Consumer complaint received 2025-06-06 00:00:00
Product: Mortgage — Conventional home 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: CO

Complaint narrative:
XXXX - consistent with several recent and ongoing class action lawsuits, i.e. 
XXXXXXXX XXXX XXXX XXXX PHH Mortgage Services er al., filed XX/XX/XXXX, a class action that claims PHH Mortgage has ignored their statutory duty to adequately fulfill mortgage borrowers ' requests for certain account information. According to said lawsuit, PHH has " demonstrated a pattern or practice '' of " denying possibly hundreds if not thousands '' of requests for copies of audio recordings or transcripts of phone calls between consumers and the defendants, even though the companies could " easily '' retrieve the information through reasonable business efforts. 
Said pattern or practice is applicable to the matter of XXXX XXXX XXXX XXXX XXXX, XXXX. 
XXXX, XXXXXXXX XXXX XXXXXXXX XXXX. Homeowners are of the knowledge that that this is an account that never should have been placed in foreclosure status, rather should have sold in XXXX XXXX had it not been for PHH 's numerous processing errors and challenges the incompetence, ineptitude, errors and omissions that have placed Homeowners in harm 's way, placing their home and financial well-being at risk. The balance of harm is now fully upon the Homeowners and can clearly be shown that if the Court would allow these actions to occur, significantly more harm would be caused to the Homeowners than to PHH, on multiple levels. This fact can not be argued to any degree in favor of the Plaintiff. 

Had it not been for errors, omissions, misdirection and misinformation of PHH, their indicated " Waterfall '' method where two courses of actions would not be considered simultaneously, had we been informed of this, valuable time and opportunity would not have been lost and property would have been sold in XXXX XXXX ( see Purchase Contract dated XX/XX/XXXX with a close date set for XX/XX/XXXX ). Payoff had been requested XX/XX/XXXX, indicated at {$760000.00}. PHH failed to mail documents per request. Another Payoff Quote was requested XX/XX/XXXX, reflecting {$770000.00}. 
Purchase price had been agreed upon at {$780000.00} from the original {$770000.00}, thereby would have satisfied Note in Full. 
-Over the previous 2 years, because of XXXX Recession, Property Values had decreased significantly, significant Equity lost. Thus, Homeowners had begun communications towards the goal of a re-modification of Note to more accurately reflect current and true Market Value. Homeowners had previously in XXXX and XXXX submitted applications for Trial offers, updating Income and Market value information, towards eventual modification, along with having requested other options, ( i.e. a Short Sale or Died-in-Lieu if Trial offer terms and conditions were not realistic or acceptable ). 

Simultaneous to a Short Sale approval in XX/XX/XXXX, an offer was presented to Homeowners by a potential and well-qualified Buyer through our Realtor. 
After initially accepting but taking no action on a time sensitive Purchase Contract, PHH informed Homeowners 15 days into a 34 day offer that they would have to formally request to rescind a Trial offer application before the Purchase Contract would be considered. 
Valuable time was lost because of PHH 's procedural errors and failure to communicate information to Homeowners in a timely manner. Eventually, Buyer 's offer to buy at ( {$780000.00} usd ) was lost. Homeowners have been proactively making every effort to work with and sell the property ever since, despite the loss and having been placed in harm 's way. 
Our understanding is that now, as we await HUD from Title Co.pertaining to a current Sales Contract submitted in XXXX, it is clear the Note has been in constant process of sale/acquisition by new Investors, and per multiple Attorneys, including XXXX XXXX and XXXX XXXX XXXX there could very well be delays in such a situation of selling. 
This week, It was confirmed that the Note has been sold six ( 6 ) times in total since XXXX. As such, the Federal Records Center in XXXX  has been requested to verify each transaction since XXXX in entirety for accuracy. Furthermore, and critical to this matter, it has been uncovered that at least one ( 1 ) of the acquiring Financial Institutions had filed Bankruptcy, thus documentation gathering and verification of accuracy of that transaction will be inclusive of significant delays. 
