Consumer complaint received 2024-11-13 00:00:00
Product: Mortgage — Other type of mortgage
Issue: Struggling to pay mortgage — Trying to communicate with the company to fix an issue related to modification, forbearance, short sale, deed-in-lieu, bankruptcy, or foreclosure
Company: Ocwen Financial Corporation
State: LA

Complaint narrative:
An apology by letter is not enough. XXXX  XXXX  has Breached my Mortgage contract. I paid all my notes on time also paying for XXXX  XXXX the mistake they made by charging me a duplicate policy. No one contacted me for XXXX  XXXX. They said they fixed it in XX/XX/XXXX. Then purchased a policy in XXXX of XXXX and back-dated it for XXXX XXXX. Because of their mistake it disrupted by entire business. My note went from {$3100.00} a month to {$6100.00} per month. They are forcing me to foreclosure/bankruptcy. Their mistake should be paid by their ERRORS and OMISSION. I did not cause this. I am responsible. PHH says they apologize for the inconvenience it has caused XXXX  XXXX. That is not enough after they have financial XXXX me. Also their mistake they want me to guarantee the loan. I feel with their mistake they took the opportunity to destroy my life. I am a XXXX XXXX XXXX XXXX female. My credit score was over XXXX. I used my life savings. 
20 % down, closing, appraisal, insurance for a year on a {$650000.00} loan on a XXXX house portfolio with PHH MortgageXXXX XXXXXXXX XXXX My only child, my son died at XXXX, XXXX years ago of XXXX,. My grandson is XXXX and autistic grandson and one that is in college., my mother is XXXX dad XXXX, died in XX/XX/XXXX. They both lived with me and my mother does right now. My family depends on me. PHH is messing with my grandson, my family, my life. 
Being XXXX  XXXX XXXX of me letting them down. Financially they all depend on me. 
PHH breached my mortgage contract and they have me personally guaranteeing the loan. 
This is not right, nor fair for them to do this after they put a monkey wrench and disrupted my business. 
My mortgage company PHH mortgage admitted the error. They wrote a duplicate XXXX, did not refund me the duplicate policy, they backdated a policy for the previous year, charged me for that previous year policy, also charging me altogether for the previous, an escrow and current policy, did not contact me about the problem for almost a year, caused me to go into default last month. PHH Mortgage is the Server and XXXX XXXX is the Mortgage. Please read below in detail what happened My name is XXXX XXXX XXXX, I am a XXXX XXXX XXXX woman living in XXXX, Louisiana. 
1. I began my real estate journey in XXXX when I purchased XXXX houses with a storage shed between them on XXXX and XXXX XXXX XXXX, XXXX La. I invested {$37000.00} in XXXX and about XXXX XXXX  later {$79.00} went into XXXX XXXX place. Both houses on XXXX XXXX  {$1000.00} for XXXX and XXXX {$800.00} per month. 

2. XXXX XXXX them both. XXXX for {$190000.00} and XXXX for {$190000.00}. 

XXXX. Now time to purchase XXXX more property.. It was XXXX, XXXX I was pre-approved for {$650000.00} at 5.4 % interest. I looked at apartments here in XXXX but it was above my approved amount. So I ventured out to less then a XXXX XXXX  radius and came upon a portfolio of XXXX houses in XXXX La. XXXX XXXX XXXX XXXX XXXX  away. I had a great guy who helped me since XXXX work on all my properties. 

4. XXXX house portfolio loan {$650000.00} I put my 20 % down and closed. 

Taxes were escrow Paid out of pocket the {$10000.00} appraisal fee {$12000.00} insurance premium to XXXX XXXX XXXX XXXX, La The down-payment was {$3000.00} with {$940.00} a month note EFFECTIVE DATE XX/XX/XXXX, XXXX. XXXX houses all insured for {$50000.00} each with the exception of XXXX XXXX XXXX for {$58000.00} 5. Closing on the XXXX Properties was supposed to be in the month of XXXX but because of XXXX XXXX hitting Louisiana we closed XX/XX/XXXX. No problem insurance was already done Effective date XX/XX/XXXX, XXXX XXXX, XXXX XXXX. My mortgage had to be in XXXX loans XXXX houses on XXXX loan and XXXX houses on the other loan because they could not place XXXX houses on XXXX loan PHH Mortgage Loan XXXX XXXXXXXX for XXXX XXXX XXXX has XXXX houses {$400000.00} {$370.00} interest {$1300.00} interest {$140.00} tax {$29.00} city tax Total note {$1800.00} PHH MortgageLoan # XXXX for XXXX Ile de Copales has XXXX houses {$250000.00} {$230.00} principal {$860.00} interest {$100.00} taxes XXXX city tax Total note {$1200.00} Insurance monthly payment {$940.00} Total for everything per month {$4000.00} Collecting {$6400.00} in rent so this is allowing me {$2400.00} to work on the houses a month XXXX, Because of Hurricane XXXX losses all the insurance companies pull out of Louisiana. XXXX XXXX XXXX had to be placed. I aggressively look for insurance XXXX XXXX  before expiration no companies to be found to insure the houses. I let Phh know this XXXX XXXX before expiration. 

