OCWEN Shared Appreciation Mod - Real? HSBC/Ocwen

[bayareafam]

I posted this in another thread but wanted it to stand out for those with Ocwen/HSBC as a first.

Background - husband on a LTD due to medical condition causing reduced income. Our last payment was May 2010. We were declined 3 x for HAMP. Since we have kids, we actually moved out of the area in another state - gone for 18 mos although my husband would frequent the house to ensure all was ok. We were considering a short sale to stop a possible foreclosure. We kept thinking our servicer (Litton at the time) was going to move quickly. They didn't and we were able to secure a 6 mos forbearance due to my husband's condition. We moved back last fall and decided to fight for our home. We used NACA but I have to say they did nothing. In Nov, our loan was transferred to Ocwen. I wanted to cry as I read the numerous complains about Ocwen. It felt hopeless and then I read an LA Times article about this Shared Appreciation Modification which gave us a glimmer of hope.

In Dec we started the process of asking for a modification and I specifically asked for the Share plan. It was the usual runaround - stuff we have done dozens of times before. Paperwork, more paperwork. We submitted all final paperwork on 1/19/12. We should have had a response 15 days later but nothing. Then I receive a Notice of Default so now we were on alert again and very nervous about the path we were now following. I wrote numerous emails to Ocwen with no response. We escalated via NACA but they did not respond to NACA. I then wrote to the usual cast of characters in our local and federal government. Nothing. We just spoke to NACA yesterday and they recommended we submit all paperwork again since Ocwen was not responding to them.

Then, today, a bizarre turn. I am writing to not only share but see if anyone is finding these are NOT real offers. I do not want to get our hopes up. We have been fighting for our house for 4 years now trying to get a modification. The envelope looked cheesy like junk mail - I almost tossed it and then noted it was from Ocwen. Inside a thick packet of information about a Shared Appreciation Program Modification. I was in shock. The weird thing is, it was not personal at all. So it did no reference our modification request, documents we submitted, etc. In fact it start off like a junk mail letter, "Do you owe more than your current house's value? Are you tired of feeling "underwater" Do you wish you could make affordable payments at a lower rate on the amount your house is actually worth?"

The deal looks like this for those interested:

• Investor/Loan Owner is HSBC (another first if this is real)
• Original loan was $650,000 (4 bed/2ba home in SF Bay Area of CA)
• New amount: $772,765 (which include all arrears-also checking if this includes the prop taxes they paid
• Deferred Principle: $106,815 - this is forgiven after 3 years of on time payments.
• Interest rate appears to be fixed 2% for 278 mos. - going to call to confirm this too.
• New payment $2995 plus 891 for escrow - total of $3888 (need to confirm this escrow is for new prop taxes and not the old ones they paid. For us, this is a difference of $1200 a month which is significant and our old payment was variable).
• Payment due May 1 to start and then June 1 onward.
• 25% share of appreciation above and beyond the $665, 950 principle balance if we sell - up to the deferred principle principle (150k).
• There is a balloon payment at the end in 2035 - which again is 25% up to the deferred principle - so they are betting the house will be of a much higher value by then

Since we have kids and we want to stay in our home, I think, if this is real, it looks like a decent deal. If anyone has moved forward with this and found it was fraudulent, please advise. We do have a second so we now need to talk to them (SLS) about modifying that amount. not sure how successful that will be but as far as I can tell, they hold no weight in this.

Thanks so much - and hope this helps those who are wondering about Ocwen. I am quite frankly shocked if this is real. HSBC never agrees to modification and Ocwen is notorious. Here's to some hop for all...

Ceci

[LilVie12]

Hello Ceci, not sure if you've responded to the offer, but it is real. Long as it has some reference to your loan number and include adequate paperwork. I'm a housing counselor and I saw docs separated in 3 sections, Loan Mod Agreement (Shared Appreciation), Balloon Disclosure letter, and Shared Appreciation Disclosure Letter. Long as the payment is ACTUALLY affordable and you agree to the Shared Term, then it should be a go for you.

[LoanQuestions]

Does anyone know if Ocwen is offering these mods to people with Freddie Mac as investor?

[Cat Damiano]

LoanQuestions,


Freddie Mac and Fannie Mae have their own program if you are denied HAMP, and unfortunately their program does not allow for principal reduction.

Alternatives to Foreclosure - Freddie Mac
Traditional Modification

For homeowners who are several months behind on their mortgage – or expect to fall behind soon – a traditional modification of the mortgage terms may provide a solution. With a traditional modification, you and your mortgage company will have a written agreement that changes one or more of the original terms of your note (such as the interest rate or duration of loan) to make your payments more affordable and sustainable.
A modification may make sense if you:

• Are not current on your mortgage.
• Do not qualify for the federal Home Affordable Modification Program (HAMP)
• Do not qualify for the federal Home Affordable Refinance Program (HARP).
• Can afford the modified mortgage payments.

[Idnarb]

Hello - I received a SAM from Ocwen last week. YAY! We plan to sign it and send in our one trial payment as it states it will then be considered permanent beginning September 1st. The terms are a fixed 2 percent for the life of loan, principle reduction of over 50 percent (spread out over three years). BUT - Right before being approved for the SAM we received a Notice of Default. This scares me....can Ocwen proceed with the NOD? We have a second with Ocwen that we have also asked to be modified - (paperwork sent). Can they proceed with the NOD (it only references the first) if we do not pay the second while waiting for it to be modified? Can they rescind the entire SAM offer at any point? Just worried they might rescind if we continue to be late on the 2nd (we stopped paying them both in April). Also, our online account still states that we were not approved for a HAMP and to contact Ocwen right away. Is that normal? Or should it say we have been approved for a SAM? Any and all replies and guidance welcome thank you!!

[Cat Damiano]

Idnarb,


You have posted this in multiple threads and I had answered your question in one of them;

If you are receiving the approval for the trial modification that would mean that if WF is your investor, they already signed off. A Notice of Default wouldn't be reversed, it would not be enforced as to acceleration of the note once the loan is brought current with the permanent modification docs being executed.