Consumer complaint received 2022-06-23 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — 
Company: Ocwen Financial Corporation
State: MA

Complaint narrative:
Dear PHH and respected PHH attorneys ( Former and current ) This is one more try to settle ongoing litigation with you. 
Please provide answer to below email sent to you on XXXX XXXX and email sent to XXXX XXXX. PHH and their attorneys failed to respond above mentioned emails and other emails. 
Kindly honor your settlement offer to avoid claims ; 1 : Mishandling the loan-modification and loan 2 : detrimental reliance lawsuit 4 : failed to record foreclosure deed 5 : unfair settlement practices 6 : Damages caused to the property and tenants .faulty work performed by the PHH unlicensed contractor which made the situation more worse and dangerous. 
XXXX : ETC ETC ETC. 


XXXX XXXX XXXX Attachments Mon, XX/XX/XXXX, XXXX AM ( 10 days ago ) to XXXX, XXXX, XXXX, XXXX, XXXX Dear XXXX, Good Morning Thank you for your email. 

The lender conducting the foreclosure is also the high bidder at the auction and when an auction is unsuccessful, lenders retain ownership of the property ( XXXX ). This legal statement was confirmed by the former PHH attorney in an email stating that XXXX was the highest bidder at the auction and failed to perform. The next highest bidder was the bank On a conference call meeting between ( PHH former attorney, XXXX attorneys and member of ARC ). We asked a former PHH attorney who holds the title of the property? 

She said that " A sale by auction is complete when the auctioneer announces by the fall of the hammer. '' and technically it transferred the title to the lender '' On XX/XX/XXXX XXXX PHH sent us a letter stating, the property reverted to our Real Estate Owned ( XXXX ) Department. and PHH 's former attorney sent an email on XXXX XXXX, stated PHH declines rescind the foreclosure. 

The auction of XXXX XXXX XXXX ( the XXXX ) took place on XX/XX/XXXX. Based upon actions by PHH, its representatives and lawyers ( collectively PHH ) and statements made to a number of individuals and official entities subsequent to the auction, acknowledging ownership of the Property by PHH, including certain demands made to the prior owner, that because of PHHs ownership, the former owner had no right to enter the property, whether to make repairs or otherwise, we believe that PHH presently is the owner of the Property and is responsible for all claims and liabilities associated with the Property and by its residents subsequent to the auction. 

On XXXX XXXX we received a letter from the PHH stating we have reviewed the account and confirm that the foreclosure sale is valid and can not be rescinded. '' On XXXX XXXX, PHH sent us another letter stating A letter dated XX/XX/XXXX was inadvertently sent to the mailing address on file ; this letter was sent due to an agreement between Ocwen and the Massachusetts Attorney Generals Office, under which Ocwen agreed to offer certain consumers whose account was billed for one or more property preservation ( e.g., inspection, title, landscaping ) fees between XX/XX/XXXX and XX/XX/XXXX an opportunity to apply for all available loan modification programs. The agreement did not include loans that had already had a completed foreclosure ; therefore we were unable to review your request for a modification. We strive to provide each customer with the utmost in customer care and professionalism and apologize for any inconvenience or miscommunication due to the receipt of the letter Following the receipt of your correspondence, we have reviewed the account and confirm that the foreclosure sale is valid and can not be rescinded. 



PHH sent a letter to the Consumer Financial Protection Bureau ( CFPB ) and confirmed the statement below ; The account was referred to foreclosure counsel on XX/XX/XXXX. At the time of the referral, the account was past due for the XX/XX/XXXX, through XX/XX/XXXX payments. As the payments were not received on the account and as a mutual resolution and/or plan to cure the delinquency on the loan was not achieved, the foreclosure sale was completed on XX/XX/XXXX. Following the completion of the foreclosure sale, the property reverted to our Real Estate Owned ( XXXX ) Department. 



In XX/XX/XXXX, an IRS Form XXXX, entitled Acquisition or Abandonment of Secured Property, attached hereto as attachment was filed by XXXX XXXX , presumably prepared by PHH. 



On XX/XX/XXXX PHH former attorney stated The tenants attorney, XXXX XXXX, provided the attached XXXX letter with a list of their property conditions complaints, this is the only document I have now on the issues, and Attorney XXXX has refrained from filing any litigation thus far. PHH did fix the heat last week, but they have agreed that if you can take on the property conditions with an indemnification, they would review for a sale On XX/XX/XXXX XXXX PHH former attorney said I am following up on the below. As we have not heard further from you on this matter, my client is undertaking repairs for a rodent infestation and electrical issues in the property. Please advise asap on undertaking an indemnification for any sale of the property. If my client spends too much completely repairs, there will be no incentive to sell the property for less than market value '' On XX/XX/XXXX, we received an email that Our office represents the mortgagee. Please do not access the property or perform repairs without authorization. We have been in contact with the city regarding its concerns We relied upon the statements made by PHH, its representatives and lawyers ( collectively PHH ) and suffered a detriment as a result of reliance. we will pursue with a detrimental reliance lawsuit.

