Consumer complaint received 2017-01-25
Product: Mortgage — Other mortgage
Issue: Loan modification,collection,foreclosure — 
Company: Onity Group Inc. (FL)

My Husband purchased a home in XXXX of XXXX and used XXXX XXXX Home Mortgage as his lender. They have since gone out of business. At the time he got his loan, he disclosed his salary of {$63000.00} per year and the fact he was paying {$670.00} per month in child support. The mortgage broker talked my Husband into taking something called a XXXX payment option loan. The only option my Husband could afford was the less than interest option, which caused his loan to go severely upside down. We were not married at the time. I have been a XXXX, since XXXX and since we were married in XXXX of XXXX, I have tried to get this very unethical and in my opinion, possibly illegal loan modified to terms that would make sure my Husband would not continue to go upside down on this property. Finally, I was able to get the loan modified into a fixed rate loan, which started at 2 % for 6 years with a CAP of 4+ %. They would not reduce the principal balance on the loan back to what he originally had borrowed, so the modification was not ideal but at least it was something he could afford, by renting out the property. We prayed that the real estate market would eventually go back up and he could end up okay on the loan. Prior to my getting this modification, we spent a lot of our money doing repairs and improvements on the home and saving the home from foreclosure. My Brother passed away and I even had to use an inheritance he had left me to help my Husband out. My Husband has always been an upstanding man and this situation was practically giving him a XXXX, so of course because I love him so much, I stepped in to help. The way things have turned out, we have lost my entire inheritance and all the money we would have potentially had for our retirement. In other words, this mortgage has ruined our lives. What happened that finally pushed us over the top was the tenants we had in the home called the City where the home is located at ( XXXX, VA ) XXXX because they saw standing water in the yard and smelled a bad odor. XXXX had XXXX inches of rain in a short period of time, so the septic tank needed to be pumped, as it could not handle all the water. Had they called us, we could have had it pumped but once the City XXXX XXXX got involved, they insisted the house needed a " brand new '' septic system. In addition to that the dishwasher had a leak that the tenants said they were not aware of and it caused an additional {$13000.00} in repairs. Between the XXXX things, we were looking at necessary repairs of {$33000.00}. When we called Ocwen Loan Servicing, who handles the loan for the XXXX Bank who ended up buying my Husbands loan when First XXXX went out of business, we were told that they were not offering principal reduction and they did not help homeowners with repairs. Obviously, we could not do a home equity loan to do the repairs because it was upside down. I do n't have enough room to explain everything that 's happened but they told us we needed to apply for a deed in lieu of foreclosure because it was our only option. They told us we would get {$10000.00} in " fresh start '' money from the Government. They told us the process would take XXXX90 days and that they would forgive any deficiency & that it would only effect my Husbands credit for a few months and we 'd be able to move on with our lives. We are now at close to two years, have had at least XXXX different relationship managers & were just informed a few weeks ago that they were denying out deed in lieu of foreclosure and that as of XXXX XXXX the Government was no longer offering " fresh start '' money. It has been the most stressful experience of our lives. It 's even effected our health. I 've complained to both the Better Business Bureau and the Consumer Protection on XXXX occasions to no avail. Please help us.