Product: Mortgage

This complaint submission is filed by legal counsel for the homeowner Defendant.  Legal Counsel  is the Law Offices of  XXXX   XXXX , PA. The homeowner Defendant is  XXXX   XXXX . The Plaintiff / Servicer is  OCWEN LOAN SERVICING, LLC.  The subject foreclosure legal action is in  XXXX  County, Florida.  XXXX  #  XXXX .  Ocwen Loan Servicing, LLC  vs.  XXXX   XXXX   XXXX .     The subject of the complaint is based upon a good faith belief that  OCWEN Loan Servicing  failed itself to act in good faith to consider a Deed in Lieu resolution option for  XXXX   XXXX  and that failure of Ocwen to act in good faith has resulted in  XXXX   XXXX  's home being taken back by Ocwen at the foreclosure auction sale of  XXXX / XXXX / XXXX . A timeline of the circumstances and the subject of a recently filed  Objection to the Foreclosure Sale is as follows : 1.   The subject property was sold at foreclosure auction on  XXXX   XXXX ,  XXXX  in violation of Consumer Financial Protection Bureau  ( CFPB ) l oss mitigation loan servicing requirements in that the Defendant had been in active Deed in Lieu review at the time of auction sale and in accordance with Regulation X of the   Real Estate Settlement Procedures / Consumer Financial Protection Bureau Mortgage Servicing Rules ( CFPB ), Plaintiff was not permitted to conduct a foreclosure sale due to that active Deed in lieu of foreclosure review.
2. The undersigned, on behalf of Defendant, HEARTY submitted a complete Deed in Lieu package to Plaintiff / Servicer OCWEN, with all required documents and financials   information included therein on  XXXX   XXXX ,  XXXX .   3. On  XXXX   XXXX ,  XXXX , the office of the undersigned received an email from  Plaintiffs attorney stating that the OCWEN rejected our Defendants 3rd  party authorization document, alleging an invalid signature. Defendant,  XXXX  then executed a second 3rd party authorization document and that was delivered to Plaintiffs counsel on  XXXX   XXXX ,  XXXX .   4. On  XXXX   XXXX ,  XXXX , the office of the undersigned emailed Plaintiffs counsel requesting an update on the Deed in   Lieu ( DIL ) file and received a reply that the DIL was under active review.
5.   On  XXXX / XXXX / XXXX ,  XXXX / XXXX / XXXX  and  XXXX / XXXX / XXXX , the office of the undersigned emailed both OCWEN and Plaintiffs counsel office with no response received as to any of those communications.   6. On  XXXX / XXXX / XXXX  with still no substantive reply as to the status of the DIL process, the office of the undersigned sent another email communication to Plaintiffs counsels office and did receive a reply stating that   OCWEN would contact defense counsel directly to coordinate a Brokers Price Opinion ( BPO ) within 7 days. Unfortunately, that contact from OCWEN never took place.
7  . On  XXXX / XXXX / XXXX , Defendants counsel received an email from   Plaintiffs counsel stating that the DIL had been approved with the condition that client signs a promissory note for {$60000.00}. That offer was presented to the Defendant and rejected the offer due to a lack of affordability.
8  . On  XXXX / XXXX / XXXX , Plaintiffs counsel requested a letter from  XXXX  detailing why the defendant was unable / unwilling to accept the offer which included the {$60000.00} promissory note obligation. Also at that time,  Plaintiff  requested more recent bank statements and paystubs from  XXXX .    9. The requested letter of explanation was provided to Plaintiffs counsel and the updated financial documentation was provided to OCWEN  on  XXXX / XXXX / XXXX .   10. On  XXXX / XXXX / XXXX , the office of the undersigned received a new DIL offer from Plaintiff extending Approval terms to  XXXX  to either execute a {$48000.00} Promissory Note, payable in 120 installments, OR a one-time cash contribution of {$5000.00} upon the execution of a Deed-in-Lieu.   11. Following a brief period of consideration by  XXXX , on  XXXX / XXXX / XXXX , the office of the undersigned, in a written communication to   Plaintiffs counsel, accepted the offer for HEARTY to pay a {$5000.00} cash contribution to close the DIL. No reply was received.
12.   On  XXXX / XXXX / XXXX ,   Defense counsel emailed Plaintiffs counsel following up on the offer acceptance and requesting a status update. Defense counsel was informed that Plaintiffs counsel would need to check with their client and would advise.
13  . On  XXXX / XXXX / XXXX ,  XXXX  counsel delivered an email to OCWEN which stated : On the  XXXX  of  XXXX  our office sent an email to your attorney letting them know that our client has accepted a {$5000.00}   one time cash contribution to the bank and completion of DIL. I have been trying to get an update, but we still have not heard back. Please provide an update.
14.   On  XXXX / XXXX / XXXX , Plaintiffs counsel called the office of the undersigned to explain that   OCWEN had terminated the offer of {$5000.00} cash contribution but counsel also stated that he was trying to get OCWEN to continue to process the open DIL, as opposed to starting the process again from inception.
