Consumer complaint received 11/30/2015 about Mortgage (Conventional adjustable mortgage (ARM)) with PHH Mortgage Services Corporation (FL).
Issue: Loan modification,collection,foreclosure

Complaint: I attempted to obtain a HARP Loan Modification from Merrill Lynch Mort XXXX.. 
In XXXX 2015, I submitted an application to XXXX, ( XXXX ) an approved U.S. Department of Housing and Urban Development Counseling Center located in XXXX Florida for assistance in obtaining a Loan Modification from Merrill Lynch MortgageThis was my second attempt for a Loan Modification under the Making Home Affordable Program. The first time was in XX/XX/XXXX through XXXX XXXX And XXXX XXXX XXXX, ( XXXX ) located in XXXX XXXX XXXX, Florida. 
In both instances the Merrill Lynch Mortgage Company would not communicate with the HUD counselor and contacted me directly which caused quite a conflict. 
In XX/XX/XXXX, I contacted my assigned counselor, XXXX XXXX at XXXX to determine the status of my Loan Modification request since it had been over two months since I had submitted my documents. I was told by XXXX XXXX that the counselor from Merrill Lynch would not call her back. 
After going back and forth with XXXX XXXX and not getting any where I contacted Merrill Lynch Directly. I was assigned a counselor to work with, XXXX XXXX, ( she remembered me from my previous request ). With her assistance and guidance I resubmitted all requested documents. On XX/XX/XXXX a completed package was submitted and received on XX/XX/XXXX. At that point my Mortgage was three months in arrears. I asked XXXX XXXX for advice on paying the arrearage, she told me she had received all of my documents and it appeared as if I could qualify for the modification and not to pay because if approved the payment of the arrearage would not be necessary. The approval would give me a 2 % interest rate under the HARP program that we were seeking approval for. 
I believed her because when I initially contacted Merrill Lynch I was told that during the processing period for the Loan Modification I that payments did not have to be made and they could be placed back into the balance of the loan. 
I took her advice and did not pay such a big mistake. 
On XX/XX/XXXX, I received a denial letter with demand for payment of all back payments or the loan would go into foreclosure. 
My purpose for seeking the Loan Modification was to reduce my mortgage payments and maintain my home. 
Adhering to the advice of Merrill Lynch 's counselor, XXXX XXXX XXXX, has created a financial hard ship for me. 
Increased Mortgage payment of {$2400.00} monthly not including taxes or insurance. 
Quarterly increases in Mortgage PaymentsInability to pay Utilities TimelyNegative Impact on credit ratingMerrill Lynch would not give me any consideration even though up until this year with my financial hardship and struggle there was never a late payment. 
After the {$5200.00} was paid in XXXX, the balance of the arrearage was added to the future monthly payment. The payments are on time each month however, Merrill Lynch has the audacity to call me to make sure that the payments are made. 
My situation as far as a financial hardship is permanent. I am still retired with a re\\\reduced income. 
There will be no increase in my retirement benefit this year. 
Based on the unfavorable decision from Merrill Lynch and the financial burden and mental anguish that has been placed on me I am seeking your advice for proceeding a Loan Modification under the HARP program.

Company response to consumer: Closed with explanation