I am a very responsible person who took care of her matters until PHH came and put a monkey wrench in my life This is where the problem begins. 
I began to notice that my monthly payments were over {$2000.00} above cost in XX/XX/XXXX. That was a problem, What Happened! 

I soon discovered that yes there was a Lender Placed policy on loan XXXX XXXXXXXX and another on XXXX XXXXXXXX. ( I used to own an insurance agency so I know how to read the declaration page. ) I called them to bring it to their attention that there were XXXX policies of {$650000.00} coverage on each. They didn't seem to understand what I was talking about. I had to break it down plainly to them that my monthly payments reflected a problem. Many recorded messages of me getting nowhere. I knew that my credit would be impacted if I didn't pay because it would be hard to explain to the credit bureau about the overpayment of insurance. So numerous times a month, every month from XX/XX/XXXX through XX/XX/XXXX I was calling asking for my refund of the duplicate policy to be canceled. They were insuring me for {>= $1,000,000} over insuring me and in Louisiana this is against the law. XX/XX/XXXX came and still nothing every month they are working on it they are working on it. I had to write to the Commissioner of Insurance. The Commissioner of Insurance referred me to theOffice of Financial Institutions in XXXX to get involved because I was getting NOWHERE. Every month I'm still calling. I am just collecting to pay notes and insurance and not able to work on my property. I was glad XXXX was coming and thought yes they fix this and refund me my {$10000.00} and late charges on each note. Also when the duplicate policy happened I had to lay off my worker and cut back until everything was fixed. 

XX/XX/XXXX is here, Now my note is {$3000.00} over the amount. What is going on! They are working on it. I want my refund! WHERE IS IT! 
I get a letter dated XX/XX/XXXX but I didn't receive it in my mailbox until XX/XX/XXXX See Attached. This letter states that " We sincerely apologize for the inconvenience this may cause to XXXX XXXX XXXX XXXX XXXX XXXX no letters of knowledge of what was going on from XX/XX/XXXX until I received XX/XX/XXXX ) I even asked them to call me and they did not. 

They said they canceled both policies in XXXX ( yet they still have me paying the crazy payments ) and refunded the escrow accounts. So if the policies were canceled in XX/XX/XXXX XXXX was it that no insurance was placed on the properties until XX/XX/XXXX by the XXXX. So on their part the my properties were not insured for XXXX  months They purchased a XXXX XXXX XXXX policy XX/XX/XXXX ( coincidence that is when my insurance expires ) and dated ( back -dated it with an effective date of XX/XX/XXXX, XXXX. See attached listed properties and coverages. So I had no coverages on my property from XX/XX/XXXX until XX/XX/XXXX? 

PREMIUM of backdated policy {$15000.00} Also where is my refund? You're not getting a refund. we applied it to your escrow account there is a positive amount of {$6000.00} but you have a shortage of {$9900.00} The {$6000.00} will be applied to you escrow policy you owe of {$15000.00} and also we are charging you {$15000.00} for your current policy. 

So that is a backdated policy of {$15000.00} then NO REFUND then {$30000.00} to be collected for XXXX so that is like {$45000.00} plus I never received any refund. 

So for 1 year I am just forced to make payments and not work on houses. Instead of XXXX rented now only XXXX rented. ( now XXXX as of XX/XX/XXXX Because my note went from {$3000.00} a month ( this includes taxes ) to totaling {$6100.00} per month and the other {$500.00} because they put the {$6000.00} in escrow so that makes me pay {$3000.00} a month more about {$6100.00} per month PHH stated in their XX/XX/XXXX letter ( the letter that I had to get XXXX involved because I was not hearing anything from PHH since XX/XX/XXXX ) We sincerely apologize for the inconvenience it has caused XXXX XXXX. They only noted XXXX of the notes. saying that it went from {$3500.00} to {$3400.00}, ( XXXX XXXX has XXXX houses ) are they crazy when my note was {$1700.00} to $ XXXX the beginning.The XXXX XXXX de XXXX note was {$1200.00} but went to {$2600.00}. 

