Replies to This Discussion

Permalink Reply by Wendy Smith on October 3, 2011 at 8:48am

we had a file "returned" to us wherein the negotiator felt that EVERYTHING else was in the 2% and also cited the 8% cap was due to it being a HAFA file.  Oh not so.  I've emailed for help - not Ron Ferris but someone who helped on another file -- I'll let you know what I find out.

Permalink Reply by Shannon Renner on October 3, 2011 at 9:45am

Hi Wendy~

Yes, please let me know as well.  This is a HAFA short sale that was approved by Litton, and we were supposed to close 9-26, but the buyer's lender could not make the deadline.  Now it's with OCWEN and I have just been getting the runaround with them.  Have never dealt with them before.  Ron Ferris is not calling me back no matter how many messages I leave and they keep wanting to set up appointments with people from India and they have no idea what is going on.  Very frustrating!

Permalink Reply by Wendy Smith on October 3, 2011 at 10:19am

If you request to speak to someone in the United States, they have to transfer you.  They don't like it, and they may make you hold but just put your speaker phone on and update your blog or something while you wait - talking to someone in the US makes a huge difference.

Permalink Reply by Shannon Renner on October 10, 2011 at 9:48am

Hi Wendy

Have you had any luck?  I have asked to be transferred state-side now 6 times with no luck.  I have sent a revised HUD to them twice and now had someone telling me Friday that they would accept up to 10% in total closing costs PLUS the $6k they are willing to give the 2nd.  So I just submitted that HUD as of Friday.  Now I get a letter this morning stating the entire short sale process needs to start all over!  I am so frustrated!  The India people did not even know how to read a HUD on Thursday and Friday let alone tell me how it should appear.  Do you have any update?  Contacts on yours?

 

Permalink Reply by Wendy Smith on October 10, 2011 at 9:52am

I guess I will have to start psycho calling Ocwen - my file that was also formerly with Litton; then transferred to Ocwen (including a resubmit of all docs), now the jerks closed the file saying the borrower did not submit al lthe docs.

I'll share whatever contact info I find.

Permalink Reply by Jennie Blackburn on October 12, 2011 at 10:28am

We just ran into this ourselves.  Funny when we dropped our commission from 6% to 5%, all the figures fell in line.  Ocwen's policy has always been that they only pay 5% commission, but because Fannie Mae mandates 6%, maybe they're using the "total closing costs cannot exceed $$$" line to get around it.

Permalink Reply by Shannon Renner on October 12, 2011 at 10:45am

Well, my biggest issue is that I am being told that all total costs are to be at 8% total maximum including the buyer concession of $5000, all the closing costs (6%commissions of $12k, excise tax of $3567, Title insurance of $716, Escrow fee of $657,Property Taxes of $3k, and the $6k they said they would give the 2nd).  The purchase price is only $200k. The 8% is only $16k to begin with of which they have $6k going to the 2nd which only leaves me $10k for everything else! 

And now as of Monday.....they are stating I have to start all over and that they will not approve Litton's approval.  So frustrating!!

 

I cannot get a straight answer regarding what all falls under that 8%. 1 guys said the payoff to the 2nd was considered separate but then another negotiator came back and said no it is included and would not issue an approval.

I have called and left several messages for Ron Ferris and I have also sent many faxes and called over 6 times a day trying to get transferred to someone stateside who knows how to read a HUD.  To no avail.....now I have to start over...........

Permalink Reply by Justin Berry on February 23, 2012 at 9:06am

I am running into serious issues with Ocwen's 8% rule.  My buyer is FHA and requires 3% concessions to close + 6% commissions.  I was told on a scheduled call with a "relationship manager" that the offer was rejected because the closing costs exceeded 10%.  After pushing with a guy who told me to pay the tile insurance and taxes off the HUD-1 and insisted that the 8% rule was a US federal law (RESPA Violation, outrageous lies).  Feeling jerked around and that this is only a way to get us to voluntarily cut commissions, I called the Ombudsman.  

In my return call from another "relationship manager" :-(, I was at least told that they calculate this from line 1400 + title insurance + Credit to buyer.  I hope this helps others as it took me a while to figure out how they were calculating the 8%.  

They stonewalled me on discussions of values, minimum net, investor, etc.  I tried to offer that we could raise the gross offer amount but they didn't care.  Poor loss mitigation if you ask me.  My motivation to get the highest price possible is gone when we are treated like this.  If they tell me the minimum net, we strive to get it. The communication is atrocious and several emails have been sent to escalations, ombudsman, contacts listed on this site, etc. with no response.  

I'm not intending to whine, but thought I'd throw this out to the Superstars, not only to share what I have learned, but to see if anyone has recomendations, better contacts, thoughts, etc.

Thanks, Superstars!

Permalink Reply by Lauren Mayer on February 24, 2012 at 2:16am

I have had good luck with [email protected].  When I escalated to Ron Ferris - she is the one who contacted me..  then she had someone else take care of the issue who then became my main contact on the file.  I also find it helpful when calling the main numbers - push the button for Spanish and you will end up with someone in the US.  They all speak english and spanish just fine.  They are nicer and easier to deal with.  If you don't speak spanish - you won't understand the telephone instructions but I would just keep pushing numbers until eventually the system said it was transferring me to an agent.  I hope you find this information helpful.  Good luck.

Permalink Reply by Justin Berry on February 29, 2012 at 8:33am

@ Lauren    Ok - I got to bottom of this.  (I think ;-) )  The buyer reduced their requested credits/concessions by a little bit and we re-submitted it with full 6% commission and the closing costs (explained above) came in at 9.7%. Approval received within a few hours.  I believe they just have to be under 10% not 8%.  Keep pushing - good luck.