I had a short sale in progress with Ocwen and was just told that they want me to list my offer on their website and if no one offers a higher number then they will work with my buyer but if someone does offer more they will work with that buyer.... is this even legal??? has anyone else had a similar experience? any advice would be appreciated.
I am 100% on board with working together to draft a letter to bring this situation to light. Where is the National Association of Realtors on this issue? I think NAR is who we should be hammering with complaints and emails. We need to demand NAR get legal eyes on this subject.
I find it difficult to believe that a lender (through threat of foreclosure) can "force" cooperation of a homeowner to use their auction web site, their supposed title company (Altisource), break (amend) an active listing agreement with a realtor, slam the breaks on a ratified contract with a buyer (subject to their approval), "force" the seller to agree to a third party authorization so Altisource can work the second trust lender. Altisource is owned by Ocwen, so they clearly will represent Ocwen, not the homeowner when it comes to dealing with a second trust payoff/lien release, much less a release of the debt.
The whole thing just smells so wrong.
I am going to work on a timeline attempting to explain how my short sale was taken over by Ocwen and pushed to Altisource. I keep very detailed notes of every short sale I do so I should be able to accomplish with little trouble. I would appreciate it if you would look it over and let me know what you think. Upon completion I am going to reach out to a real estate reporter with the Washington Post and see if they have any interest in this subject. It appears the only thing we can do as realtors is attempt to get this issue out in front of the public. Even if nothing comes of this I think it is worth a try. It appears the banks are using us to figure out which clients are in trouble...that is the only part of the transaction they need assistance with. After all, the banks are now becoming realtors, title companies and web site professionals.
We have to try. I've already started to realign my business focus but after doing short sales for nearly a decade, just walking away from a homeowner in distress is not something I am able to do (yet?).
Each journey for civil rights, women's rights, voting rights, etc. etc. began with a single step of VOICES speaking out. If Realtors do not unite & "man-up" to do whatever we can for the rights of homeowners, then who will? I am not pleased at all that NAR & FAR fall short in this area but I will not use it as an excuse for inaction on my part.
I believe there IS a work-around for this and I am determined to do my best to find it.
Diane, you have my full support. Let's speak up!
The only people getting frustrated with these new processes are the agents / brokers working on them. I no longer take any short sales with lenders who use Auction.com, HUBZU, or any other Auction site. It's just not worth my time. If all of us stopped working on these "unique" properties, we would be far less frustrated.
So you just tell your client you don't want to waste your time, take it to someone else?
Diane, yes. Tell them that you want to work to help them and that by taking on this short sale and being forced to use HUBZU, you would rather let them down now than really harm them later.
Dig deeper, OCWEN, Altisource, HUBZU AND Realhome Services (their real estate broker) are all owned buy the same people
Jeff, you seem to have a real grasp of the problem and the players. Do you have a suggestion as to how can we get NARs attorneys to look at this?
Diane, unfortunately NAR does not seem to care. NAR is concerned about membership numbers. They have buried their heads in the sand when it comes to short sales. A few years back myself and a few other agents raised enough heck that we got Gary Keller to set up a short sale meeting with the heads of the larger banks and fannie mae. Why NAR is not doing this is beyond me?
Diane - In the Listing Presentation, if you discover the lender is an entity that uses one of these Auction sites or uses practices that are not advantageous to the borrower, then you tell them you will likely not be able to help them and as such you won;t list the property. YOU have the choice - be frustrated or move onto someone you can help.
As for NAR, we all need to understand NAR is powerless. These non-bank servicers can do anything they want and employ any services they desire. Again, the frustration is solely on the agent / broker. It's getting to the point that some E&O carriers are beginning to exempt Short Sales from coverage - be careful....
I am a potential buyer of a short sale from Ocwen in Dutchess county, NY that posted a couple of weeks ago on this board in desperation for help.
Well, my husband and I pushed and pushed for the seller's attorney and broker to call the Ombudsman. The attorney called, spoke with someone and was promised that he would get a phone call by the following Tuesday. No phone call, just a letter stating that Altisource would be taking over and after 10 months of being in contract it was all going to hell in a handbasket.
The sellers broker and attorney are so fed up and angry that they began an assault of letters and phone calls to Ocwen, HSBC (somehow they are still involved) NY Congressman, Bank Commission and many more. I have no idea what will come of this, we are very discouraged and don't picture it working but we'll see.
I just don't understand how this corporation is allowed to do this.
Has anyone had any luck getting through to anyone? Could this deal go through still?
We just received this same email about requiring us to go through HUBZU as well. We have a contract that is higher than the banks appraisal and the contract and buyers appraisal is higher than the banks appraisal and they are going to reject our contract and require us to put it online. This is absurd!!!!!!!