SHAME ON OCWEN FINANCIAL - "STEALING" FROM HOMEOWNERS

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Real Estate Agent with Pacesetter Properties 586143

Ocwen Financial Services is the worst of the worst when it comes to loan servicing! They have this little ditty on their website:"Helping Homeowner's is what we do!"  I'm not buying it.  They seem to do everything possible "not" to help the homeowner.  In fact it is almost impossible to even get a phone number out of their customer service department for anyone in the United States who could possibly help. 

Here is the story!!   The homeowner was recently divorced and  is self-employed.  He runs a local residential construction company and has seen better days,  even here in Austin.  Last year,  his business took a nose-dive and he is just now starting to recover.   His priorities have changed.  This is now a one  income family and he has to pay child support.  Right after the first of the year, he tried to do a loan modification.  Seven months later he is still trying with no success.  He has a relationship manager who has been less than helpful during this process.  His most recent request for a loan modification was turned down July 17, 2012.  She wasn't even aware that it had been turned down.  Of course,  what they want is new documents filled out and they will not stop the foreclosure.  Their average turn-around time on a modification is 2-3 months, so there is no time left to start over.   The only options offered were foreclosure or reinstatement of the loan by paying back $32,000. 

 Let's get something straight here.  This homeowner is not my client.   His property is listed with another agent.   It isn't even a listing in my office.  I have nothing to gain financially by helping.   The agent is a friend,  and we've worked together before.     She just knows that  I have helped her clients in the past and she asked if I could please look at this case to see what I could do.  So far I've invested about 5 hours and haven't gotten anywhere.  Yesterday I faxed in my third party authorization and started doing my due diligence on this property.  The homeowner owes approximately  $250,000 and has $200,000 in equity.  The home was reduced in price today down to $450,000. 

I have spoken to the Ombudsman for Ocwen but they suggested that I do a "short sale."   I've explained that this is not a "short sale" and that the homeowner has almost as much equity in the property as Ocwen does.  By foreclosing on the homeowner,  they are stealing his equity.    Isn't there something we can do to help this homeowner?  They are telling me that they never stop a foreclosure.   I've asked about a forebearance agreement and they told me that they never do a forebearance agreement beyond 3 months.  I told the relationship manager and the Ombudsman   "You've told me what you can't do for the homeowner,  what can you do to help him?  Their  only suggestions were  to bring the loan current or to apply for a HAMP modification.  This loan is not a Fannie Mae or a Freddie Mac loan.  I've asked for the name of the investor and I've been told to put in a fax request to the "research department."

So far,  I've emailed every email I have found for Ocwen managers and executives.  This company goes to great lengths to protect their internal phone system  and email system from prying agents.  I'm about ready to write an expose on their business practices,  their despicable  overcharges and their whole scam of GoHoming.com  and RHSS.com which is run out of India  on Ocwen servers.  They input listings at night and don't pay for access on our MLS.  The Better Business Bureau rates this company as "F."   Does anyone in the Active Rain community have any suggestions or have an email address or phone number of someone who may be willing to help?

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Rainmaker
786,987
Mike Cooper
Winchester Real Estate Sales, Cornerstone Business Group Inc - Winchester, VA
Your Winchester, VA Real Estate Pro

Carol, I'd love to see this one be open to all viewers.  I've had numerous blogs inspire a phone call from an uncaring bank or lender.  Your story is all too familiar, and it would be good for folks to know better than to even work with Ocwen.  Good luck!

Jul 21, 2012 03:31 PM #7
Rainmaker
149,350
Rich Arnold
Keller Williams Realty East Valley - Tempe, AZ
Realtor - Tempe, Chandler, Mesa, Gilbert, Phoenix

Carol,

Earlier this year I had a disappointing experience via GoHoming.com.  My client had bid on a listing, and this site's online offer system is more like buying off ebay --- you have to anticipate and put your newest offer in at the right moment to outfox the competition.  It's more about bid TIMING against the deadline than TERMS of your contract.

Jul 21, 2012 03:41 PM #8
Ambassador
627,933
Doug Rogers
Bayou Properties Realty - Pineville, LA
Your Pineville Louisiana Agent

Best wishes to the seller. The stress of a down market plus poor customer service must be tough!

