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Mortgage lender faces federal charges of illegal home foreclosure

Ocwen Financial Corporation is one of the largest mortgage servicing companies that are not related to any bank. The Consumer Financial Protection Bureau recently filed a lawsuit against the company in a federal court in Florida, alleging it made mistakes, took shortcuts, caused financial losses, and even caused many borrowers to face home foreclosure. Court documents indicate that the defendants instituted improper foreclosure proceedings on about 1,000 homeowners and even wrongfully sold some properties at auctions.

One borrower describes how he almost lost his house last year after seeking modification of his mortgage when he had financial problems. He claims to have received approval in writing and paid lesser amounts based on the new lower interest rate. He says he was subsequently informed of an error on the documents, and the process had to start all over again. His phone calls were never answered by the same person, and he says the usual excuse was computer failure.

During this time, he says he paid the lower amounts and the defendant reported him to credit agencies, causing severe damage to his credit score. Investors and real estate agents apparently started calling his house to make inquiries about the imminent foreclosure sale. Out of desperation, he reportedly discussed his dilemma with his congressional representative and followed that up with a post on Facebook to warn other clients of the defendant.

A day later, the man claims he was informed that the loan modification had been approved, and calls from investors and agents also stopped. Any property owner in Florida who faces home foreclosure may find comfort in learning that the help of an experienced bankruptcy attorney is available to protect his or her rights. A skilled lawyer can assess the unique circumstances of the case and suggest the most appropriate way to proceed to achieve the best possible outcome.

Source: USA Today, "Regulator accuses Ocwen of failing millions of home borrowers", Kevin McCoy and Roger Yu, April 21, 2017

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