Dear PHH Mortgage: Stop Screwing up our Credit and our Payments! Stop trying to Steal our Home through Foreclosure!

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Arkansas homeowners Kendra and Todd thought they were living the dream when they became homeowners in August of 2010.  Now they are living a mortgage servicing nightmare.

In a story that eerily mirrors my battle to overcome lender errors and erroneous credit reporting, Kendra and Todd have not missed a mortgage payment, nor do they have any financial difficulties. And yet their home is on the path to a wrongful foreclosure and their credit rating has been destroyed. They spend their time in an endless round of phone calls and letters in an attempt to prevent their home from being stolen out from under them. They are terrified they will be unable to get their mortgage servicing company, PHH Mortgage, to finally and effectively correct their accounting errors and clean up the credit reporting mess the bank created--before it's too late.

Read Kendra and Todd's story -published below with their permission. 

I am a new homeowner as of August 2010. I am not having any kind of financial problems to hinder me from making my monthly mortgage payments. I have been employed by the same company for 8 years and in fact, was just told that I will be receiving a salary increase, small, but an increase never the less. I am married and have 2 children and 2 step-children (4). We live in Little Rock, Arkansas.

During closing, we were told our first payment would be due in August. Our bank sold our mortgage to PHH Mortgage, based in Mt. Laurel, NJ. PHH did not assume the loan and set up our account until sometime near the end of August actually. Our bank has all this documented. All of this was monitored and handled by our bank and loan officer. Once the account was established, our bank sent our first check to them by certified mail. The bank has tracking documents that shows our package was checked into PHH mail room on 9-09 and signed for by one of their employees by the name of LARA. 

PHH Mortgage never applied the payment. We receive NO notification and have no idea that anything is amiss, neither does our bank. On 9-17, we make our 2nd (September) mortgage payment. PHH receives it and applies it, however, it is applied to August payment (not Sept). We don't learn this until October when we start receiving notices from PHH that our loan is behind. Immediately, upon receiving the 1st notice, my husband contacts the bank and gets them involved. Our bank representative contacts PHH by phone and faxes them the documentation showing when they sent the check and showing it received, but never applied. She is told that they will review and correct any errors on their end. Several weeks go by and we continue get letters from PHH saying we are in default of our loan. Meantime, on Oct 15, we send our 3rd payment for October, its applied as late payment for September. So on goes this vicious cycle!

Now my husband calls them around the 1st of November and speaks with a customer service representative. Here is where it starts getting scary, because they claim not to have any notes or documents on our account file that had been sent some 3 weeks previous by our bank. My husband gets the documentation from our bank, and this time he faxes it to them himself from his office. He also is told upon them receiving it, they will review and get back to us. NO ONE EVER CALLS and letters continue. Now, for November's payment, my husband calls it into them over the phone. At this point, he was responding to yet another letter and thought it would be best to call in the payment. It is taken, received, and we get a transaction number and have proof on the PHH online website that we called in the transaction. We later find out by reviewing our bank statement that the money is not deducted yet weeks after we made the phone payment. We were even charged a FEE for making the phone payment.

Now, by December, the letters coming now have an attorneys letter head, Sharpiro and Kirsch, and telling us our home is going to be foreclosed on if we don't bring our account up to date. The letter provides a number to call them. We immediately call them and explain how this all stems from a non-applied payment in August and we are NOT in default. We continued to make our monthly payments each month. PHH continues to back apply them to the previous month and show us in default. The attorneys office won't even talk to us. They basically tell us they don't want to hear it and if we have a "legitimate" dispute, we need to contact PHH.

Now in December we continue to call PHH to check on the status of the information we sent in and get generic responses.  We make our December payment electronically. This payment was JUST sent back to us on Jan 18th with a letter stating that they will NOT accept anymore payments from us because our account is not up to date and in foreclosure process. With this "note" was NO reference to which payment they were returning or any other information. We actually thought it was our January payment we scheduled to have made from our account. It wasn't even our own check returned! They had apparently processed our check and then sent us a check from their account returning our funds to us.

