OCWEN and its President, Ronald M. Faris, Called Out as “Two-Faced”
Fred Weaver with special guest, Brian Gubernick, compare and contrast Mr. Faris’ statement to the press and his actions behind the scenes. Revolting! Shame on you Mr. Ronald M. Faris!
Link to Article about OCWEN President Ronald M. Faris written by Kimberly Miller (Palm Beach Post Staff Writer) on 2/26/10 http://www.palmbeachpost.com/money/ocwen-financial-president-ron-faris-trying-to-make-292877.html
In the article above, Ron Faris states….
“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.”
Now here comes the revolting part…
Email from OCWEN President Ron Faris to Brian Gubernick on 3/13/10…
From: Faris, Ronald [mailto:[email protected]]
Sent: Saturday, March 13, 2010 8:59 AM
To: Brian Gubernick
Cc: Coykendall, Joshua
Subject: RE: OCWEN LN#XXXXXXXXXX – SHORT SALE for Borrower: XXXXXXX
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
Please, please forward this to everyone including your Senators and Representatives. OCWEN needs to be exposed for its hypocrisy!
Also, if you know anybody that works for OCWEN, on any level, please forward this link to them. Or, feel free to write Mr. Faris yourself.
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About the Authors
Kevin Kauffman & Fred Weaver
Kevin and Fred the founders of Group 46:10. Over the last 10 years Kevin and Fred, and their team have closed tens of millions in real estate all over the country and have created some of the best training for agents in the market. Kevin and Fred are also highly sought after teachers whose work has helped agents all over the country build their own next level real estate business.
This is the BEST video you have posted yet! I love it. Finally, some really strong proof to the public about how scandalous these bank executives truly are. They don’t run their businesses as a business. Business decisions should always steer towards profit, not loss…. Duh!
Crush it Ronald!
LOL
You guys are on fire as of late, I can’t just leave you running in the background anymore, I literally HAVE to stay engaged. Great stuff!
I’ve been on the edge of my seat waiting the “OCWEN DAY” on ssph. I’ve only handled reo sales for them and it is nothing but a total nightmare. I’ve had agent’s with approved OCWEN short sales only to have them foreclosed on and turned over to reo. Thanks for exposing this to everyone.
We ran out of time on the video clip but it should also be noted – THE SAME PROPERTY THAT WAS APPROVED AND READY TO CLOSE AT $275K IS NOW AN REO IN “PENDING” STATUS AT A PRICE OF $225,900! Wow Ron, not only did you FORCE a homeowner into foreclosure but you failed to mitigate an additional $50K on behalf of your investor!
The banking system is DEMONIC!
ONE OF THE BEST VIDEOS YET!!! I can completely believe that it happened though. I can’t stand Ocwen but after hearing this response from the President I know why. That is an email I would expect from a level 1 negotiator not an executive. I mean, come on, can we say LOSS MITIGATION! If the President can’t figure it out, how is anyone else supposed to in his company.
Thanks for exposing it and sharing Brian!
AND TO OCWEN!!! I wouldn’t want to piss off Brian Gubernick, do you see the size of his arms. 🙂 Real Estate agent by day, BATMAN by night!!!
Wow Brian – that just made this story even better! Way to go Ron…send a home to foreclosure and then take an offer for 50K later…apparently $50,000 is no “meaningful difference between a short sale and a foreclosure sale.”
Adam – You had me laughing with the “Batman by night” stuff 🙂
It would have been great to get in the video about the home being sold so much less at the auction. I would like to see Mr. Faris’ explanation about whether OCWEN received any “other” funds from “somewhere else” to make up the $50,000 difference … and then sell it for the $225,900 price on top of that. The banks wouldn’t keep choosing to send homes to foreclosure auctions if they were really losing money by doing so.
WOW, guys, this is definitely the best video by far! I plan on dropping Mr. Faris a little email about my disgust of what a great “executive” decision that was made! WOW, a $50,000 loss didn’t mean anything to Ocwen!! Do we know if our Arizona Senators have seen this lovely email back to Brian yet? Keep it coming guys!!
