Ocwen ch 13 nightmare

[bugga]

We've been in a 100% ch 13 plan for over a year now with everything paid on time & credit score climbing every day. We had a 1st & 2nd with Ocwen, but they only filed arrearages on the 1st when we started the plan. We of course started paying our regular payments to them for both when the plan started. They sent the payments on the 2nd back 3 times. So our lawyer contacted them, their lawyer, etc. several times and never got a response, so we left it alone and figured they'd catch it sooner or later or we'd just pay it off when we refinanced after a year.

Here we are a year later and they sent us a 1099 for our taxes saying they charged off the debt and we were in the clear. We even got a congratulations letter saying it was paid off. However, they would'nt release the title. So we had to hire another attorney for a motion to quiet title so we can refinance. Finally he got thru to the legal dept. and they admitted to making a mistake. They said they would send us a payoff for the refinancing for the amount that was charged off (42k). WHen I got the payoff it said we owed 52k. They were charging us interest & penalties for all that time that they weren't responding.

It's been 2 months, several hours of Ocwen keeping our attorney on hold, and they still can't get it right. One person says it's ok and then the next one adds the extra interest. I just got the bill from the attorney so far and it's $795.

To make matters worse, Ocwen has raised the rate on our 1st mortgage twice which increased the payment by $450. How ironic that it's the same amount as the 2nd mortgage they wouldn't let us pay on. We are stuck all because of Ocwen.

[Minnymouth]

Your attorney needs to contact the Trustee and let the Trustee solve this problem.............

While under the power of the Court and the arm of the Trustee.... YOU and the CREDITORS have to abide by what the Trustee says............

If the Trustee says "no interest, no penalties"..... there will be none....

The Trustee determines the payoff - the Creditor does not........

Send the attorney a copy of the 1099 and a copy to the Trustee......

Was the mortgage payment thru your Chapter 13 plan???????????

If not the mortgage company can pretty well do what ever they want too....

Also, why would you have to hire another attorney to handle this........... don't you already have one in your Chapter 13 plan????

Need a few answers to help............

[Jman30]

Your attorney needs to contact the Trustee and let the Trustee solve this problem.............

While under the power of the Court and the arm of the Trustee.... YOU and the CREDITORS have to abide by what the Trustee says............

If the Trustee says "no interest, no penalties"..... there will be none....

The Trustee determines the payoff - the Creditor does not........

Send the attorney a copy of the 1099 and a copy to the Trustee......

Was the mortgage payment thru your Chapter 13 plan???????????

If not the mortgage company can pretty well do what ever they want too....

Also, why would you have to hire another attorney to handle this........... don't you already have one in your Chapter 13 plan????

Need a few answers to help............

I could not agree more here!!! You are already in a Chapter 13 and paying a lawyer for that. Have the lawyer file a motion with the court and/or Trustee to get this taken care of. They may charge you a nomial fee for the filing, but it won't be $795! The Trusteee and your lawyer should be working on this for you....you should not be doing the legwork.

Techincally, I am not even sure if you can be accumulating debt like that through a lawyer. You are in a Chapter 13 and should not be accumulating any new debt. Technically, you should have not have any disposable income left after your 13 payment to pay this new $795 debt!

[aa06a47]

Techincally, I am not even sure if you can be accumulating debt like that through a lawyer. You are in a Chapter 13 and should not be accumulating any new debt. Technically, you should have not have any disposable income left after your 13 payment to pay this new $795 debt!

Oh, yeah, you can get legal fees charged to you while in a Chapter 13. The trustee website usually contains a list of allowable expenses which the attorneys must use (kinda like a HMO where the doctor agrees to certain fee's to cover certain items). When you got your contract from the lawyer, it should have that list of charges on it. (This may be new law stuff, and not old law stuff though, I'm not sure)

[aa06a47]

We've been in a 100% ch 13 plan for over a year now with everything paid on time & credit score climbing every day. We had a 1st & 2nd with Ocwen, but they only filed arrearages on the 1st when we started the plan. We of course started paying our regular payments to them for both when the plan started. They sent the payments on the 2nd back 3 times. So our lawyer contacted them, their lawyer, etc. several times and never got a response, so we left it alone and figured they'd catch it sooner or later or we'd just pay it off when we refinanced after a year.

Here we are a year later and they sent us a 1099 for our taxes saying they charged off the debt and we were in the clear. We even got a congratulations letter saying it was paid off. However, they would'nt release the title. So we had to hire another attorney for a motion to quiet title so we can refinance. Finally he got thru to the legal dept. and they admitted to making a mistake. They said they would send us a payoff for the refinancing for the amount that was charged off (42k). WHen I got the payoff it said we owed 52k. They were charging us interest & penalties for all that time that they weren't responding.

It's been 2 months, several hours of Ocwen keeping our attorney on hold, and they still can't get it right. One person says it's ok and then the next one adds the extra interest. I just got the bill from the attorney so far and it's $795.

To make matters worse, Ocwen has raised the rate on our 1st mortgage twice which increased the payment by $450. How ironic that it's the same amount as the 2nd mortgage they wouldn't let us pay on. We are stuck all because of Ocwen.

I agree with mini, since arrears are being handled through the chapter 13, this is a matter between the trustee and your attorney.

[bugga]

We pay the arrearages thru the plan (or we should have on the 2nd if they had filed like they should've) and then we were to make our regular payment to the mtg. company itself. The ch 13 attorney said we needed a real estate attorney to take care of the motion to quiet the title. When he tried that, they admitted the mistake and he just kinda took over cutting thru Ocwens BS & tried to get it corrected. It seemed like it was going to work, but again here we are 2 months later, still in ch 13.

Our ch 13 lawyer said that since they missed the filing deadline, that we shouldn't have to pay the debt, but since it's a secured debt, there is a "grey area" of how to get it off the title. Ocwen is a terrible bank and is being sued by thousands of people right now for unfair collection, racketeering and a host of other charges. I found some stuff about them on the net. I just want to get away from them asap.

[bckthuzs]

I hear ya. We filed in Mar. of this year. Thought everything was going great. Now we have to go to court on Mon. Ocwen is wanting more money. So now the courts and such are wanting to amend our plan. Ocwen is also charging us for escrow. We did lose our insurance so they picked up. Couldn't pay our taxes last year so they are trying to charge us for that. We had those taxes added into our plan. Said something to attorney. Said they would check up on it. I'm going to make sure I bring it up again on Mon. I thought things were going to get better seems to only be getting worse. I am now looking for another job. Where did you find all of the dirt on them. Good luck with your case.

[bugga]

I just type in Ocwen lawsuit in yahoo & there they were, not a big suprise. Good luck to you too. It's not forever. Hopefully you can refi in a year like we are. Look into the fha. They mostly care that you've paid your 13, your mortgage & your utilites on time and not bouced any checks for 1 year. They will refi up to 95% of your homes value and the rates are around 6.8% right now. I hope this helps.