This is a perfect example of how the mortgage servicers, like Ocwen, don’t really care about helping homeowners in regards to short sales.
We take calls all day long in our office from homeowners and Realtors who are frustrated with the short sale process. HELLO!! It is easier for the bank to simply foreclose. It takes serious firepower to get them to behave.
We have been battling and beating these guys for years but frankly it at times requires hauling them off into court to get them to “see the light”. If you have Ocwen as your mortgage servicer you already know how difficult it is to deal with these numskulls. Read on with “disbelief”.
- The Bank Slayer
In the email published below you will see the truth, straight from Ronald Farris, the president of Ocwen. Below the email is the link to the video & credits for the entire story.
In a nutshell, agent Brian Gubernick, a Arizona agent, listed a home for a short sale. He got short sale approval on Feb 26 but the approval was only good until March 1. His efforts to have it extended until the end of the month and postpone the March foreclosure sale led him to contact multiple levels in Ocwen all the way up to the president. Ron Farris’s response to the request is shocking to those that think the bank wants to help homeowners.
Before reading the email here is an excerpt from Ron Faris published not long ago in the Palm Beach Post.
Reporter: What misperceptions do people have about your business?
Ron Farris: Many people think that we originated the loans we service or they think we own the loans. In most cases, we didn’t originate the loans, and we don’t own the loans. People also think that we make money by foreclosing on a home. Foreclosure is not only bad for the homeowner, but it is also bad for the investor in the loan because foreclosure almost always results in a loss. Foreclosure is also bad for Ocwen because we lose our ongoing serving fee revenue.
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Email from OCWEN President Ron Faris to Brian Gubernick on 3/13/10…
From: Faris, Ronald [mailto:Ronald.Faris@ocwen.com]
Sent: Saturday, March 13, 2010 8:59 AM
To: Brian Gubernick
Cc: Coykendall, Joshua
Subject: RE: OCWEN LN#XXXXXXXXXX – SHORT SALE for Borrower: XXXXX
Mr. Gubernick,
Can you help me understand how a short sale will help the homeowner? My goal is to find a solution that keeps the borrower in their home. If that is not possible, then there is no meaningful difference between a short sale and a foreclosure sale. If you have a buyer for the property, we can always sell them the property post foreclosure sale. As it looks like you are a real estate agent I can understand that you are concerned about losing your sales commission.
I suggest you have the borrower contact Mr. Coykendal to see if there is any way for us to do a loan modification.
Regards,
Ronald M. Faris
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Of course banks would prefer foreclosure. That means they can set the price and the homeowner cannot. They want full control as soon as possible.
Nick,
You are are right of course they want full control, Ron Farris contradicts his own words:
“People also think that we make money by foreclosing on a home. Foreclosure is not only bad for the homeowner, but it is also bad for the investor in the loan because foreclosure almost always results in a loss”
“there is no meaningful difference between a short sale and a foreclosure sale. If you have a buyer for the property, we can always sell them the property post foreclosure sale”
In addition, they are not mitigating loss my taking this to foreclosure and most likely the home will not sell at foreclosure resulting in an even greater loss.
I sold a short sale that was approved, but the buyers walked out. I found a new set of buyers who were willing to buy the same home at the same price that was approved. They had to close in two weeks!!! We asked for a two week extension and never heard back from Okwen. Then they came back to the sellers and said in order to re-approve your new buyers you will also have to sign a 70k note! (adding new conditions to the approval) when they were asked for a copy of the Note for attny. review we waited,waited,waited. My buyers have jumped in and out of hoops, the sellers are doing their best to comply and Ocwen has everyone on eggs waiting to see if it will close in 8 days….no answers no resolution no recorse.Meanwhile people have sold thier condo (in order to purchase)and that person is also on hold! What more can they ask for?!?!? The question really is do they really want to do fair buisness and close this file?