My hands are tied
When we initially signed the contract we were told that even though this is a short sale it will NOT take a long time and the process was going to be very smooth.
It has been over three months and we have yet to get a closing date.
We had to sign an extension to the contract stating by July 01, we will get a closing date.
Now July 3, 2013 I was notified by my agent that the seller’s bank is going to put the house that we have been patiently waiting for in hubbiz.com and upload the current offer!!!!!!
At this point not only my patient ran out but I’m also extremely furious about this deal and the lack of professionalism. I have never been in a situation like this and done business with people who are out of touch and not aware of the process we are going through.
We have a binding contract, not only we should have closed the deal right now but this house should NOT be on hubbiz. com , this is illegal because it’s already under contact since March.
I can't contact OCWEN because I'm not authorized and my agent can't do much, or can he?? Help
Replies to This Discussion
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Permalink Reply by Wayne Brooks on
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Sorry this has happened to you, there should have been better communication before. Owen can certainly be difficult, and you probably don't know who actually owns the loan(the investor). But, it's not illegal, regardless of your contract with the seller, the shorted lender can impose whatever process they wish, in order to grant the short sale approval. I assume you meant HUBZU.com, which I'm more familiar with for REO properties.
My best suggestion is to look for a different property, or work with the procedures they're giving you now, as unfair and frustrating as that may seem to you right now.
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They will receive offers from everyone, and likely go with the strongest offer, as to price and financing contingencies, all cash, etc. they may leave it open for offers for 30 days or so. The listing agent should know what their exact guidelines are.
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Permalink Reply by Aneissa Van Metre on
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Tara, I agree with you. In Colorado, it IS illegal for a seller to sign a second contract when they are already under contract on a property so if they list it on Hubzu.com then they offering it for sale when they legally can not. NOW that being said, I'm NOT a lawyer... However, the reality is that if the seller does NOT follow the directions of the bank then they will simply move forward with the foreclosure auction and then the bank will most likely own it and will be able to do what they want.
Personally, I feel very strongly that we ALL (buyers, sellers, agents, brokers, and friends of these) need to take a stand and start doing things like ALL calling these organizations on the same day and letting them know that these tactics are a form of duress and forcing sellers to proceed in a manner that would never be tolerated in a normal transaction.
There are a LOT of things that the lenders are doing that is just wrong. I think we need to start to unify and stand together over these kinds of issues so they know that the public and their customer base is NOT happy with the way they flaunt the laws, rules and ethics. I have known those who have had success with these types of tactics. 200 people tying up their phone lines, sending emails, faxes, letters and any thing else they can think of WILL make a difference.
I wish you the best and let me know if you want to make some noise. I am tired of being put over a barrel by these giants who think that they can do what they want and hurt sellers and the agents that are just trying to get the deal done.
You may want to talk to an attorney and see if you have recourse against the seller if they sign a second contract. A well worded letter from an attorney MAY help get the bank's attention.
(Just don't write your complaint in chalk on their sidewalk or you may end up in jail- seriously!)
Aneissa
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Permalink Reply by Diane Gish on
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I agree with Harry. Probably one of two things is happening, Ocwen is crazy OR the offer is to low. We all know Ocwen can be difficult, especially because for some reason (in my experience) they do not counter an offer. They decline the deal and indicate "the offer is to low". They really won't say how much they want.
The problem with giving this buyer advise is we have no idea if their contract is "low ball", if the listing agent listed the house "low ball" and the buyer wrote an offer full price on a low list price etc...we don't know the details, so that makes it difficult to give the buyer advise. The buyers agent can easily conduct a market analysis and let them know how "below market" the offer is. If the contract price is well below market value then the buyer needs to increase the offer immediately or move on.
Finally Tara, if you think your offer is "fair" I would suggest you immediately pay for a private appraisal. I AM DOING THIS RIGHT NOW WITH OCWEN. Guess what...I had to increase the sales price $30K based on my own appraisal and put the house back up for sale. The house sat there alone and lonely for another 45 days and now another buyer has stepped up and made another offer. I have resubmitted the new contract, hud-1, and APPRAISAL to Ocwen. We are about 35 days into this new deal and Ocwen has the offer in front of the investor for final review.
Finally, whom ever told you in the beginning that this would be a quick or easy process obviously has not been involved with many short sales. I am positive there are provisions in your contract that would allow you to walk away at any time. In Virginia there are also provisions that protect the seller. You have a "contract" on a short sale. Somewhere in that contract it states the seller must obtain lender approval or the contract is void. If I were the LISTING agent, I would counter your offer price immediately and stop messing around. At that point you can increase the offer or walk away...and so can the seller. If you don't agree to the counter, the seller can go back on the market at a higher price and move on.
Increase your offer or cut bait. Sorry but that is my advise.
Good luck,
Diane
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Permalink Reply by Tara on
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Just spoke to my agent he said the listing agent should NOT put the house on hubzu and in fact in my contract is stated the seller can NOT accept any offers while this contract is open. I'm not sure who put the information on hubzu, but I think I have a case..
