Ocwen Assisted Short Sale Program Problem Resolution Process
If you are currently trying to get an Ocwen Loan Servicing (Ocwen Financial Corporation) Short Sale approved and are being told that the Borrower must participate in Ocwen’s Assisted Short Sale Program with Altisource / Hubzu and that the Property must be listed on Hubzu.com under an online auction and you do not want that then you may find some help here.
You have good reasons to not want to be forced to list the short sale property on Hubzu.com.
1. The auction terms on Hubzu are not good. There is no way to qualify a bidder so a completely unqualified “buyer” can bid on the property with little to no restrictions and drive up the auction price then not perform with the result being that real qualified buyers are outbid and will not be be able to bid a lower, but fully qualified bid.
2. The sale is as is with no contingencies for inspections or mortgage so it dissuades buyers by scaring them away with bad terms. Hubzu charges a 4.50% Buyer Premium + a $299.00 fee so it increases the price the buyer pays.
3. Ocwen appears to be forcing the Assisted Short Sale Program with Altisource / Hubzu on Borrowers (the Property Sellers) even when the Borrowers may be eligible for a potentially better short sale program for the Borrowers like the HAFA Short Sale Program.
4. According to the Hubzu listing agreement that Ocwen sent me, Hubzu takes 1.5% of the commission leaving the listing agent 2.50% and the buyer agent 2.00%, which could discourage buyer agents from trying to sell the auction property to their buyers. Other agents reported that the listing agent and buyer agent commissions were not altered by the Hubzu listing agreements they received. Therefore, this could be a case by case issue, or Ocwen may have changed their Hubzu program.
5. Ocwen Loan Servicing & Short Sale Shakedowns By Phillip C. Querin, Querin Law, LLC – According to Phillip C. Querin, an attorney, Ocwen’s Assisted Short Sale requirement is a violation of several Oregon state real estate licensing laws as well as Federal RESPA laws.
If this is enough for you to decide that you want to fight Ocwen’s forced Assisted Short Sale Program with Altisource / Hubzu then I recommend you do the following:
- You should create an Ocwen Assisted Short Sale Opt Out and HAFA Opt-In Request Letter with Loan Number, Borrower Names, Property Address, Date and Seller Signatures. Be sure to include the fact that the Borrowers want to apply for HAFA, but Ocwen is denying the request and trying to strong arm the Borrowers into this Assisted Short Sale. If you have an offer which meets 90% or more of the Property Valuation according to Ocwen be sure to include that as it will help.
- Have the Borrowers download and complete the Ocwen HAFA RMA Short Sale Package and gather all supporting documents.
- Have the Borrowers download and complete the HAMP Third Party Authorization Form and sign and date. Do not send any other version of a TPA since HAMP will not accept any other version regardless of how similar it is.
- Send your complete write up of the situation (i.e. a recap of what happened) along with the items above to HAMP Escalations Team (be sure to include loan #, Borrower Names and Property Address).