Short Sale - AltiSource - HubZu and Ocwen Partnership Wrought with Fraud

I am heated up and ticked off at the recent merger and bullying of Ocwen.  I want contact information for every Florida litigating attorney.

I am the listing agent on a short sale that I have worked for over a year. The first contract would not meet Ocwen's non-provided counter.  All that was stated is that the buyer must come up significantly but would not state to what price.  Let's just say the buyer walked, who wouldn't with those kind of pricing games. 

So I instantly receive an offer at market value from an investor willing to pay cash. 

I submit the offer and about a week later I receive an email from AltiSource stating I and the seller must sign authorization paperwork allowing Altisource to act as the processor on behalf of the seller and that we must submit the property to auction on HubZu for additional bidding.  The seller already signed off on an offer!  Furthermore, I am told unless we sign this paperwork the buyers offer will not even be considered and the application to short sale will be denied.  So this puts the seller in a legal bind.  Oh by the way buyer, seller is not breaching contract with you, Ocwen refuses to look at your offer and even though it has been signed off on you must go through an open bidding process.  Please understand the seller's hands are tied and we request you do not find the seller at fault or cause seller additional financial distress by going after any legal outlets.

In the paperwork form Altisource it states that I must provide the processor RSHH a portion of the monies received, buyer's agent a less than average of monies received and I myself will get what I do not bargain for.  Next it states that if I represent both sides of the transaction I must provide the buyer agent's portion to the net indebtedness instead of receiving it myself.

Are you kidding me.....The short sale lender is supposed to be subject to the contract and the owner of the property is still the owner who signed a listing contract with me, not Ocwen. The seller has the right to choose who to go into an offer with. Neither I nor the seller are willing to sign the paperwork and are inquiring on the legalities of this bullying. 

Where does Ocwen get off acting as the seller and dictating who the seller can go into contract with.  These banks need to have additional regulation.  They cannot just arbitrarily insert themselves into the contract acting on behalf of the owner and deciding who the seller gets to go into contract with. This is strong arming.  They also cannot dictate to the seller who they choose to use to process the short sale and dictate I must pay this group.  This is not in the best interest of the seller and in my opinion violates Respa. 

Does anyone else have input on this?  If you have some hotlines I can call and file formal complaints please pass them on. We have submitted to 3 trial attorneys and have placed a call with FAR.

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Comment by Jeff Payne on August 15, 2013 at 3:50am

@Brian Avery, I should have been more clear... was talking about REO properties on HUBZU.  My buyer is ready to file suit over their practices that have affected her.   If working short sales with OCWEN means using HUBZU, count me out, I have no desire to be put through that much torture.

Comment by Saurabh Singh on August 14, 2013 at 1:01pm

Thank you everyone for joining the discussion. When we are willing to talk, we are willing to move forward. 

I have been with Altisource for two years and have worked very closely with real estate agents. I have been very vocal about how the long term viability of Altisource's business units depends on their ability to work with realtors.  However, this has nothing to do with my work experience. 

I am committed to preventing foreclosures. Having observed the REO business from close quarters, I am determined to help prevent homes from being foreclosed. Observation leads to the development of insight. With the resultant insight we can see that foreclosures do not benefit anyone. Everyone knows that foreclosed homes fetch lower valuations, reduce the home values in the neighbourhood, attract code violations apart from ruining the borrower's credit history. I would be very surprised if there are lenders who want to sell properties they own at low values, pay for code violations and pay taxes, maintenance,  utility and HOA dues etc. when they have a better option. Home owners also would rather do a short sale than experience the social and financial nightmare brought about by a foreclosure. So the benefits are clearly visible and are applicable to both, the lender and the borrower. Then why are so many properties foreclosed? When we try to answer this question, we can see that we need something like what Ocwen/Altisource have come up with. I have already explained how this program will prevent foreclosures, so I will not elaborate on it again. I will now present this from a different perspective.

Who will sell these homes if they are foreclosed? How many of you will get these REO listings? If, however, they are successful short sales, then you as a listing agent will benefit. Every successful short sale under the Accelerated/Assisted short sale program is one foreclosure prevented. Lets bring foreclosures down to zero. The lesser the foreclosures, the lesser the properties listed by "500 miles away agents" on HUBZU. 

I understand that everyone would like to earn enough and I understand that not every agent lists hundreds of properties a year. Many sell only a few properties and hence every dollar counts. Reduced foreclosures will leave more properties for local agents. I am sure that most of you reading this post have had unsuccessful short sales and have had to see the same property being sold by a "500 miles away agent" post foreclosure. I wouldn't feel good about it.

Please think about this. Please think of the long term benefits and participate in Ocwen's Accelerated/Assisted short sale program with great enthusiasm and optimism.

