Consumer complaint received 2025-03-19 00:00:00
Product: Mortgage — FHA mortgage
Issue: Incorrect information on your report — Account status incorrect
Company: Ocwen Financial Corporation
State: FL

Complaint narrative:
We originally purchased our home in XX/XX/XXXX, Approximately XX/XX/XXXX PHH Mortgage purchased our loan without our knowledge. In XXXX, we allegedly did not have enough money in our escrow to cover our insurance and property tax. We received a notice from PHH about the shortage. Once we were able to we sent the escrow shortage funds to PHH. When PHH received the payment they failed to apply the payment towards the escrow shortage. They placed the money in a holding account for several months. During this time, they refused to speak to me, the Wife and an authorized agent ( my husband gave auth multiple times ) for the account, eventually, they applied the escrow shortage funds to the principal balance in error. They then begin taking our monthly payments and applying them to our escrow shortage despite our requests for them to rectify their error and mishandling of our payment that was applied to principal balance. Once PHH Mortgage engaged in this mishandling of our payments it caused a chain reaction. Our payments started being reported to the credit reporting agencies as past due and has continued to be reported as past due for over two ( 2 ) years. We have paid nearly two years of late fees at {$57.00} a month in error, the false reporting has destroyed my husbands credit, and PHH is starting a forclosure on our home. I have provided PHH Mortgage with every bank statement from the date of purchase and entirety of this nightmare. I have requested that the remove the money they mishandled and posted to our principle in error and they refuse citing that we had to request that within 6 months of their error, which we have been telling them of their error all along. They refuse to fix their error and now our home is going to be foreclosed, our credit is destroyed, and we will be homeless all because of PHH mishandling our payments/funds. We can not help nor delegate what PHH does with our payments once they receive the payment from our bank. Therefore, we are being abused financially by PHH Mortgage and we are suffering mentally and emotionally. We have Mortgage insurance and they have done nothing to help, PHH has made an offer to Modify our Mortgage but our home loan that would be paid off in XXXX would then be due until XXXX. They call us and harass us for money that we do NOT owe them and threaten to take our home. We are unable to purchase anything on credit despite the fact that we pay all of our bills every month and have only ever been 30 days late on one account, one time even during Covid. I have had 6 or more other consumers who are financed by PHH Mortgage contact me saying that PHH Mortgage is doing the same things to them. PHH Mortgage knows they made a mistake with mishandling our payments and yet they refuse to fix their issues. The biggest problem aside from their false credit reporting and mishandling our payments is that we get letters from them almost weekly and NEVER does the letters have the same amount as " past due '' never does it have an accurate amount of funds in our Escrow account, for example recently in XXXX we received a letter that said we had nearly {$5000.00} in escrow and the following week we received a letter saying we were negative over {$4000.00}. I don't understand that change since our new insurance was purchased in XXXX and taxes paid by XXXX. PHH Mortgage is dirty, they are fraudulent, they need to be stopped, and they are mishandling consumers payments so they can forclose on homes and take peoples homes who have equity since I have over {$200000.00} equity in my home. Sure I could refinance and get away from them if only they hadn't DESTROYED MY HUSBANDS CREDIT WITH THEIR FALSE REPORTING. Please help us with this nightmare, we are hardworking people who pay all of our bills and do not deserve this. It should be a crime what PHH Mortgage is doing and has admitted they are doing to us but refuse to fix their mistake ( if you can call it that ) and only offer us a modification of our mortgage that will cost nearly {$30000.00} to us. Futhermore, they don't know if we owe them {$4700.00}, {$6800.00}, or XXXX it changes from week to week. They have now refused to take our monthly payments and sent our XXXX and XXXX payments back to our bank

Company response to consumer: Closed with explanation