Consumer complaint received 2025-12-22 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Struggling to pay mortgage — Foreclosure
Company: Ocwen Financial Corporation
State: GA

Complaint narrative:
URGENT REQUEST FOR FORECLOSURE HOLD / STAY Borrower : XXXX XXXX Loan Number : XXXX Property Address : XXXX XXXX XXXX XXXX XXXX  XXXX, GA XXXX Scheduled Foreclosure Sale : XX/XX/XXXX To Whom It May Concern, I am formally requesting an immediate hold and stay of all foreclosure activity on the above-referenced loan while serious servicing errors, regulatory violations, and loss-mitigation failures are under active review. 

This request is based on documented evidence from PHH Mortgages own records demonstrating material servicing defects, an unsustainable and coercive loan modification, and improper escalation to foreclosure. 

Basis for Foreclosure Hold 1. Material Servicing Errors and Inaccurate Accounting PHHs monthly statements show that despite a regular monthly payment of {$860.00}, only approximately {$130.00} {$130.00} per month has been applied to principal, with the remainder applied primarily to interest, escrow, fees, and deferred balances. As of late XXXX, PHH reports : Principal balance ( interest-bearing ) : {$96000.00} Deferred balance ( non-interest bearing ) : {$10000.00} Total outstanding balance : {$100000.00} These figures demonstrate a loan structure and payment application that prevents normal amortization and obscures the true debt obligation. 
2. Coercive and Harmful Loan Modification During the XXXX hardship period, I was informed that a single loan modification was my only option and that failure to sign would result in loss of my home. That modification included : An {$82000.00} balloon payment Capitalization of unpaid interest and fees Negative amortization Payments insufficient to reduce principal This modification caused my principal to increase rather than decrease and directly contributed to the current delinquency and foreclosure trajectory. 
3. Improper Escalation to Foreclosure While Errors Persist PHH statements confirm that the loan was referred to a foreclosure attorney while the account reflected unresolved payment application issues, deferred balances, and foreclosure-related fees being added, including attorney and inspection fees, prior to meaningful resolution or alternative evaluation. 
4. Active Regulatory Review This matter has been submitted for review to federal and state oversight bodies, including the Consumer Financial Protection Bureau and the State Attorney General. Proceeding with foreclosure while these reviews are pending risks irreparable harm and undermines the integrity of the regulatory process. 

Requested Action I respectfully request the following immediate actions : 1. A written confirmation of a foreclosure hold/stay through completion of all regulatory and internal reviews 2. Cessation of all foreclosure-related activity, fees, and legal action 3. A full servicing audit and payment history reconciliation 4. A good-faith review for lawful and sustainable loss-mitigation or corrective options This request is made in good faith and supported by PHHs own account statements and notices. Proceeding with foreclosure under these circumstances would be unjust and premature. 


Sincerely, XXXX XXXX XXXX XXXX. XXXX XXXX XXXX XXXX, XXXX XXXX XXXXXXXX, GA XXXX [ XXXX ] [ XXXX ] Borrower : XXXX XXXX Loan Number : XXXX Property Address : XXXX XXXX XXXX, XXXX XXXX XXXX, GA XXXX Servicer : PHH Mortgage Services Foreclosure Sale Date : XX/XX/XXXX XXXX Loan Origination Mortgage loan originated in XXXX. 
Borrower began making monthly payments with the expectation of normal amortization. 

Evidence : Original loan documents ( on file ) XXXX Long-Term Payment History With Minimal Principal Reduction Borrower made payments for nearly 20 years. 
Despite this, PHHs own statements show extremely low principal application. 
As of late XXXX, monthly payments applied only ~ {$130.00} {$130.00} to principal, despite a payment of {$860.00}. 

Impact : Loan failed to amortize in a reasonable manner.

Indicates long-term structural or servicing issues. 

Evidence : Monthly statements dated XXXX XXXX showing principal portions of ~ {$130.00} {$130.00} Repeated Servicer Changes & Record Issues ( Ongoing ) Loan servicing changed names and entities multiple times. 
PHH documents identify XXXX XXXX XXXX XXXX / XXXX XXXX XXXX XXXX affiliates as servicing-related entities. 
Borrower experienced inconsistent records, statements, and difficulty resolving disputes.

Regulatory Concern : Potential RESPA Regulation X violations regarding servicing transfers and record retention. 

Evidence : Privacy notice and servicing disclosures naming multiple related servicing entities XXXX XXXX  Hardship & Coercive Loss Mitigation Borrower sought assistance during COVID hardship.

PHH represented that one modification was the only option.

Borrower was told failure to sign would result in loss of the home.

No meaningful alternatives were evaluated or documented.

Regulatory Concern : Violations of 12 C.F.R. 1024.41 ( loss mitigation ) Potential UDAAP violations for coercive representations Evidence : Loan modification agreement ( on file ) Borrower testimony Post-Modification Loan Structure ( Key Harm ) Modification included : {$82000.00} balloon payment Capitalized unpaid interest and fees Negative amortization Principal increased from {$100000.00} to {$110000.00}. 
PHH statements now show : Principal balance : {$96000.00} Deferred balance : {$10000.00} Outstanding balance : {$100000.00} Impact : Loan structured so balance could not reasonably decline. 
Deferred amounts obscure true debt obligation. 

Evidence : Monthly statements dated XXXX XXXX showing deferred balances and increased principal XXXX XXXX Account Becomes Delinquent PHH states the account became delinquent XX/XX/XXXX. 
Last full payment applied to XX/XX/XXXX. 

Important Note : Statements also show prior payments being applied late and held in suspense, which may have contributed to delinquency.

Evidence : Delinquency notices and payment application sections XXXX XXXX Foreclosure Fees & Escalation PHH assessed foreclosure-related fees before sale : Attorney fees Title search fees Property inspection fees Account referred to foreclosure attorney while borrower remained in dispute and hardship. 

Evidence : Transaction activity listing attorney fees, inspection fees, and foreclosure referral notices Current Status ( Late XXXX ) Foreclosure sale scheduled for XX/XX/XXXX. 
Amount demanded to reinstate exceeds {$8300.00}. 
PHH statements explicitly state : Please note your loan has been referred to an attorney to start foreclosure proceedings. 

Evidence : XX/XX/XXXX statement and foreclosure notice language

Company response to consumer: Closed with explanation