Ocwen trial modification.

[synerg]

OCWEN TOOK OVER MY LOAN 2 MONTHS AGO AFTER YEARS OF ARGUING WITH BOA AND SAXON.
i WAS GETTING MY PAPERWORK TOGETHER FOR THEM WHEN THEY SENT ME A TRIAL OFFER OUT OF THE BLUE YESTERDAY.
$88K OF THE PRINCIPAL,NO BALLOON,NO 25% share,2% interest rate for 5 years with a 1% INCREASE PER YEAR THEREAFTER UNTIL IT REACHES THE FREDDIE MAC CAP RATE ON THE DAY MY MODIFICATION IS WRITTEN.
pAYMENT IS $650.01 INSTEAD OF $1657.00.lOAN WILL BE BROUGHT CURRENT AFTER 3 PAYMENTS.
mONTHLY PAYMENT INCLUDES ESCROW.
hAS ANYONE ELSE HAD THIS EXPERIENCE?
2 WEEKS AGO I THREW A PROPERTY PHOTOGRAPHER OF MY PROPERTY,SOUNDS LIKE THEY WANTED TO FIND OUT IF THE PROPERTY WAS OCCUPIED,POSSIBLY.
HOPE IS GOES THROUGH AS IT WOULD KEEP ME IN MY HOME AT AN AFFORDABLE PAYMENT.

[Evan Bedard]

ON THE DAY MY MODIFICATION IS WRITTEN.
pAYMENT IS $650.01 INSTEAD OF $1657.00.lOAN WILL BE BROUGHT CURRENT AFTER 3 PAYMENTS.
mONTHLY PAYMENT INCLUDES ESCROW.
hAS ANYONE ELSE HAD THIS EXPERIENCE?
2 WEEKS AGO I THREW A PROPERTY PHOTOGRAPHER OF MY PROPERTY,SOUNDS LIKE THEY WANTED TO FIND OUT IF THE PROPERTY WAS OCCUPIED,POSSIBLY.
HOPE IS GOES THROUGH AS IT WOULD KEEP ME IN MY HOME AT AN AFFORDABLE PAYMENT.

That is awesome news Ocwen offered you a modification in such a timely matter! They have been offering great modifications and have the best track record for any bank. The purpose of the rep coming to your property was more than likely just to verify residency like you stated, or they may have also sent the rep to take a few pics for a BPO or "broker's price opinion." Personally I would definitely take the offer and make sure you get the paperwork in by the due date along with trial payment.

Congrats!

[synerg]

Thanks for the input,I can afford the payment and will make it timely and stay on top of any paperwork they require.
My experience with BOA was a lengthy workout (not a mod) which left me with a higher payment.Saxon was a complete waste of time,they apparently never recieved anything i sent them.
When the rep turned up I had just been released from hospital after amputating my thumb,so the property didnt look its best.
As they say every cloud has a silver lining.

[Evan Bedard]

I'm very sorry to hear about your surgery, that is very unfortunate you had to loose your thumb. But I'm glad to see that Ocwen has been much easier to work with then BofA and Saxon. I hope everything turns out well and they offer a permanent modification in a timely matter.

Good luck!

[Jamie_W]

OCWEN TOOK OVER MY LOAN 2 MONTHS AGO AFTER YEARS OF ARGUING WITH BOA AND SAXON.
i WAS GETTING MY PAPERWORK TOGETHER FOR THEM WHEN THEY SENT ME A TRIAL OFFER OUT OF THE BLUE YESTERDAY.
$88K OF THE PRINCIPAL,NO BALLOON,NO 25% share,2% interest rate for 5 years with a 1% INCREASE PER YEAR THEREAFTER UNTIL IT REACHES THE FREDDIE MAC CAP RATE ON THE DAY MY MODIFICATION IS WRITTEN.
pAYMENT IS $650.01 INSTEAD OF $1657.00.lOAN WILL BE BROUGHT CURRENT AFTER 3 PAYMENTS.
mONTHLY PAYMENT INCLUDES ESCROW.
hAS ANYONE ELSE HAD THIS EXPERIENCE?
2 WEEKS AGO I THREW A PROPERTY PHOTOGRAPHER OF MY PROPERTY,SOUNDS LIKE THEY WANTED TO FIND OUT IF THE PROPERTY WAS OCCUPIED,POSSIBLY.