15.   On  XXXX / XXXX / XXXX ,  XXXX  escalation department emailed the office of the undersigned requesting updated bank statements and a new RMA Defendant HEARTY supplied those documents that same day and  XXXX  counsel emailed them to   OCWEN that same day. Further communications by Defense counsel continued with no substantive reply.
16  . On  XXXX / XXXX / XXXX , the office of the undersigned, received a call from the  OCWEN current relationship manager ,  XXXX   XXXX , requesting most recent bank statements and a letter explaining that the property was vacant and therefore there was no lease agreement in the file. Defendant,  XXXX  provided the requested letter and  Defense counsel provided that letter to OCWEN  along with the new bank statements and pay stubs. Follow up communications continued approximately every  four ( 4 )  days thereafter with no substantive reply from   OCWEN.
17.   Finally, on  XXXX / XXXX / XXXX ,  XXXX  acknowledged that the DIL file was under active review. Follow up communications continued.   18. On  XXXX / XXXX / XXXX , during a telephone communication with an   OCWEN representative, Defense counsel was notified that OCWEN had assigned a new relationship manage to the file and that additional bank statements and pay stubs would be required in order for the DIL review to move forward.
19.   Throughout the month of  XXXX ,  Defense counsel repeatedly inquired with Plaintiffs counsel as to whether they had received instructions from their client to file a Motion  to Cancel the upcoming auction sale date of  XXXX / XXXX / XXXX , because of the open and active DIL process. However Plaintiff did not file a Motion to Cancel the auction sale of  XXXX / XXXX / XXXX . Instead, the undersigned prepared, filed and prevailed on a motion to cancel that sale date based upon the open and active DIL review. The sale rescheduled to  XXXX / XXXX / XXXX .   20. On  XXXX / XXXX / XXXX , in an abundance of caution, the most current banks statement and paystubs were again, provided to   OCWEN.
21. Follow up communications regarding the DIL process continued, directed to both OCWEN and Plaintiffs counsel with no substantive reply.
22.   Finally, on  XXXX / XXXX / XXXX , defense counsel received a reply from   OCWEN stating that the DIL file was under review.
23.   On  XXXX / XXXX / XXXX , the office of the undersigned received a telephone call from another relationship  manager ( the 3rd  since  XXXX / XXXX / XXXX  ). She only provided the name  XXXX  and ID #  XXXX .  XXXX  stated that   OCWEN had requested for their counsel to order a Title Report and that it would take 7-10 days but as long as the title search came back clean, OCWEN would instruct its counsel to draft the DIL documents.
24  . On  XXXX / XXXX / XXXX , defense counsel was informed that the title report had not yet been obtained. Further, on  XXXX / XXXX / XXXX , still no title report had been obtained.   25. Also, on  XXXX / XXXX / XXXX , the undersigned was informed by an  OCWEN representative that OCWEN  needed physical access to the property as a final step of the DIL process.  XXXX , who permanently resides in Pennsylvania, requested a former neighbor in  XXXX  County to visit the subject home to make certain it was in fair condition for the anticipated inspection by  OCWEN.  At that time, it was discovered that the locks had been changed by a company called  XXXX  that had been contracted for that service by   OCWEN, preventing access to the property.
26.   During communications with OCWEN on  XXXX / XXXX / XXXX , a representative only referring to himself as  XXXX  with ID #  XXXX , stated that the DIL file was now with FANNIE MAE and that he was trying to determine if FANNIE MAE had yet contacted Altisource regarding access.    27. Defense counsel continued to follow up, which did result in Plaintiffs Counsel filing a Motion to Cancel the upcoming 4/12/17 auction sale date based upon the active DIL review. Unfortunately, that Motion was denied by the Court  on  XXXX / XXXX / XXXX  and the subject property went to auction sale on  XXXX / XXXX / XXXX  and was sold back to the Plaintiff.   28. The foreclosure auction sale of  XXXX   XXXX ,  XXXX  took place under highly irregular circumstances in that Defendant, HEARTY had accepted Plaintiffs DIL offer involving a {$5000.00} contribution no later than  XXXX   XXXX ,  XXXX  and therefore, the DIL should have been finalized within weeks of that offer and acceptance. In the alternative, the auction sale should not have gone forward on  XXXX / XXXX / XXXX , because the DIL had been conditionally approved no later than  XXXX   XXXX ,  XXXX , and therefore, Plaintiff was obligated to file a motion to dismiss the action and to dissolve the  XXXX   XXXX  prior to the auction sale date of  XXXX / XXXX / XXXX .   29. Consequently, the sale that took place on  XXXX   XXXX ,  XXXX , was an unlawful taking of property in violation of the Consumer Financial Protection Bureau guidelines established by the United States Federal Government, Department of Justice.    XXXX . Defense seeks for Plaintiff to voluntarily vacate the  XXXX / XXXX / XXXX  auction sale and corresponding  Certificate of Sale  and thereafter, issue an expeditious approval of the mutually agreed upon offered and accepted DIL terms.