When PHH took the ownership of the property, tenants attorney sent a demand letter to the PHH as owner of the property, in response of this PHH paid water bill and undertook certain repairs demanded by the occupants which lately buildings tenants, claimed that the workmen were either unlicensed or did not obtain proper permits to do the work and that the work they did created additional dangerous conditions in the building, which they outlined in detail, and former PHH attorney had voice messages of deceased tenant, she blamed PHH contractor for a faulty repair which made situation of apartment worst. Since the residents complaints about the work performed by PHH i
n the building that caused such dangerous conditions and tenant in Unit 2 has died, the grandson of the tenant in Unit 2, who lived with her, has been hospitalized and the Unit 3 occupant has also been hospitalized.

An electrician PHH sent to the tenants apartment, made a gaping hole in the wall of the tenants apartment ( the tenant took pictures and texted us ) that would allow a flood of rodents back into the tenants apartment and then left without repairing the wall. Attached tenant text with picture and tenant voicemail sent to you in the last email. Later the city of XXXX board of health sent an email. XXXX was contacted the student who lives in the unit that the student had not been to school and the reason was for stomach illness due to the rat infestation. This infestation was verified yesterday '' We sent an email to the former PHXXXX attorny on XX/XX/XXXX stating that how the tenant was suffering with bullets through the tenants windows on multiple occasions, rodents in her apartment with her constantly sweeping up droppings, a fire due to an electrical system failure, entry doors repeatedly broken, so that anyone could gain access, ongoing XXXX XXXXXXXX, other illegal drugs and needles littering the basement, and a profound effect on the tenants XXXX grandchild who lives with the tenant. Without question, this is all PHHs problem and if something untoward happens at this building, there is no question that PHH will suffer greatly because of its failure to address these issues. 
We believe that PHH presently is the owner of the Property and is responsible for all claims and liabilities associated with the Property and by its residents subsequent to the auction.

We also wish to remind you that we repeatedly told PHH prior to the auction that it had failed to consider our legal request for a modification agreement,, as required by law, and under PHH agreement with the MA XXXX office and in accordance with law. We have been advised that our claim has merit, and we will be pursuing our rights with respect thereto unless we are able to resolve this amicably. 



Next, I respectfully disagree with your reply regarding the settlement process. I understand you are newly assigned to this case, and you might have missed the conversation I had with the Attorney XXXX XXXX on XXXX XXXX when he presented a new offer from the PHH in the amount of {$110000.00}. 

On XX/XX/XXXX XXXX attorney XXXX XXXX XXXX a voicemail on my number XXXX at XXXX AM. Attached Attorney XXXX voicemail for your review. 

Same day at XXXX PM I returned his call and left a voicemail to his number from my number XXXX ( see Attached call history ) and Same day attorney XXXX XXXX called me back on my number XXXX at XXXX PM, we had XXXX minutes settlement conversation. ( See attached call log record ). 

Attorney XXXX XXXX presented {$110000.00} on behalf of the PHH at XXXX PM on XXXX XXXX. At the end of the call, he said that contact us whenever you increase your offer or accept the PHH offer in the amount of {$110000.00}.. Thus, email sent on XXXX XXXX was the counteroffer against {$110000.00} settlement, presented by the XXXX XXXX on behalf of the PHH on XX/XX/XXXX XXXX. 

Even if you read XXXX XXXX reply he said ; The offer we recently made was the lowest our client was able to make. However, the date by which you would have been required to make the payment has passed, so we presently have no authority to offer a discounted payoff. If you are willing to pay the {$110000.00}, though, we can discuss with our client. Thank. 

Why he said if you willing to pay {$110000.00} against our offer {$72000.00}? Because {$110000.00} is the lowest offer PHH offered us to settle.

Did he say that he never presented a {$110000.00} offer? 



I would highly recommend that you contact attorney XXXX XXXX for the confirmation of the offer he presented on XXXX XXXX in the amount of {$110000.00}. 



I state again settlement offer in the amount of {$110000.00} was presented to us by the PHH on XXXX XXXX after the deadline of previously settlement offer of {$120000.00} .PHH should honor its own settlement offer and I am hopeful that your client is ready to resolve this matter as well by honoring a settlement offer proposed by the PHH in the amount of {$110000.00} which PHH presented to us on XX/XX/XXXX XXXX and we already have accepted this offer. 



