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 received my 2nd lien approval letter on August 1st (BofA), and submitted it to OCWEN on the same day. On August 5th, I received my first contact from Altisource. I read through the agreement, fired back an email that the seller would not be participating in the program, and then called and raised hell with OCWEN and Altisource. Of course, OCWEN pointed the finger at Altisource, saying they had no control over the file, and Altisource pointed the finger at OCWEN saying they required participation in the program. So, I called OCWEN for "status updates" every 3-4 business days, had them notate the file that the seller did not want to participate in the "Accelerated Short Sale Program" and requested that the file be pulled back to OCWEN immediately.
Then, on August 19th I was sent a marketing letter for the Hubzu.com process...and nowhere in that letter did it state or indicate that participation in this program was a requirement. So, I continued calling OCWEN every 3-4 business days, asking them to pull the file back from Hubzu/Altisource...until TODAY. I spoke with Hubzu (after my normal phone call with OCWEN) and they advised that they were no longer working on my file because it was on its way back to OCWEN. I asked for the reason notated on the account, and they said it was because the homeowner was not interested in pursuing the short sale through Altisource/Hubzu. They said the transfer was initiated 3 days ago, and would take until Monday or Tuesday of next week to show up in OCWEN's system again. So, 3 weeks of no signed Broker Agreement (August 5th to August 26th) and the file gets sent back to OCWEN. I'm not sure if I got out of their process completely, or what's going to be in store for me next week...BUT I'LL TAKE IT. Once I have more info next week, I'll update this post, but maybe dragging our feet and hounding OCWEN is a good place to start?
Here is my update...anyone who has had trouble with this situation should read this.
I did get the file pulled back to OCWEN and they immediately sent me a 10 day letter requesting only 1 document (no request for updated financials). From what I can tell, the file is picking back up exactly where it left off a month ago, with no mention of Altisource, Hubzu, or any other type of commission cutting program. I'll continue to update as my short sale progresses.
Please try being patient and persistent in telling OCWEN every few business days that your seller does not want to participate in the Altisource/Hubzu program and wants their file pulled back to OCWEN. Eventually (4 weeks in my case), it should be, and it should continue with OCWEN...and the full 6% commission. I hope this works for you too!
Hi, any updates to this or any other similar situations? It would be great if the file eventually goes back to the normal process.
We just lost a GREAT contract because of this procedure they require. We had a buyer that offered higher than the banks value came in at and we just lost him. The website will not take FHA, VA or USDA financing and will only allow cash or conventional offers. Does anyone know of a way to get around this? On top of that they are charging the buyer a 3.5% buyer premium which prices the house out and won't even appraise that high. Very frustrated for my seller who just lost a very good buyer.
Hello everyone, I just wanted to give an update on my Ocwen short sale. This is the timeline of my short sale that went off the tracks due to Ocwen sending the file to Altisource. I hope this info helps you other listing agents out there working a short sale with Ocwen.
8/13/13-Spoke with Ocwen, they told me the amount to offer to the 2nd trust lender and requested a "future settlement date addendum" (which based on past experience, I took for "code words"...short sale is approved).
8/14/2013-told buyer agent we are in final stage of approval, requested buyers sign settlement date addendum.
8/15/13-Sent addendum to Ocwen.
8/20/13- Called to check status - no updates from Ocwen except to confirm our sales price was gtg.
8/22/13-Received an email from Ocwen indicating the short sale file was transferred to Altisource/Hubzu. Called Ocwen to complain, moan and groan, why would you transfer the file in the final stages of the deal? They could no longer talk to me about the file since it had been transferred. They advised I give Altisource a couple days to set up the file and then speak with them.
8/26/13-Called Altisource and complained about the situation, they advised Ocwen will no longer discuss the file with me and all Ocwen short sales were going to be transferred to Altisource over time. If Altisource sends the file back to Ocwen, at that point Ocwen would discuss our "other foreclosure options".
