Anyone successful in getting Ocwen to waive the Altisource / Hubzu Online Auction/Marketing System

Hi All.  I contacted Ocwen on 3 occasions before submitting a short sale contract on a property.  After the contract was submitted I received a counter from the Ocwen rep who gave a bottom line price that will be approved.  The next day I received a short sale decline letter stating that the short sale was rejected due to non-participation in the Altisource / Hubzu Online Auction/Marketing System.  The problem is that this apparent requirement was never disclosed or mentioned in any way by Ocwen prior to the contract being executed.  Now, they want to amend the Listing Agreement to allow for commission to the Altisource / Hubzu Online Auction/Marketing System and place the property in an online auction despite the contract on the property.  Anyone have any luck getting this requirement removed?

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Ocwen sent me a fax on 3/25/2014.  The fax referenced above had one stipulation/requirement of any contract that might obtain short sale approval that I have a severe problem with:

 

“An independent valuation of the property that verifies that the purchase price is greater than or equal to the fair market value of the property.”

 

This “requirement” is absurd.  How can a buyer pay more than the property is worth and still obtain a mortgage loan on it?  Even worse than that, why would any buyer pay more for a short sale property than that property is worth.  In reality, the opposite is true: Buyers want to pay less than market value for a short sale because it is a distress sale with an absurdly long approval process.  Otherwise, why would they bother buying a short sale?

This is all nuts, I just got my first one last week. 

There is a list of agents that handle the RHSS side on the agreement. I don't like complaining to real estate commissions as it is bad karma and most things can be handled between brokers but these people should be reported in each state for interfering with Exclusive Agency agreements. In our state beyond fraud it is the biggest no-no that exists. 

Shawn have they mentioned that your client would have to pay for the commission. I know someone else mentioned that Ocwen was trying to get the Seller to pay the commission. The word "Owner" below concerns me. 

My seller has requested to not go through the Altisource/Hubzu auction. However, I am continuing to be told my a Supervisor with Altisource, that by the way appears to one of only 2 supervisor available that it has to go through the auction site. If the current buyer wins, then the full commission along with the buyer's premium is waived. If not, the commission is cut as mentioned before AND the buyer's premium of 4.5 of the bid will be added. 

Yes, something HAS to be done about this. 

Please chime in if you have any suggestions for how to escalate this above a supervisor with Altisource. 

Thanks,

Tyra

This is getting crazy with Ocwen. Sent numerous emails to the escalations, my file is turning into one big ugly legal mess and now the attorney is starting to blame me. My client followed all instructions from Ocwen and was told file was going for approval, then Altisource emails start. They have 3 more days and the attorney is filing several formal complaints with NYS dept of financial services and other agencies. The more I look at this program its a clear violation of NYS licensing law especially when there is a buyer in contract already, they are misleading homeowners by telling them to market the home and find a purchaser. At least Nationstar tells you upfront about this requirement to auction, where Ocwen waits until you have a complete file and even up until that point their reps are telling you file is going for approval, they should train the staff to explain the program upfront, if they did at least months wont be wasted causing homeowners to accumulate more debt.

HUBZU and RHSS are not licensed in NYS at ALL.. Just went through this and got file removed from HUBZU

Ok.. I just got a call based on the escalation I opened with mhahelp.org and was informed they get these complaint about HUBZU and OCWEN every time but that this an internal  ocwen process.  She informed me the Treasury department have looked into the complaint and that the process is ocwen internal process and they are allowed to do that.. !!! 

Not so. Depends on Real Estate License Law in your State. Our State like some others say it is a violation to induce a seller with a current Exclusive Listing Contract to enter into a Listing/Marketing contract with another party.

I was recently successful in getting a file from Hubzu. You will want to send over a cease and desist letter to Hubzu and Ocwen, and state the file is to be returned to Ocwen. Hubzu is not the servicer and can not keep a file when servicing duties did not transfer. Furthermore you want to make it clear you are applying for a HAFA Short Sale. HAFA guidelines do not have or require a Hubzu component. Also Ocwen is suppose to list there requirements of there program under there matrix on a web site per HAMP Escalations. On Ocwens  HAfA matrix they do not mention Hubzu or Altisource as a requirement google Ocwen HAFA Matrix. If your going to escalate this, this has to be one of the reasons, along with the state and federal laws that the ASSP/HUBZU Program violates. Like Tortious interference with a contract...Hope this helps!!!!

I was recently successful in getting a file from Hubzu. You will want to send over a cease and desist letter to Hubzu and Ocwen, and state the file is to be returned to Ocwen. Hubzu is not the servicer and can not keep a file when servicing duties did not transfer. Furthermore you want to make it clear you are applying for a HAFA Short Sale. HAFA guidelines do not have or require a Hubzu component. Also Ocwen is suppose to list there requirements of there program under there matrix on a web site per HAMP Escalations. On Ocwens  HAfA matrix they do not mention Hubzu or Altisource as a requirement google Ocwen HAFA Matrix. If your going to escalate this, this has to be one of the reasons, along with the state and federal laws that the ASSP/HUBZU Program violates. Like Tortious interference with a contract...Hope this helps!!!!

Thanks for sharing Dirk. Have you heard of files being removed if they're not going through HAFA?

I can only speak from my experience. I believe you can still get your file removed for state and federal RESPA violations. The underlying reasons still applies even though its not a HAFA Short Sale. Ocwen is still suppose to do all the things I mentioned whether its HAFA or not. I am sure your state regulates real estate transactions. It would be good to check if HUBZU or RHSS ( Real Home Services Solutions) is even licensed in your state. I will tell you this you have to continue to be adament on not wanting to go into the ASSP/HUBZU Program, and call everyday for your file to be returned to Ocwen. You simoly decline to want to participate in any program that deals with third party companies. These companies are under investigation here in NYS by the Dept Of Finance. 

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