Consumer complaint received 2020-03-26 00:00:00
Product: Mortgage — FHA mortgage
Issue: Closing on a mortgage — 
Company: Ocwen Financial Corporation
State: MD

Complaint narrative:
Date : XX/XX/XXXX From : XXXX XXXX. XXXX XXXX XXXX  XXXX XXXX # XXXX XXXX, MD XXXX Email : XXXX FHA Case # XXXX Attention : CFPB Regarding : OCWEN/PHH MORTGAGE Property Address : XXXX XXXX XXXX XXXX, XXXX XXXX, MD XXXX To Whom It May Concern : I am the homeowner of the above address property, which is scheduled to be sold on XX/XX/XXXX. I am requesting that PHH Mortgage be investigated for a lack of communication regarding a subordinate mortgage amount of {$130000.00}. I am a XXXXyear old widow and recently lost my XXXX job due to the Covid-19 pandemic. 

In XXXX, my husband succumbed to XXXX. I had retired to become his XXXX. When he passed, I was left with a home mortgage with OCWEN that I couldnt afford to pay and was behind in the monthly payments. 

In XXXX, I was granted a loan modification by OCWEN now PHH and I was able to hold onto the property, although like many homeowners, the value of the property was underwater after the housing crash in XXXX. 

In XX/XX/XXXX, I placed the home up for sale after investing considerable funds to update the home. 

In XX/XX/XXXX, I received an offer to purchase the home and I accepted the offer, with an agreement to close on the sale on XX/XX/XXXX. 

As part of the title research, XXXX XXXX discovered a Subordinate Mortgage to HUD recorded in XXXX County of which I was not aware of its existence. I have been informed by PHH that, as part of my loan modification, a Subordinate Mortgage was created because the original loan was an FHA loan. 

On XX/XX/XXXX XXXX XXXX provided me with a copy of the recorded Subordinate Mortgage and I was stunned and dismayed. The document appears to have my signature and yet I have no memory of this lien nor any record/ correspondence from HUD/XXXX regarding this lien. I have never received any notification of this debt from my mortgage company, PPH ( formerly OCWEN ). There is no reference to a Subordinate Mortgage on my monthly statements. I have been informed by PHH that their company was not responsible for transmitting any information regarding the Subordinate Mortgage. 
On XX/XX/XXXX I received correspondence from XXXX confirming the Partial Claim due is : {$130000.00}. 

The scheduled sale of my home will not provide the funds to cover this newly discovered Subordinate Mortgage. In fact, I have been informed that I will be expected to BRING funds to the closing of the sale. As a XXXX-year old widow, I am relying on the sale of the family home to keep me stable. 

Having lost my XXXX job last week due to the COVID-19 pandemic, I can not pay the monthly mortgage, and it seems, I can not afford the cost of selling the property either. I realize there are many Americans who are facing this current financial crisis. I feel I am getting crushed again, by the loss of home equity in XXXX ; by the loss of my husband in XXXX ; and now with this previously undisclosed Subordinate Mortgage.

I desperately sought HUD forgiveness of this Subordinate Mortgage in order to proceed with the sale of my home on the rescheduled date of XX/XX/XXXX and received a response that HUD does not forgive the debt under any circumstances. 

I would greatly appreciate the assistance of CFPB at the earliest opportunity, as my time is running out. I have spent every day since I became informed of this issue, trying to get information from PHH and from HUD/XXXX. I feel OCWEN/PHH did not comply with responsible mortgage practice by not informing me of the Subordinate Mortgage until the imminent sale of the property. This is not right. 

Thank you, XXXX XXXX XXXX XXXX XXXX

Company response to consumer: Closed with explanation