- Report: #25940
Complaint Review: Ocwen Federal Bank - West Palm Beach Florida
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Ocwen Federal Bank
W. Palm Beach Dr, West Palm Beach, Florida, U.S.A.
Phone:
800-74-OCWEN
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Ocwen Federal Bank Cold-Hearted Liars, Violated Own Standards / Practices, Putting Me In Violation of Contract West Palm Beach Florida *UPDATE ..Ocwen Federal strikes again! Tax Evasion
In 1996, HUD sold my mortgage to Ocwen Federal Rip-off Bank. My life has been a living hell ever since. Little did I know that in the prior 3 years when my home was in HUD assignment, HUD only paid the taxes and principal, putting me in arrears on the interest. When Ocwen bought the mortgage, they wanted everything in full! How was I to come up with 3 years past interest? I explained everything to them.
They didn't care and instantly started foreclosure proceedings. This forced me to file for Chapter 13 Bankruptcy and enter into a forebearance agreement with them. Six years already, but with their interest added, I'm only half paid up in the arrearages. Then their taking forever to post a payment leaves me open to threats of foreclosure due to default and monthly harassing phone calls.
That is only part of the hell they made my life. In December, 2000, I had severe storm damage to my home. As in the agreement, I notified them of the damage to the home and they opened a "hazard claim". That department is a damned joke! I never got the same story twice out of anyone. I was told people no longer worked there, one was the department head. They NEVER returned phone calls until 3 weeks later, if at all. After they received the money, it took them over 2 weeks to post it to my account.
This is where the nightmare gets worse. Not only did my insurance company take forever to settle (5 months), Ocwen illegally disbursed the funds against their own standards & practices and I believe banking laws. They told me the money would be disbursed 1/3 when the work began, 1/3 when the work was 60% complete, and the final monies when the house was completely fixed. This only after the house had been inspected by their own agent each time. NOT!!! Ocwen NEVER sent an inspector to check the house before work began, therefore had no clue to the extent of the damage.
All checks disbursed where in my name and my CONtractor's. I had no choice but to sign them over to them. The first check was fine. But then everything went to hell in a handbasket after that. One month after the work began, Ocwen finally sent an inspector in the end of July, 2001, as the contractor harassed them so bad claiming the work was 60% done. The CONtractor lied and failed to tell them that the work was only 1/3 completed as they had not even begun to start the other repairs. Ocwen then released more money. Within less than a month of the ONLY ispection, Ocwen released the remainder of the money, close to $14,000. They claimed that the money was too small to hold. This was a remaining balance of just short of $5,000 and an additional check for further damages just under $10,000 sent within 3 days of each other. The real truth was that they were tired of the daily harassment from the contractor, who was then in financial trouble, to release the money. They did it to shut him up. The check for $10,000 came with a threatening letter to me that the money better go for the materials and work on the house or *I* would be in violation of "the agreement". What about THEIR violation of their own agreement?
TWO MONTHS later, were forced to move back into an unfinished house with no heat. The contractor had disappeared with the money, and we were forced to max out our credit cards to make the house liveable, complete the repairs, and pay the last months rent on the temp housing. We began getting harassing phone calls from the subcontractors he didn't pay for labor and materials in the tune of $20,000 dollars. Unknown to any of us, the contractor was filing for Chapter 7 bankruptcy, business and personal.
Ocwen's control of the money and "mandatory" inspections were supposed to protect me from this ever happening. Ocwen sent the money and washed it's hands of it. I called repeatedly and was told *I* was completely at fault because I sent the money to the contractor for repairs and that they had no liability. What about their responsibility to have all this verified thru inspections? Had they been PROPERLY done, the monies would have never been released. If the subcontractors don't get paid thru the bankruptcy, (which is not likely), they will be coming after me for payment by either law suits or mechanic's liens. Any lien WILL put me in violation of "the agreement" for something I had no control over. Ocwen did! Now I stand to loose my house to foreclosure to them because they violated banking practices and place me in this situation.
Aren't they liable in any way? They illegally disbursed the money that I in good faith gave to a contractor. I can't afford a lawyer anymore. Violate their own, and from what I've read, standard banking procedures, and then capitalize on it by placing me in the position of possible foreclosure on my house that they will sell at a tidy profit. I can't be the first or only one this has happened to.
Beth
McHenry, Illinois
Click here to read other Rip Off Reports on OCWEN Federal Bank Financial Services
They didn't care and instantly started foreclosure proceedings. This forced me to file for Chapter 13 Bankruptcy and enter into a forebearance agreement with them. Six years already, but with their interest added, I'm only half paid up in the arrearages. Then their taking forever to post a payment leaves me open to threats of foreclosure due to default and monthly harassing phone calls.
That is only part of the hell they made my life. In December, 2000, I had severe storm damage to my home. As in the agreement, I notified them of the damage to the home and they opened a "hazard claim". That department is a damned joke! I never got the same story twice out of anyone. I was told people no longer worked there, one was the department head. They NEVER returned phone calls until 3 weeks later, if at all. After they received the money, it took them over 2 weeks to post it to my account.
This is where the nightmare gets worse. Not only did my insurance company take forever to settle (5 months), Ocwen illegally disbursed the funds against their own standards & practices and I believe banking laws. They told me the money would be disbursed 1/3 when the work began, 1/3 when the work was 60% complete, and the final monies when the house was completely fixed. This only after the house had been inspected by their own agent each time. NOT!!! Ocwen NEVER sent an inspector to check the house before work began, therefore had no clue to the extent of the damage.
