What do you all think about Ocwen's guideline of 8% guideline and 10% Max on Closing cost. This includes Commission, Realty Transfer Fee, Attorney fee and any seller's concession if the buyer needs. Furthermore, they ask for buyer's bank statement to see if he has the money if he or she is putting a down payment. This is besides the pre approval from a lender.
I just have a case where Ocwen refused to take a higher offer because it does not fall within their guidelines. Our buyer asked us to send 2 different offers to Ocwen because he wanted to get a seller's concession. He offered one for 150K which net Ocwen 137K following their guidelines on the HUD. and We sent another one of 165K which net the 143K exceeding their guidelines. The buyer we have is very well qualified but he needs seller's concession to close sooner.
Your thoughts please.....
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I personally close between 5 and 10 short sales a month. I haave a very simple policy when it comes to Ocwen...... If Ocwen is the servicer on the 1st or 2nd loan, I do not take the case. I have never had a good outcome dealing with them and spent too many unproductive hours speaking to representatives in India that have no ability to venture off their script. My time is better spent working on files that may actually close. The last case that I worked where Ocwen as involved, they were the 2nd lien servicer and refused to accept anything less that a full payoff (based on thier investor's guidelines). We offered them 15K on a balance of about 60K and they flatly refused. My sellers are married and the wife is bieng transferred form FL to KS for work. Her spouse was injured on the job, unable to continue in his profession and has taken part itme work to keep some income coming in. They do not have tremendous assets and Ocwen was completely intractable. Personally, I belive that they make B of A a pleasure to deal with.
I too was banging my head against the wall with OCWEN. Almost ready to fly to India and take them out. I was tired, extremely tired of OCWEN and their scheduling of calls back, etc. Round and round we went. It has been 29 months since my sellers made their last payment, the auction date kept getting moved out in 30 day incraments. Finally that offer came in....I submited a complete package, only to given "4" days to close the deal. (That was the first approval letter.) I turned to several people who also deal with OCWEN and the unanamous instruction was to turn to the Ombusdman group. (See other posts on this site.) I contacted them, left a message, got a call back within an hour, and in less than 24 hours had a new approval letter, with a close date of 6 weeks (very reasonable), and they were super helpful. Received to follow-up calls from them to make sure everything was going as planned, and a pleasure to speak with. (Kudos to this department/team.) I am still getting phone calls from "India" asking if I still want to keep the short sale open, and if I would like to re-schedule my last conference call that I missed. In a nutshell - submit all your paperwork through the normal channels with OCWEN, and then call the Ombudsman group.
I recently had a closing with Ocwen and the in which line 502 on the HUD was less than 8% and the buyer asked for closing cost credit. Ocwen refused, so your statement that they will allow more than that is not always true. I have been doing short sales for many years. I used to despise Ocwen, however lately I have noticed that they are reasonable in their own way to work with. It is not as hard as it used to be with them. For the sake of the homeowner, I would reconsider your stance of not taking on Ocwen short sales.
Just so everyone can have a little laugh. One of my short sales was approved last week by Ocwen with a closing date of May 7th. Today, I received an email with a letter from them stating they cannot do the short sale because of the auction coming up on the 26th of this month. Classic left hand doesn't know what the right hand is doing. It is sad.
Unfortunately, very typical for them.
Yep. Bryant is right on. That's what we do. Basically commissions, and legal ends up as settlement and then anything else we put on first page in 500's too.
I like Ocwen lately. I have a sale right now that we are doing this on. I'll let you know how it goes. We've had them approved this way before, but this one is a doozy. Multiple liens, municipal, state tax, etc. We shall see....
I just received an Ocwen approval yesterday where the costs far exceeded their limits. The HOA alone was 10% of the purchase price.
The key for me was to make sure the figure on line 502 of the HUD was at 8%. The other costs such as HOA and taxes I placed on the first page of the HUD in the 500s. That way they were not included in the "Settlement charges to Seller" line 502 total.
I received approval in 32 days. 2 loans with Ocwen.
The total of all expenses came to 20%. Line 502 was exactly 8%
The HUD is attached
Sample Ocwen HUD.pdf
What a good hint, Bryant!
Why is there $1 to OCWEN second?
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