The multiple transactions of this Note can not be verified and validated without the Title Co. 
having done its full due diligence, as per process and required by law to ensure accuracy of acquisition by that party and five ( 5 ) others. Note here too that PHH can not possibly confirm standing at this point in time given this learning, yet another valid issue which is of material fact, demanding the required opportunity for due process and diligence to be executed prior to any party moving forward in any regard, be it Homeowner or PHH as Servicer. Additionally, and because of this finding, XXXX XXXX XXXX can not possibly be a party in this matter. 
Previous to this current and pending offer to buy, it must be noted that in compounding their mistakes and harm caused to Homeowners, PHH was committing Dual Tracking and other RESPA and Reg X violations, as it relates to this account, beginning foreclosure actions while a Trial offer was requested and being reviewed, ( Homeowners had applied again in light of the fact they had lost a previous sale due to PHH procedural errors ). PHH later halted, at least temporarily, in recognizing their error in having it brought to their attention in documented manner by the Homeowners. 
Currently, as mentioned, Homeowners are engaged with PHH specialized Home Retention, and others ), towards a Short Sale, possible because the Homeowners, in good faith and full transparency in spite of working with while against PHH and XXXX, have kept the home listed on the Market, actively working to maintain the property and sell at or as close to Fair Market Value thru the expertise, experience and guidance of the appointed Real Estate Agent XXXX XXXX , fully known to PHH. 
As of XXXX, PHH representatives in Specialized Home Retention Department, ( XXXX XXXX, XXXX, Supervisor XXXX ), they " do not want the inventory, '' and " would rather work to get something done, especially if you have an offer. '' ( note that XXXX  is a state in which there is no deficiency judgement law, so a pending sales contract even if a Short Sale ( awaiting HUD ) would satisfy the Note, so long as the Investor and PHH are willing and able to work with Homeowner in escalating and making an exception in review. 
This respective representative also clarified in a previous conversation that the home, based on prior errors, would be noted as such, could, in fact, still be reviewed but via escalation and potentially be exception for approval given complete application and underwriting. It had previously been confirmed by this department that " based upon the value and amount owed, the home is eligible for Short Sale. '' We are awaiting HUD, during which it was uncovered that documentation can not yet be verified and validated for specific reasons mentioned, thus Buyer 's Purchase Contract is " pending. '' and anticipate eventual receipt of all verified documents to forward to PHH XXXX  for review and exception approval. If there are any issues with a previous acquisition of Note not being processed properly per the Title Co., we would address that accordingly at that point. The note at that point could very well become null and void, according to our Attorneys. 
The hope and anticipation are to reach a mutually beneficial deal towards sale of property and satisfying the Note. Having said this, as we remain patient and proactive but continue to be placed in harm 's way, the matter of PHH 's previous violations and ongoing efforts to conceal and deny conversations of material fact as XXXX XXXX XXXX attempts to wrongfully push the envelope, ask to simultaneously be addressed. 
-Under RESPA and Regulation X, loan servicers such as PHH must provide borrowers with specific account information available to them in the regular course of business upon receiving a Qualified Written Request or Request for Information from the borrower. 12 U.S.C. 2605 ( e ) ( 1 ) ( A ) ; 12 C.F.R. 1024.35. ( a ). PHH, as servicer, must respond within 30 days to a QWR for information or an RFI in one of two ways ; ( 1 ) provide the requested information, or ( 2 ) conduct a " reasonable search '' for the requested information and provide the borrower with written notification explaining the servicer 's determination that the requested information is " not available. '' 12 C.F.R.

1024.35 ( d ) ( 1 ) ( i ) - ( ii ). 11, in its " official commentary to Regulation X, the CFPB outlines what constitutes " not available. '' Information is " not available '' if " [ ( 1 ) ] The information is not in the servicer 's control or possession, or [ ( 2 ) ] the information can not be retrieved in the ordinary course of business through reasonable efforts. '' 12 C.F.R. 1024, Supp. 1, 36 ( d ) ( 1 ) ( ii ). 
