Mortgage was sold to Ocwen--what to expect?

Mortgage was sold to Ocwen--what to expect?

Orlando, FL · Member since 2009 · 2k+ posts · 282 votes

The mortgage on my personal residence was just sold by GMAC to Ocwen. I'm pretty nervous because there's tons of horror stories on the web about Ocwen (saying the payment wasn't sent in when it was, and many other mistakes). As Also I understand it the customer service is outsourced to India and leaves much to be desired in terms of communication and follow through...

Does anyone else here have them as your loan service provider? Has the experience been at least tolerable or a total nightmare?

0Reply
355 views

Most Popular Reply

Scottsdale, AZ · Member since 2013 · 70 posts · 17 votes
13y

I worked for Green Tree for 5 years in default servicing (Client Manager for FNMA book, SS & REO Facilitator), and just to clear things up, Ocwen most likely did not buy your mortgage. Ocwen is a special servicing company. They may have earned a servicing contract for your mortgage from the investor, but my bet is that your mortgage is either owned by FNMA or Freddie. Probably FNMA.

You should find out who the investor that owns your note is. Ocwen has to answer to the investor ultimately. If you are experiencing bad service from Ocwen, then go directly to a contact for the investor. They have special escalation proceedures to make sure that Ocwen services according to their contract.

Let me know if you have any questions about mortgage servicing.

See this reply in the discussion

77 Replies

Jump to latestLatest
  • J ScottPro Member
    Moderator
    Investor · Sarasota, FL · Member since 2008 · 17k+ posts · 17k+ votes
    13y

    I would suggest never asking them for a loan mod and never trying to do a short sale. A friend of mine tried to go these routes with Ocwen and describe a complete nightmare scenario...

  • Real Estate Professional · West Palm Beach, FL · Member since 2012 · 23k+ posts · 13k+ votes
    13y

    Absolutely the worst to work with, as far as short sales anyway. They've been on a buying spree lately. On non performing loans, they want to liquidate them the fastest way possible, DIL, quick foreclosure, SS, etc. A lot of their short sale processing is India outsourced....hit yourself in the head with a sledge hammer. On performing loans, I have no idea.

  • Orlando, FL · Member since 2009 · 2k+ posts · 282 votes
    13y

    Apparently it's not just the short sales and loan mods--according to online reviews they also mess up the insurance and tax escrow (luckily I don't escrow).

    Is Ocwen the same as Altisource? If so I've already dealt with them on an REO and I've experienced how incompetent they are.

  • Real Estate Investor · Sioux Falls, SD · Member since 2013 · 415 posts · 84 votes
    13y

    Wow! Years ago I had a loan that was sold to Ocwen. I personally had no issues , however that was years ago and I always made my payments on time.

    Good luck

  • Dawn AnastasiPro Member
    Rental Property Investor · Milwaukee, WI · Member since 2013 · 6k+ posts · 4k+ votes
    13y

    Hey! Small world. I have (now had) two loans with GMAC. Both were sold to different servicers and one was to Ocwen. I'm not sure what to expect either -- the first payment is due next month. I'm hoping they have the ability to pay online.

  • Real Estate Investor · Woodbury, MN · Member since 2008 · 133 posts · 43 votes
    13y

    I think you are probably in for an unpleasant experience!

    I'm a loan officer for a large bank and at least 1 to 2 times per week I get a call from somebody who has a loan serviced by Ocwen. In most cases they are literally begging me to do an application, they don't care what the rate or cost is, even if it's higher than their current rate, they just want to get away from the company.

    A family member of mine has a heloc serviced by them. For 2012, out of 12 months they received only 3 statements. A couple months they didn't remember to pay it because they didn't get a statement, Ocwen charged a late fee as well as a fee to take the payment by phone. This is not a case of an irresponsible customer, this family member is a millionaire with 800+ credit. They complained to Ocwen every month, finally in November they filed an online complaint and apparently that got read. Ocwen sent 8 statements for the month of December! The worst part was, EVERY one of the 8 statements, showed a different balance and different min payment due!

    Good luck!

  • Property Manager · Livonia, MI · Member since 2011 · 4k+ posts · 1k+ votes
    13y

    Wow, I got the same letter last night. My personal home mortgage was sold to them. I went to see their site and saw a "loan mod click here"... Thinking that I should give it a whirl... But I will avoid it at all cost if this is the case.