The scary part is each time we call, we get someone new and there seems to be NO NOTES on our account that this has been disputed for months with calls and faxes, etc. January 10 we get a letter stating we have 30 days to "respond" to the attorneys regarding our loan or they will be foreclosing on our home. ARE YOU KIDDING? The letter reads as if we are a bunch of deadbeats and have continued to ignore their many attempts to reach us by snail mail.  Even though we know the attorney has already heard our story, we do contact them AGAIN immediately. I offer to fax them the same documentation, in addition, to send them documentation of every month's payments from our bank statements. They again tell us it won't do any good to send them anything and if we have a "legitimate dispute" to take it up with PHH Mortgage.

At this point, my husband and I are beside ourselves. We have invested countless hours, missed work, to work on this with NO resolution yet.  Toward the end of December, we stopped talking to the regular Customer Service reps and immediately ask to speak with a supervisor when we call. We are now on our 3rd "Supervisor" that has promised to review our faxes, that by the way, we had to re-fax to each one of them because its not noted or documented on our account. The supervisor tells us if we have the documentation they will review it and call us back later that day or the following day- they NEVER have called us back. Each time a few days goes by, we are calling back and get a different supervisor. Its liked someone dropped us in the middle of the twighlight zone dealing with this company. Our bank loan officer is also very involved and has been on the phone with PHH many times and as recently as today to with someone in the foreclosure department trying to explain this is a terrible mistake and injustice and PHH is actually at fault. She updated us today that the person she spoke with claims they are "working on it" - but that leaves us NO assurance as this is what we have been told for MONTHS and now our money is being returned to us!

WE ARE TERRIFIED- they are going to try to foreclose and take our home. Its like the left hand has no idea what the right hand his doing over there. We have spent hours and hours the past few days calling attorneys and researching. Several attorneys we talked to said unless we were filing bankruptcy, they couldn't help us.

I don't understand how this can happen. This has also severely impacted my credit. I have printed all 3 credit reports and PHH has reported to all 3 that we have not made payment in the past 4 months and we are $4777 past due. Are you kidding?

I have already filed a complaint with the BBB and FTC. If you google this company, the internet is littered with all kinds of terrible stories about them. The BBB has over 400 complaints on file and they have a C rating. It is despicable that consumers can be treated this way. This has caused us so much stress and it appears to be a long battle in front of us yet. All please pray for us.

Kendra and Todd
Little Rock, Arkansas
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Dear Kendra and Todd,

I am a Forensic Mortgage Document Auditor and have worked in the financial field for some 10 years. I also live here in Little Rock. I am presently working a number of cases with 3 attorneys.

As per your situation I can say that the lender was not the lender and was just a pretender lender and that the loan was securitized.

If you guys would like some help please contact me at


I'm in a similar situation but thankfully not as bad. I have been ahead on my mortgage payments since purchasing the home 8 years ago. I refinanced two years ago and started out a month ahead. I did this as a cushion for me in case of financial difficulties in the future. It gives me an extra month before anything happens with the house and also gives me a mail cushion in case something gets messed up with a payment. I hate being late with any payment and my credit rating shows it.

My loan got sold to TierOne bank in Lincoln, NE. They went under and were sold to Great Western Bank. Great Western Bank doesn't do mortgages so immediately sold my mortgage to Mutual of Omaha Bank.

With TierOne, I had a payment book where I sent a coupon in with each payment. Since I never received anything other than an address to send payment to from Great Western, I continued using these payment coupons so I'm sure I've kept up to date.

The mortgage was sold to Mutual of Omaha Bank. They use Dovenmuehle Mortgage to service their mortgages. I received my first statement from Mutual of Omaha Bank and they show that my next payment is due in less than two weeks! I've ALWAYS been six weeks in advance. I got all the cancelled check images regarding the loan since the refinance from my bank and verified which due date each was for and when it was sent in. I AM still six weeks in advance. I've never missed a payment being six weeks in advance. At worst, when I didn't yet have the new coupon book from TierOne, I ended up sending two payments in quick succession to be caught back up to the six week in advance plan.

