Consumer complaint received 2018-07-28
Company: Ocwen Financial Corporation
State: CA
Product: Mortgage
Sub-product: Other type of mortgage
Issue: Trouble during payment process

Complaint:
On XX/XX/XXXX, the Environmental Health Department of XXXX XXXX County conducted a complaint inspection at XXXX XXXX XXXX XXXX, XXXX CA, XXXX, sent to lien holder XXXX XXXX XXXX of XXXX XXXX XXXX, XXXX XXXX, XXXX, DE XXXX. 

The complaint alleged that debris material had been buried on the site. The results revealed there was large amount of waste that had been disposed of on the site, including hazardous waste. 

On XX/XX/XXXX, A Trustees Deed Upon Sale was recorded on the property in XXXX. XXXX XXXX XXXX, Trustee ( a wholly owned division of XXXX XXXX XXXX ) deeded the foreclosed property to the lien holder XXXX XXXX XXXX XXXX XXXX. of XXXX XXXX XXXX, XXXX XXXX, XXXX DE XXXX. The sale price was {$200000.00} and was recorded by XXXX XXXX of California, a wholly owned subsidiary of XXXX XXXX XXXX. 

On XX/XX/XXXX, Ocwen Loan Servicing Company ( division of XXXX XXXX ), conducted the sale of the property at XXXX XXXX XXXX XXXX, XXXX, CA XXXX. They intentionally concealed the fact the Environmental Health Department of XXXX XXXX conducted a complaint inspection for dumping and sold the property for {$290000.00} to XXXX and XXXX XXXX & XXXX XXXX. 

The Sellers exclusive REO disposition agent, XXXX XXXX XXXX, actively concealed materially adverse information that this property had been used as a dumping site prior to sale at auction, with hazardous waste buried on the site. 

" This is considered an illegal site operated post regulation - it must meet Title 27 California Code of Regulation ( T27CCR ) for closure or be clean closed. XXXX XXXX, Program Coordinator XXXX, Environmental Health Department, XX/XX/XXXX. 

The Seller retains strict liability for the burial of hazardous waste, and AS-IS proclamations do not relieve the seller of any responsibility whatsoever under CERCLA. 

XXXX and XXXX XXXX XXXX meet the criteria of innocent buyers under CERCLA and the Brownfields Amendments federal law, as they acquired the property without knowledge of contamination on the property. 

A visual inspection could not have revealed buried hazardous waste, and they were expressly prohibited from trespassing on the property prior to the sale as the tenants resisted eviction, and they feared for their safety. It took over 6 months to recover the property from the occupants. 

California law requires sellers to disclose material details that may materially affect the potential buyers desire to purchase the property. AS-IS and like disclaimers are ineffectual in removing liability from the Seller and Sellers Agent. 

Dumping hazardous materials is clearly a material fact, and Ocwen Loan Servicing, LLC, that orchestrated the REO sale for XXXX XXXX XXXX, and XXXX XXXX XXXX ( Trustee ) and XXXX XXXX [ the latter two owned by XXXX ( Sellers Agents ) ] can face severe penalties for intentionally concealing such known material facts. 

Since they actively concealed a known material adverse fact, this is fraudulent misrepresentation under the law. 

Remedies include compensatory damages, punitive damages and contract rescission. In such a case, fraudulent misrepresentation may even be considered a criminal offense. The Seller and Sellers Agents actively and fraudulently concealed this information to obtain a higher price at auction. 

XXXX XXXX and XXXX XXXX XXXX have an ongoing financial interest in maximizing REO sales through deception. The Purchase Contract devised by XXXX XXXX XXXX induced XXXX and XXXX XXXX to engage the XXXX XXXX XXXX ( a subsidiary of XXXX ) by refusing to pay customary title fees unless XXXX XXXX was selected by Buyer, in full knowledge that the standard ethical buyer/seller arrangements would not be followed. 

XXXX and XXXX XXXX believed XXXX XXXX would follow all legal and ethical norms, including providing known materially adverse information that impacts the marketability of the property. On page 1, Section 1 of California REO Advisory Requirements, the notice clearly states that : the Seller is not exempt from common law and statutory duties concerning fraud and deceit, even though the specific TDS Form is not required to be completed. Seller remains obligated to disclose known material facts affecting the value and Desirability of the Property. C.A.R. form REO Advisory, Revised XX/XX/XXXX There are literally tens of thousands of complaints against the unethical, illegal practices of these two related organizations ( Ocwen is a shareholder of XXXX, with an exclusive Reo disposition agreement ). 

As they intentionally concealed material adverse information known before the sale in order to cheat the Buyers, XXXX must take appropriate corrective actions, pay punitive damages, and their license to operate should be reviewed.

Company response to consumer: Closed with explanation