However my agent said to go ahead and counteroffer maybe that's why they need, they just have a bad way communicating with us
Let's see what happens this weekend. I really need a home, me and my babies are staying at a small apt paying month by month and the rent is outrages
Thanks
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Permalink Reply by SE Davis on
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I just closed a recent Ocwen short sale.
This lender has a unique process. Ocwen did not assign the file to a single human reviewer and no Ocwen person’s name was ever published or verbalized during the submission review process.
This file processed electronically from India.
1. Once they confirmed complete doc inventory and registration, their process moved rather quickly. We acquired written approval 7 days later. We acquired a reduction revision to the dollar amount disbursement to that approval in less than 7 days and then we acquired a necessary closing date extension within 7 days of that additional request.
2. Their e-mail “missing doc” letter communication is very confusing. They write those using inadequate single sentences and require a telephone call for clarification.
3. When calling them they are very difficult to understand and are very sensitive to accusations of not being able to speak English. Be prepared to make these statements, “PLEASE SPEAK ENGLISH”, “PLEASE put someone on the phone that can speak English”, “HOW do I file a complaint because you cannot speak English?” They responded immediately to those phrases and we got the deal done.
It was a difficult communication however, I felt they were doing everything they could to accommodate, and their turn times for typical issues were lightning fast compared to most lenders.
RaHul 'the closer" and I are now buddies.
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At least RaHul was a "name". All of my communications with Ocwen are to HRD176 or HRD195 or HRD167....they appear to give them a name that begins with HRD and a number. Don't know why they do this :) but yes, they are negotiating the deal from India.
Diane
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Good morning Diane;
YES lots of HRDXXX email addresses.
Rahul actually called me direct about 1 week before closing and shepherded this file through Final HUD1 approval process then he even called me 24 hours after closing making sure all was done and that the seller was satisfied.
I believe the important issue when dealing with this lender is calling them for clarification after receiving any HRDXXX emails or letters.
Not only is their spoken English bad their written English is even more confusing.
My overall opinion of this lender was a POSITIVE EXPERIENCE. Things were confusing but they clarified and corrected quickly.
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Permalink Reply by Lora Wilson on
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Welcome to short sales. It is never fast and ABSOLUTELY NEVER SMOOTH. First, I hope that you do NOT have a binding contract and that it states in it that it is "subject to bank approval." Without this clause, the seller could be at risk of default. Secondly, if you are the homeowner, you can call OCWEN. Contact the LOSS MITIGATION DEPT.
Keep in mind that you are asking the bank to forgive debt. This is never simple and the process is neither logical nor helpful. They don't invest a lot of money in losing money.
Also, The homeowner should be able to put the property on HUBBIZ.com. Just don't mention the listing agency.
I hope that helps.
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Permalink Reply by Brett M. Swenson on
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Unfortunately a lot of the banks are picking up on this trend. Most short sales with Nation Start are now being placed on auction.com immediately after initiation to ensure they aren't getting low balled. Banks can do this because you don't technically have a binding contract until the bank accepts a short sale. We have to remember that once a homeowner defaults the bank becomes a principle in the sale per the original note language. I'd try to find a way to show that you're offer is stronger despite the bottom line. Just because an offer comes in higher doesn't make it stronger.
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Hello Everyone,
I just faced this but with Auction.com and am still working on the actual legalities of it all. In California we have agency and when this happens there is a complete intrusion of the existing agency relationship between the seller/broker. It clearly states in the listing contract that there are NO other listing contracts or obligations and when the bank does this it now creates a conflicting agency relationship and I believe legally would create some huge issue if trouble arose and eventually it will. That being said this is the STUPIDEST thing banks are doing. They are so stupid because they are virtually ( in California anyways) eliminating almost 90% of the perspective buyers pool. I know auction.com charges a 5% "buyers" premium and says point blank in their propaganda that they will not pay ANY buyers closing cost ( ie.. credit to buyers closing cost). Now since in our area roughly 80-90% of buyers are using government financing (FHA,USDA,VA or Cal Vet) they are forbidden from paying ANY 3rd party fees ( I have quadruple checked with many local lenders and the 5% buyer premium qualifies as a 3rd party fee) which means that not one of these buyers can even bid on the place. On top of that, most buyers are asking for some sort of seller credit to cover closing cost which under auction.com is not allowed. So now the banks have truly eliminated the pool of eligible buyers and all they have left are "conventional" buyers and investors and as ANY person with knowledge knows, INVESTORS NEVER PAY RETAIL!!!! Conventional buyers are going to be reluctant to pay an additional 5% ON TOP of their offer price. This thing stinks from every angle and as long as we continue to say "the banks can do whatever they want...." they are going to do it. Yes they are taking a loss, news flash everybody, they are getting our TAX dollars to cover their losses in many cases so in fact, they are not taking the loss. I have brought this up to the Cal Bureau of Real Estate and CAR/NAR and so far their heads are up their collective dark spots. It is eroding our position is the business and we are allowing it.
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