Consumer complaint received 2015-04-13 00:00:00
Product: Mortgage — Home equity loan or line of credit
Issue: Loan modification,collection,foreclosure — 
Company: Ditech Financial LLC
State: NV

Complaint narrative:
We are the poster children for the real estate crash -- we purchased in XXXX at the top of the market, put 25 % down ( {$150000.00} ) and our rate on the 1st mortgage was 5.875 % ( 6 month Libor ARM with XXXX XXXX ). XXXX would not allow a short sale nor would they reduce the rate on our Libor ARM ( imagine the profit over 10 years -- Libor Index under 1 % and we were paying almost 6 % ). 
In XXXX we needed to make repairs to the house. I was unemployed at the time so my husband obtained a HELOC from XXXX in his name only ( I was only on the title ). Servicing was later transferred to XXXX. We struggled for years to make the payments and in XXXX attempted to short sale our home ( due to large reduction in both our incomes ). The 1st mortgage was with XXXX XXXX ( but investor was also XXXX ). We were declined for short sale ( investor XXXX would not approve ). Ironically we had no trouble getting an offer on the HELOC to settle for {$7500.00} -- but only if the first mortgage holder would agree -- also XXXX. We could not afford to keep making payments on HELOC and the 1st so we stopped payment making the payment on the HELOC in XXXX. The HELOC was charged off by XXXX about 6 months later. 
In XXXX XXXX with another 24 months in payments and the increase in real estate values we again listed our home for sale in the hopes of paying off the first with XXXX and settling with XXXX on the HELOC. Right after we listed for sale, we got notification that the charged off loan had been transferred again -- now to Green Tree. We had over XXXX showings and a series of price reductions before we finally secured a buyer. With a sales price of {$420000.00} it would pay in full our balance on the 1st and pay approx. {$9500.00} on the {$72000.00} HELOC balance. 
Green Tree refused to release the lien unless we came up with an additional {$5000.00} ( which I took out a XXXX loan ). They refused to release my husband for the liability. We were forced to submit tax returns and all asset statements. Our only assets are in our retirement accounts. Our credit scores are high as we have been diligent about trying to reduce debt to prepare for retirement. We are half-way through with putting our XXXX daughter through college and money continues to be tight. The charge off from XXXX dropped off my husband 's credit report in XXXX XXXX and there was never any Green Tree account listed. We closed escrow on the sale of our home XXXX XXXX, XXXX. 
Beginning in XXXX XXXX the phone calls started. Three and four times a day to my husband 's office, cell, my cell and office. I explained to them that we had nothing else to pay them and we are close to retirement age ( XXXX and XXXX ). Our only assets are in our retirement accounts. We sent ( registered mail ) two separate do not call letters. I also explained that I was not on the note -- only my husband was. 
On XXXX XXXX, XXXX we received a letter ( forwarded from our old address ) from XXXX XXXX XXXX. Cover letter was from Green Tree Servicing dated XXXX/XXXX/XXXX that " Our records indicate this loan has been settled in full to Green Tree Servicing LLC. 
Attached was the original HELOC Revolving Loan Agreement -- only in my husband 's name and only his signature. 
Today ( XXXX XXXX, XXXX ) I checked our credit reports and was stunned to find a new entry on both our reports ( XXXX XXXX only ) listing past due {$58000.00} Charged Off as Bad Debt and Profit and Loss Write Off. 
Green Tree purchased this note for XXXX from XXXX, they received a 20 % pay day on their investment. We ca n't pay them any more and I need assistance in getting this handled once and for all. We do n't want to be forced into bankruptcy over this debt. I need assistance in removing this from our credit reports and ending this issue once and for all. 
Thank you for your assistance.

Company response to consumer: Closed with explanation