Consumer complaint received 2016-08-20
Product: Mortgage — FHA mortgage
Issue: Loan modification,collection,foreclosure — 
Company: Ditech Financial LLC (CA)

We fell behind in our mortgage payments due to two factors. The first was excessive vet bills for our family dog XXXX the time that the mortgage was due, and second a XXXX which seemed minor before our close of escrow, however, resulted in additional medical bills and ultimately XXXX XXXX causing my husband to go on XXXX for three months. We contacted Ditech for temporary assistance - once the XXXX payments started we were able to make payments but not catch up. 
XXXX XXXX we made a payment which was to cover the XXXX payment - however Ditech left this amount in a suspense account and did not apply until we called seeking assistance and the customer service rep noticed it had not been credited. This was at the end of XXXX. In XXXX XXXX we submitted a complete modification package and then sent a revised XXXX on XXXX XXXX. Ditech did what is referred to in the industry as a " quick kill '' and declined our request on XXXX XXXX. Reason stated was that loan was not 12 months old. In their letter of decline they did not mention anything about an the FHA Partial Claim against the MIP. This was not included in the FHA Loss Mitigation Waterfall. 

During a phone call with Ditech is was agreed that we would enter into a repayment plan. We were to pay {$3800.00} with the first payment being due on XXXX XXXX. this payment would continue till XXXX. Payment was made - however did not arrive till XXXX XXXX. As of XXXX XXXX, payment had not been applied to account. The amount would have covered the XXXX payment more than half the XXXX payment. 

On XXXX XXXX a call was placed to Ditech and we were informed that payment had been placed in a suspence account because we did not meet the terms of the repayment plan. When asked why the payment had not been applied to the XXXX payment, no response was given other than they would send the request to apply funds. This will take 5 days. We agreed to also send in the remaining amount needed of {$970.00} to complete the XXXX payment. While this would keep us at 60 days late till such time as we could find another solution, it would avoid foreclosure and any notice of defaults being filed. this payment was issued XXXX/XXXX/2016. 

When we asked about the Partial Claim option - XXXX # XXXX stated that this was an FHA loan and she had never heard of this. We even had to point out to here the MIP payment that is part of our mortgage payment as she said Ditech does not even collect or charge for such a thing. We were transferred to XXXX at ext XXXX who had no idea what MIP was and said that Ditech did not participate in the MIP program. 

A certified letter dated XXXX XXXX arrived stated that a notice of default had been filed. Letter stated we were behind 120 days on our mortgage. However given that we had made a payment in for XXXX, more than half the payment for XXXX and XXXX was not yet over, we were not 120 days late. Even without the above-stated payment we would have been a little over 90 days, though this was not the case. 

The hardship encountered was temporary - verified and outside our control. As a result of Ditech not crediting the payment, I also started getting harassing calls from the broker who did our loan stating that Ditech was demanding money from them due to early default because we had gone 120 days late. Had the payment been accurately credited to our account this would not have happened. All we were looking for was some assistance. Our mortgage is affordable.