Ocwen Mortgage continues to play dirty with distressed homeowners. This is even after being investigated by the Consumer Financial Protection Bureau (CFPB) and agreeing to a Consent Judgement between the CFPB, 49 states plus the District of Columbia. Why Oklahoma wasn’t included in the settlement, is a question that I cannot answer. You can read the document by clicking here. Although this agreement was done in late 2013, it has a three year life meaning it is still in effect. This agreement has a direct impact on what is happening to my clients. Their foreclosure sale is scheduled for August 12, 2015 at 1 p.m. in the afternoon.
Dual tracking is the practice of working towards a mortgage loan modification at the same time of processing foreclosure sale paperwork.
On May 27, 2015 my client signed a third party authorization form which allows me to obtain information about their mortgage loan from Ocwen. It doesn’t allow me to accept offers from Ocwen or obligate them to anything being offered. All it does is allow an open discussion with the mortgage lender and myself. Ocwen acknowledged, by a written letter, to the homeowners on June 1, 2015 that they had added me as a third party. Shortly thereafter, things started to happen that didn’t make sense. Conversations with their representatives left me scratching my head and asking more questions than answers. Looking back, it is clear that Ocwen knew that they were servicing two loans for my client. They continue to dual track loan modifications and foreclosure sales.
Dual tracking is the practice of working towards a mortgage loan modification at the same time of processing foreclosure sale paperwork. Although Ocwen agreed to stop working both the loan modification and foreclosure sale processing at the same time with the Consent Judgement, I know it still continues and proof exists with this file.
On July 29, 2015 Ocwen confirmed in writing that loan number 7110431520 had been approved for a modification. Based on the Consent Judgement, Exhibit A, page A-17; IV. LOSS MITIGATION states Dual Track Restricted (Item B.) and that if a modification is offered to the borrower, then the Servicer shall postpone the sale until the earlier of 14 days after the date of the evaluation notice. The Consent Judgement does not state what lien position and it is my opinion that any offer of modification invokes the rule to postpone the foreclosure sale.
The foreclosure sale is scheduled for August 12, 2015 at 1 p.m. central.
It should be noted that Ocwen Mortgage is a subsidiary of Ocwen Financial Corporation (NYSE:OCN) and their stock has been performing poorly recently. According to Wikipedia, the company in 2013 had 15,610 employees worldwide of which only 1206 were employed in their U.S. facilitates. That could explain why communicating with them is extremely difficult.