Ocwen Bank is Refusing to Work Preforeclosure Short Sales

Ocwen Bank is Refusing to Work
Preforeclosure Short Sales

If your calling banks on a daily or weekly basis, then
maybe you already know this.

Ocwen Bank is no longer working preforeclosure short sales to
save homeowners from foreclosure.

At first glance this seems like a really dumb idea. At second
glance too because I keep trying to find the logic in this
decision and I can't.

Stupid, Stupid, Stupid.

But apparently Ocwen doesn't think so. And try to lodge a
complaint. You get outsourced to India who doesn't
really "get it" in the first place so you might as well
write a note and throw it in the fire place.

Why Not Preforeclosure Short Sales?

They are in full earnest now doing loan modifications.
And if they don't work, homeowner can't make the payments
or the homeowner has already moved out of the house
and doesn't want to move back, the house will only go
to foreclosure. The bank will graciously do a "deed in lieu"
of foreclosure. Isn't that big of them?

I found this out by calling today to negotiate a short sale at Ocwen
Bank. They currently only will talk to the homeowner and review
their income situation. They request that "realtors" not call any
more and they also request that the realtors insist that their clients
(that the realtor can no longer help) call the bank.

Now, as you know, I'm not a realtor. But it was pretty clear that
they meant me and other investors like me to not call and request
a pre foreclosure short sale either. This is remarkable!

Loan Modification instead of a
Preforeclosure Short Sale

Don't misunderstand. A loan modification for the homeowner
is a good thing. I successfully completed some and worked on
others. The banks should have started this long ago.

Working to keep the homeowner in the house saves the
house from vandals, saves the neighborhoods and helps the
banks' keep paying, caring people in the asset they
worked very hard to acquire.

More Frequency

Doing it more often and with less stringent guidelines before the
problem got so out of hand would have been a great thing. Doing
it now and excluding an option for the homeowner is selfish
on the bank's part, too little too late and I don't believe it will
have the desired effect of saving the homeowner and the home.
It's kinda' like the government getting involved. They don't have
a clue about the problem so who can they come up with an effective
solution?

Once a foreclosure notice from the courts and the bank get to the
homeowner, the homeowner often panics. They know they owe
the money. They know they shouldn't be living in something
they are not paying for so they pack up and move out.

Why would these same people want to move back in? The
house is now a horrible memory for them. They spent money
they didn't have to pack up and find a place they could afford.

The banks are ruthless which is what many of my homeowners
say and believe. Ocwen has just proved it and I pray the
other banks do not follow suit in an effort to "help" the homeowner.

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Deb McMillan
The Short Sale Queen®
Believe in Your Own Success!

One of World's Largest Bank collapses and is bought by JPMorgan

The news is scary when you read about mortgage companies and losses and how preforeclosure short sales fit in.

What does all this mean? Is a recession near? To buy cheap houses or not to buy cheap houses? And how cheap is cheap enough?

JPMorgan is buying Bear Stearns for $2/share. This deal represents a 98.8% discount to its book value as on February 29, 2008. I like that discount but it's pretty scarey wondering how you fit in.

The banks are going to have to start getting rid of more property while people are willing to buy. This kind of news may be making buyers skidish.

Preforeclosure Short Sale or Foreclosure Sale Formula
The banks' formula to accept short sales is 180 days on market before the final REO sale by an end buyer.

In today's market this is not accurate and banks will continue to lose money if they don't change this obvious calculation error that has changed over the last year.

180 DOM gives a false number of what the bank will have into the property at the time of foreclosure sale. It insists that a buyer pay more to keep this house from going to foreclosure sale. The buyer now has the liability and will take the hit if the values keep dropping.

Talk to your loss mitigator about this number in his equation. Ask his/her "what is your value for DOM? Do you really believe that is accurate? You've seen the data I've provided you and it is not close to that." Get him/her to use a much longer number because the house will be on the market much longer than 180 days!

Deb looking out for more ways to get discounts McMillan
Stay tuned here with
The Short Sale Queen®
And Believe in Your Own Success!

deb@shortsalequeen.com

Lost Paperwork sends Preforeclosure Short Sale Business in a Tizzy?!

Is it possible that banks can lose your mortgage documents and you can't get foreclosured...there would be no reason for a preforeclosure short sale.

Apparently in the hayday's of subprime lending, lenders were selling the notes so quickly after the ink was dry, that the necessary documents didn't get recorded, assigned when re-sold and if you don't own it (and prove that you own it) you can't foreclosure.

This is good for some homeowners. If you remember, back in December, a Cleveland judge threw out 14 foreclosure cases (and we reported it here) because the assignments to the new bank owner were never recorded. The bank could not foreclosure and still haven't found the paperwork. The debt moved forward, but the paperwork stayed behind in filing cabinets, in computer files or just collecting dust on a desk. Sad but true. They got their money and dropped the ball for the follow up work.

The work of re-establishing the chain of ownership could slow down the housing correction even longer. Some borrowers have simply stopped paying on these loans, in hopes they can play the system and live in the house for free for a lot longer.

What does this mean to us as preforeclosure short sale investors? The high foreclosure rate goes on and on. What a great business to get into! And you can learn all the tips, techniques, negotiating a short sale strategies at


All the Short Sale Queen Tips and Tricks

Deb McMillan
Believe in Your Success!

For Those who Think They have Come Across Everything in Pre Foreclosure Short Sales!

For Those who think they have come across everything in Pre Foreclosure Short Sales!

The longer you do this real estate short sale preforeclosure business, the more you realize you have NOT seen everything.

We have a buyer for a house we have negotiated a short sale with the bank for. The buyer came from out of state through internet marketing. The buyer has almost 1,000,000 dollars in 1031 Tax Exchange money to spend on real estate.

1031 Tax Free Exchange
1031 Tax Exchange money comes from when you sell a property, identify it as using it in a tax exchange, have a third party handle the closing for you so you never touch the money. The money sits in the tax exchange company's escrow account until the final closing date. that final closing date must be within 180 days or you will lose the ability to NOT pay taxes on the sale.

That's the point here. To sell a property you have owned for along time, have no more depreciation deductions on it so you sell it, no taxes are due, you buy another property and can take depreciation expenses on the new building.

There are lots of hoops to jump through to get here but well worth it when it is done.

Federal Prison
Well our Tax Exchange buyer, as it got closer to the closing date, is in Federal Prison. When you have committed a Federal offense, you lose some rights. Now, I did know you couldn't vote ever again in life when this happened. You also can't own a gun ever again.

However, I didn't realize you can't buy and sell property - at least while you are in Federal prison.

Our buyer does have a POA (Power of Attorney) for somebody else (his sister) to sign for him. Apparently, she or he or they are mad at each other. She says she will not be a part of this closing or anything to do with him. So we don't have a buyer and the 2nd extension has run out to close our deal.

What's Left?
Pay the sister some money to sign? Don't know if that will work, but if we don't ask, I'm sure it won't work. We'll keep trying. This is a $21K profit deal. Hard to say no before we have tried absolutely everything. Stayed turned. It's not over till the POA says no for sure or the bank does. We won't give up!



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