Ocwen - How Do They Make $ Holding Onto Junkers?
Dealing with Ocwen -- 86K mortgage balance, 5 months in arrears. ARV for house is 96K and needed 10 to 11K in work.
Offered 67K -- a nice rental for me had Ocwen accepted...
According to the loss mit contact: "our valuation area, based upon the BPO, etc. believes it is worth 92 to 93K as is..."
That house will go to the auction block, Ocwen will own it. They'll list it with a bkr 2 months later and ask 92K for it and it will sit......
SIGH --- if they would have only let me take the problem off their hands...
This is a common case these days. I would venture to guess that at these interest rates Ocwen can count on the "Greater Sucker' theory and it works out. But the market will change, rates will go up, and REO departments won't be able to afford to wait 6-9 months for a first time home buyer to over pay 10% for a "fixer upper".
Ocwen is terrible. We offered $270K a year ago on a nice home that appraised at $320K and Ocwen was holding the bag for $290K.
Now a year later we just put the house under contract Monday for $203K. Inspector comes out Friday and Appraiser next week. Home is still in good shape though landscaping is VERY rough so no curb appeal.
I don't feel sorry for them a bit. It is the same sq. ft price I paid for a smaller home in a lower, middle class neighboorhood 3 years ago. This home is on a HUGE lot, in the best school district in town with $400K plus homes around it.
I just hope the inspector give is a passing grade after sitting vacant for so long!