Alleged technical glitch at Ocwen blamed for not working on file

I have short sale with Ocwen that has turned into a nightmare since the file was transferred out of Equator to the Ocwen short sale department last year in December.  We lost a buyer after waiting for over 5 months.  I submitted a new offer (all cash $1,000 over most recent BPO value) on May 20th.  Yesterday, a rep in the SS department told me that their records show that as of May 9th there has been a computer glitch in their system that prevented them from doing the necessary calculations.  I am told the usual "this should be all resolved by next week."  The file for the previous buyer that we just lost was supposedly with the investor waiting for approval since mid April, and I am not sure why a computer glitch on Ocwen's side would affect approval on the investor's part after the file had already been submitted to the investor for approval (investor is Freddie Mac).  What does Ocwen have to compute after the file has been submitted to the investor?  The file was ready to go to the investor for approval early December of last year when it was still handled through Equator and we lost our buyer because of all the delays that occurred after the file was transferred to the Ocwen SS department.  We were told how backlogged they were and how they were already working weekends and holidays....blah, blah, blah.  Now we are told about a computer glitch that was a problem since at least May 9th and almost a month later they still have the same computer glitch.  We are supposed to believe that it's going to be resolved by next week.

I am wondering if anybody else has been told about a computer glitch.

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Ocwen has proven themselves to be very capable in acquiring new loan packages over the last 18 months or so by offering some of the lowest servicing rates in the industry.  Their ability to do so rests largely on their willingness to outsource virtually everything to the lowest offshore bidder, actual abilities be damned.  You and I (and everyone else forced trying to get a file through their nonsensical, broken labyrinth of an approval process) now gets to enjoy the consequences of their growth model.

As you've recently experienced, the one thing they do seem quite proficient at is generating unique reasons for why they haven't actually done anything with a file in months.  They must have one of those 'excuse-of-the-day' calendars on everyone's desk and seem to be making liberal use of them.

My flippant observations aside though, I would suggest that you not waste anymore of your valuable time beating your head against the immovable object that is Ocwen.  Instead, go to the one party that they are beholden to - their client, Freddie Mac.  Fax them the Ocwen authorization letter, with Freddie added to it and give them about 48 hours to get it into the file.  When you call, just detail all that you have been through (and maybe mention that you're about to lose yet another buyer due to these delays).  While they cannot fully control the process within Ocwen, Freddie certainly does have the ability to put a little heat on their servicers and get things moving forward at a reasonable pace.

Dear Ms. Ferdig,

Software that Ocwen use are developed and maintained by Altisource. Altisource are built to increase foreclosures. They have vested interests. They earn more money if they can foreclose a home and sell it on HUBZU. While there are many good software companies, Ocwen insist on using Altisource, as their Chairman and CEO are also associated with RESS/REO Servicing, LLC who get a part of the commission when Ocwen sell a foreclosed home through HUBZU.

Altisource typically sell properties at lower than market prices to flippers. Good offers from individual buyers are frequently canceled to accommodate the offers from flippers. In order to explain this better I am providing a few examples for one particular builder:

Property Address Altisource Sale Price Sale Date California Kingdom Builders Sale Price Sale Date
712 W 59th Pl, Los Angeles, CA 90044 $146,000 8/9/2011 $217,000 12/16/2011
9408 Compton Ave, Los Angeles, CA 90002 $151,000 1/4/2012 $295,000 6/20/2012
13202 Elmcroft Ave, Norwalk, CA 90650 $190,500 2/14/2012 $300,000 6/15/2012
270 E Bort St, Long Beach, CA 90805 $189,000 5/29/2012 $290,000 10/5/2012
15505 S Gibson Ave, Compton, CA 90221 $154,000 5/31/2012 $290,000 9/28/2012
945 North WILSON, Pasadena, CA 91104 $381,000 6/27/2012 $615,000 4/9/2013
3164 Saturn Ave, Huntington Park, CA 90255 $161,000 8/9/2012 $235,000 12/3/2012
10853 Little Lake, Downey, CA 90241 $297,000 11/21/2012 $407,000 5/20/2013
1246 W 59th Pl, Los Angeles, CA 90044 $260,500 12/21/2012 $360,000 5/28/2013
3605 9TH Ave, Los Angeles, CA 90018 $203,500 2/1/2013 $340,000 8/30/2013
11429 Sunnybrook Lane, Whittier, CA 90604 $367,000 3/15/2013 $495,000 8/27/2013
2004 Voorhees Ave Unit B, Redondo Beach, CA 90278 $651,500 3/29/2013 $835,000 4/2/2013
921 S Oleander Ave, Compton, CA 90220 $145,000 5/2/2013 $235,000 8/30/2013
9462 South Denker Ave, Los Angeles, CA 90047 $266,000 5/8/2013 $360,000 9/6/2013

One US based ex-Altisource/Ocwen employee admitted to accepting kick backs in return for ordering repairs and services through certain vendors. He also admitted that many empkoyees, known as RSCs (even from India) were also involved.

So there's lot going on there and the higher management in US, Luxembourg and India along with RHSS agents and PPI, all benefit from foreclosures. So they will do all they can to somehow get the home foreclosed.

You have to be very watchful to protect your client.

Update.  I finally received short sale approval letter on August 11th and closed escrow today.  Things started to move slowly but surely after the Finance Helpline of California Association of Realtors got involved and brought file to attention of  investor Freddie Mac and Ocwen supervisors.

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