Consumer complaint received 2025-03-17 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: FL

Complaint narrative:
On XX/XX/XXXX my husband, and I, obtained a mortgage that was issued during the subprime lending crisis by a predatory lender who did not verify our ability to afford the loan. Since its inception, this loan has been the source of ongoing issues with multiple mortgage servicers. 

PHH Mortgage Services, acting as the current loan servicer, and XXXX XXXX, the current loan owner, have refused to provide a fair loss mitigation review and are instead forcing us toward foreclosure, a deed-in-lieu, or an unaffordable reinstatement. 

1. Unreasonable Reinstatement & Loss Mitigation Denial On XX/XX/XXXX PHH Mortgage Services contacted me and stated that my only options were : To reinstate the loan for an unaffordable amount of {$710000.00} OR To surrender my home in a deed-in-lieu. 
Despite multiple formal requests for a loan modification or principal reduction, PHH has refused to properly review our case.

PHH has not provided a written explanation for why a short sale or deed-in-lieu is an option, yet they refuse to offer us any relief through a loan modification.

2. Medical Hardship Ignored In XX/XX/XXXX, I suffered XXXX XXXX XXXX  event, which resulted in : Complete XXXX XXXX causing me to XXXX XXXX XXXX 
XXXX XXXXXXXX, XXXX XXXX XXXX XXXX and XXXX XXXX XXXX XXXX XXXX 
Ongoing XXXXXXXX XXXX  requiring continued medical treatment. 
Medical hardship letters from my XXXX  and XXXX XXXX XXXX  were submitted to PHH/XXXX 
Despite this, PHH has failed to consider my medical hardship in their loan modification review. 

3. PHH & XXXX Prioritize a Short Sale Over a Loan Modification PHH/XXXX are willing to approve a short sale, meaning they are already prepared to take a financial loss. 
If they are willing to forgive part of the loan for an outside buyer, why wont they extend that same relief to us, the homeowners, through a modification or principal reduction? 
This raises serious concerns about unfair and deceptive mortgage servicing practices. 

4. PHH/XXXX May Have Misused Federal Bailout Funds XXXX XXXX received {$150.00} XXXX in federal bailout funds under the Making Home Affordable ( MHA ) program, which was designated to help struggling homeowners avoid foreclosure. 
Of this amount, {$56.00} XXXX was specifically allocated for borrower assistance through loan modifications and principal reductions. 
Instead of providing relief, XXXX has been denying modifications and prioritizing foreclosures and short sales, potentially misusing these funds. 

5. PHHs Actions Are Unfair & Likely in Violation of Federal Mortgage Servicing Laws PHH is violating HUD and CFPB guidelines by failing to conduct a proper loss mitigation review before proceeding with foreclosure.

Their refusal to modify our loan, despite being willing to accept a short sale or deed-in-lieu, XXXX constitute unfair and deceptive mortgage servicing practices.

Company response to consumer: Closed with explanation