Jul 21, 2012 03:49 PM #9
Rainmaker
274,789
Jeff Pearl
RE/MAX Distinctive / LIC in VA - Leesburg, VA

I don't know all the history and details of your friends situation, except what you mentioned here. Ocwen's web site is down right now, but there are many phone, and fax#s listed on it, and also an email. The investor(s) sometimes instruct the banks not to disclose certain info to agents, and it can be a pain sometimes to get through the lenders and servicers. I do know many agents like doing short sales with Ocwen even though commission is a low %. The # I have for their Collections and Financial Hardships is 800.446.2936 and email rapidsolutions@ocwen.com You might already have those, and if you don't,...... I'm not sure either of those will help. ( You can google any lender and find a list of complaints).

 You mention it was dropped today to $450,000.00 ( whicch I assume is below fair maket value?) and he only owes $250,000.00 If he's in default and facing foreclosure, if I was him, I would be dropping the price to $375,000.00 and be happy walking away with $100,000.00 + instead of waiting on foreclosure, especially in TX. Or maybe he could owner finance part of the price?

Jul 21, 2012 03:55 PM #10
Rainer
7,153
Judy Barrett
Judy Barrett, REALTOR - Kailua, HI

My contacts go back to 2007, when I had an equally ugly situation and ended up having the property sold at auction ONE DAY before COE because the holder of the second had not authorized stopping the sale.  From the depths of my 1200 page file:

Theresa Bratcher, Senior Loan Resolution Department, 561-682-8946

Brenda Liz Vazquez-Velez, Senior Loan Resolution Department 407-737-5693

CEO Email:  William.Erbey@ocwen.com    Phone (561) 682-8520

Hope you get through to them!

 

Jul 21, 2012 04:40 PM #11
Ambassador
1,094,013
Melissa Zavala
Broadpoint Properties - Escondido, CA
Broker, Escondido Real Estate, San Diego County
Okay, in California, if the foreclose and there is equity, the equity after the sale is returned to the homeowner/borrower. While I feel for you and I have had my own negative experences with Ocwen, I kind of don't understand how they are stealing equity. Maybe I should have read more carefully.
Jul 21, 2012 04:46 PM #12
Rainmaker
697,645
Kwee Huset
Kwee Huset Realty - Venice, FL
Venice Florida Homes For Sale

Hi Carol, I just had a short sale approved by Ocwen, from being listed to contract, it closed in 21 days (8 days before the foreclosure date). 

Jul 21, 2012 05:22 PM #13
Rainmaker
449,496
Tim Maitski
Atlanta Communities Real Estate Brokerage - Atlanta, GA
The Agent Who Uses "Watermelon Tough" Sign Posts
Equity is what you have left after you sell and pay all mortgages. His $200,000 in "equity" is wishful thinking right now. Lower the price until it sells and move on.
Jul 21, 2012 05:23 PM #14
Rainmaker
366,469
Kerry L Klun
Tropical Realty of Suntree - Indialantic, FL
321-626-5868 - Space Coast Area Homes

I have come across these people, and I agree, they are the worst type of lien holder.  I agree, sell for what you can get and move on,

Jul 21, 2012 06:49 PM #15
Rainmaker
1,054,056
Joan Whitebook
BHG The Masiello Group - Nashua, NH
Consumer Focused Real Estate Services

What an interesting and very disturbing post.  I hope that if these things are true, something will be done to stop these practices.

Jul 21, 2012 08:20 PM #16
Ambassador
1,555,894
Christine Donovan
Donovan Blatt Realty - Costa Mesa, CA
Broker/Attorney 800-610-7253 DRE01267479 - Costa M

Carol - I know that I've found GoHoming.com to drive me insane.  Apparently if you try to act like a buyer because you can't get anybody any other way, they then transfer you to a local buyer's agent, but you can't leave a message though it shows as a missed message.

The whole program is frustratingl

I wish luck to you and this homeowner.

Jul 21, 2012 09:41 PM #17
Rainmaker
265,979
Jay Beckingham
Premier Nationwide Lending - Port St Lucie, FL
"I love first time homebuyers"

i'm with Tim. if it's sell or foreclosure, why wouldn't he lower the price further to say $375,000 and take what he can as opposed to what? nada?