All checks disbursed where in my name and my CONtractor's. I had no choice but to sign them over to them. The first check was fine. But then everything went to hell in a handbasket after that. One month after the work began, Ocwen finally sent an inspector in the end of July, 2001, as the contractor harassed them so bad claiming the work was 60% done. The CONtractor lied and failed to tell them that the work was only 1/3 completed as they had not even begun to start the other repairs. Ocwen then released more money. Within less than a month of the ONLY ispection, Ocwen released the remainder of the money, close to $14,000. They claimed that the money was too small to hold. This was a remaining balance of just short of $5,000 and an additional check for further damages just under $10,000 sent within 3 days of each other. The real truth was that they were tired of the daily harassment from the contractor, who was then in financial trouble, to release the money. They did it to shut him up. The check for $10,000 came with a threatening letter to me that the money better go for the materials and work on the house or *I* would be in violation of "the agreement". What about THEIR violation of their own agreement?
TWO MONTHS later, were forced to move back into an unfinished house with no heat. The contractor had disappeared with the money, and we were forced to max out our credit cards to make the house liveable, complete the repairs, and pay the last months rent on the temp housing. We began getting harassing phone calls from the subcontractors he didn't pay for labor and materials in the tune of $20,000 dollars. Unknown to any of us, the contractor was filing for Chapter 7 bankruptcy, business and personal.
Ocwen's control of the money and "mandatory" inspections were supposed to protect me from this ever happening. Ocwen sent the money and washed it's hands of it. I called repeatedly and was told *I* was completely at fault because I sent the money to the contractor for repairs and that they had no liability. What about their responsibility to have all this verified thru inspections? Had they been PROPERLY done, the monies would have never been released. If the subcontractors don't get paid thru the bankruptcy, (which is not likely), they will be coming after me for payment by either law suits or mechanic's liens. Any lien WILL put me in violation of "the agreement" for something I had no control over. Ocwen did! Now I stand to loose my house to foreclosure to them because they violated banking practices and place me in this situation.
Aren't they liable in any way? They illegally disbursed the money that I in good faith gave to a contractor. I can't afford a lawyer anymore. Violate their own, and from what I've read, standard banking procedures, and then capitalize on it by placing me in the position of possible foreclosure on my house that they will sell at a tidy profit. I can't be the first or only one this has happened to.
Beth
McHenry, Illinois
Click here to read other Rip Off Reports on OCWEN Federal Bank Financial Services
2 Updates & Rebuttals
Is Ocwen Federal Bank Guilty of Tax Evasion? Not Supplying 1098s or Reporting Interest To IRS
#20
Wed, September 25, 2002
After my 3 of my payments in a row failed to reach Los Angeles, I returned a call to the Collections Department. The woman I spoke to told me that it would be easier to use their new online web site to make my payments since all payments mailed to Los Angeles then had to be forwarded to Orlando. What a waste of time and money!
I went to their web site and was totally shocked. First that it was not a secure site with such personal information. Secondly to find that my suspicions were correct. Since HUD sold Ocwen my mortgage back in 1996, all I received from Ocwen was a "substitute" Form 1098 showing the amount of interest, taxes, etc. Not the "real" Form 1098 I had always received before. For 5 years, Ocwen NEVER reported any of the insterest paid to the IRS. This is shown on their web site that NO interest was reported to the IRS for years '96, '97, '98, '99 and 2000.
For the years 1996 and 1997, I didn't even receive their "subsitute" 1098. I didn't catch it until I did my 2000 taxes. Until then, I had children as a deduction and the standard deduction was higher. For 2000, I began to itemize again. I caught the difference in interest paid on their "substitute" 1098 and what my records showed as actually being paid via my regular payments and the extra interest paid via my forbearance agreement in the amount of $1,200. So I reported it on my tax return. Funny, for 2001, I received a REAL 1098 that was submitable to the IRS.
After going back over my records, Ocwen was receiving not only receiving interst with my monthly payments including increased interest via the forbearance agreement. But also a substational amount of interest paid to them over 2-1/2 years thru the Trustee of my bankruptcy that they forced me into when my loan was origianlly sold to them. NONE of which was reported to the IRS.
So if YOU are in a forbearance agreement, check to make sure that that shows on your 1098 is the ACTUAL amount you paid in interest if you are only receiving a "substitute" Form 1098. They seem to make a habit of not showing any additional interest paid for you to deduct on your taxes. Nor do they like reporting it to the IRS.
Ocwen Federal Bank, Florida Gave My Insurance Money To Contractor With No Verification of Work Done
#30
Sat, August 03, 2002
Ocwen Federal strikes again!
As I could not get any answers from the Hazard Claims Department at Ocwen when I wanted to go after the contractor that took the money and ran, I contacted the company that SUPPOSEDLY did the inspection on my home.
These inspections were supposed to verify that the work was done and in accordance to municipal/county codes before any more monies were released. Did I get an eye opener. My home was NEVER inspected!
I called the property inspection company that Ocwen obviously forgot they gave me the name of, and they told me everything. They repeatedly tried to contact the contractor to set up inspections with no luck. They showed, the contractor didn't. He also didn't return their phone calls. The contractor faxed their own inspection form shruken down so small you could barely read it. The only parts reaable where those they filled in by hand. The whole thing was a lie and signed by their accountant as the inspector.
Ocwen threatens me that *I* better make sure the money goes to repairs on the house or I would be in violation of the contract, when in fact, they violated it from day one. They, of course, have denied any liability in this. With the way the contractor's bankruptcies are going, I will never see a penny of my money again. Had Ocwen had the proper inspections done, the predicament I am in would never have happened.
They never should have released the money. Funny, they were also responsible to safegaurd me from any liens and encumbrances when they accepted the insurance money but they are not liable?
