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Owners Pushed Toward Foreclosure by Illegal Activities of a Firm

Federal authorities have found that the foreclosure crisis continues with as many as 700,000 foreclosures last year. The slight tragedy of this is that many of these foreclosures are avoidable but forced on homeowners by questionable and illegal practices of some firms such as Ocwen the country’s largest mortgage servicing provider that collects mortgage payments from homeowners across America.

The even greater tragedy is that the federal government is blocking access to a million high paying jobs by not allowing drilling for oil off the coast of the Gulf of Mexico, fracking on federal land, and fallacious environmental regulations that devastate small businesses. If these policies were changed, more homes would be being built which would even create more jobs and less foreclosures.

Both federal agencies and class action lawsuits have accused Ocwen of unfair practices to force homeowners to foreclose. This is not that different than the lawsuits against the IRS for political auditing during the 2012 Presidential election.

Back Dated Letters

One of the ways in which Ocwen does this is by sending homeowners backdated letters that imply that they missed a chance to avoid foreclosure. Ocwen has agreed to cooperate with authorities in this investigation.

Marked Up Fees

The class action lawsuits deal with another practice of Ocwen – marked up fees and illegal fees. The firm typically identifies a small payment issue such as a few delays in mortgage payments or taxes. However, it illegally charges marked up fees and penalties that inflate the repayment. When homeowners dispute this fee, the firm charges interest and refuse to accept the mortgage payments. This means that the payments due quickly snowballs and the homeowners are soon unable to make the payments and move toward foreclosure.

Phyillis Nugent one of the plaintiffs against Ocwen says that the firm forced a second insurance on her and her partner and also charged property preservation fees when the couple and their children continued to live on the property. These sort of high fees imposed on them have led to very high repayment demands – with one bill for $73,000. While the couple had only borrowed $98,000 in the first place and made regular payments for years, the firm now claims that they owe $150,000. The couple was unable to resolve the issue by talking to Ocwen as calls were answered by a call center in India that simply advised them to make the payments.

Foreclosure Attorneys

While the foreclosure crisis is officially over while the recession continues because of high taxes and regulations, many homeowners who have been making regular payments suddenly find that they are charged with high fees and penalties and not given adequate opportunity to explain their actions. With this and subsequent refusals of regular mortgage payments, the debt quickly balloons, forcing homeowners into foreclosure for no fault or minor defaults. If this happens, you need to retain the services of an expert foreclosure attorney who can assess the real situation and protect your rights.

Violating the Rules

Mortgage collection companies and firms as well as lenders are not supposed to levy certain penalties, but do so nevertheless. If this is the cause of your missing mortgage payments, your foreclosure attorney will be able to help convince the court that your property should not be foreclosed.

Losing your home after you have made regular payments for years and put in money on improvements because of illegal or unfair practices by mortgage collecting agencies can be traumatic. However, you should retain the services of a foreclosure attorney who can help protect your rights.