OCWEN, Altisource, Hubzu And Real Home Services & Solutions
OCWEN short sale rejection? Curious about the relationship between Altisource, Hubzu & Real Home Services and Solutions? Listen as Real Estate Attorney Shawn Yesner explains the relationship and a case where a short sale was rejected by OCWEN, and asked to be listed on Hubzu through RHSS.
Want to learn more about Real Estate Law? Listen to the rest of the Yesner Law presentation at the Greater Tampa Association of Realtors here:
How many of you have dealt with OCWEN, on a short sale? How many of you know what OCWEN is now doing on short sales? Yeah, other than not approvinig them. What else are they doing on short sales? OCWEN created a new procedure that they have just started to roll out in Florida, and I have not figured out why or where, or when, or which loan applies, but I have one of my clients that is going through this right now. There is company called Altisource how many of you know what I’m talking about? Altisource owns a website called Hubzu. Hubzu is an auction website, Real Home Services & Solutions is a subsidiary of Altisource, so what happens is Real Home Services and Solutions lists the property on Hubzu, through Altisource. Altisource then presents all offers to OCWEN, OCWEN then decides which offer it likes best. Here’s the kicker though for selling agents, for listing agents, they’ve cut your commissions down to 2.5%, buyers agent gets 2% and RHSS, Real Home Soultion Services gets 1.5%, the way this came up was we presented a short sale offer to OCWEN, a contract a buyer, the whole package everything, perfect package, went off to OCWEN, OCWEN said you gotta list it with Altisource on Hubzu first. We said well, wait a minute, we’ve got an offer so now you’re in violation of Florida Statute, you’re in violation of the National Association of Realtors Code of Ethics, and I cited those two things to OCWEN, OCWEN said we don’t care. I said well wait a minute, how can you say you don’t care, it’s Florida Statute OCWEN, said fine, the offer your buyer submitted is rejected now list it on, through RHSS on Hubzu the only cool thing about it, is that Altisource is now negotiating junior liens and in this particular case, we’ve got three mortgages and we’ve got an issue, I think where they’re fighting over priority between the second and third, it was a line of credit that was not paid off properly and the third got there and the second pulled on the line of credit and we’ve got one of those situations going on. So I pretty much said, find OCWEN you wanna deal with this mess, go for it. And gave it over to them. But, that’s the process we’re going through now. All three of these entities are related, Altisource, Hubzu, RHSS all three of them are related, and I cannot prove, I do not know I am mearly speculating, I think all three are somehow related to OCWEN as well. I read that through the documentation and they do have disclosures in there the relationships that I just read to you, of Altisource being relationship with Hubzu and with RHSS, that’s all disclosed in the documents, they get the buyer to sign, the get the seller to sign, they get the title company to sign, they get everyone to sign, so they are disclosing it.