Disclaimer - All views expressed here are the author's personal views and are not endorsed by Ocwen, Altisource or their associates. Neither the author nor Ocwen,  Altisource or any of their associates guarantee the accuracy or legitimacy of the views/opinions/information contained in this post. Real estate, finance, banking and online transactions are complicated and governed by various regulations and readers are advised to consulted with certified professionals before making any decision.  

Comment by Jeff Payne on August 14, 2013 at 6:04am

Yep, just google him and you will see that he works at Altisource

Comment by Jeff Payne on August 14, 2013 at 6:03am

Shayna I have a buyer who has purchased several HUBZU properties and she is getting fed up, she is an attorney and is ready to file a suit

Comment by Shayna M. Bechtel on August 14, 2013 at 5:56am

I have to agree with you, Jeff.  That very carefully worded disclaimer at the end screams "I work for one of these companies".  Did they send these guys out with a script or what?  And anyone who has worked with Altisource knows that are just as much of a disaster as HUDZU. 

Stephanie, I am reviewing the appropriate parties to file complaints with as well and will be happy to share what actions I take. 

Comment by Jeff Payne on August 14, 2013 at 4:15am

Saurabh you must work for HUBZU.  HUBZU is one of the most pathetic systems in existence.  In my area, HUBZU listings (REO) are handled by agents who live 500 miles away and have zero market knowledge and those agents are the worst communicators in the world.  My buyer agent deals with HUBZU all of the time and my contract coordinator spends far too much time on these files because of the nonsense that HUBZU requires.  Title companies that HUBZU uses are non responsive and the entire process is a joke.  Sorry but if HUBZU for a short sale is anything like REO, save your breath.  

If OCWEN wanted a seemless short sale and really wanted to assist homeowners, they would cut out Altisource and HUBZU and use equator.

I got a chuckle out of "And finally the approach should ensure that the seller is able to get the best value for his home."   HUBZU? Not likely they are getting the best value hiring agents who are not even local.  

Comment by Saurabh Singh on August 14, 2013 at 1:48am

Good Morning Stephanie, 

Ocwen and Altisource are working towards reducing foreclosures and are developing viable long term alternatives, one of which is the Accelerated/Assisted short sale program. Many sellers who would otherwise end up seeing their property foreclosed now have the opportunity to opt for an alternate solution like the Accelerated/Assisted short sale program. Foreclosure is a traumatic experience and any effort to work out a viable long term alternative, in my opinion, should be appreciated.

In order to really reduce and hopefully end foreclosures,  one would have to come up with a model that is aimed at benefiting  all parties involved. A model which is transparent. A model which ensures that a short sale be a more cost effective option compared to foreclosure. And finally the approach should ensure that the seller is able to get the best value for his home.

Ocwen's Accelerated/Assisted short sale program is designed keeping these requirements in mind. You are informed of the process and costs in no uncertain terms. Altisource work on title issues like junior liens, judgements and other encumbrances, always attempting to obtain full release for the borrower wherever possible and at the lowest cost. The intention is not just to get release offers for "any amount" but to resolve the borrower's financial troubles to the maximum extent possible. Ocwen also endeavour to pay for such releases from the proceeds of the sale wherever possible. This benefits those sellers who genuinely wish for a better life. I do not wish to offend you but it appears to me that Altisource are trying to negotiate a better life for distressed home owners while you are trying to negotiate higher remuneration for yourself.

Listing the property on HUBZU ensures a transparent bidding process and ensures that the seller is able to get the best value for her home. HUBZU get more views and bids for listings compared to other similar service providers. It is a model that meets lenders' compliance requirements as well.

I also urge you consider the plight of those home owners who are forced to consider a strategic short sale and may not qualify for options like HAFA. Would you rather see their homes foreclosed?

I sincerely believe that this approach will considerably reduce foreclosures. The program will only get better with time. Please participate in this program with an open mind.

I would also like to address your concerns about your earnings. The commissions are paid out of the proceeds from the sale and the seller is not being charged for listing the property on HUBZU. I also believe that HUBZU can help realtors earn more money. Do you know that you can list your properties on HUBZU and find better offers for your clients? I would say you give HUBZU more of a chance than one transaction. Use it for a year and see if helped you fetch higher prices. Higher prices mean higher commissions in dollar terms. I believe everyone will benefit in the long run. Lets get together and end foreclosures. 

Disclaimer - All views expressed here are the author's personal views and are not endorsed by Ocwen, Altisource or their associates. Neither the author nor Ocwen,  Altisource or any of their associates guarantee the accuracy or legitimacy of the views/opinions/information contained in this post. Real estate, finance, banking and online transactions are complicated and governed by various regulations and readers are advised to consulted with certified professionals before making any decision. 

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