Report: Ocwen Federal Bank
Category: Mortgage Companies
Ocwen Federal Bank debtors beware W Palm Beach Florida
*Consumer Suggestion ..Save your Home
Ocwen Federal Bank
Fax:
W Palm Beach, Florida, 33401
U.S.A.
Submitted: 6/25/2004 12:49:49 PM
Modified: 6/29/2004 12:10:48 AM
Nancy
redlands, CaliforniaMy loan was sold to Ocwen almost immediately after I refinanced a year ago. The first statement/payment coupon was sent to me AFTER my first payment was due. I had luckily sent a check anyway and after a couple of months of arguing with them and proving they had received the check, they finally reversed the late charges. Since then I think I've received three payment statements. I have heard several reports that this is done on purpose in the hopes that the mortgage will go unpaid so they can collect late fees and foreclose! I just wanted to add my complaint about their practices - the more people that find out about their shadey tricks, the better!
Nancy
redlands, California
U.S.A.
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Updates & Rebuttals:
- How they steal your home (Source: Mortgage Servicing Fraud) 'Sounds like it came directly from the Ocwen's Customer Mis-Service Manual' Jon [6/26/2004 11:34:10 AM]
- Save your Home Gary [6/28/2004 10:26:46 PM]
How they steal your home (Source: Mortgage Servicing Fraud) 'Sounds like it came directly from the Ocwen's Customer Mis-Service Manual'
These are not 'predatory lenders.' These companies do not loan money. They operate in the
lending industry after-the-fact. They take on a function that a lender doesn't want - the backroom functions of handling payments, escrow accounts, annual statements, dealing with borrowers, collections, etc. The perpetrators of the loan servicing scam acquire the servicing rights to loans that other companies have already made. (Loans that were deliberately constructed by predatory lenders are ideal for processing through servicers that specialize in aggressive collections or rapid foreclosure processing, but the loan servicing scam can be operated against any mortgage loan if the servicer acquires the rights from the lender.)
These scams are designed and deliberately operated. These situations are not errors, mistakes or situations where a servicer's managers or employees failed to do their job. Their systems are well-designed and state-of-the-art in terms of analytical technology that helps them choose and process their victims. These scams generate enormous profits from a business that is difficult to run, people and litigation intensive and normally only marginally rofitable. Many have failed and been acquired (Fairbanks bought several).
You, the borrower are not their customer. Lending companies and investors are their customers. As
a borrower being 'serviced' in the scam, you are simply one of millions in an ever-growing pool of what the financial services industry deliberately labels as 'sub-prime' borrowers waiting to be taken advantage of.
They have almost unlimited legal resources. If you had the financial resources to have effective
legal representation and the documentation to challenge them, they would turn their attention to easier targets. Of course, because most sub-prime borrowers are not well off and don't have an attorney, you're a likely target.
They have leverage and information and will prey on your fears. The fear of possibly losing your
home is the key that unlocks your bank account for them. They know almost everything about you
financially and even from an employment and
income basis. They are made aware of your
inquiries into other lenders about refinancing even without a request for a payoff and that shopping may lead them to target you before you can get out of the loan you're in.
They are experts with millions of successful cases behind them. The loan servicing industry,
including those who founded and are running the servicing scam companies, helped craft the 'standard' loan documents in widespread use.
They are written entirely for the protection of the lending industry, not the consumer. That situation allows them to manipulate their processes and procedures to push you into a position where they can take funds from you or ultimately take your home, often within the terms
and conditions of the loan. Some do go beyond the terms or even break the law and aren't stopped
because the borrower does not actually understand the agreement they signed or the laws and
regulations.
When the servicer decides to manipulate the date the payment is received in order to artificially create a late payment.
When the servicer applies part of the payment to something other than principal and interest
and creates a partial late payment or deficiency.
When the servicer decides to 'force place' an insurance policy on the property by claiming the
homeowner has not provided proof of insurance.
When the servicer pays your property taxes late, then adds their late penalty to your account
without your knowledge.
