Facing the prospect of losing your home to foreclosure is likely to make you frightened. When the prospect of losing your home to foreclosure is caused by a mortgage servicer’s misconduct, those feelings of fright likely turn to anger. Florida residents might like to know about a mortgage servicing company that has put thousands of homeowners at risk of foreclosure.
Ocwen Financial is the fourth largest mortgage servicing company in the nation, but doesn’t own the mortgages it services. It specializes in collecting payments on delinquent or subprime loans for mortgage lenders, such as investment firms and banks.
The company is being accused of misconduct stemming from charging unjust fees, submitting legal documents without verifying accuracy, incorrectly calculating interest rates and misleading homeowners about alternatives to stop foreclosure.
It is estimated that as many as 185,000 homeowners may have been unjustly foreclosed upon by Ocwen. Under an order by authorities, Ocwen has to refund a total of $125 million to homeowners who lost their home as the result of a foreclosure. If that estimate is correct and all 185,000 homeowners qualify for a refund, each homeowner would only see approximately $676 for the refund.
In addition to having the refunds, Ocwen must also reduce the principle on underwater mortgages by a total of $2 billion over the next three years. These orders will only affect Ocwen by approximately $2.3 million in administrative costs, since the company doesn’t actually hold the mortgages.
If you are facing the prospect of losing your home to foreclosure, you might have legal avenues available that will allow you to keep your home. Contacting an experienced Florida bankruptcy attorney can help you to discover how to stop the foreclosure process and may allow you to remain in your home.
Source: WESH.com, “Mortgage servicer accused of ‘systemic misconduct’” James O’Toole, Dec. 19, 2013