Ocwen / Altisource has an interesting process for Short Sales.  Here is Ocwens Short Sale Process:

  1. They have the REALTOR list the property for sale
  2. Realtors does all the marketing
  3. Realtor handles all the calls and showings
  4. Realtor negotiates the highest and best contract
  5. Realtor submits the contract to Ocwen no less than 3 times
  6. Realtor handles all the erroneous document request
  7. and then just when you think you've got an approval.... They require to have the home listed for sale on HubZu.com???  

Hubzu.com is an online auction company owned by Ocwen .  Hubzu is an unknown real estate auction website up to this point, although they will probably generate some traffic as Ocwen is forcing buyers to use the site.  

To make it even more strange, IF the REALTOR sells the property and Ocwen agrees to take the contract.....Realtor makes his normal income.  (That's what Realtors use to pay for food, clothing, gas money, etc>)    BUT - If HUBZU.com online auction site brings a buyer, and Ocwen accepts that buyer, Realtor gets paid less....  WHAT????  That's right, Ocwen cuts the commission.  

But didn't the Realtor do all the 7 steps above along with all the other legalities and risk of selling a home?   YES!  That is the problem, among other things.  Keep reading:  

To bring an even stranger point:  Ocwen pays Hubzu the money they didn't pay the realtor.  Remember Hubzu is owned by Ocwen.  Further, Hubzu also charges the new buyer a "technology fee", which they refuse to publish and I honestly can never find out how much that expense to the buyer will be.  

And even more:  Ocwen REQUIRES the Realtor write within the MLS that ALL OFFERS TO BE SUBMITTED THRU HUBZU.com.  Their representatives advised that our current buyer, who we are currently under contract with, needs to submit their current offer through Hubzu as well.  So how would a REALTOR ever get paid his full payment?  

This is how:  This Realtor, Brad Officer - Jacksonville Short Sale Realtor, wrote a stinging letter to Ocwen / Hubzu / Altisource questioning their tactic as being Extortion.  Extortion as defined:  "to get (something, such as money) from a person by the use of force or threats".   I was very clear that I had already performed the job as hired by the seller, had already secured a ready willing and able buyer, and had brought a written contract for the full amount they were seeking via the Hubzu.com auction.  Ocwen then, after several further attempts to have RE/MAX comply with their extortion request, finally agreed to "submit the current contract to the investor".  Which received almost immediate approval.  

Today we closed!  Seller received full release from any further deficiency balance, and Remax was paid in full.   Yay!

Short Sales aren't easy.  Seems the banks will continue trying to work their system to gain any advantage possible, but working with a professional Real Estate team insures your best interest are being looked out for.  

More on Ocwen, Altisource, Hubzu.  Looks like others are questioning these guys too!

Posted by Brad Officer on
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