Consumer complaint received 2025-12-05 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: DC

Complaint narrative:
I am a homeowner with a mortgage serviced by PHH Mortgage. I have been actively working with PHH on a loan modification / loss mitigation application since XX/XX/XXXX. My most recent packet was due on XX/XX/XXXX, and I submitted the complete packet early, around XX/XX/XXXX. I even recorded myself preparing and sending the packet to document that I included all required documents. 
However, I then received a new PHH packet dated XX/XX/XXXX and postmarked XX/XX/XXXX, stating that my prior loan modification was denied and that I needed to submit a new packet. This means PHH denied my application before they could have reasonably reviewed the documents that were due on XX/XX/XXXX and submitted around XX/XX/XXXX. This package was also due XX/XX/XXXX. However, I did not receive it in my mailbox until XX/XX/XXXX which is past the date of submission. 
I have repeatedly requested that PHH provide a written denial letter explaining the specific reason ( s ) for denying my complete loan modification application, but PHH has not provided any written explanation. All explanations have been verbal over the phone. 
My understanding under RESPA Regulation X ( 12 C.F.R. 1024.41 ) is that when a servicer denies a complete loss mitigation application for a loan modification, the servicer must send a written notice stating the specific reason ( s ) for the denial. PHH has not done so. 
I have also been dealing with a complicated situation because the original borrower ( my mother ) passed away unexpectedly. I inherited the home due to her unexpected death. I did not fall behind on a mortgage for a house I irresponsibly took on ; instead, I am trying to manage a loan that was in my mothers name when she died. I was told that, given the borrower is deceased, the amount owed should have been placed on hold and that I could not be personally liable for that amount in the same way until my status was resolved. 
When I started this process, the amount past due was roughly {$4000.00} {$6000.00}, and I was making payments to reduce that balance. PHH then instructed me to begin the loan modification process because the borrower ( my mother ) is deceased. Despite this, the amount they say is owed has continued to increase dramatically with each denied modification. 
I have continued to make monthly payments, but PHH has indicated that these payments under the attempted modification do not count toward the increasing past-due balance tied to the previous borrower. As a result, that balance has grown and is now in excess of {$20000.00}, which is not an amount I can realistically afford. It feels as though every time I try to comply and send what is requested, the balance gets larger and the modification is denied without a clear written explanation. 
Another complication arose because my mothers mortgage payments were being made directly from her bank account. After her death, that account was closed. PHH would not allow me to simply change the bank information or make smaller payments from a different account ; I was told I had to pay the full amount due in one lump sum from a separate account. This made it extremely difficult to stay current and contributed to the hardship that led me into the loss mitigation process in the first place. 
In my interactions with PHH, I have also experienced poor treatment on the phone, including representatives talking over me, making comments such as speak up maam, and refusing to connect me with a supervisor when I asked. This has made an already stressful situation even more overwhelming. It feels predatory and like an intentional infliction of stress rather than an attempt to help a struggling successor-in-interest keep a home. 
I am facing serious hardship and am trying in good faith to keep my home. This home is the last piece of my mother that I have. She was a public servant and teacher for over 30 years and worked hard for this house. I am doing everything I can to preserve it. I have kept copies of my completed packet, the PHH denial packet and envelope ( showing the dates ), and notes of multiple phone calls with PHH representatives.

I believe PHH has : Denied my loss mitigation request prematurely Failed to provide the required written denial with specific reasons Failed to respond in writing to my request for the reason
( s ) for denial Allowed the past-due amount to grow to an unaffordable level while I am actively making payments and seeking assistance I am asking for help because I am trying to act in good faith, follow PHHs instructions, and save my home after an unexpected death in my family, but PHHs handling of my loan and loss mitigation applications has made that extremely difficult.

Company response to consumer: Closed with explanation