Same letter here... and funny that my old neighbor caught someone walking through the house with a camera and asking questions as to whether the home was occupied. Difference being here that it is my old house that I was renting for less than the monthly mortgage payments *waiting* for the market to come back. I ultimately decided to cut my losses and was waiting for foreclosure.... then got this letter. I read in another thread that internal mod programs and even HAMP do not require the home to be your primary residence... I hope that is the case because I would obviously be immediately disqualified (I still have a tenant tho so I meet the occupancy requirement). Secondly, I would probably not qualify on the income to monthly payment ratio I heard needed to be met under HAMP if you look at the mortgage, insurance, and tax payments on just this house alone ( I make too much) but would make it if combining this property with my current primary residence; does anyone know if this would kick me out of qualifying? Finally, anyone know if they are going to ask for pay stubs, tax returns, bank statements once you get through the 3 months of trial payments?

Thanks!

[Cat Damiano]

Hi Jamie_W,


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


They shouldn't ask for additional item if you have already recently received the trial modification. The way they look at the rental income if you are trying to modify the rental property is as such;


Modification of Loan Secured by Rental Property:

A borrower seeking to modify the mortgage loan on his or her rental property must provide evidence of that income, which is generally documented on IRS Schedule E (Supplemental Income and Loss) of the borrower’s tax return for the most recent tax year. When Schedule E is not available to document rental income because the property was not previously rented, servicers may accept a current lease agreement and bank statements or evidence of damage deposits. All net income or loss from a rental property that is security for the loan being modified as well as income from any other rental property owned by the borrower must be documented and included in the calculation of the borrower’s gross income.

The monthly net income or loss on a rental property to be calculated for HAMP Tier 2 purposes should be 75 percent of the monthly gross rental income, reduced by the monthly principal and interest payment plus 1/12th of annual real property taxes, annual insurance premiums and annual homeowners’ associations dues, if applicable (PITIA). If 75 percent of the monthly gross income of a rental property securing the mortgage loan being evaluated for modification under HAMP Tier 2 is equal to or greater than the pre-modification PITIA of the rental property, the servicer must verify and document the cause of the borrower’s hardship as delinquency alone is not considered a hardship.

[Jamie_W]

Cat:

Thanks for your help and quick response. My tenant pays $2,000; my principal and interest payment is $2,166; taxes and insurance are $749. Using the math you suggest I come up 75% monthly gross rental income of $1,500 which is less than the monthly pre-modification PITIA of $3,449. So all I need to show to qualify is a schedule E? Anyway to tell from the calcs above what the reduction would be?

Thanks in advance for your help!

- Jamie

[Cat Damiano]

Cat:

Thanks for your help and quick response. My tenant pays $2,000; my principal and interest payment is $2,166; taxes and insurance are $749. Using the math you suggest I come up 75% monthly gross rental income of $(1,011) which is greater than the monthly pre-modification PITIA of $(1,349). So I need to show additional hardship?!?! Seems backwards to me as I lose money every month... Am I wrong?
Thanks in advance for your help!

- Jamie

If you post the required figures into the following thread, Michael would be able to let you know if you would need to show anything else for the modification, he is much better at the number crunching than I, lol.

Find out Now If you even QUALIFY for a Loan Workout Solution. Post Your Situation

This is what the guidelines state;

Calculation of Monthly Gross Income and Total Housing Expenses for Rental Properties:

Prior to evaluating a borrower for HAMP Tier 2, the servicer must determine the borrower’s gross monthly income and total housing expense. The NPV model will use such amount to determine whether the proposed HAMP Tier 2 modification falls within the Acceptable DTI Range. With respect to a loan secured by rental property, the servicer will add net income from the subject rental property to the borrower’s gross income from all other sources (including rental income from other rental properties to calculate monthly gross income.

If the subject rental property has a net rental loss, the servicer will add the net loss to the monthly PITIA of the borrower’s principal residence to determine the borrower’s total housing expense.

