Ocwen Loan Servicing Misapplied funds junk fees early forclosure attempt shell games stonewalling First time homebuyers mortgage nightmare Orlando Flo

From: http://www.ripoffreport.com/reports/0/300/RipOff0300435.htm

We purchased our first home two years ago and our loan was quickly sold to Ocwen. Our original loan started at $2330/month, and two years later was increased 40%, an additional $865/month. In addition to an outrageously high, interest only payments we have encountered these practices with Ocwen:1. They misapplied one of our mortgage payments, crediting as an 'extra' payment to pay toward the principal instead of our standard mortgage payment for the month. 8 months later, out of the blue, they reversed this payment from our loan and said we were delinquent. After many, many hours and letters to the research department they finally credited the payment back, but took out a chunk of it in fees, first, so that it was no longer good as a full payment and got locked into an escrow account as a partial payment while they continued to report us late on our payment - for their accounting error. 2. We were forced into a forbearance plan while we 'sorted all this out' being told that the alternative was to go into foreclosure - for their accounting error. We agreed to the forbearance plan under the condition that it would be reversed as soon as the error was cleared up. It never was because they took so much in fees out of the 'credited back payment' that it was useless.3. Our forbearance plan expired in October of 2007 and we paid it off in full every month and on time. We were automatically signed up for another forbearance plan to pay for property taxes. We were never even notified, much less asked for the second forbearance plan. They simply did it. I had to call to find out why we were suddenly being asked to pay so much more per month.4. We have been charged thousands of dollars in absolutely junk fees. 5. Most currently and importantly - we have just been served a notice of default when we are only 30 days late. I have one letter here from Ocwen dated December 6th, 2007 which says it is a 'friendly reminder' that the current payment for December has not yet been received. I have here also the certified notice of default dated January 3rd, 2008 - less than one month later. What has happened in the meantime is that I contacted Ocwen about modifying our loan back to it's original terms because the increase of $865/month is just too much for us. They were not willing to accommodate a modification and responded to our last inquiry with the notice of default and apparent fast trak to take our home. We are quickly trying to do a short sale so we can move on and be free of this ongoing nightmare with as minimal effect to our credit as possible. These are only the highlights - misapplied funds, junk fees, forced forbearance plans, premature notice of default (we're barely 30 days late!!) and outrageous increase of mortgage. This doesn't include the 2+hours of hold time, the stonewalling, intimidation I've encountered while talking on the phone with the representatives. Every month our statement is different, different fees, different totals of what is owed. No one will explain them to me and only highlight again and again what I need to do and pay or they will foreclose.We would definitely be interested in joining any class action lawsuit. HeatherScotts Valley, CaliforniaU.S.A.