Ocwen-is Mod.Possible with Low low income now

[veryAfraid]

Just wanted to know if anybody has had sucess with a loan Mod. with Ocwen, income has been reduced to half. I was a painter, wife in constructon clean-up. Since building new homes crashed here in Michigan,our incomes went way down,lack of work. I just got a job in another field,but my income will be $4oo a week base,and then comminsion on sales,but nobody is buying. So with a loan of 200,000 ocwen just paid property taxes of 5800.00 and 1270.00 in delinq charges.They had me in Forbeance. Original payment was 1412.00,then Forb. payment was 1551.00 then they paid taxes(2yrs)then Forb.payment went to 1872.00. There was no way to make payment that high, when I have been out of work and just start my new job April 6. So could not make 3/1/09 payment. Now statement says Current amout due $8535.90 due immed. Forb. terminated. So i called the Ocwen,man said fill out Mod papers ,fax everything. I could barely understand him. I said i dont have half the income to support even the old payment. He said just fax in. I have only made it this many months thanks to family,which is tap out now. Really,what are my odds they would work with me. Any advise.PLEASE. Its a 30yr at 7.4% ,, was in Forb. for many months before could make it,when they paid 2 yrs taxes.

[Moe Bedard]

Hi veryAfraid,


Welcome to the forum and thank you for joining............


All of the information to begin the process to see if you qualify for the new program and the steps to take through Ocwen to submit the modification package can be found in the link here.......

*Foreclosure Alternatives



If this is the only property that you own and you would like help going through the process with Ocwen............you can try going through NACA..........they are a HUD approved counseling agency and the services for their Home Save modification program are free.........here is the link to the info........
https://www.naca.com/refinance/refin...?language=null

[veryAfraid]

Thanks ***. With all you have see on this site, should i sumbit direct to Ocwen or try this NACA. I did click on the link and i am in Northern Michigan and there isnt an office in this state. Do people fare better using Hud agency? So Scared.

[Moe Bedard]

If there isn't a NACA location nearby...............you would be able to go through the process online instead and schedule the phone consultations that way.............



Most try NACA if they need some help working with their servicer because they are having a hard time.

[veryAfraid]

Thanks. Sorry to be a pain with all these little ?'s, just want to take the best route. Should i still submit a hardship letter myself or would NACA do one?

[Moe Bedard]

If you go through NACA.................the steps for the submission and what you will need to provide for the modification process are in the link that I provided above.......if they require a hardship letter..........you would need to put one together...


The best way to set up a hardship letter..........

* First, describe the hardship and the circumstances that caused it
* Explain what steps have been taken to correct the situation
* Provide the lender with your plan to get back on track and stay there
* Assure the lender that you are a responsible homeowner who just needs a second chance and that you are very motivated to save your home.

[veryAfraid]

Well I am awaiting my call from NACA. I talk to them on the phone last week to set this up. Faxed in all my info-guy on the phone said Ocwen was not the best to work with. He also said they dont like to decrease intrest rate,I shouldnt bet the farm on it, He said they like to do a deal where they give you six months to recover. Ocwen last recover plan was forbearance and that was unreachable. My payment went from 1441.00 to 1681.00, and in the time frame they paid all my property taxes and want that in full by May 15 or Forclose. Wish the phone would ring. Will update on how it went.

[veryAfraid]

Had my phone interview,schd for 10 am they called 11 on the dot. She was very nice. My income being self employed is gooing to be hard to verify, she said since i did not use an accountant. I have to gather 6 months of statements and figure which were my deposits and my buisness cost. She also said they are overwhelmed with people and it could take 45 days. Thry will contact Ocwen and let them know they are working with me, they will try to get them to stop forclosure on May 15, but no promises with OCWEN.

[veryAfraid]

Just have my mine spinning now folling so many forums logs, very confused on this 31% of income. Anyone please shed alittle more light on all this. Are you suppose to show you can afford your orignal payment,cause that in know way can happen. I read all these post where people are coming up with budgets with surplus of $200.00. I dont get it. I'm afraid they are gonna say we are not reducing you payment $500 a month so you can keep your house. They just paid my 2008 taxes, which are deliq yet. They aready paid deliq so now its 8000.00 in taxes 1400 something in deliq charges. Does anybody ever see anything like this with a good outcome. I know over time if economy comes back we can to.

[Moe Bedard]

Front-End DTI is the ratio of PITIA to Monthly Gross Income. PITIA is defined as principal, interest, taxes, insurance (including homeowners insurance and hazard and flood insurance) and homeowners association and/or condominium fees. Mortgage insurance premiums are excluded from the PITIA calculation.

Any subordinate liens are not included in the front end dti

The borrower’s Monthly Gross Income is the amount before any payroll deductions includes wages and salaries, overtime pay, commissions, fees, tips, bonuses, housing allowances, other compensation for personal services, Social Security payment, including Social Security received by adults on behalf of minors or by minors intended for their own support, annuities, insurance polices, retirement funds, pensions, disability or death benefits, unemployment benefits, rental income and other income.



You can check you eligibility here in this link............there is also a payment estimator and FAQs on the right hand side of the page....
Making Home Affordable - Home Affordable Modifications

[veryAfraid]

Thanks that interesting,wow if that could really happen i would be over joyed. Thats a great link. You said "any subordinate Liens are not included in the front end dti. What is that? Where do they figure in your property taxes pid and deliq. charges?

[Moe Bedard]

subordinate liens are Second Loans, HELOCS, Tax Liens, HOA Liens, and any others that are attached to the property after the first lien.

taxes are listed right in the PITIA.

[veryAfraid]

I meant how do they firgure in the taxes they have paid. For instance in my case they have paid over $8000.00 in the last month and a half. Does that get added to the end of loan or something? Just a little fyi I think when you have a phone appointment with NACA, they can be in different time Zone. I'm in Michigan, last appt was an hour late when they called. They told me on the phone they call 9 sharp,well they haven't. I just went to there web site and under phone appointments, you have to click on,then click confirm. Mine said 10pm