Ocwen

Short Sale Telephone: 877-596-8580 or 800-746-2936   |   Short Sale Fax: 407-737-5071 or 407-381-6889

Email: Each CS rep has their own email you can send docs to (Example Format: hrd29@ocwen.com)

Required for Initiation

All documents must be emailed and/or faxed directly to the lender.

To initiate the process, fax:

  1. PSA
  2. HUD
  3. Buyer Pre-Approval/Buyer Proof of Funds
  4. Borrower financial information (see Doc Pac)
  5. Listing Agreement
  6. 4506T Form
  7. MLS Sheet
  8. Ocwen Short Sale Package

The Process

Ocwen negotiates and communicates through Customer Service agents in their short sale department. The Customer Service agents communicate on behalf of the Underwriters.

Customer Service General: Your call may end up here:

  1. Ask if you are speaking to the short sale department before you verify, to save time. These representatives do not have access to most short sale information.
  2. Request a transfer to the short sale department.

Customer Service Short Sale Department: Provide updates, upload received documents, review documents for completeness, request changes, forward documents/information to underwriters, communicate on behalf of the underwriters, order the BPO.

Underwriters: Issue correction requests, Review and respond to the offer, respond to investor fee caps, determine relocation incentive eligibility, request investor-specific requirements, determine cash contribution requirements, close approved files

Note: The underwriters are not available for direct communication; they communicate only through Customer Service in the short sale department.

Timeline for Approval

  1. Manually fax short sale package, wait for lender to upload documents (5-7 days)
    1. Note: Without a call to follow-up after submission, uploading could take up to 15 days
  2. Document collection/correction by Customer Service (5-14 days)
    1. Note: Ocwen issues documents with their correction requests.
    2. Call regularly for correction requests to save time.
  3. Complete file (with BPO) forwarded to underwriter for review (10-15 days)
  4. Underwriter reviews and responds to offer (10-15 days)
  5. Underwriter approves and issues approval letter (5-10 days)

Four Lender Specific Tips

  1. Customer Service can receive and review documents: Each customer service representative has a personal email address they can disburse for document requests. They also can review and request changes while on the phone. If you have the document they need while on the phone:
    1. Ask for their email address
    2. Send the document
    3. Offer to stay on hold while they review for any corrections
  2. Wet Signatures: Ocwen requires wet signatures on every document. Cut down on document collection time by submitting wet- signed documents the first time.
  3. Don’t let documents expire: Keep all documents (listing agreement, PSA, Addendums, Pre-Approval letters etc.) continually updated. Expired documents will slow the process.
  4. Don’t rely on meetings with your Customer Relationship Manager for updates: Ocwen’s employees work from India; often they miss appointments because of time differences. Call in to the short sale department for updates; do not rely on scheduled appointments.

Value Dispute Procedure:

Lender counters the offer higher than the parties believe the property is worth.

  1. Respond to lender's counter with the buyer's highest and best
  2. Provide an independent appraisal or full agent MLS sheets for three comparable sales (providing all characteristics), and if available, three active comparable property MLS sheets
  3. Provide a CMA report
  4. Comparable requirements:
    1. Closed sales no more than six months old
    2. Similar in size, age, condition and characteristics
    3. Within one mile proximity of the subject property; OR
  5. If there are Repair/Hazard Issues:
    1. Provide a line item repair estimate from a licensed contractor or engineer on business letterhead with the costs to cure the damage
    2. Provide photos of the damage
      1. Note: Excessive photos will be rejected
      2. Place photos in a zip file if sending more than three
  6. Time given to provide documents for value dispute: 24-48 hours
  7. Potential wait time for value dispute results: 2-4 weeks
    1. Note: This time can be expedited if you provide a complete dispute package and follow-up every 2-3 days.

Lender Specific Documents

  1. Ocwen Short Sale Package
  2. Loss Funds Draft letter
  3. Ocwen Arms Affidavit

Lender Escalation Procedure

Ocwen’s employees are trained to not transfer calls to supervisors. Instead, they take the questions personally to supervisors while they place the caller on hold:

  1. Offer to be placed on hold while the CS representative takes your question/comment to a supervisor
  2. If the response is insufficient, request to speak to a supervisor
  3. If they refuse, ask to have them notate the file for a supervisor to call you back
  4. Make an appointment to speak to a supervisor, if possible
  5. If the supervisor, misses the appointment, call back:
    1. Request they notate the file
    2. Request to speak immediately to a supervisor
    3. Note: Be prepared to state your request more than three times

GMAC Issue: Loans with GMAC were purchased by Ocwen. GMAC used to negotiate their loans through the Equator system. Now, all GMAC originated loans are negotiated through the standard Ocwen procedure; however, for residual loans or loans still up in Equator, Ocwen may request negotiation through Equator. You can determine if the loan was originally a GMAC loan by looking at a mortgage statement or asking a Customer Service Representative.

Note: Junior liens with Ocwen are negotiated using the same process. If both a first and second mortgage are held by Ocwen, they will likely be worked together by the same negotiator.

Closing Process

  1. Send final HUD for approval: Ocwen reviews the HUD-1 Settlement Statement for final approval at least 48 hours prior to closing:
    1. Send the HUD to: finalhudapproval@ocwen.com
    2. Follow-up by calling 800-746-2936 within 24 hours
      1. Make sure a rep is assigned and reviewing the HUD.
  2. Sign and Return Final Closing Materials: Upon approval, Ocwen issues closing instructions and requests signatures on final closing documents. E.g. Release of Claims, Application of Suspense Funds Affidavit, Short Sale Arms Length Affidavit, HAFA Affidavit, Approval Letter, Insurance paperwork etc.
    1. Note: All closing documents must be signed and notarized throughout.
    2. Send documents to: ss@ocwen.com. If you speak with a negotiator, they can provide you an email address to send documents to while on the phone.
      1. Sample Email Format: hrdxxx@ocwen.com
  3. Processing Tips:
    1. Include loan number and name in the subject line of all email correspondence
    2. Ensure that escrow provides the correct warranty deed language as specified in the approval letter and sends overnight to the Florida office via FedEx. The rep may ask for the tracking number and/or copy of the tracking receipt for image purposes.

Approval Extensions

To request an extension of an approval:

  1. Email request in writing to: ss@ocwen.com
  2. Call and email to follow-up within 24 hours