Consumer complaint received 2015-04-24 00:00:00
Product: Mortgage — Other mortgage
Issue: Loan servicing, payments, escrow account — 
Company: Ocwen Financial Corporation
State: VA

Complaint narrative:
Immediately after receiving OCWEN 's HAFA short sale denial letter, I called OCWEN and spoke with XXXX ( Agent ID XXXX ) to determine why my HAFA short sale application was denied. I am also awaiting a phone call from OCWEN 's HAFA short sale customer relations specialist, XXXX XXXX XXXX. I tried numerous times to get either a phone number or an email for XXXX XXXX so I could better explain this situation, but I was told that the " system '' was down and she ( XXXX ) could not help me. She explained to me that the application was denied because I am current on my payments. This is true ; however, as the below details, we will soon enter foreclosure. In addition, this logic is severely flawed as the primary mortgage holder has already approved the HAFA short sale and if OCWEN does not approve the HAFA short sale, then the house will enter foreclosure and OCWEN will get nothing. OCWEN holds the second mortgage on this townhouse. The first mortgage is held by XXXX XXXX XXXX. The remaining principal with XXXX XXXX XXXX is {$380000.00}. The remaining principal with OCWEN is {$62000.00}. Therefore, the total outstanding principal owed on the townhouse is {$440000.00} - of which, XXXX XXXX XXXX holds 86 % of the balance XXXX {$380000.00} XXXX and OCWEN holds 14 % of the balance XXXX {$62000.00} XXXX. 

As shown in the attached, the primary mortgage holder ( XXXX XXXX XXXX ) has already approved the XXXX short Sale. Further, we have already received an offer on the house. 
In XXXX of 2015, the interest only period on the XXXX XXXX XXXX mortgage will expire ( at the 10 year mark ) and the remaining principal of {$380000.00} will amortize over 20 years at a current rate of 3 % ( rate is variable and will fluctuate every six months ). My current XXXX XXXX XXXX mortgage payment is {$1300.00} per month ( includes insurance and taxes ). When the interest only period expires, my monthly payment will increase by {$1300.00} per month to {$2600.00} per month ( includes insurance and taxes ). When the XXXX mortgage adjusts, I will no longer be able to afford my monthly payments. At this point, my mortgage to gross income ratio will increase to 34 %. We also have excessive debt and monthly payments to care for our XXXX son. At this point, we will enter foreclosure as we will not be able to make our payments. I have explored all possible options. I do not qualify for any other Making Home Affordable ( MHA ) mortgage program, other than HAFA, because neither loan on the townhouse is owned by Freddie Mac or Fannie Mae. Further, the outstanding balance owed on the house XXXX total of {$440000.00} XXXX exceeds the fair market value ( appraised in XXXX of 2015 for {$410000.00} XXXX. Therefore, the loan to home value ratio exceeds 100 %. We have XXXX options ; a HAFA short sale or foreclosure.We have owned this townhouse for 10 years. We have never missed a payment. After 10 years, we still owe more on the townhouse than it is worth. A HAFA short sale is our only option. The XXXX lender, XXXX XXXX XXXX, has approved the HAFA short sale. We have an offer. If OCWEN does not approve this HAFA short sale request, my only recourse is foreclosure. At that point, OCWEN and it 's investor will receive nothing. If OCWEN approved the HAFA short sale, OCWEN will receive {$12000.00} ( minimum ) in proceeds from the XXXX mortgage holder. I do not understand how the XXXX can approve the HAFA short sale and the XXXX mortgage holder can be so unresponsive and unable to discuss this situation. OCWEN does not listen to the details or the circumstances and their agents simply have no competence to have a meaningful discussion. No one at OCWEN has a direct phone line, they seem shrouded in secrecy. I am convinced that OCWEN wants to see my home foreclose.

Company response to consumer: Closed with explanation