chelseagirl

Ocwen Loan Servicing?????

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Can anyone tell me about Ocwen Loan Servicing? I have been having the run around with this company for months. They automaically pay property taxes and then charge interest. If I don't pay homeowners insurance on time, they step in an add a homeowner insurance......etc. etc. Feed up and don't know what to do. Now they want to increase my monthly payment over $200. to pay for escrow which is for property taxes, etc. which I did NOT agree to.:(

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Actually if you read your mortgage you will see that they have the right to escrow for taxes and insurance and to increase the escrow amounts accordingly. It will be in writing in your mortgage. Look at both the note and the mortgage for a comprehensive idea of your loan.

There are specific requirements each servicer has to meet for escrows. Look up RESPA and escrows to get an idea. You can start here: RESPA - Real Estate Settlement Procedures Act Home Page - HUD

Having said the above - Ocwen is terrible. There servicing leaves a lot to be desired. They play every dirty trick in the book regarding application of payments and paying on your taxes and insurance. The best thing you can do is to make sure your payment is made on time or even early. Keep excellent records.

Ocwen will use any excuse to put the loans they service into default. This can be anything from a late payment to forced placed insurance. They are very quick to start the foreclosure process and to not accept payments once you are late. One of the reasons they do this is because the get a larger fee for servicing loans in default than they do for servicing loans that are paid timely. Be very careful.

The best thing to do is get your credit house in order to refi with a different lender to get away from Ocwen.

In the meantime: pay the amount they request for now. Marshall your facts together. Go the RESPA route - don't be late with them for any reason. They are a notorius (that is the right word for them) sweat shop type servicer so the people that work there hate it. Please be very careful.

Edited by Denita

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