Beating the Rap, But Not the Ride!

The legal bullies continued their maneuvers. With a huge sigh of relief, I made the 150 mile journey to Denver to give the attorneys the payments as the judge had ordered to accept. While I waited for the receptionist to give me a receipt, the managing partner came to the reception area to hand me a document. She said I must sign the document or they would not accept my payment! Now that I am starting to be able to understand legalese, I read the document, which stated that even though I am paying this money (a total of 5 payments now); it will not cure the loan default! A direct violation of the judge's orders, and my rights!

I was in such shock that I was shaking. I told them I could not sign this without having my attorney (prepaid legal) review the document. Keep in mind there was about $40,000 equity in this home. I explained to the managing partner that I was following judge's orders and could not sign that paper. She continued to insist that they would not accept my payment if I did not sign. Finally, the receptionist unexpectedly handed me my receipt, and the managing partner said, "Well, I see you have your receipt now, its no sense discussing this any further," and I was allowed to leave, with them accepting my payment as the judge had ordered.

Still Not Over!

Still, the legal bullies continue. For an entire year after that, Ocwen Federal Bank, continued carry a $5500 charge on my statements. I tried to refinance the loan, but I was held hostage to because of the $5500 reported to the credit bureaus! Additionally, they showed six months of late payments. It took two letters written by my prepaid legal service to have the late payments removed. After the first letter, the mortgage company argued that since the payments were made late, they had a right to report them as late. This was adding insult to injury. However once the attorney included a copy of the court case regarding the foreclosure, they relented and removed the late payments on my credit reports. Of course, they had only been late because the mortgage company had refused to accept them.

Another Foreclosure Action

The following January, Ocwen Federal Bank issued ANOTHER foreclosure action against me. Why? Because they said I owed them $5500 in attorney and foreclosure fees! My prepaid legal came to the rescue again! The attorney wrote a letter to the foreclosing department, stating that this would be wrongful foreclosure because of the judge's orders said they were not to charge any fees. Finally, OFB removed the charges. The attorney firm that represented them had several offices nationally, and apparently worked on most, if not all, of their foreclosures, and expected to be paid even when they lost the case.

Ocwen Federal Bank is in the loan business, but since their operations system favors foreclosure, rather than helping the customer retain ownership; it would appear that they have another agenda. These types of loan institutions are sometimes referred to as "predatory mortgage companies."

All is Well that Ends Well

The story ends well; I kept my home, didn't pay the exorbitant foreclosure fees, the work the of attorneys was covered in my prepaid legal plan; and my credit rating was cleared! With the credit rating cleared, I was able to refinance with a more "user-friendly" mortgage company. All this took about two years of grief, but I am thankful that I did not loose my home.

Unfortunately, others have lost their homes in these same situations. The reason I withstood the legal bullies is because with prepaid legal, I had legal muscle. Two things I resolved because of this experience: always keep my prepaid legal plan active, and before refinancing, I confirmed that my loan would never be resold to Ocwen Federal Bank!

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