XXXX when I brought the mistake to them at first they said there was nothing they could do about it. 

XXXX for XXXX  months they did not let me know what was going on, every month they are working on it, they are working on it. XXXX, the head insurance person at PHH XXXX I was in contact with, too, said the same thing. They are working on it. 

XXXX. I reported it to the XXXXXXXX XXXX XXXXXXXX who referred me to XXXX XXXX XXXX XXXX in XXXX of XXXX. 

XXXX. No refund of duplicate policy as of XXXX XXXX XXXX. XXXX I received XXXX XXXX dated XX/XX/XXXX. No refund. sorry for the inconvenience. ( The disruption of my life is just an apology of inconvenience to them ) XXXX. Notes were {$1700.00} plus {$1200.00} = {$2900.00} This is interest, principle, property tax and city tax included. 

XXXX. I paid my XXXX  year of insurance through XXXX XXXX XXXX XXXX. Cost {$12000.00} per year until XXXX XXXX caused all insurance companies to pull out of Louisiana. Had to have XXXX XXXX XXXX and I let them know in advance. 

XXXX. Lender place was {$840.00} but I knew something was wrong because the amount was not making sense. 

XXXX. I brought it to PHH attention that there was a mistake XXXX. PHH insured me for {>= $1,000,000} instead of {$650000.00}. ( The correct amount was to be {$400000.00} on XXXX XXXX and {$250000.00} on XXXX de XXXX. The XXXX XXXX XXXX XXXX said after investigating PHH told XXXX XXXX to insure both loans for {$650000.00} each. 

XXXX. PHH said there was nothing they could do about it. 

XXXX. Still no refund in XX/XX/XXXX of the duplicate policy. Note and insurance now XX/XX/XXXX to XX/XX/XXXX now totaling {$4600.00} XXXX. XXXX now still no refund of duplicate policy mistake of {$10000.00} XXXX, PHH now buys a policy in XXXX of XXXX and dates it XXXX XXXX XXXX  and says no refund but I owe the escrow almost another {$9900.00}, I still have no explanation of all of this until Office of XXXX XXXX has XXXX write a letter to me dated XX/XX/XXXX which I received in the mail XX/XX/XXXX. 

XXXX. That is when I find out that they are charging me for the back-dated policy, the current policy and an escrowed policy all at once. Now the new notes are {$3400.00} and $ XXXX {$6100.00} per month and still no refund of duplicate policy mistake XXXX. When all this began I had XXXX of XXXX houses fully rented XXXX. Now I am down to XXXX with only XXXX tenants actively paying rent. Spiraling, dwindling down just trying to maintain because of tenants XXXX. Financially XXXX  me is what PHH has done and they are expecting me to personally guarantee the loan after they breached the mortgage contract. {$2900.00} to {$6100.00} and no refund ( {>= $1,000,000} ) XXXX. Because of duplicate paying had to take from my savings account {$2600.00} per month plus pay for any repairs and maintenance out of pocket XXXX. Had to let my worker go because of duplicate policy issues then could not hire him back to he stole my {$4500.00} utility trailer and this man that worked for me for 7 years I had to press charges on him for the trailer not being returned to me. He said he needed the money but he is sorry. So his life is messed up also. 

NOTE : Thinking they were going to correct everything each month. I even paid late charges on the notes and paid them so it won't affect my XXXX XXXX. They didn't refund that fully either. I spoke to XXXX in XX/XX/XXXX and she said they did not refund the late charges because they were written off. ( I don't understand that one either ) XXXX. My credit is ruined. My life is ruined. My spirit is ruined. I have nothing. 

I have spoken to attorneys about this matter. XXXX breached my contract. If they made a mistake, They have ERRORS and OMISSION insurance. Why are they ruining my life, having me XXXX, XXXX  and sick behind something that was not my fault. 
I was on time with my payments and responsibilities. I did not cause this situation. They just put these payments on me and did not call or write to see if financially that my business could handle a note from {$3100.00} to {$6100.00} per month. 

How would they like it if their mortgage company did what they did to me to them. 
PHH made the mistake and corrected everything to their advantage and set me up for failure and are foreclosing on me.

Company public response: Company has responded to the consumer and the CFPB and chooses not to provide a public response
Company response to consumer: Closed with explanation