I've been promised research and callbacks from Dovenmuehle. I received one callback after a month where they told me they verified I had made 12 payments last year so that showed that their due date is correct. They didn't even look to see when each of those payments was due. I spoke to a manager who promised me a call back within 3 days. It's now been three weeks and I still haven't heard from him. I've been in phone contact with a person at Mutual of Omaha Bank. They say they want to get it resolved but because Great Western Bank has no mortgage department, they don't have anyone to call there about it.

What a joke. Because of some bank's screw-up, I'm out a mortgage payment. Oh, some may say I'm not out a payment because it's been applied to the loan. It's out of my pocket and they didn't credit me the month it was due so I am out the payment.

No one cares.

I'm going to be writing my Senator and Congressman asking that a law be made regarding buying and selling of mortgages. If a bank that owns a mortgage screws up, the person owing the money should have some legal say in who manages the mortgage. It's my money and my credit rating at risk here, not the bank's.

Is there any sort of bank oversight department at the state or federal level to enforce the rights of borrowers?

Dear Denise,
After reading several stories on this website, It still seems as though nothing, and i mean nothing is being done to stop companies like PHH Mortgage, and nothing has been done to help people who were wrongly evicted from their homes in restoring their credit. Phh Mortgage did the exact same thing to me by not recognizing my payments because they had'nt included my taxes in the modification they made for me ( Only because after 9 months of talking to India-i threatened PHH with a C.C email to 60 minutes, Anderson Cooper, Channels 2,4,5,7,9,11,13 , Diane Feinstein, Obama, and Joe Biden. They set me up with a phony modification reported me to the 3 credit bureau's 9 x's. In September 2008 my fico was 801, and i had no debt. Fannie mae sold me the house through a shel company who was really PHH Mortgage and promised me 6.3% fixed and the last day before the close of escrow shoved down my throat 6.7% completely unjust. I know what the banking industries ploys of making loans to folks who had no money or credit to buy anything- in-turn created a demand for housing, pushing the appraisals up 20% for 3 years straight, And is now double and triple dipping on all the foreclosed, and short sales. What the financial industry had done is put our country into a depression. It's the biggest PONZI scheme ever played out. Our history will show more suicides during this time than ever before. I believe the financial institutions should be brought up on several charges of pre-mediated and unjustly leveraging property appraisal's illegally and knowingly. They need to be accountable to this horrific injustice, and put people's credit back to where it was. Also The amount of lobbyists for this industry has to be minimal and have a ceiling to it.
Again this is the worst white collar crime ever.

I am a Servicemember and just closed on my new home a couple of days ago. My lender USAA just sold my loan to a company called PHH and I am begining to wonder who these people are and if they are gonna screw me over.


PHH is really messing us up. We pay our mortgage on time and in June 2010 they applied our payment, but in July 2010 they applied it to June 2010 again. So every month thereafter we were staying one month behind without knowing it. We never received any notices about being behind until they just froze our account and we could no longer make any payments and that was in November 2010. We contacted our attorney and after calling and emailing their attorney with no success. After a month and a half they did get the attorney to respond and they had no idea why our account was locked and told my attorney to just send the payment into them and they would make sure it was applied to the note. Not long after that we received a motion in the mail, they were trying to foreclose. We called our attorney and when they spoke to them she said that the payments were still sitting on her desk and she would drop the motion. These people and the attorney are terrible. We finally got our account unlocked to where we can start making our own payments around April 2011.

Recently my husband lost his job and he was offered a job in Baton Rouge, LA. We are trying to purchase a doublewide to live in over here. We are having problems getting financed because of PHH. We are living in a motel 6 at the moment while we try to fix this situation. We have decided to look into filing a suit or a class action law suit against them. This seems to be our only solution to this situation and recover our good credit status.


