Ocwen Federal Bank
Cold-Hearted Liars, Violated Own Standards / Practices, Putting Me In Violation of Contract

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, 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, 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

Company: Ocwen Federal Bank
Country: USA
State: Florida
City: West Palm Beach
Address: W. Palm Beach Dr

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