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...