I've just recently started looking into my credit rating a little more in-depth since my home was foreclosed upon last year. I had assume there is nothing I can do at this point and that I will need to deal with the bad credit score for the next 10 years. My story sounds like everything else I have read online, perhaps with a little twist. I obtained my home loan with my ex-husband through USAA who promptly sold it to PHH Mortgage. My credit report shows that from 2005- late 2009 I never had an issue with payment on the account, although with my ex and I divorcing it became difficult from time to time to make the payments. Like others, my escrow amounts went up each year although my property value continued to decrease. Each year, when I received the escrow notice I was given the option to make up the difference in a lump sum or I could pay it over 12 months with my mortgage payment. I chose that route.

I also was accustomed to sending 2 payments each month, paying half of my mortgage out of one pay check and half out of the next. It just made things easier cash flow wise and I never received any notice or calls that this was an issue, so I continued doing business this way. They got their money, never said there was a problem, and I continued to have a good credit rating. Seemed like a win-win and as long as I sent the payment twice a month I figured I would never be 30 days behind. 15 days maybe, but not 30.

Well, sometime in the fall of 2009 this changed. They took one of my partial payments and applied it to the escrow account. Since the remaining amount was not enough to pay the current month they put the funds into a holding account to await the full payment. Of course, my next payment was still a half payment, and since the half payment and the money sitting on the holding account was not enough to cover the full month they put that payment into the holding account as well. I think they might have applied some of this to a late charge. This apparently went on for some time although I was not aware of it. I would receive notices from time to time from their company, but like an idiot I never really looked at them because I thought they were statements and as far as I was concerned I was paid current – as I continued to send them money each month.

It wasn’t until maybe May 2010 that someone finally called me and stated that I was 180 behind on my mortgage and that my house was going to be foreclosed on. Imagine how that call went. I explained to the man that I had proof on my bank statement that this was paid, and nothing was ever returned to me. Turns out those little notices from their company were payments coming back from them stating that they could not accept partial payments and therefore were not accepting anything from me from that point forward. I worked with this same gentleman until we got everything “resolved.” He was actually one of the good guys, called me back, and worked until he found the source of the error (I made the mistake of speaking to one other person who told me there was nothing he could do to help me resolve my issue. I told him I didn’t want to speak with him again and to transfer me to the man I spoke with before). We found all the returned payments and I turned around and sent them the money back. I had maybe 1.5 months still owed (current month plus late fee’s maybe, I don’t recall the exact break down) which amounted to about $1000. I sent one payment for $699 and before I received my next paycheck I received a foreclosure notice. So, they foreclosed for the remaining $300.00 or so dollars. Of course, at that point, it wasn’t $300.00 it was $5000, or I could make payment on my loan in full for $78,000. They essentially called the loan and I could pay the past due balance, the lawyers fee’s, the reinstatement fee’s, etc or I could pay the loan in full. Financially this was way out of the ballpark for me. The $700.00 a month was difficult enough.

Nothing I did from that point forward could salvage the situation. I contacted a lawyer who told me not to send any more payments until the issue was resolved. He hooked me up with a realtor who tried to short sell the house. We had it down to $29,000 and still no one would buy it (neighborhood was a ghost town with all the foreclosures), we filled out loan modification paper work and they kept coming back stating that they didn’t receive part of it. After doing this 4 times they sent a notice that they were proceeding with the foreclosure. My lawyer advised me that there was no further recourse and that I would just have to let it go. He did advise me that the PMI company might file suit against me to get their money back within the next year. I would have to wait and see.

The irony of all of this, is that on my credit report it shows that I was current and in good standing in August 2010, I sent that next payment September 8th, and for September they have me marked as 30 days delinquent. In October it jumped to 90 days. But the main thing I have an issue with is that they had me marked as current and then sent me a foreclosure notice not more than 30 days later. How is this possible and does anyone think that this might be cause for the credit bureaus to remove this from my credit report, as I was current at the time they started the foreclosure proceedings?