Any or all of those processes result in at least one month of the account being past due and a negative note is made in the credit report (which effectively prevents the borrower from refinancing). It also helps the Private Mortgage Insurance carrier keep the policy in effect on the loan, which is why these insurance companies have investments in servicing companies in the first place – a late payment or two allows the lender to keep the insurance in force.
IF the borrower has anything more than about 10-15% equity in the property, it is to the servicer's advantage at this point to not aggressively attempt to collect. In fact, if the borrower makes contact, the servicer will engage in delay tactics to avoid resolving the problem in time to prevent default.
If the equity position is considerably less than 10%, the servicer does not have as much leverage, nor is the opportunity as great and they will typically be more aggressive in collection efforts and more willing to keep the loan in force.
In the case of force-placed insurance, it is to the servicer's advantage to ignore the borrower and any proof of insurance as long as possible, again to keep the borrower's credit status in a negative light and to maintain their relationship with the insurer they contract with. These policies are extremely profitable because they provide absolutely no coverage for the homeowner. They protect ONLY the value of the loan if the property is destroyed.
If the servicer has analyzed the opportunity and marked the property for default and recovery, the next payment received will be rejected as being insufficient. If it is accepted, the application of the funds leaves the loan sixty days past due. Typically, the scam now moves toward formal legal notice of acceleration in order to coerce the borrower into signing a highly-profitable forbearance agreement to somehow 'save the home.'
The servicer rolls thousands of dollars in penalties and an incomprehensible combination of legitimate and illegitimate fees into the agreement and the homeowner is left with no choice but to sign it or lose their home. The amount demanded will be calculated to take as much of the homeowner's equity as possible.
If the homeowner decides to sell the property to get out of the situation and take their equity, they will find the payoff amount (which in the last month of the scam will take longer to get than the amount of time left before foreclosure) strips them of their equity. That combined with their artificially-damaged credit rating helps keep the victim trapped.
If the borrower cannot pay the amounts demanded in the forbearance agreement, the servicer will have one of their network of specialized attorney firms foreclose and the property will be sold, typically at a county auction or through their real-estate network.
If the borrower signs the agreement, they will soon be recycled through the process with yet more late payments and fees. But in the terms of the forbearance agreement, they may find they have signed away any legal protections they may have already had, including the right to sue the servicer for fraud or misrepresentation.
In the end, if the homeowner cannot afford competent legal representation to stop this fraud, they lose their equity and in many cases, their home.
The End.
'Sounds like it came directly from the Ocwen's Customer Mis-Service Manual'
Save your Home
Bail out now. I do not know how or why they get away with stealing peoples homes but they do. I owned my home in Corona since 1976. In October of 2000 I wired Ocwen $22,823.66 to bring me current. About a month later I discovered that their statement did not add up it should have only been $18,999. I called to investigate this overpayment. My payment was $1423 per month on the $116,250 loan. Three months later they started foreclosure by recording a 'Notice of Default' claiming arrearages in the amount of $10,539.00.
I rescinded the loan under TILA. They ignored it. I filed for Bankruptcy Protection. They ignored it. Sold my home and reconveyed the title. Told my lawyer they changed it back to my name. They had not. Sixteen months later they started to foreclose again. I got approved for a new loan from Indy Mac Bank. However the loan could not close because title was still held in the names of the previous (unlawful) sale. They sold it to a real estate investor.
6 months and a new lawyer later I was evicted in February of 2003.
Now June of 2004 I lost a new lawsuit I brought against them. Did not even get a chance to make my case. Dismissed without leave to amend.
Their attornys have made various false allegations in the court motion. Problem is I have never gotten a chance to bring this up.
This is not America.
Bail out now while you can ,,get a new loan as quickly as possible even if it costs a lot of money. My nest egg is gone. Neighbors house recently sold for $380,000. I am trying to keep the utilities on in my Mom's old house (she passed away last August).
Save yourself and you home while you can. If you have any questions call me [DELETED]
Good Luck
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