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 Rita Legan CDPE (440) 227-4461 on August 23, 2013 at 10:23am
Comment by Melanie Hollis on August 23, 2013 at 10:02am

Thank you guys for posting this, I was beginning to think I was crazy for thinking this whole thing is CRAZY!

Comment by Jeff Payne on August 23, 2013 at 5:46am

BTW, the one I posted is not in MLS, just on HUBZU

Comment by Jeff Payne on August 23, 2013 at 5:43am

HUBZU is supposed to get the best offer, better than a PROPERLY MARKETED PROPERTY?  Here is an example of HUBZU nonsense

REO Occupied - the seller does not represent or guarantee occupancy status. NO VIEWINGS of this property. Please DO NOT DISTURB the occupant. "As is" cash only sale with no contingencies or inspections. Buyer will be responsible for obtaining possession of the property upon closing.

The property is a Residential Single Family property with 2 bedroom(s) and 1.0 bathroom(s), built in 1964 and is 1140 square feet.

Live bidding is ACTIVE for this property, sold in "as is" condition with no contingencies or warranties. Cash only. Make your bid now!

Comment by Troy Jenkins on August 23, 2013 at 5:25am

I just had the same issue with Ocwen/RHSS.  I plan on filing a complaint with the board of Realtors in Georgia, state of Georgia and any other entity where it is deemed appropriate. There is strength in numbers. Auction.com is proof of that. I never get Nation Star of BoA telling me I have to put the property through Auction.com anymore. 

Comment by Jeff Payne on August 20, 2013 at 4:50am

Saurabh, that is a very nice picture that you paint.  We appreciate your thoughts here on Short Sale Superstars but just keep in mind that the picture that you paint is done through rose colored glasses.   Every Altisource transaction that Premium title was involved in with my customers has not been a smooth or easy transaction.  Quite the contrary, they never close on time and the communication has been less than pathetic.  Again, these are REO transactions that I speak of and through my rose colored glasses I do not see how a short sale would be any better.

Comment by Saurabh Singh on August 19, 2013 at 1:47pm

Good evening, Stephanie, 

 

A famous philosopher taught that only those who know everything can determine what is good and what is bad. While I may know very little, this is something that I have already understood. A fur coat may look very attractive but when you get to know that millions of innocent rabbits are killed so fur coats can be made.... then at least to some people the fur coat is no longer attractive. Through such examples we learn how more information is helpful. 

 

The logic behind issuing disclosures is to help people make better decisions. Ocwen are Altisource's largest client. Altisource have sold many properties for Ocwen through their online platform HUBZU.COM. If you check out HUBZU.COM, you will find that it provides you a sample of the Purchase and Sale Agreement on RHSS listings. It very clearly explains the relationship between Ocwen,  Altisource and Premium Title. This is a contract that thousands of learned realtors have signed and got their clients to sign. This is a contract that major real estate firms have run through their law departments not once but many times and have found nothing wrong with it! SEC filings explaining the relationship are also readily available for thode who seek. So we can safely conclude that there is nothing wrong with Ocwen-Altisource relationship from the legal point of view. 

 

A shareholder invests in a company and wants to profit from it. He can earn dividends. The Government of United States also make investments developing the nation's infrastructure and stand to gain in the form of taxes. Upon careful observation we will find that every company is connected to another. If there was a law that prevented two companies from doing business with each other because of a common connection, no two firms would be able to partner with each other. In fact two companies can only partner each other if there is a common connection! Thus we can conclude that there is nothing wrong with Ocwen providing business to Altisource. In fact, who will be more committed to providing the best in class service to Ocwen's customers than Altisource?

 

You mentioned something about bullying. I will first provide a conventional response to that and then a philosophical one. How is helping you earn 2.5% commission when you stand to gain nothing from a foreclosure bullying? This program is designed to reduce foreclosures and increase the inventory of agents like you. People like Chris Webb at RHSS are sharing their inventory with you! If this property was to be foreclosed, RHSS would make 3%. Instead, they are taking 1.5% so you can earn 2.5%. And you call this bullying? If you see how things are connected you will see how you stand to benefit.

 

Now I would like to offer a philosophical perspective. You were born a woman, at some place, to some parents, speaking some language, practicing some religion, with certain food habits etc. You did not determine these. However, I am sure you are proud about all of these. Similarly, just because you are not determining the commission does not mean you are being bullied. In fact, thanks to interbeing, RHSS cannot determine that by themselves either.  If they could, they would take 6%. The thing about our kind of existence is that everything is connected to everything else. If everything is connected to everything else, then one thing can affect another. If one thing impacts another, then the one impacted is experiencing a result that it did not desire to bring about. This is the way things exist. If this makes you unhappy, you may want to find a way out.

