlement, then that is what I expect from the company.