My FB page... Public Complaints on PHH Mortgage / RBS Citizens Bank

My Story
PHH Mortgage/RBS Citizens Bank are one in the same… We were in the process of modification through PHH Mortgage since late 2011 and around February 2012 we received a letter introducing us to our ‘case manager’ who would keep us posted on the progress of the modification.

In April, we received a letter from the modification department asking us to mail more documents, which I had sent twice already. By May, I called the case manager and she did not seem to know what was going on (delaying modification) but after consulting with her superiors, she asked to me to email her the same documents once more and I did. Despite the assurance (“send this and we can go through modification”), we kept receiving (by mail & email) request for more documents from different people in the modification department!

Early August, I was assigned (temporarily) a case manager because mine went on vacation and she asked me to scan “modification documents” (which by now I had mailed, faxed and scanned several times). I obliged and she informed me (via email) that their staging department is working on our modification. Suddenly, two weeks later, I received a letter from PHH mortgage lawyers informing me that our home will go on sale the next month!

I called the case manager to find out what was going on as the last time we spoke, she had told me that my home was in the process of modification. I left messages but she never returned my calls. This seems to be a recurring issue with PHH. So, I emailed her and scanned the “sale” letter from their lawyers. She finally emailed me back but with “email me (listed) documents so we may postpone the sale.” I had been sending and resending documents to PHH on a regular basis with a promise of modification (somehow my home still went up for sale) and now they were doing it again, asking for more documents. She also informed me that my case manager was back and that I should communicate with her, but despite numerous calls, I was unable to reach her and I never heard back.

Despite PHH’s promises and assurance of modification, they never did anything except ask me to send and resend documents, while letting me believe I was still under consideration for modification (even though the other side of them is foreclosing!). The DAY BEFORE the indicated sale date, my case manager finally called and informed that my modification was denied and she doesn’t know why.

PHH NEVER MAILED ME A Modification Denial Letter, AS IS REQUIRED BY LAW and, they informed me of the denial the day before the sale!

A real estate agent showed up a week later and told me to vacate my home without showing me any documentation of sort. I called PHH to ask them about it but they told me that my home did not sell and transferred me to REO department where I left a message. I continued to call them but they kept telling me my house did not sell and proceeded to transfer me to REO department who never returned my calls.

Three weeks later, we received a 3 days notice from PHH lawyers (different lawyers this time). I sought the help of friends in realty (and eventually lawyers) that reviewed my documents and determined it was a wrongful foreclosure. Along with professionals in the business, I called PHH and we spoke with several people, including the vice president’s office – the supervisor we were eventually assigned reviewed the facts (after a long discussion!) and ADMITTED that our home was WRONGFULLY FORECLOSED, assuring us that the three days notice will be recalled and our home put back into modification.

Another supervisor from PHH called a few days later regurgitating the same information as the first (the home is being returned to modification) and that we should continue to wait for the formal letter. However, two days later, the same supervisor called and said that the legal department instructed them not to proceed with the reversal from WRONGFUL FORECLOSER back to modification – it is not in THEIR best interest!

PHH AND RBS CITIZENS BANK are admittedly wrong and should take responsibility – they should follow their credo “honest and ethical everyday”

I have learned that when it comes to PHH…


If you have mortgage with PPH mortgage I advise you to refinance with another company. This company is terrible.

Tried to refinance mortgage already held with them. Process was long & drawn out. It took months. They changed interest rate after it was locked in even though credit rating was excellent & appraisal was well above loan amount. Took them days to return phone calls & email. Transferred to different departments. Would not narrow down closing costs - they stated it could be "up to $5000.00". Come on people, I don't expect an exact closing cost, but "up to $5000.00" is not how you do business. Would not take an existing appraisal & made me do a 2nd. Got tired of waiting for response on a more precise closing costs & went with different company. Still charged fees by PHH. Called company to request that fees be waived, they said no. Entire process very unethical. Beware!!

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