OCWEN - with offices in Palm Beach, Orlando & Bombay(this is where most of the calls get routed)

This is yet another, example of the irrational logic from the Loss Mitigation Department we face on a day to day basis.

Hi Serge,

We spoke with Danny, unfortunately the most the buyer can come up with today is $5,000.00; that is a purchase price of $375,000.00. Please remind upper management that this property is going back to the bank as a non-performing asset as of tomorrow.

The way the South Florida market is now, property’s are losing $10,000.00 per month on an average. By the time, this property goes through the channels as an REO back on the MLS, you will be netting less than the offer presented today, and at that time I’m sure you will be paying 6% commission. Not to mention more property taxes that are accruing as well as HOA dues and maintenance of a vacant property.

Please take a look in your records for a property that you took back on September 14, 2007 (109 NW 80th Avenue, Margate, FL 33063) that you would not extend the sale date and we had a legitimate buyer who was closing on September 17, 2007 getting you the net that you wanted of $237,489.82. You guys passed on this deal at this time and this property is still in your REO Dept and has not made it back on the market as of yet and when it does I am sure it will be listed for less than the $237,000.

I am baffled that you guys would not take a hit of $5,000.00 now, get this deal closed and a non-performing asset off your books. You would rather go ahead with a foreclosure and delay this for another five (5) months before you can even get it back on the market.

It will be interesting to see what this property ends up being listed at when you guys put it back on the market; but I will tell the buyer to hold off until then because he can probably go down the street tomorrow and put in his $375,000 offer to
The bank-owned property that is currently listed at $374,500 (same exact model) – and get an approval on the spot.

Serge, thank you so much for your time on this, I hope your Management knows how to explain these decisions to their head honchos which we will be copying on this e-mail.


cc. Ian MacKay, Chief Financial Officer, HSBC