Consumer complaint received 2025-06-15 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Struggling to pay mortgage — Foreclosure
Company: Ocwen Financial Corporation
State: AL

Complaint narrative:
I am following up once again to request assistance from the CFPB, as per the PHH Mortgage 's response to my prior complaints. PHH Mortgage canceled the sale date and entered my file into a loss mitigation review for a loan modification. However, PHH Mortgage failed to cancel the foreclosure sale date. This means they entered my file into loss mitigation, while still maintaining a foreclosure sale date. Per CFPB enforcement of the Dodd-Frank Act, the following is an illegal practice.

Strong Protections for Struggling Borrowers The CFPBs mortgage servicing rules ensure that borrowers in trouble get a fair process to avoid foreclosure. Borrowers shouldnt have to worry about mortgage servicers cutting corners or losing applications for relief. They should be told about their options and given time to apply and be considered for loan modifications and other alternatives. Most of all, they shouldnt be surprised by the start of a foreclosure proceeding until they have had time to explore all available options. If they act diligently to seek alternatives, they should not face a foreclosure sale before their applications have been evaluated. The new protections for struggling
borrowers include : Restricted Dual-Tracking : Under the CFPBs new rules, dual-tracking when the servicer moves forward with foreclosure while simultaneously working with the borrower to avoid foreclosure is restricted. Servicers can not start a foreclosure proceeding if a borrower has already submitted a complete application for a loan modification or other alternative to foreclosure, and that application is still pending review. To give borrowers reasonable time to submit such applications, servicers can not make the first notice or filing required for the foreclosure process until a mortgage loan account is more than 120 days delinquent.

This information is directly posted on the CFPB website. PHH Mortgage is engaging in dual tracking, stating they are examining my file for a loan modification, while simultaneously setting the foreclosure sale date.

Additionally, PHH Mortgage denied my loan on XX/XX/year>, and did not provide me with any additional options during the loss mitigation process. PHH Mortgage appears to be focused on foreclosing on my home. I have alerted PHH Mortgage that I ratified a purchase contract on XX/XX/year>, for {$140000.00}. This will be enough to pay my PHH mortgage in full and allow me to receive several thousand dollars, enabling me to move forward with my life. PHH Mortgage has continued to deny my request to postpone the foreclosure sale date of XX/XX/year>, despite my scheduled closing on XX/XX/year>. I believe PHH Mortgage is conducting the practice of Equity Stripping. I would lose a significant amount of profit if this foreclosure were to occur. I was able to obtain a ratified contract within 30 days of the loan modification date. I need the CFPB to help me prevent this foreclosure sale.

Company response to consumer: Closed with explanation