Mortgage Servicing Fraud
occurs post loan origination when mortgage servicers use false statements and book-keeping entries, fabricated assignments, forged signatures and utter counterfeit intangible Notes to take a homeowner's property and equity.
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Hello one and all!  My loan is being serviced by Ocwen LLC For 4 1/2 years I have paid extra to principal almost every month. All payments on time.Over 8000 $ extra on a 100k loan. I was trying to make sense of my monthly interest charge on my statment and have come to the concution that they are charging me just as much interest as if I had never made the extra payments.  I have not yet attemted to cofront Ocwen .I want to research my option first. Can any one help? Thanks *R*

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arkygirl
Are you absolutely sure that the extra principal payments you are sending are being credited to your account as extra principal? Your interest amounts should be being reduced by now.

There is a game played by servicers called the "suspense account". They claim that they are unable to apply any more or any less of a payment to an account than what the computer says is due. They claim they just don't know what to do with any extra funds beyond the scheduled payment. So they create "suspense accounts" and hold the money there where it does the borrower no good.

My suggestion to you would be to send one check as a regular payment and a separate check for the extra principal. Send them in separate envelopes with the second check clearly marked "Apply to Principal Only".

Ask for an amortization of your loan to date and see if the amounts they show actually match what you have sent in. If they do, you can get an accountant to look it over to try to figure out the interest game they are playing.

If all your payments do not show up I can almost guarantee you are a victim of the "suspense account" game. That is the time to find an attorney.

You may need an attorney to even get a loan history. Good luck!

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arkygirl
I made the assumption that you already know that you must put your account number on ALL checks to Ocwen.......even the "Principle Only" check.
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Moose
Randy wrote:

Hello one and all!  My loan is being serviced by Ocwen LLC For 4 1/2 years I have paid extra to principal almost every month. All payments on time.Over 8000 $ extra on a 100k loan. I was trying to make sense of my monthly interest charge on my statment and have come to the concution that they are charging me just as much interest as if I had never made the extra payments.  I have not yet attemted to cofront Ocwen .I want to research my option first. Can any one help? Thanks *R*



First, you'll have to order a detailed account history from them.  While you're waiting for that to arrive, you'll need to do a simple, but somewhat time consuming amortization schedule for the 54+ months.  Hopefully you have a spreadsheet, but you can do it manually if you have to. 

You can't just subtract the $8,000 as a whole amount - you have to literally reduce the principal across the months and calculate the reduced principal for each month.

It is important to note just exactly when that extra principal is applied.  It is also important to take into consideration any interest rate changes that have taken place and when they took effect.  If you're loan is an ARM tied to LIBOR, that has been way down but not on a stable basis.

Good luck!

Moose

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4 Justice Now
Randy,

While, my opinion/comments here may not be quite as relative as those provided by my friends (Arkygirl and Moose), particularly in this circumstance. I do beleive you should also know, if you don't already that Ocwen is infamous for cheating homeowners out of their homes and/or equity.

Although, they may appear to be simply incompetent... more often than not its simply a ruse to cover-up their intentional acts of fraud. Be sure to keep in mind that you're not their customer and that most people who have had the great misfortune of dealing with them believe they are nothing more than a very corrupt collection agency, at best.

Forget about the phone and be sure to get everything in writing.

The following text is copied from just one of countless reports that can be found regarding their clearly criminal activities.

Quote:

South Florida Business Journal 2005

 

A jury in Galveston, Texas, has awarded $11.5 million to a customer of Ocwen Financial Corp. and its former Ocwen Federal Bank subsidiary, after determining they committed fraud in servicing her home equity loan.

 

The verdict against West Palm Beach-based Ocwen Financial (NYSE: OCN) and Ocwen Federal was issued Tuesday in Texas's 212th District Court. The jury ordered the Ocwen companies to pay Sealy Davis $10 million in actual damages and about $1.5 million for mental anguish and economic damages.

 

Ocwen Financial had $1.3 billion in assets on Sept. 30, according to its Securities and Exchange Commission filings.

 

The jury found the Ocwen companies made fraudulent, deceptive and misleading representations to Davis after she missed a loan payment while hospitalized in 2003.

 

Documents filed in the civil suit assert Ocwen began demanding additional money to make up for the missed payment and then began foreclosure proceedings on Davis's home in Texas City, Texas.

 

Davis retained the home after filing for Chapter 13 bankruptcy protection, court documents state.

 

Davis, in 2002, got a $31,000 home equity loan from Aames Home Loan with Deutsche Bank as trustee. Ocwen Federal Bank serviced the loan, including collecting payments.

 

The jury determined Ocwen contributed 100 percent to a wrongful foreclosure and none of that activity was attributable to the other defendants, Deutsche Bank, its law firm Baxter & Schwartz and several attorneys with that firm.

 

William Erbey, Ocwen's chairman and chief executive officer, and Kelly Herzik, a Wichita, Kan.-based attorney who represented Ocwen, did not return phone calls.

 

The Business Journal's questions included whether Ocwen might appeal the verdict to a Texas court of appeals.

 

Ocwen "has a specific plan and scheme to take homes that have equity in them," said Robert Hilliard, a partner in Corpus Christi, Texas-based Hilliard & Munoz, which represented Davis.

 

Hilliard said he represents about 100 people who are considering similar suits against Ocwen in Texas state courts.

 

 

IMHO,

 

4J

 

 

 

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Sara
Those of us experienced in the game of "mortgage charades" can't stress enough to do all correspondence in writing!!!

Please folks...pretend you don't have a phone when it comes to dealing with any mortgage, credit card, or financial institution!!! 

It is so much easier to have proof in writing!!

S
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