    I liked GMAC a lot. Had mortgage and heloc at one point for over 12 yes now. Never had issues. BTW, rate on the personal home is 5.75%

  • Orlando, FL · Member since 2009 · 2k+ posts · 282 votes
    13y

    Well I guess those of us who've been transferred are in for a lot of fun!

    NY has appointed an overseer to Ocwen:

    http://www.reuters.com/article/2012/12/05/ocwen-monitor-idUSL1E8N58D520121205

  • Property Manager · Livonia, MI · Member since 2011 · 4k+ posts · 1k+ votes
    13y

    i dont know if i should cry or laugh...

    thanks for the link, Bienes..

  • Dawn AnastasiPro Member
    Rental Property Investor · Milwaukee, WI · Member since 2013 · 6k+ posts · 4k+ votes
    13y

    This does not sound good. In my case, I don't think I can refinance. My loan balance is about $58,000 (out of a $90K valued property) and the rate is very low -- 3.625%. Plus, refinancing will cost about $3000.

    Is there any way to ensure that they record the payments on time so I don't get hit with late fees that aren't true? Anything I can do in advance?

  • Property Manager · Livonia, MI · Member since 2011 · 4k+ posts · 1k+ votes
    13y

    i made the mistake the jump in immediately when the rates started to go down. so, i was at 6.5 and re-fied at 5.75 or something like that. and since i dont have the equity, i can't use those modified loan options. i am kicking myself now, but it's 2 yrs too late.

  • Orlando, FL · Member since 2009 · 2k+ posts · 282 votes
    13y
    Originally posted by Dawn A.:
    This does not sound good. In my case, I don't think I can refinance. My loan balance is about $58,000 (out of a $90K valued property) and the rate is very low -- 3.625%. Plus, refinancing will cost about $3000.

    Is there any way to ensure that they record the payments on time so I don't get hit with late fees that aren't true? Anything I can do in advance?

    I would make a photocopy of the Ocwen payment coupon that GMAC sends you (I received mine the other day) so that if Ocwen fails to send the coupons you have the account # and mailing address to send checks without the coupon.

    I've also read to mail payments with return receipt requested, although I don't know if this would work since I think they're sent to a PO box. Keep the cancelled checks or print from online.

    Someone on another site said to contact the Ocwen consumer "ombudsman" if Ocwen makes a "mistake", or to file a complaint here: http://www.consumerfinance.gov/

    Apparently the Indian call center is difficult to reach and does not keep notes on your case, so that you have to start all over again each time you call about your issue.

  • Dawn AnastasiPro Member
    Rental Property Investor · Milwaukee, WI · Member since 2013 · 6k+ posts · 4k+ votes
    13y

    Well it's good to know this in advance. I'm forwarding all this to my business partner who is also on the note.

  • Dawn AnastasiPro Member
    Rental Property Investor · Milwaukee, WI · Member since 2013 · 6k+ posts · 4k+ votes
    13y

    My other mortgage was sold to Green Tree Servicing, LLC. I am reading bad things about them online, too.

    I wish I would have had some say about this. I didn't choose to have GMAC go bankrupt.

  • Scottsdale, AZ · Member since 2013 · 70 posts · 17 votes
    13y

    I worked for Green Tree for 5 years in default servicing (Client Manager for FNMA book, SS & REO Facilitator), and just to clear things up, Ocwen most likely did not buy your mortgage. Ocwen is a special servicing company. They may have earned a servicing contract for your mortgage from the investor, but my bet is that your mortgage is either owned by FNMA or Freddie. Probably FNMA.

    You should find out who the investor that owns your note is. Ocwen has to answer to the investor ultimately. If you are experiencing bad service from Ocwen, then go directly to a contact for the investor. They have special escalation proceedures to make sure that Ocwen services according to their contract.

    Let me know if you have any questions about mortgage servicing.

  • Orlando, FL · Member since 2009 · 2k+ posts · 282 votes
    13y
    Originally posted by Paul Cordero:
    I worked for Green Tree for 5 years in default servicing (Client Manager for FNMA book, SS & REO Facilitator), and just to clear things up, Ocwen most likely did not buy your mortgage. Ocwen is a special servicing company. They may have earned a servicing contract for your mortgage from the investor, but my bet is that your mortgage is either owned by FNMA or Freddie. Probably FNMA.

