Beware and Be Late with Ocwen Short Sales

October 12, 2012 at 9:31 pm Leave a comment

It’s not pleasant to have to come to this conclusion, but it would appear that “common sense” may not be so common at Ocwen when it comes to the handling of short sales.

First of all, Ocwen requires that a borrower be 60 days late (or more) on a payment in order to approve a short sale. Regardless of the circumstances of the situation, Ocwen has declared a company policy that denies a short sale when the borrower is current with their mortgage.

So, if a borrower is relocating or if a borrower’s relative has been temporarily paying the mortgage to save the borrower’s credit, it won’t matter to Ocwen. Instead, Ocwen will come back with a denial and a require a TOTAL payment of the balance owed in the loan. This is a “poor” business decision, since it is ridiculous to ask for the total balance due from someone who has no money. It doensn’t make sense for Ocwen to lose more money by waiting for the borrower to be delinquent.

This Ocwen company policy should be communicated to ALL authorized parties in writing at the BEGINNING of the short sale application process to expedite short sale approvals.

When dealing with Ocwen, parties negotiation a short sale need to be prepared to talk to someone in India, since the company outsources its jobs offshore to save money. In addition to making international calls, be prepared to know that many times, Ocwen representatives provide conflicting and misleading information.

At one point, one Ocwen representative said that I did not need to submit additional documents and that the file would be reviewed. Two days later, I receive an email requesting more documents. Then, a representative located in India instructed me to email the short sale packet to ss@ocwen.com, which I did. The email was not returned, and I thought it was successfully delivered. A week of follow-up showed that the email was never received, and I was required to fax the documents instead.

Simply finding out what documents Ocwen required to process a second lien short sale was also a struggle. Again, the representative from India said there are NO documents necessary other than an approval from the first lien, which I found rather absurd. Because of this, I had to contact the office of Ocwen’s president to get corrected answers to a simple question. It seems like every step with Ocwen is a more like a hurdle.

I’m hoping to talk with someone in Ocwen who actually knows the short sale process and has at least some “common sense.”

Entry filed under: Arizona Real Estate, Chandler Real Estate, Uncategorized. Tags: , , .

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