Jul 22, 2012 02:50 AM #18
Rainmaker
1,076,923
Scott Godzyk
Godzyk Real Estate Services - Manchester, NH
One of Manchester NH's Leading Agents

With that much equity to protect the home owner NEEDS to hire an attorney to protect his rights. Ocwen is run out of India and communication is poor at best. At this point instead of protecting 200k in possible equity drop the price 100k and save 100k in equity or lose it all. get the price to a point where a cash investor will close in 7 days.

Jul 22, 2012 06:04 AM #19
Rainmaker
315,240
Dave Halpern
Keller Williams Realty Louisville East (502) 664-7827 - Louisville, KY
Louisville Short Sale Expert

Although Ocwen is one of the worst servicers, there are numerous ways the seller with true equity can avoid foreclosure and even keep his home without asking Ocwen for help.

Jul 22, 2012 08:57 AM #20
Ambassador
1,238,010
Erica Ramus
Erica Ramus - Ramus Realty Group - Pottsville, PA - Pottsville, PA
MRE, Schuylkill County PA Real Estate

Lower it drastically. Even if you lower it to above what he owes, but less than market value you are at NO SHORT SALE. Right?

 

Jul 22, 2012 10:57 AM #21
Rainmaker
671,828
Pamela Seley, REALTOR®
REALTY EXECUTIVES OTF - Temecula, CA
Menifee Lakes California Real Estate

It sounds like the homeowner wants to keep their home. If the bank forecloses, they are stealing the equity. I've heard of this practice that banks will be quick to foreclose on a homeowner in default where there's equity than a homeowner in default with zero equity. Just sayin' maybe don't do business with Ocwen in the future.

Jul 22, 2012 02:28 PM #22
Rainmaker
550,026
Gary Frimann
Eagle Ridge Realty / Signature Homes & Estates - Gilroy, CA
California Broker and REALTOR

They won't steal his equity if he does a regular sale, which it sounds like he can do.  I suggest a regular sale, although I can see what you are trying to do in helping this poor guy down on his luck...

Jul 22, 2012 03:25 PM #23
Rainmaker
146,982
Carol Pease
Pacesetter Properties - Cedar Park, TX
CRS, Broker-Associate 512-721-6320

Thanks for all the replies. 

The seller didn't choose Ocwen,  Bank of America sold the loan to them.  One of the biggest problems I have with this file and with Ocwen is the practice of "Dual Tracking."  This is where the foreclosure and the modification are being processed at the same time.  The seller is lulled into thinking there is hope and then the loan modification is denied and BAMM the foreclosure is right there.  That is the case here,  the homeowner was denied on the 17th of July and hasn't even received the denial letter and he has already received his Notice of Substitute Trustee Sale.  When all these banks took bailout money (and Ocwen did take the money!!!)  they were supposed to  change the their evil ways.  Ocwen states that they will not stop the foreclosure scheduled for August 7, 2012.  Texas is a non-judicial state, and things happen very quickly here.!!!

Jul 23, 2012 10:22 AM #24
Rainmaker
274,789
Jeff Pearl
RE/MAX Distinctive / LIC in VA - Leesburg, VA

That is what I was afraid of. I had heard TX moves fast when it comes to foreclosures. Ocwen isn't the only one that does that. Sounds like he needs to drop price 350 or less to get a quick sale if he hopes to salvage any of his equity, unless he can find someone to borrow $32,000.00 from, or sell to an investor that will rent it back to him.

Jul 23, 2012 06:06 PM #25
Rainer
9,534
Scott Allen
Scott Allen Realty - Spokane, WA

Wait until you pull up infront of a home to take a picture for a BPO and this is what the homeowner has been through.......happened to me and the homeowner came charging out of the house. Mad as hell and started in on me, said they were calling the police.......I said I wish they would for my safety. Now I find out that 3 days after I do an interior..........they list with a company that isn't in my MLS or even located on my side of the state.

Aug 07, 2012 02:56 PM #26
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Rainmaker
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Carol Pease

CRS, Broker-Associate 512-721-6320
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