    You should find out who the investor that owns your note is. Ocwen has to answer to the investor ultimately. If you are experiencing bad service from Ocwen, then go directly to a contact for the investor. They have special escalation proceedures to make sure that Ocwen services according to their contract.

    Let me know if you have any questions about mortgage servicing.

    Thanks Paul. I've read online that sometimes Ocwen refuses to divulge who the investor is. Is there another way to find this out without going through the India call center?

  • Property Manager · Livonia, MI · Member since 2011 · 4k+ posts · 1k+ votes
    13y

    paul,

    how can i find out who the investor is?

  • Orlando, FL · Member since 2009 · 2k+ posts · 282 votes
    13y
    Originally posted by Dawn A.:
    Well it's good to know this in advance. I'm forwarding all this to my business partner who is also on the note.

    Dawn,
    I'm not in position to refi right now either. I think it's ridiculous that e US allows Ocwen to operate the way it apparently does, especially since we have no choice about our loans being sold.
    At least as RE investors we are somewhat savvy about this situation, and forewarned. Think of the average Joe Blows who will be walking into this buzzsaw over the coming months without a clue.

  • Scottsdale, AZ · Member since 2013 · 70 posts · 17 votes
    13y

    You can call Ocwen, request a manager and they should tell you. You can also use the FNMA or Freddie Mac Lookup Tools.

    FNMA lookup tool
    https://www.knowyouroptions.com/loanlookup

    Freddie lookup tool
    https://ww3.freddiemac.com/corporate/

    If your loan is not owned by either, Ocwen should tell you.

  • Orlando, FL · Member since 2009 · 2k+ posts · 282 votes
    13y
    Originally posted by Paul Cordero:
    You can call Ocwen, request a manager and they should tell you. You can also use the FNMA or Freddie Mac Lookup Tools.

    FNMA lookup tool
    https://www.knowyouroptions.com/loanlookup

    Freddie lookup tool
    https://ww3.freddiemac.com/corporate/

    If your loan is not owned by either, Ocwen should tell you.

    Thanks Paul!

  • Orlando, FL · Member since 2009 · 2k+ posts · 282 votes
    13y

    The login for former GMAC customers is now working on the Ocwen site...my information was all correct. So far so good.

    Maybe those of us who were sold to Ocwen can keep posting on this thread (IF there are problems--hopefully there won't be) over the coming months to figure out how to resolve issues with them.

  • Property Manager · Livonia, MI · Member since 2011 · 4k+ posts · 1k+ votes
    13y

    i read the letter again and it said "if you have auto payment currently", nothing is needed and nothing will change.

    my payment is taken out on the 2nd. i will check on the site on the 3rd and see if they have taken it and recorded it correctly.

  • Orlando, FL · Member since 2009 · 2k+ posts · 282 votes
    13y
    Originally posted by George P.:
    i read the letter again and it said "if you have auto payment currently", nothing is needed and nothing will change.

    my payment is taken out on the 2nd. i will check on the site on the 3rd and see if they have taken it and recorded it correctly.

    George, if you wouldn't mind posting the outcome here after they debit your account that would be great. I am currently paying by check but the autopay would be nice, provided they don't screw it up.

  • Property Manager · Livonia, MI · Member since 2011 · 4k+ posts · 1k+ votes
    13y

    will do. i was happy to see that everything would just carry over during the transition... but will find out if it goes well in 2 weeks..

  • Investor / Developer / GC · Manassas, VA · Member since 2013 · 229 posts · 39 votes
    13y

    I too had my loan transferred. My wife had seen someone taking pictures from the street just last Tuesday and on Friday we received our letter from GMAC. I'm not liking what my research has found on this servicer but seeing as they obtained control of the servicing through an asset sale there is nothing I can do about it other than to try and refinance with another lender. Unfortunately, this is about impossible as its been a little bumpy and my credit scores are hurting. Maybe, I'll pursue a loan mod with them and ride it out as long as it take for my scores to get higher.

Join the conversationCreate a free account to reply, vote on answers and follow this thread.