New to the forum.
1st mortgage with Ocwen.
@ 8.1% 24 years left
monthly payment $1240 (includes taxes and insurance)
2nd with GMAC
@ 10.35% 24 years left
monthly payment $300
Total Owed: $152,350
Zillow Estimated Value: $119,000
Tax Assessed: $139,000
9-20-12 Applied for HAMP with Ocwen but was turned down because payment was already less than 25% of monthly gross of $5471. Received letter on 10/4/12.
Logged into Ocwen account on 9/28/12 and noticed reduced payment amount to $794.96 due 12/1/2012. Had an email on the account which said "Congratulations, your application has been approved. You will receive the acceptance notification package within 30 days." Hadn't received the HAMP denial letter yet so I emailed them questioning the reduced payment amount and due date. Received a letter (via email) on 10/1/12 stating that I was approved for an Owcen in House Modification and the loan was established on a forbearance (modification) plan with an initial payment in the amount of $794.96 due on Nov. 1, 2012. Further our website does not reflect the forbearance payments due on the loan. Therefore it reflects the post modification due date as December 1, 2012 and is correct. Called to confirm, which they did but they couldn't give me details of the offer.
Can anyone offer a guess as to if this is a modification or just a forbearance? I know I need to wait to get the paperwork but I'm driving myself insane wondering if this offer of the $794.96 is just going to be a forebearance for a few months or a longer term. I have been on time with the loan since 2006 and just recently (May of this year) started delaying the payment till the end of the month-but never went past the next due date. Since I received the approval email(no details) I didn't pay the September payment so technically now it's past due. House is slightly underwater ($10-15,000).
I am just so nervous that this might just be a short term (less than 6 months) and that my payment will increase to more than the $1240 after that. Which I won't be able to afford unless it's long term (even five years) when some of my other debt is paid done.
The wording in the letter " In-House Modification and the loan was established on a forbearance (modification) plan" is confusing. Is it a modification or forbearance or combination?