The Veterans Administration has moved its foreclosure property management offsite, signing a deal with Orlando-based Ocwen Federal Bank. At this writing, investors seeking out Veterans Affairs foreclosure properties will be out of luck for a few more weeks as VA carries out the transition of all its foreclosure properties to Ocwen's website.

The transition will continue through January 24, 2004 and right now, no VA listings can be found at either VA's or Ocwen's site.

VA made note at its site that "until the geographic transition is completed, the VA Office of Jurisdiction will continue to manage the properties. A list of the links to VA Property Management websites can be found by following this link: http://www.homeloans.va.gov/pmoffice.htm."

Meanwhile, Ocwen has noted on its website that it "will not accept offers on any transferred VA properties until Ocwen has listed the property on its website or by a local real estate agent. At that time, a contact number will be provided for each property. For additional information please contact an Ocwen representative by telephone at (407) 737-5278 or call toll free at (800) 523-9479 and press Option 4, or by e-mail at VAREOSales@ocwen.com."

The transition may run into some bumps in the road, however. As of Dec. 17, 2003, Lieff Cabraser Heimann & Bernstein, LLP, (LSHB) a law firm with offices in San Francisco, New York, Washington, D.C. and Nashville, is investigating complaints and allegations by Ocwen Federal Bank customers that the company has engaged in unfair business practices in regard to its mortgage services and home loans.

LSHB alleges that the investigation concerns allegations that Ocwen has:

• Failed to record payments timely made thereby causing borrowers to be assessed improper fees for late payments;
• Improperly forced insurance on customers; and
• Conducted other improprieties in connection with the servicing of home equity loans and debt collection practices.

The law firm is soliciting comments from current customers who believe they've experienced the above mentioned treatment. Ocwen has plenty of experience in the distressed real estate financing arena. Currently, it is the largest third-party service provider and fourth largest overall non-prime mortgage servicer in the United States. Working in these types of properties and financing will mean the company works with plenty of delinquent and defaulting borrowers.

During the last 10 years, the company has built its reputation by acquiring and managing more than $7 billion in distressed real estate debt.

If Ocwen Federal Bank (a $236 million company and subsidiary of Ocwen Financial -- a multibillion dollar company) treats the marketing of VA foreclosures as it does its other REO properties, brokers and home buyers alike should have a pleasant experience when they go looking at homes for sale.

It's modus operandi for marketing and selling properties from VA will be to hire local real estate agents who will list properties on the local multiple listing services. Ocwen will also list these foreclosed properties on its own website, which has a pretty basic, but effective search system for nationwide foreclosures.

Until the VA properties are completely transferred, interested investor/buyers can get a glimpse at the company's current system by clicking the Residential Properties For Sale link on the front page of its website.

For brokers, business will change by virtue of who you'll contact. If you don't have Internet access or Acrobat Reader on your computer, you're going to be disadvantaged; however, there are local and toll-free phone numbers also listed. Plus, all the forms you'll need to purchase VA properties are already online under the VA Broker Forms link. Click it, print it and you're in business.

For more information, interested parties can contact Ocwen at the following places:

Phone: 407-737-5278 or 800-523-9479 Option 4
e-mail: VAREOSales@ocwen.com
Web: www.ocwen.com

Published: January 16, 2004

Use of this article without permission is a violation of federal copyright laws.

Mr. Carr has covered real estate since 1989. He is the author of Real Estate Investing Made Simple. Got a personal real estate issue? Post your questions and comments at Anthony’s blog: commonsenserealestate.blogspot.com.