 

 

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Saurabh Singh is a student of the Vietnamese monk Thich Nhat Hanh and is currently employed with Altisource. All views expressed here are his personal views and are not necessarily  endorsed by his employer. The author does not guarantee the accuracy of any information contained in this post. Real Estate, finance, banking and online transactions are complicated and governed by various regulations and readers are advised to consult with certified professionals before making any decision. 

Comment by Stephanie Anson on August 19, 2013 at 11:13am

@Brian Avery - I run my brokerage firm and I do not comply with any company dictating how I receive and pay on closings nor how I am to run my business.  It is not about how many deals I can do that is not what I am addressing nor is it any part of what I have an issue with.  If I will not let an agent working for my company deviate on standard listing policy where does some outside company have the right to dictate payment on closings for both sides of the sale.  Additionally, I had the buyer under contract and submitted to OCWEN prior to this new roll out.  This causes a problem with the already executed contract.  I think contract classes are in order if this is not understood.  I do not run with the sheeple, I am of able body and mind to make decisions for my own company.  Since they require Arms Length Transactions, let them apply the rules to themselves.  

Fellow real estate agents this is a must read if you have short sales with Ocwen. Ocwen sending a letter that states Page 1 Item F "Listing Broker has requested RHSS to provide and RHSS has agreed to provide (or cause to be provided) the services to the listing broker pursuant to the terms and conditions as set forth herein".....

How many of you agents have solicited Ocwen for this agreement? The agreement I saw was signed by Christian Webb on behalf of RHSS. Christian Webb is not licenced in the state of Florida. Look up RealHomes Services and Solutions (RHSS) Also dba Altisource. Then section 9.1 and 9.2 on pages 3 and 4 Altisource owns Hubzu and RHSS. Does this sounds arms length?

Altisource owns HUBZU and RHSS.  The agreement they want the listing broker to sign states that the listing broker has requested RHSS to provide the services (not true, this strong arming and if there is a legal concern and I sign this agreement then I am lying and supporting their false tactics).

KEEP READING:
William C. Erbey. Mr. Erbey has served as the Executive Chairman of the Board of Directors of Ocwen since September 1996, as the Chief Executive Officer of Ocwen from January 1988 to October 2010 and as the President of Ocwen from January 1988 to May 1998. From 1983 to 1995, Mr. Erbey served as a Managing General Partner of The Oxford Financial Group, a private investment partnership that was the predecessor of Ocwen. Mr. Erbey has also served as Chairman of the Board of Directors for Altisource Portfolio Solutions S.A. since July 2009. He is also the founder of Home Loan Servicing Solutions, Ltd. and has served as its Chairman since December 2010. He also has served as Chairman of the Board of Directors of Altisource Residential Corporation since July 2012 and as Chairman of the Board of Directors of Altisource Asset Management Corporation since March 2012. From 1975 to 1983, Mr. Erbey served at General Electric Capital Corporation in various capacities, most recently as the President and Chief Operating Officer of General Electric Mortgage Insurance Corporation. Mr. Erbey also served as the Program General Manager of GECC's Commercial Financial Services Department and as the President of Acquisition Funding Corporation. He holds a Bachelor of Arts in Economics from Allegheny College and a Master of Business Administration from Harvard University. 

With extensive experience in the financial services and mortgage industries, Mr. Erbey provides the Board of Directors with an informed perspective and thoughtful insights into strategic and operational opportunities, economic and industry trends of relevance to the Company and guidance on the competitive positioning of the Company. Throughout his tenure, Mr. Erbey has successfully demonstrated his business acumen and commitment to our Company. His wide-ranging expertise in the financial services business and extraordinary leadership capabilities are recognized as invaluable by the Board of Directors.

Comment by Jeff Payne on August 16, 2013 at 10:59am

Saurabh Singh can you please give my partner a call at 850-541-2725 please.  Issue with HUBZU that should be able to easily be resolved but Altisource can not seem to figure it out.

Comment by Rita Legan CDPE (440) 227-4461 on August 16, 2013 at 7:31am

I have worked a transaction through with Saurabh Singh when the original platform was gohomming then during protracted escrow time changed to HUBZU. As with any REO or Short Sale on HUBZU buyer needs to have a lien search run Before making an offer.

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