Jill Rother, Keller Williams
I’m in the mortgage industry and think homeowners out there shouldn’t be mislead by this foolishness. Ocwen does try to keep borrowers in their home and in fact is an industry leader in foreclosure avoidance by modification. Shortsales do not accomplish this objective. Shortsales are in fact no different than foreclosure sales except the homeowner has to leave their home sooner and the broker makes a commission. Brokers will allege that the short sale somehow is better to the borrower’s credit. Not a single credit bureau will attest to this. Instead, the big driver to credit score is the delinquency not the the terminal event. In fact, short sales areguably only hurt the borrower’s credit by extending the delinquency. And why do companies like Ocwen take a stand and adhere to established foreclosure sale dates because brokers don’t always get their deals done as promised and in the end everyone is worse off. Do yourself a favor and ignore this broker driven propaganda.
@Anthony,
I found this blog search on Google, and I can assure you that I am not a broker, agent or in the real estate / mortgage field at all…
I am a homeowner that was able to salvage my credit and my family’s financial situation via a short sale.
Anthony, you are right. Short sales don’t keep a homeowner in their home.
But, OCWEN’s loan mod program is pointless unless they reduce the principle – which I wasn’t able to accomplish with my home.
So, I had three choices…
1. Keep my home and never, ever have the ability to move because my home dropped from $360k to $117k. It would take many, many years for me to gain the home as an “asset” or “investment” again. Sure, I could do a loan mod, but that is just band-aid on a problem that I would have for many, many years. I loose a lot and the investor wins.
2. Let it go to foreclosure… I loose a lot and the investor looses a lot.
3. Do a short sale… I loose some and the investor looses some.
To me… Doing the short sale is the only way that makes sense. Sure, both parties have a loss. Loss of time, loss of credit, loss of money, etc. But that loss is less then in a foreclosure or in a loan mod.
I know I am probably out of my league commenting on this website with short sale specialists… But those are my experiences… From a homeowners perspective.
I don’t get the whole “reduce my principle to market value” thing. By using this rational, what would happen if your home value increased?…would the lender increase your balance/payments? I can understand why a lot of lenders avoid this type of workout.
We will do ourselves a favor and ignore your misinformation. My guess is that you work for OCWEN and you are drinking their Kool-Aid
I am a realtor with a bonafide buyer waiting on an approval letter so we could order an appraisal…only now was told by the ocwen person, out of the USA, that he could do nothing….the cash has to be in escrow ..prior to issuance of the short sale approval letter…that they could not issue the letter till cash was in the bank. that means that only cash offers could be accepted. No lender will order an appraisal without a approval of short sale letter. Who would pay the four or five hundred dollars for the appraisal..no buyers I know want to pay for appraisals for a property that easily get unapproved and could get foreclosed on! Don’t blame the brokers..they have to have a pre quailifed buyer before the offer is even submitted!!! we have been waiting almost a mo. only to be told now…no letter untill cash in escrow, and only 18 days till sale! we need 2 weeks after approval for the appraisal. won’t ever work for the common buyer..only for investors with cash which brings our market prices down more!!!!
Wanta slow the foreclosures…get some input from realtors who work short sales to help in the solution to slow foreclosures !@!!
Wow Anthony – I have so much to say to you but don’t know where to begin. Would you care to email me and give me a phone number where I can contact you? My email is [email protected]
Your statement above is COMPLETELY inaccurate. I can only wonder if you’re a representative from OCWEN or even Mr. Faris himself commenting under the name Anthony Fleming. In either case, I’d love to talk to you about how you don’t think a short sale is beneficial to someone’s credit. Last time I checked FHA, Fannie, and Freddie all allow a homeowner to purchase a home after a short sale in a quicker time frame then at foreclosure. I see your point on the actual credit showing lots of missed payments, but it’s about what’s reported on someone’s credit report after a short sale that is beneficial to them.
