Ocwen denying HAFA because owners not in property - but they told them to move out

Hi there,

Clients were attempting deed in lieu.

Ocwen advised them to move out of the property.

Clients moved out.

Contacted me about a short sale as they were getting a new lease. Told me that they did not have a Freddie or Fannie Mae owned loan and therefore didn't qualify for any programs.

Come to find out they could have qualified for HAFA if they were still in the property.

Ocwen sent them letters (at least 2) telling them to move out so they did.

Moved out of the property but continued to maintain it, pay property taxes and utilities.

Now Ocwen denying them HAFA because they don't live there.

This all happened before I became their agent.

Is there any way I can escalate this?

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Replies to This Discussion

Hi Cathy,

Is HAFA the only short sale you can do? Does it have to be HAFA? I would send an email to the Ocwen short sale team and copy Micheal Rapp on it. Keep it detailed but brief and ask for help. Be sure to attach written communication from Ocwen instructing them to move.

Likely, they will not respond direct, but hopefully get you rolling and you will here back from your negotiator or rep. That escalation department helped me quite a bit recently.

Good luck.

Well, no, they (Ocwen) are going forward with conventional short sale. However, with conventional, a) there is no $10k incentive and b) the balance is not forgiven, they could still come after them for the balance. The balance is over $200k.

ocwen has short sale programs other than HAFA that forgive deficiency. Your client needs to be speaking with their congressperson as well.

Well, I'm certainly going to try for that. They feel like they did "everything Ocwen told them to do" and now they are being penalized for it.

Can they move back into the home?

non occupancy is not an valid reason to decline someone for HAFA.

they still should still qualify for HAFA if they don't live there, but no to the relo incentive. NEVER EVER LEAVE UNTIL FORECLOSURE OR SALE.

Well, they left well before they hired me unfortunately.

I don't know what this is because when I clicked on it, it said "session expired".

That's not what the forms say.

Hi,

I subsequently found out that Ocwen did not exactly tell them to move out. They received a letter during their Deed in Lieu process that listed a number of items that they had to comply with in order to proceed with the Deed in Lieu. One of them was to agree to the terms and sign and return the letter. Another was to vacate the property. It appears that they either did not read the entire letter or they did not understand it because that particular item was all they saw. There was nothing I could do for them in that case. We did receive both approvals as of this Friday so we are moving forward. I'm happy to say that the approval from the second which was Ocwen serviced by NCI only took a couple of weeks.

I would have advised them to save money and stay put, however, the initial contact was made by their daughter in law who I represented in her purchase. She asked me to find a rental for them because they were being forced to vacate. I referred them to another agent because I was out of town. By the time I was asked to help with the short sale and got the entire story, it was too late, they had already signed a lease.

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