8/27/13-Rec'd and email from Ocwen "Please find your short sale denial letter attached" which was actually an "accelerated Short Sale Offer" - an invitation to use Altisource and Hubzu. At this point, I think my deal is completely sunk.
I call Ocwen and inquired "If a future client needs a short sale, when I send you the listing agreement and open the short sale file, can I immediately request Ocwen forward the short sale to Altisource and Hubzu? Will you find your own buyer? I don't want to work for 90 days again, only to be told Altisource has the file, my commission has been reduced AND the buyer that has been waiting for months can now go online and bid with the hopes of purchasing the home. Please advise how I can avoid all this drama on the next deal. The person at Ocwen confirmed they will not forward a short sale file to Altisource immediately, they will wait for me to submit an offer and then once that offer is "rejected", the file would then go to Altisource.
8/27/13-Called the buyer agent and explained the buyer will have to go online and bid. The buyers agent is upset and requests a release of the contract.
8/27/13-Called Altisource and discussed my concerns about them pursuing third party authorization to negotiate with the second trust lender. Number one concern "You work for Ocwen, not the property owner...your interest is lien release, sellers interest is DEBT release. Seller will not authorize you to work with the second trust because your interests are not the same as the property owners. Can I (as the listing agent) continue to work the second trust?". After some discussion, the rep for Altisource said "O.K. - we will send the file back to Ocwen". At this point, I am unsure what that means...? Are we heading toward deed in lieu or ?
8/29/13-Rec'd an email from Ocwen which appears to indicate we are starting a new short sale. Called to check status, they request 3-4 days to allow all the documents to come back from Altisource.
8/31/13- Rec'd an email from Ocwen, approving the short sale.
9/2/13-Called buyer agent and told him the good news! "Guess what, looks like we are good to go". He informed me the buyers are fed up with the entire process, and have moved on..."We have already signed a release, thanks but no thanks" I relisted the home as an approved short sale.
9/13/13-Client receives a notice of default from Ocwen.
9/16/13-Ocwen confirms no foreclosure sale date has been set.
9/26/13-Ocwen called me to check status and advised approval is good through 10/15/13. HRD482 requested I reach out again to the original buyer and tell them we can close quickly. I asked HRD482 if Ocwen is keeping track of how many "approved" short sales are lost/delayed/restarted because Ocwen upset the buyers by sending the deal to Altisource after the buyer has waited months. His responded Alitsource and Hubzu are a "pilot program that if successful will become the norm for all Ocwen short sales in the future".
Moral of the story, they make you believe you don't have any choice and this "is the process". Apparently if you COMPLAIN enough to Altisource they will send your file back to Ocwen. If I had it to do again, I would not have called the buyer agent when I did. I felt it was the right thing to do at the time because I received an email with the subject line Short Sale Denial Letter and had been aware for almost a week that there was a serious problem and the file.
I thought some of you might be interested. If your file goes to Altisource I would have the homeowner call Altisource directly and refuse their assistance. Demand they send their documents back to Ocwen. Altisource needs all the homeowners verification info, name, address, last four of social, etc. I am surprised Ocwen can send the sellers personal info to Altisource without sellers permission, etc.
That's great news as I plan on doing the same thing with 2 files that were on the verge of approval through gmac and transferred to ocwens system a week ago. Both deals have very serious buyers who agreed to counter offers from gmac who was doing business under the name of ocwen and now this happened. In nyc cash investors don't back down that easy and I am sure will start some litigation if contract is cancelled and just cause more legal issues for already distressed sellers and make properties unmarketable with pending lawsuits.
The Hubzu auction only lasts 7 days. How long does it taking you to 'circumvent' the [fake] auction?
Chances are no one is going to even bid on your listing unless it's an investment property at a seriously low price.
1) Very few retail buyers will buy at auction, and many agents will steer their clients away from 'risky' auctions.
2) All buyers (except the original) have to pay an additional 5% buyers premium.
3) How many retail buyers actually shop for a home on 'Hubzu'? ..
Before you know it, the 'auction' will be over, you will have no bids, and you can move on to approval.