Drop me an email so we can talk more…. [email protected]
Great video highlighting the hypocrisy of the banks in the current environment.
As for quick close loans try Brandi Bryan at Academy Mortgage. They have a 10 day guaranteed close program that I’ve had success with for my clients. http://www.tendayclose.com/
In response to the above post by AF.
“Ocwen does try to keep borrowers in their home and in fact is an industry leader in foreclosure avoidance by modification. Shortsales do not accomplish this objective.”
If the borrower is out of work/ has a true financial hardship…it would not matter what the payment was. They still can not afford it! A short sale is a legitimate alternative that does save the bank money! AND have you ever looked into the stats for loan-modification re-defaults? They are working out great for the banks!!
“Shortsales are in fact no different than foreclosure sales except the homeowner has to leave their home sooner and the broker makes a commission.”
Getting the homeowner out of the home quickly absolutely saves the bank more money! Time=Money (have you ever heard this saying AF??) The bank will have to pay commission to an REO agent as well! So not much of a footing there either!
“Brokers will allege that the short sale somehow is better to the borrower’s credit. Not a single credit bureau will attest to this. Instead, the big driver to credit score is the delinquency not the the terminal event. In fact, short sales areguably only hurt the borrower’s credit by extending the delinquency.”
Once again…do your homework bro! An account that is ‘settled’ is miles better than a foreclosure! 120 days late is as bad as it gets as far as time goes!
“why do companies like Ocwen take a stand and adhere to established foreclosure sale dates because brokers don’t always get their deals done as promised and in the end everyone is worse off.”
This is my favorite…now it is the brokers fault! Trust me AF…the banks process is slowing us down and they would be done as soon as possible if it were not for red-tape and poorly trained staff that is overworked. If the bank has not moved on a complete file in a timely matter…the extension should be automatic!
Unbelievable!
I just emailed my Senator Barbara Boxer. We have to do something about this! It is crazy!! I havce a client with bank of america that is trying to short sale, they just declined because the sick and retired aged folks will not contribute $35,000! Help!
Shannon Coe
@Shannon. Send a Tweet out to @BofA_help for assistance. If you are at the end of the process and have something that is a legitimate issue, these folks will respond to you within 24 hours. The Bank of America Exec Resolution Dept is monitoring Twitter and cares about what you are saying about them. I posted the process on my active rain blog.
@Group46:10
My understanding is when you appear before Congress you raise your right hand and swear to tell the truth.
If Faris appeared before Congress and told them what they wanted to hear, when in fact he is doing just the opposite he just lied before Congress. People can go to jail for lying under oath. (I think Barry Bonds was sweating there for a while when there was concern about whether his lies would get him thrown into jail.)
I say let’s hold Mr. Faris accountable to his words, but more importantly to his actions. Where’s the angry mob? Let’s storm the castle.
Hey – We’ve got the same thing in GA and I see the pukes at Nations Bank of Amerika as a big part of why the ‘recovery’ in housing and finance will take years longer that necessary.
This was FANTASTIC! That is all I can say! Hate to admit it but it was the first video I have watched! Shhhh don’t tell! Greatness BG!
We all need to write our Senators and let them know what is going on with the banks and short sales…..
I for one am tired of the banks like this wasting everyone’s time.
A little behind on the daily visits, but OCWEN….as an REO servicer here in KY I’m not surprised.
@AF I see a lot of agents who still think inside the box. “Only their traditional ways of real estate will make their business a sucess” Short Sales are the market of the moment people! Thousands of homeowners are in a finacial mess. I have clients who: after a Fannie Mae short sale purchased a new home in 2 years, with another FHA loan. Could this have been accomplished if they been foreclosed?
Only one family, but a lifetime of appreciation for the experience of the this short sale agent.
Open your mind to the possibilities of your shortcomings….
