Update: On Tuesday, May 20, 2014, after much advocacy and pressure, Ocwen confirmed that the foreclosure has been postponed until mid June. The story was covered in the Lynn Item.
Protesters: "We hope Ocwen will now do the right thing and show they know how to prevent unnecessary foreclosures... we hope they'll work out a fair modification with the Irvin family and completely cancel the foreclosure. But if they don't, we'll be back!
Community supporters, Lynn United members at a protest in front of the Irvin family's home
on Monday, May 19, 2014. Full size photo.
Ocwen set to illegally foreclose US military veterans
Neighbors protesting as auction date nears
The fact that a foreclosure sale is scheduled for the home of James and Yvette Irvin shows just how out of control mortgage servicers like Ocwen still are.
Both James and Yvette are veterans of the US military, raising two daughters in the home they have lived in for 13 years. They have stable income, much of it from a military pension; they should qualify for the loan modification they have repeatedly applied for.
Yet despite the intervention of elected officials, Ocwen -- in violation of federal rules -- still has not postponed the impending foreclosure auction (set for the end of next week). Ocwen is now among the nation's largest mortgage servicers, and has risen to prominence following the collapse of the housing bubble.
Local community group Lynn United for Change is organizing a protest and vigil at the family's home tonight.
"The treatment of this family is completely unacceptable," said Lynn United member Ugo Emedosi of Lynn, MA. "We're gathering tonight to show that this family has support from the community and we won't stand for what Ocwen is doing. We'll do everything in our power to keep them in their home, even if that means shutting down the foreclosure sale or blocking an eviction. How can people who have the finances and are offering to pay their mortgage be treated like this? Especially since they are veterans who volunteered to serve our country?"
Attorney Marc Potvin of Neighborhood Legal Services is assisting the family, and says that the case "demonstrates the horrendous barriers that banks are putting in the way of hard working families who are desperately trying to save their homes."
James and Yvette say they just want a chance to pay the mortgage, and have tried everything in dealing with Ocwen. The couple has sent in financial documents repeatedly. They've been run around in circles trying to deal with the company on the phone. Out of desperation, they paid thousands of dollars to a law firm that said it could negotiate a modification but actually did nothing to help.
After all this, Ocwen finally responded: the family was rejected for a "traditional modification" because their monthly income was too low by just $47. And they were rejected for an FHA-HAMP modification based on what turned out to be Ocwen's complete misreading of federal guidelines for the program.
Each of those reasons for denial no longer apply. The family's income has since increased considerably, as reflected on a new loan modification application they submitted. And the US Department of Housing and Urban Development (HUD) has issued a memo to servicers about their misinterpretation of the precise rule cited in denying the Irvin family for an FHA-HAMP modification.
Ocwen is required by HUD to review cases like the Irvin's, since they were rejected based on a misapplication of federal rules and have requested reconsideration. Even aside from that, Ocwen should postpone the foreclosure auction to consider the new application submitted by the family.
Despite all this, as of Friday May 16 Ocwen communicated to the Irvin's they are going forward with the foreclosure anyway without even pausing to look at their application. Community supporters say they won't accept that. The bottom line, they say, is that the family has a steady income, is ready and able to make payments, and should qualify for a modification. Yet Ocwen seems intent on going forward despite the fact that the foreclosure is entirely avoidable, and despite the fact that it seems to violate federal guidelines.
Lynn United for Change will hold the vigil and protest in front of the family's home (36 Trinity Ave, Lynn, MA) on Monday, May 19, 2014 at 6:00 pm. The group is not alone in its concern about Ocwen: New York State's top banking regulator is investigating the company's business practices.
Just hours before the protest, Ocwen communicated to the family that they would postpone the foreclosure and review their application. Yet when Attorney Marc Potvin called foreclosure law firm Orlans Moran to confirm this, he was told their computer system still listed the foreclosure as set to go forward.
Cases like this are why Attorney Charlie Carriere of the Harvard Legal Services Center, who has provided important support and information to Lynn United on this case, describes the system as a "mind numbingly incompetent and unfair loan modification and foreclosure machine."
"When the economy crashed in 2008-2009," maintains Carriere, "our government moved swiftly to ensure the survival of the nation’s biggest banks, many of which were architects of the crisis. Since then, many of these banks have reported record profits. Now, more than five years later, struggling borrowers who were also promised relief during the bank bailout are still facing foreclosure."
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