Consumer complaint received 2025-09-15 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Struggling to pay mortgage — Applying for or obtaining a modification, forbearance plan, short sale, or deed-in-lieu
Company: Ocwen Financial Corporation
State: NJ

Complaint narrative:
I am writing regarding my mortgage loan referenced above. I recently submitted a short sale application, and I was informed that it was denied because it was submitted within the same delinquency cycle. I had submitted the listing agreement and contract documents originally on XX/XX/year>, if you check your records I called and stated that I was waiting for a payoff for a junior lien ( judgment ) in order to provide a settlement statement, because they stated I had to have all the payoffs for junior liens before sending. Once I received the amount for payoff I submitted. ( on XX/XX/year> ) I called again, was told it takes 30 days to process so, to give it time. I called and was told to resubmit the docs because they were never received. which I already sent multiple times. In the interim, I received a letter stating that my request was denied because of multiple requests in the same delinquency cycle, which is a lie because I only submitted one application for review. Yes, 1 doc ( settlement statement ) was delayed, which was no fault of mine. As I had to wait until the figures were received for the payoff for junior lien. so how was a review done with the package was not complete. Also, I did not submit multiple packages. I was asked to send in the SAME DOCS multiple times by multiple agents, for the same application. Also, I did pay off the junior lien and its no longer a lien on the property- see satisfaction attached. I am also working less hours at work now and am unable to bring this account current. I am requesting that you please look at this file and research it completely and allow this short sale so I can put all this stress behind me as I am suffering from XXXX  because it's overwhelming and it's affecting my daily living. I respectfully request that PHH reconsider this decision based on federal law, specifically 12 C.F.R. 1024.41 ( i ), which states : A servicer is only required to comply with the requirements of this section for a single COMPLETE loss mitigation application for a borrowers mortgage loan account until the borrower has brought the loan current. The CFPBs Official Interpretation further clarifies that if a borrower submits a new application and demonstrates a material change in circumstances, the servicer must treat the application as a new complete application and conduct a full review. My current request is not duplicative, because : It is a request for a different loss mitigation option ( short sale ), or There has been a material change in my financial circumstances since my prior application, including [ briefly describe : e.g., reduced income, increased expenses, medical issues, or other hardship ]. Therefore, I am requesting in writing that PHH accept and review my short sale application as a complete application, consistent with the requirements under 12 C.F.R. 1024.41. Please provide me with written confirmation that my short sale application will be reviewed in good faith. If you believe otherwise, kindly provide a written explanation citing the specific investor or regulatory guidelines relied upon in your denial. Thank you for your attention to this matter. I look forward to your prompt response.

Company response to consumer: Closed with explanation