There were 700,000 foreclosures nationwide last year and some of those didn’t need to happen. Even six years after the housing market crash, mortgage companies are still making mistakes and foreclosing on homes when they should not be. Ocwen Financial Corp., one of the nation’s largest mortgage servicers, is under investigation in a new lawsuit over its treatment of homeowners facing foreclosure. The class action lawsuit alleges Ocwen has been charging mark-ups, illegal fees and unfairly pushing homeowners into foreclosure.
This is ironic; because for years Ocwen has claimed to help homeowners avoid foreclosure. They even trademarked the slogan, “Helping homeowners is what we do!”
The case has been filed in a federal court in Florida and is seeking class-action status. The lawsuit alleges that Ocwen is charging illegal fees. Ocwen, oftentimes follows a pattern, usually beginning with a small problem, a mix-up with an escrow account or a homeowner simply misses a few payments.
Ocwen has charged plaintiffs late fees that it was not permitted to charge under the terms of the mortgage agreement. The suit claims Ocwen also forced upon borrowers a second insurance policy through one of its own affiliates, and alleges that the company has been improperly steering profits to itself through this affiliate company.
One exhibit in the lawsuit is a plaintiff’s monthly statement asking for a payment of $73,000. Documents show that regulators are looking into thousands of loan-modification letters that likely caused homeowners “significant harm” because Ocwen back-dated them. Back-dating the letters made it look like the homeowners had missed their opportunity to avoid foreclosure.
Choosing the right attorney can make the difference between whether or not you can keep your home. A well-qualified Miami foreclosure defense attorney will not only help you keep your home, but they will be able to negotiate a loan that has payments you can afford. Miami foreclosure defense attorney Timothy Kingcade has helped many facing foreclosure alleviate their stress by letting them stay in their homes for at least another year, allowing them to re-organize their lives. If you have any questions on the topic of foreclosure please feel free to contact me at (305) 285-9100. You can also find useful consumer information on the Kingcade & Garcia website at www.miamibankruptcy.com.
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