XXXX XX/XX/XXXX, XX/XX/XXXX, and XX/XX/XXXX, Homeowners electronically submitted to PHH a request for all phone conversations and transcripts from XX/XX/XXXX, through XX/XX/XXXX, while also having filed a formal complaint through the Consumer Financial Protection Bureau XXXX ( XXXX ). The response received was as follows, a seeming modus operandi having impacted this Homeowner and property, further validating previous in ongoing class action lawsuits ; " Thank you for the recent communication regarding the account referenced above in which you requested copies of all audio recordings and transcripts of all phone calls beginning ( XXXX ) date of and through ( XXXX ). The copies of all requested recordings and transcripts have not been provided to you because production would create an undue burden on PHH. '' -We are being denied our right to information, a right to discovery of relevant and material facts that have negatively impacted this loan, that is in full knowledge of and access of servicer. This information can be provided as it can be accessed during normal business and would assist us in and showing matters of material fact that have led to this issue. 
Both PHH and XXXX XXXX XXXX conceal, deny and attempt to expedite wrongful, unethical and even illegal actions. 
-Homeowners demand PHH 's representative, XXXX XXXX XXXX XXXX a recognized " foreclosure factory, '' be immediately given a Temporary Restraining Order stemming first from the Title/Standing verification issue mentioned, whereas PHH can not possibly show they have standing given the finding of at least one ( 1 ) acquiring party having filed Bankruptcy. In addition to a clear lack of understanding as to the details of this case, their negligence, unethical and illegal efforts to deceive the Court and attempts to expedite wrongful foreclosure proceedings to forcibly and wrongly gain control of property for their own financial gain must cease immediately. Uncalled for, purely agenda driven actions against Homeowners whilst the Homeowners being actively engaged with PHH towards a mutually beneficial resolution can and will be pursued in a civil manner should XXXX XXXX XXXX do not cease immediately and remove themselves from the equation. 
XXXX XXXX XXXX and its representative, XXXX XXXX XXXX has shown a disregard for process and people alike, a lack of professionalism, a lack of respect to process and parties involved, a lack of understanding of facts along with a clear and personal bias through discriminatory language and approach against the Homeowners , ( i.e., stating in Court on XX/XX/XXXX that " It's a short sale, it'll never get approved. '' This in addition to statements made in most recent response, ( one not submitted to Court as requested by XX/XX/XXXX due date only having been done so four ( 4 ) days later ), further showing little to no regard for legal process or required due dates ; consideration of the Court and Homeowners time ; actively working with PHH only to deceive the Court through inaccurate, incomplete even false information whilst setting their own brand of rules and timelines ; unethical efforts to deny the Homeowners legal rights to access of reasonable information through discovery of critical and absolutely material facts ; driven only by an agenda to profit by forcibly and illegally gaining control of Homeowners property. 
We have advised XXXX XXXX XXXX directly through electronic means on XX/XX/XXXX of our intent to file a Motion for Default Judgement and to request enforcement immediate enforcement of TRO given the Title issues, their delay in filing and that we would be requesting an immediate cancellation of the XX/XX/XXXX hearing. No response was provided. We have also filed the Motion accordingly and have had all applicable parties served. 
The Court must not allow this to continue ; - '' To determine whether a genuine issue of material fact exists, the Court must view every possible inference in favor of the non-moving party. XXXX XXXX XXXX XXXX XXXX, XXXX, XXXX XXXX XXXX ( XXXX XXXX XXXX XXXX ). 
- '' The moving party bears the burden of proving the non-existence of genuine issues of material fact. Furthermore, the burden of proving that such issues exist does not shift to the non-moving party until the movant has successfully met his burden. XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXXXXXX XXXX XXXX XXXX XXXX, XXXX XXXX XXXX ( XXXX XXXX XXXX XXXX ). ; - '' The Third District Court of Appeals of XXXX  held that " the party moving for summary judgement must factually refute or disprove the affirmative defenses raised or establish that the defenses are insufficient as a matter of law. '' XXXX XXXX XXXX XXXX XXXX XXXX XXXX, XXXX XXXX XXXX, XXXX ( XXXX XXXX XXXX XXXX ). ; - '' The plaintiff must either factually refute the alleged affirmative defenses to foreclosure or establish that they are legally insufficient to defeat summary judgement. " - XXXX XXXX XXXX XXXX XXXXXXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXXXXXX XXXX ( XXXX XXXX  XXXX ). ; Homeowner asks the Court, when Homeowners are being denied the opportunity for discovery on issues of absolute material fact that have resulted in this loan wrongly being in its status, have they had the opportunity to exercise legal right to present affirmative defenses that proper discovery may lead to, relevant evidence of facts that may serve to show the Court that PHHs multiple and ongoing errors in process, direction provided Homeowners, misinformation provided by employees including assigned XXXX XXXX XXXX and at least 3 supervisors since XXXX XXXX, has jeopardized this loan. ( see purchase offer dated XX/XX/XXXX, with close date set for XX/XX/XXXX ) - '' In a mortgage foreclosure action, if the record reflects the existence of any issue of material fact, or the possibility of an issue of material fact, or if the record raises even the slightest doubt that an issue of material fact might exist, summary judgement is improper. 
