Consumer complaint received 2016-12-14
Product: Mortgage — FHA mortgage
Issue: Settlement process and costs — 
Company: Ditech Financial LLC (VA)

I technically began the process to refinance of my loan for a HUD type mortgage with Ditech on XXXX XXXX, 2016 and I my Ditech Loan Officer knew then that my credit rating, XXXX, qualified me for the HUD loan, if my appraisal came in at least {$410000.00} and it actually came in at {$470000.00} ... so, we were pleased and knew that I would qualify for the new refinance. However, months and months went by ( i.e., XXXX thru early XXXX 2016 ) and my personal financial situation became more tight ( due mainly to child support payments and divorce related expenses ) and ultimately my situation became even worse, given my outlay of {$4100.00} per month for housing, and {$1200.00} per month for child support and after school care ... .until five months later I receive Ditech XXXX notice of Adverse-Statement of Credit Denial-Termination. I 've been informed by my XXXX XXXX XXXX XXXX that my current score is now : XXXX. I know that Ditech 's long 5-month ( XXXX to XXXX 2016 ) oversight and delay in approving my application directly contributed to the ultimate down-grade in my original and qualifying Credit Rating of XXXX ; and thus the Ditech 's basis on XXXX XXXX, 2016 to suddenly decline my application for refinance of my current XXXX and XXXX XXXX, with Ditech ; and XXXX XXXX XXXX XXXX, respectively. I was totally shocked by Ditech 's adverse action, because I was then finally expecting to be informed of the actual closing date on my loan, hopefully before XXXX. The completed appraisal by XXXX Appraised value of {$470000.00} for my home and land, and my current combined trusts debt of approximately {$280000.00}, I currently have about {$190000.00} equity in my primary and only residence. After a grand total of 5 months, Ditech finally concluded processing my application and made then made an adverse decision, but by that late date my credit took a hit over a 30-day late paid mortgage, and now I face possible foreclosure on my home in the near future, or at least selling it at far below its current value just to pay off the mortgages, but lose virtually all the equity I 've worked for years to create for my family and my retirement. I feel " strung out and played '' by Ditech personnel and management. In addition to the Loan Officer, a woman assistant in the Ditech XXXX, Florida office was primarily responsible for timely processing documents with the underwriter, but on many occasions I could not reach her for status of the loan, and I personally sought the assistance of XXXX XXXX on several occasions to contact her, or her supervisor to ensure she was adequately servicing my refinance application. I would apologize to the Loan Officer for seemingly being anxious, given my stressful and deteriorating financial situation, but his comment was, " You have every right to be concerned. Send her an email, and copy me, which enables me to contact her supervisor. '' Ditech failed to provide me notice that I had the right to appeal their decision not to approve my application ; nor did Ditech provide me notice that I had only 14 days to appeal their decision not to approve my application. Ditech 's negligence and failure to timely process my application has created unnecessary and harmful XXXX to my personal health and has caused me to have extremely XXXX, which is currently being treated by my physician with XXXX ; and is prolonging my current financial hardship by directly contributing to a down grade in my personal credit rating. I telephoned Ditech last week for contact information on female assistant 's supervisor and was informed that she is no longer employed by Ditech. The Ditech representative provided me with the name and contact information for her supervisor.. I have placed a call to him.