Buyer Who Bought Home With Delinquent Loan For All Cash Faces Foreclosure Anyway As Servicer Returns Money Along With Foreclosure Notice

In Pittsburgh, Pennsylvania, WPXI-TV Channel 11 reports:

• A local man is facing a mortgage mess. He paid cold hard cash for his house, but the lending company is still foreclosing. So he called Target 11's Robin Taylor for help.
  
  "I bought this house. Legally, it's all registered in the prothonotary's office. They money is there and I'm still getting foreclosed on," said Noel Norris of Leechburg, Pa.
  
  I did some digging and discovered hundreds of similar complaints against Ocwen Loan Servicing. Last fall, the Better Business Bureau issued a warning about the company. Homeowners say they've made their mortgage payments, but the company is foreclosing anyway. It's been a real nightmare for Norris.
  
  His mother owned the house he grew up in. She fell behind on her mortgage payments, so Noel decided to buy the home.
  
  Noel closed on the property Oct. 5, 2012. Ten days later, Ocwen Loan Servicing sent his money back along with a foreclosure notice.
  
  "You buy the house. You send them the money for the house and they send it back to you?" I asked.
  
  "The money was wire transferred to their account, guaranteed funds. It's in there. My attorney did that. They turned around and sent me a check back," said Norris. The payoff quote was $74,000, but Ocwen is charging interest and penalties as if the money was never paid.

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• For Noel, it's been frustrating, but a settlement has finally been reached, allowing him to stay in his home. He told me he couldn't afford to fight Ocwen any longer. "The legal system's not free. It might not be perfect, but it's not free, for sure," said Norris.

For the story, see Target 11 investigates mortgage company with ‘F’ rating.