Delayed closing by Ocwen - cash sale, clear title, inspection waived, trustee auction

Hi, there! Hoping you could share your expertise and insight for my situation. On April 24th, we won the bid at a foreclosure auction on a very nice property, in which we planned to move into by the end of June (we were the only owner occupants - the other dozen bidders were flippers). We'd sold our condo in December and moved into a month-to-month apartment down the street (this is in Melrose, MA) with the intention of buying a house, and then heard about this auction in a great neighborhood in our town. Ocwen (formerly GMAC) services the loan and has to ultimately approve the deed, but since it was a bank's dream transaction (all-cash sale, clear title, with no inspection), we were led to believe that it would be a quick turnaround. We did weeks of research prior to the auction, including a 50-year title search, municipal lien certificate, etc. to expedite the closing, although the auction company and Ocwen's attorney emphasized in writing and in person that time was of the essence and we'd close within 30 days anyway. The original May 27th close date (due to the Memorial Day holiday) came and went, despite our efforts to get a status update, and the representing attorney finally asked us to sign an extension until June 13th. I met with the attorney in person on June 3rd and he admitted that the June 13th date was arbitrary and the closing would likely take another month.  All that remains is to replace the seller's name (the person who went into foreclosure originally) on the deed with that of the lender, and then sign off on the one-page deed. Ocwen's attorney has no explanation as to why this is taking so long. Our attorney said this process should take an hour, tops, given that the lender should theoretically be more than happy to take our $400,000 purchase price. Has anyone had a similar experience? Do you think that contacting the Ombudsman's Office and/or Kathy Robinson @ Ocwen would help? The delay is causing undue hardship disproportionate to the amount of work needed for the closing, but a status update would certainly alleviate a huge portion of our stress, as it feels like the transaction went into a black hole. I'm aware of Ocwen's legal troubles and F rating with the BBB, but hoped that this type of transaction would be something they'd want to take care of quickly to get it off their books. There is previous termite damage (we knew this before the auction) and we're anxious to get it inspected and treated.  I realize there are others out there with far dire situations, but it seems like a shame that this lovely house just sits vacant for no apparent reason while we play the waiting game.  Thanks in advance for your help!

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Replies to This Discussion

Dear Ms. Fox,

This is to be expected when dealing with Ocwen, Altisource and Premium Title. From what you have described it appears that the foreclosure process may not have been completed yet. You may want to negotiate a price reduction as the delay is likely being caused by Ocwen or the lender. Sometimes they may not have the required documents to complete foreclosure, sometimes delay may be at the county office, sometimes it is sheer negligence. One very silly but frequently occurring problem is incorrect vesting on FC deed. There could be various other problems including the fact that neither Ocwen nor the foreclosing lender own the loan! Please contact the person who is coordinating this transaction at Ocwen's end or the foreclosing attorney. If Altisource are involved, please contact Altisource. If they refuse to provide a price reduction or credit of at least $100 per day from the day the transaction was scheduled to close until the actual close date in addition to the expenditure incurred by the buyer on temporary accomodation, please submit an official complaint to regulatory authorities.

I take it when you said auction, you were referring to Altisource/HUBZU  and you are agreeing to paying the 5% buyer premium. Give that I agree with the previous comment.

No, sorry - I mentioned "trustee auction" in the subject line but not in my post. We did examine the exterior and the MLS photos from one year earlier, and were aware of termite damage from the MLS listing, but this was a sidewalk auction with 11 flippers and us (the only owner-occupant bidders). We essentially bought it sight unseen. Thanks!

Thanks, Saurabh. You're right, it could be any number of "little" things - we just need to get to the right person. Thanks again for your quick response!

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