@ssph, thanks again for sharing. there is always enough business to share !
wow, I could have used spell check
Mr. Borders’ comments reaffirm why FHA loans have traditionally had a much higher default & foreclosure rate than conventional loans. Seems like Lenders & Borrowers lose money on foreclosures, but don’t Realtors make some $ on shortsales, $ on BPO’s, $ on REO sales? Better yet, lets make sure Realtors have a steady stream of “Buyers” that have a track record of “financial issues” that resulted in losses by granting them another loan real soon. We can create a new criteria for them and call it “Subprime Lending” and use Risk-based pricing. Hey, it’s all about the Realtors, right?
Child, please…
OK, call it just another rant, but why does someone agree to a purchase price, take out a 30 yr loan, then default when the sole reason is because the property value is below their loan amount? To prove to everyone they made a bad financial decision? They seem to have no problem buying a new car and having it worth less than the amount owed when they drive it off the car lot. Yes, yes, there are untold thousands of true hardships, making it terribly difficult to keep them in their homes. So I say go after the wealthy and the real estate investors specifically on the so-called “strategic defaults” and use the recovered funds to offset a portion of loan workout losses.
Dear Hugh,
You have to be in the situation to understand the wrong doing that has been done to the AMERICAN PEOPLE by the greed that has corrupted our nation. I really pray and hope that you never have to live through the misfortune of losing EVERYTHING that you work so hard for, you have to work multiple jobs and still can’t keep up with the issues that were misguided and unethical in every way you can possilby imagine!
We need to stand united and fight as one!
Wow! Just seeing this now. 2 years ago, my first 2 short sales were both with Ocwen! They both traveled the SAME EXACT path that was talked about in this video! I also spoke to Coykendahl. Both homes went to foreclosure. Since then I have refused to take an Ocwen short sale. Glad I have not missed out on anything since they have not changed one bit in 2 years. I blogged about them and threw their butts under the bus. Disgusting. They say that as a Servicer they have power of attorney from the investor (Deutsche Bank) to do as they see fit. The major investors are the ones who should be raked over the coals. Do they not know what is happening to their loans? Isn’t their duty to see that the servicer is acting in their best interest!!!
Thank you so much for posting this VERY INFORMATIVE video. My husband and I are customers of Ocwen and are ready to do our short sale. We have been denied and denied and denied for any loan modification or refinancing. We have to get away from this company!
I am a customer of Ocwen and it is so hard to communicate with them, I have complied with everything, I have provided them with all documents requested but they always say they never received the documents. It has been almost two years that I have asked them for help; even when I was paying my mortgage on time and I knew difficult times were around the corner. They totally ignored me.
I keep trying again and again I do not know what to do anymore. We have been denied and denied and denied for any loan modification or a mortgage assistance program. Can not get ride of them, can not negotiate with them, never had a representative assigned to my loan I don not know what to do anymore.
I do not understand how these lenders are getting away with this; they need to be supervised more closely and they need to be persecuted for wrong doing.
Most of the homeless now days are because these bank employees do not want to do their job, it is easy to foreclosure or to short sale a property, then to keep families in their homes.
I am also a customer of Ocwen. I lost a good job in these economic times and had to settle for something with less pay. I let them know that I’m in a position to return to my old job at the beginning of the year. I have submitted every document needed for the modification. I talked to a rep and we did some number crunching based off the documents I faxed to them and that they will soon give me an answer. Well, I called them since I didn’t get an answer. There’s a recording they have stating if modification paperwork was received they will not go ahead with foreclosure. It’s a timely process and it is unnecessary to talk to a rep since they will have no new info. Then I talked to another rep later on and he told me they never received any documents!? Well it’s past that point now and they are moving along with the foreclosure auction. I even had a meeting with an Obama appointed rep from HUD help to keep my house. He too was surprised how cold, cut and dry they were. I don’t know how they get away with the practices they do! There is no winner! What’s the point of the bailout when it is not working? The banks are getting the bailout money and are getting the house too!? How is this possible when a portion of my hard earned tax money is going to the bailout?!!!!! This is insane!!!!!
What is the website name to locate the bank president / board of directors so that i can escalate a file?