Consumer complaint received 2015-04-23 00:00:00
Product: Mortgage — Conventional fixed mortgage
Issue: Loan modification,collection,foreclosure — 
Company: Ocwen Financial Corporation
State: FL

Complaint narrative:
I was approved for a Making Homes Affordable modification by old servicer XXXX Bank. Prior to my servicing rights were transferred to Ocwen Loan Servicing we experienced some financial hardships which caused us to fall once again. We reapplied for another modification and was approved for another Making Homes Affordable Loan Modification under the the tier 2 guidelines. Our modified payments were a very affordable {$1100.00} during the trial period. While making the payments as instructed we were told that Ocwen erroneously gave us another Making Homes Affordable Modification when they were not supposed to ( we received a USPS urgent letter dated XXXX XXXX, 2015 as well ) and the reason was that the Treasury had not shown that our mortgage had fallen XXXX days or more behind at the time of modification. I advised them that they could look at the last time we made our last payment and see that we were more than XXXX days past due, they advised even with that being true, that they had to cancel our very affordable modification and raise it to {$1600.00} almost {$500.00} more than what we had expected to be our new mortgage payment and the turning point in our financial merry-go-round. 

( From Making Homes Affordable guidelines : You can reapply for a modification under HAMP Tier 2 after a default under HAMP Tier 1 ( even if there has been no change in your circumstances ) if XXXX months have passed and XXXX of the following is true : ( 1 ) You defaulted on the XXXX XXXX XXXX trial period plan after making XXXX or more payments. ( However, you can reapply for a HAMP XXXX modification if you never made your XXXX payment under a HAMP Tier 1 trial modification, the servicer miscalculated your income resulting in a trial plan that overstated the monthly payment by 10 %, or you did not accept the trial plan for any reason, if you can show a change of circumstances. ) ( 2 ) You fell XXXX days or more behind on your payments under a HAMP Tier XXXX permanent modification and lost good standing. ( If you lose good standing, you can not be reconsidered for a future HAMP XXXX 1 modification, but you may get a XXXX modification. ) We were clearly within the guidelines at the time of receiving the Making Homes Affordable modification which was such a significant help as the program was designed versus what they counter-offered, which only can cause more financial hardship, far from what the MHA program was designed for. 

Things with Ocwen only got worse as they took our payments and applied them to the new modification payment of {$1600.00} making our XXXX payment {$0.00} and our XXXX payment of XXXX due by XXXX/XXXX/2015 and the XXXX payment of {$1600.00} due by XXXX/XXXX/2015. 

Then sometime during the week of XXXX XXXX, 2015 I received a letter dated XXXX XXXX from Ocwen that we were not eligible for a proprietary loan modification at this time. The reason was because : You failed to make the initial trial payment within the required timeframe. Before the XXXX payment was due Ocwen had sent out a letter that we failed to make the initial payment when in there letter dated XXXX XXXX, 2015 they advised us that they were applying our previous payments to that initial payment and the XXXX payment was not due until XXXX XXXX, 2015.

Company response to consumer: Closed with explanation