We relied upon on new offer given to us on XXXX XXXX in the amount of {$110000.00} and we gave our counter offers on XXXX XXXX and XXXX XXXX against PHH new settlement offer in the amount of {$110000.00} and then accepted the PHH offer in the amount of {$110000.00} on XXXX XXXX. 

We are not a large rich and powerful organization like your client but composed of dedicated volunteer professional members from a diverse background to support the noble cause. We are not Liar. Yes, we are committed to turning this Property into a home for refugees and to make it a part of the healthy fabric of our community. We are prepared to finance a renovation of the building so as to eliminate the physical problems with the building and satisfy the occupants.

Again, thank you for your assistance and professionalism and I look forward to hearing from you soon. 

And previous email : We put a temporary hold on our complaint at MA XXXX XXXX when a former PHH attorney informed MA XXXX XXXX about PHH intentions to sell the property to us at a discounted amount as post foreclosure. Attached is an email from a former PHH attorney, sent to us on XX/XX/XXXX, regarding PHH intentions to sell the property. We have numerous evidence that PHH had been acted as an owner of the property after the auction, some of evidence shared with XXXX XXXX on XXXX XXXX. ( PHH failed to reply to an email sent on XXXX XXXX ). 



On XX/XX/XXXX. ( Attached XX/XX/XXXX email ) PHH retained your firm and your firm offered us discounted pay off to settle the matter instead of post foreclosure sale, after negotiation we accepted PHH {$110000.00} pay off offer to settle our claims with the PHH. Below is the timeline of negotiation. 

On XX/XX/XXXX, XXXX XXXX called and offered a discounted payoff of {$150000.00} as settlement. Attached XX/XX/XXXX communication and XXXX voicemails attached to that conversation. 
On XXXX XXXX. We responded to the settlement offer ( Attached XX/XX/XXXX communication. ) On XXXX XXXX, XXXX XXXX replied " PHH respectfully rejects your most recent counter-offer. It is instead willing to accept {$120000.00} in satisfaction of the loan. This constitutes a discount of more than {$190000.00} off the loans balance and reflects the understanding that the property will require repairs " ( Attached XX/XX/XXXX email ) on XXXX XXXX. We responded to XXXX XXXX at XXXX am, however XXXX XXXX did not reply to that email and called me to offer {$110000.00}. ( Attached XXXX XXXX email ). We still are looking for a reply from the PHH of this email. He also advised us to contact him when we increase our counteroffer. He never mentioned that negotiation failed or expired or any deadline. He informed us that PHH 's lowest offer is {$110000.00} for a settlement and suggested we contact him when we accept {$110000.00} .He never mentioned the next step and/or deadline of the settlement. ( Please retrieve the call from your record ). 
On XXXX XXXX. We contacted XXXX XXXX ( Attached XX/XX/XXXX, email ) On XX/XX/XXXX XXXX. We sent our revised offer against {$110000.00} ( Attached XXXX XX/XX/XXXX email ) On XXXX XXXX. We accepted a PHH offer of {$110000.00} ( Attached XX/XX/XXXX email ). 
We believe that the building has to be rehabilitated immediately before any further damages to the building or occupants. We are prepared to undertake this rehabilitation project immediately. Prior to the auction and prior to the pandemic, we requested an estimate from a contractor. The estimate to rehabilitate the property as of the auction date was {$280000.00}. I expect that because of XXXX and recent structural damages to the property, these costs have probably increased by at least 40 %. Which makes repair cost to approximately {$410000.00}. Electric/City fines were approximately {$30000.00}. 



COSTS WITH RESPECT TO THE TENANTS CLAIMS. 

{$250000.00} at a minimum to an unknown sum depending on the extent of injuries suffered by tenants due to the conditions at the property.Units 1and 2 tenants and their relatives still have possession of the units and keep coming in out all the time. Eviction case is still pending in the housing court. We have spoken to a tenant recently who is now talking about far greater damage awards and is talking about finding a new attorney to take the case. If this tenant is able to find another attorney who represents tenants in these situations involving lead, mold, contaminated needles, rodents and other issues, we both know what could happen. Now there are other tenants who will want just as much as the first tenant gets in damages.

Tenants/their heirs are approaching us directly with settlement offers. Their demands have been increased since PHH has been involved and communicating with them somehow. We also learned that tenants are involving new attorneys as one of the former attorneys received a huge amount of money from one of party involved in the property as settlement but failed to disclose the amount to the tenants. Attached attorney dismissal motion filed by one of the tenants and motion from the party involved for your information

Company public response: Company believes it acted appropriately as authorized by contract or law
Company response to consumer: Closed with explanation