Sunday December 21, 2014
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The Ocwen Financial Corporation has been targeted because of "bad foreclosure practices; namely "premature and unauthorized foreclosures and the use of false and deceptive documents."
Nationally, Ocwen foreclosed on 185,000 homes, an undisclosed number of which were improper. As a result, they have made a $2.1 billion settlement with the federal government, of which Arizona will get $20.7 million to distribute to more than 10,000 people who "may receive $1,000 apiece in compensation for losing their homes."
Let's you and I assume that the 10,000 Arizonan homes that were foreclosed on improperly were worth a bare bones $100,000 apiece. Let's also assume that each of them cost the homeowner the bare bones minimum of $5,000 in up-front fees of one kind or another, and that each them was paid on for a bare bones minimum of ten years, that each mortgage was for 30 years, and that amount applied to the mortgage itself after all the interest, taxes, and fees were sucked out, came to about $275 a month.
That's 10 years X 12 months X $275 = $33,000
Plus the $5,000 in fees = $33,000 + $5,000 = $38,000
Plus annual taxes of $2,000 X 10 years = $20,000
Comes to a nice round $58,000 that Ocwen owed per homeowner, or $580,000,000 for Arizona alone.
Not bad. Not bad at all.
Forgetting about the taxes, Ocwen took in $380,000,000 and paid out $20,700,000, for a rough profit of....
$359 million in Arizona alone.
And no one went to jail over it.
Mind you, I haven't even scratched the surface. There are another 175,000 foreclosures around the nation to be considered, but even so please tell me why they won't do it again the next time they have a chance?
The Question Is....
How would you feel if someone came along and foreclosed on YOUR house, taking YOUR original fee payment, all the equity YOU had in it and the taxes and interest YOU paid for ten years?
And then gave you a thousand bucks, patted you and your head, and told you to go away?
I see that i didn't quite pose that question correctly.
How would you feel if someone "prematurely...and using of false...documents" came along and foreclosed on YOUR house , taking YOUR original fee payment, all the equity YOU had in it and the taxes and interest YOU paid for ten years?
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