Complaint Review: Ocwen Loan Servicing LLC

My loan first originated with NovaStar Mortgage in 2000 for $99000, 100% LTV. NovaStar went under, and my mortgage was sold to Saxton Mortgage for servicing. I had a 2/28 adjustable rate mortgage @ 11.875%, with monthly payments of $989, which was not escrowed.

I contacted Saxton Mortgage in 12/2010, to apply for a loan modification to get a fixed monthly payment, as I became totally disabled as of 2009, and my income had dropped by 50%, knowing that it was a struggle to continue to make my monthly payments, plus pay homeowner's insurance and yearly taxes and insurace. I had never made a late payment at this time. Saxton told me I had to go 30 days past due in order to apply (violating the HAMP guidelines), but I did so. The HAMP loan application was sent to me mid Janurary but never recieved, so they overnighted it to me and I recieved it at the end of January. I completed the application and returned it to their office by the end of February.

As they were reviewing the application, they continued to ask for addional information, which I immediately would fax or email to them. I made a payment as a sign of "good faith", the only one they allowed me to make. The final document I sent to them, was my 2010 tax returns, which I had completed. By March 22, 2011, Saxton Mortgage had contacted me and told me my HAMP loan application was approved. However, as of April 1, 2011, my loan was in a group of loans that were being sold to Ocwen Mortgage, so they were not going to issue the HAMP documents for signing, or the 3 initial payment coupons to remit my 3 month "trial payments", and to contact Ocwen if I hadn't heard from them by the 4th of April.

I contacted Ocwen April 4th, 2011. They claimed other than having my name in their system, they had absolutely no documents, which I found strange, since my entire loan package was sold to them, and as per Saxton, was to have been put in the highest priority group of the groups of the sale. Ocwen then informed me that I would have to start the entire HAMP modification process over again. They were not willing to accept a copy of the complete file I had, stating that it had to be on their forms. Also, as a sign of good faith, I needed to make a payment to them, as an intent to retain my home which I did. Mind you at this time of acquistion, I was 90 days past due, and Saxton would not allow payments during the process.

So I completed their application, submitted all the forms that they requested. They continued to request updated documents. I am on Social Security Disability and Long Term Disability from my former employer. The tax return should have sufficed. The only thing they needed was one updated bank statement, which I provided. They denied me, stating I didn't qualify. The battle was on. This continued to stretch out between us, for months,and to my amazement, going through their portal, my lost file started showing up, piece by piece. However, the information about the approved HAMP, the need to contact me immediately so I could make a payment prior to April 15, 2011 never got scanned in. I even got in touch with Saxton Mortgage, but they didn't keep copies of the files once the servicing was sold off.

Ocwen threatened me with foreclosure. I met with the Clerk of Court assigned to the case, and the attorney representing Ocwen. The attorney admitted he had no information in his file, other than to show up to act on behalf of the Lender. I pled my case, along with a file folder 4" thick, and even allowed the attorney to make copies.  the Clerk postponed the hearing and rescheduled for a later date. Both the Clerk and the Attorney for Ocwen were in agreement I was getting shafted. Prior to our next scheduled meeting, in August of 2013, Ocwen attempted to get me to sign a Shared Appreciation Modification Agreement, claiming that once again I had applied for the HAMP, and didn't qualify, but the Lender (who they refused to identify) had offerred this and I had better take it now or I would lose my home. I refused. So back to court we went.

The Clerk of Court, the Attorney and I had a head to head conversation. The attorney was hot, as he was unaware as to what Ocwen was doing behind his back. The Clerk was irrated, as this was the third time for a Pre-Foreclosure hearing, all at fault of the Lender. The final hearing was scheduled. Ocwen refused to work with me, because by this time I had involved the Consumer Financial Protection Bureau and the NC Home Retention Program. They (Ocwen) also had refused to allow me to make any payments during this entire process other than the initial payment of "good faith". as had Saxton Mortgage.

Backed into a corner, now at 22 months down on my mortgage, not willing to lose my home, I had no choice but to sign the Shared Appreciation Agreement offered to me in March 2012. Against my better judgement, I signed it, to save my home. The issue is, on page one of the agreement, it clearly states that no fees or charges (other than lates fees) can be added upon execution of the agreement. To date, $966.68 "Other Fees" have been added to my loan. I have contacted Ocwen numerous times, have gone through their research department and also through their ombusman's office, all to no avail.

As I noted previously, I borrowed $99,000 in 1990. Never missed a payment. My current balance with Ocwen? $101,816.72, with a balloon payment of over $28,000.00 due on 7/1/2030. "Shared Appreciation", they foregave $4800. When the balloon comes do or if I sell prior to that, depending on the appraised value, and confirmed documented improvements, they will wipe out the $4800. Sound like a good deal to you?