( XXXX XXXX XXXXXXXX XXXX XXXXXXXX XXXX XXXX, XXXX XXXX XXXX ( XXXX, XXXX XXXX XXXX ). 
-According to XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX ( XXXX XXXX XXXX XXXX ), final summary judgement was not appropriate where the homeowner had properly plead affirmative defenses to the foreclosure action that sounded in waiver, estoppel, and bad faith : such defenses raised genuine issues of material fact and were not barred by statute of frauds. 
-PHH , a servicer yet to show standing, has demonstrated a " pattern '' or " practice '' of failing to adequately respond to borrowers ' requests for account information, which makes them liable for statutory damages in an amount up to {$2000.00} for each failure to adequately respond, 12 U.S.C . 2605 ( f ). 
-Non withstanding this clear failure to abide by its statutory duty, despite Homeowners informing PHH of its failure, PHH continues to incorrectly state similar to the following, that " [ all ] communications with vendors, collection notes, recorded calls and notes, transcripts of phone calls are for internal purposes only or that it would " cause ( PHH ) undue burden. '' -On at least XXXX occasions as recently as XX/XX/XXXX, Homeowner has asked for several documents including, such as a copy of all recordings and copy of all transcripts of conversations between us and PHH XXXX XXXX and other Supervisors providing even specific dates/times. ( information pursuant to the Real Estate Settlement Procedures Act, 12 U.S.C. 2605 ( e ), and Regulation X, 12 C.F.R 1024.35, 1024,36,24.25.26.27 ). 
-On or about the dates requested in XXXX, XXXX and XXXX, Homeowners received a response to QWR from PHH , each time servicer failing to provide any of the requested recordings/transcripts, while XXXX XXXX XXXX simultaneously continuing to harass, cause financial harm, time loss and emotional distress to the Homeowners through its unwarranted actions. Again, in light of the fact that Title Co can not immediately confirm proper sale and acquisition information in full, as Homeowner continues to work towards the sale of the property regardless seeking a mutually beneficial closure to this matter, Homeowners are demanding any and all other requests for summary judgement or otherwise filed by XXXX XXXX XXXX on behalf of PHH be rightfully denied and dismissed. 
-Homeowners, in turn, respectfully request the Court grant relief against PHH and XXXX XXXX XXXX wrongful conduct alleged herein, PHH be adjudged and decreed to violate the statutes and laws asserted therein. 
-Homeowners request injunctive relief prohibiting such conduct in the future so as to first allow Title Co to verify and validate proper sale of note on previous six ( 6 ) acquisitions while all efforts and concentration on selling home in an agreed upon price, terms and conditions as close to Fair Market Value as possible ( value of original Note is no longer fair nor realistic given Recession of XXXX and current economic conditions ), as would be verified by any reputable Realtor or an Appraisal which PHH has denied to process. 
-Note would be paid in full under Short Sale conditions, no deficiency judgement, inclusive of final sale, reflecting on all credit bureaus ( XXXX XXXX XXXX XXXX ) as paid in full and as agreed. 
-Homeowners ask for injunctive relief ordering PHH to release audio recordings and transcripts of calls during a specified period to scrub and pull critical material facts. 
-Homeowners ask for Statutory damages in an amount of {$2000.00} per violation to each of the named pursuant to 12 U.S.C . 2605 ( f ) ; for an award of actual damages according to proof per violation to each of the named Homeowners individually pursuant to 12 U.S.C. 

2605 ( f ). ; any/all Attorney 's fees / Court costs to this point and forward ; any and all further relief that this Court deems just and proper. 
Thank you.

Company response to consumer: Closed with explanation