If there is no rental income from the subject rental property, the servicer will add the monthly post-modification PITIA of the subject rental property to the PITIA on the borrower’s principal residence to determine the total housing expense.

In the event there is more than one borrower obligated on a mortgage secured by a rental property, the income from all borrowers must be included in the gross monthly income calculation and the monthly PITIA of the principal residences of all borrowers must be included in the total housing expense calculation.

[webstar]

OCWEN TOOK OVER MY LOAN 2 MONTHS AGO AFTER YEARS OF ARGUING WITH BOA AND SAXON.
i WAS GETTING MY PAPERWORK TOGETHER FOR THEM WHEN THEY SENT ME A TRIAL OFFER OUT OF THE BLUE YESTERDAY.
$88K OF THE PRINCIPAL,NO BALLOON,NO 25% share,2% interest rate for 5 years with a 1% INCREASE PER YEAR THEREAFTER UNTIL IT REACHES THE FREDDIE MAC CAP RATE ON THE DAY MY MODIFICATION IS WRITTEN.
pAYMENT IS $650.01 INSTEAD OF $1657.00.lOAN WILL BE BROUGHT CURRENT AFTER 3 PAYMENTS.
mONTHLY PAYMENT INCLUDES ESCROW.
hAS ANYONE ELSE HAD THIS EXPERIENCE?
2 WEEKS AGO I THREW A PROPERTY PHOTOGRAPHER OF MY PROPERTY,SOUNDS LIKE THEY WANTED TO FIND OUT IF THE PROPERTY WAS OCCUPIED,POSSIBLY.
HOPE IS GOES THROUGH AS IT WOULD KEEP ME IN MY HOME AT AN AFFORDABLE PAYMENT.

Since you may have made the trial payments by now, I am interested to know if you got the final modification from them. One of my clients just accepted the same type of modification offer and we would love to know what the final modification looks like and if they will actually follow through. Thanks for the the post and your time!

[Cat Damiano]

Since you may have made the trial payments by now, I am interested to know if you got the final modification from them. One of my clients just accepted the same type of modification offer and we would love to know what the final modification looks like and if they will actually follow through. Thanks for the the post and your time!

What type of modification are you referring to, a SAM?

[webstar]

What type of modification are you referring to, a SAM?

There is no mention of shared appreciation...simply over 300k in principle forgiveness down to 409k, 2% 5 years, 1% annual cap to market (estimate 4.0 % on my part) and 40 year term (don't know if it includes trial 3 month period in the term or not). Original loan had impounds and so does modified loan but told verbally this morning by Relationship Manager no new funds needed for impound account. Sounds almost too good to be true, but client has to settle with second (Wells) and we are a bit unsure if they will play ball and wait until we receive permanent mod.

[Cat Damiano]

There is no mention of shared appreciation...simply over 300k in principle forgiveness down to 409k, 2% 5 years, 1% annual cap to market (estimate 4.0 % on my part) and 40 year term (don't know if it includes trial 3 month period in the term or not). Original loan had impounds and so does modified loan but told verbally this morning by Relationship Manager no new funds needed for impound account. Sounds almost too good to be true, but client has to settle with second (Wells) and we are a bit unsure if they will play ball and wait until we receive permanent mod.

I only asked because the member you are asking received a SAM which includes the shared appreciation, so it doesn't appear to be the same as the modification you are waiting on.

[moonchild]

Will you be kind enough to tell what kind of papers you had to supply Ocwen with through the process?
I have been switched to ocwen from BOA a few days ago ... went through hell with BOA for 2.5 years ...

Thank you.

There is no mention of shared appreciation...simply over 300k in principle forgiveness down to 409k, 2% 5 years, 1% annual cap to market (estimate 4.0 % on my part) and 40 year term (don't know if it includes trial 3 month period in the term or not). Original loan had impounds and so does modified loan but told verbally this morning by Relationship Manager no new funds needed for impound account. Sounds almost too good to be true, but client has to settle with second (Wells) and we are a bit unsure if they will play ball and wait until we receive permanent mod.

[Cat Damiano]

Will you be kind enough to tell what kind of papers you had to supply Ocwen with through the process?
I have been switched to ocwen from BOA a few days ago ... went through hell with BOA for 2.5 years ...

Thank you.

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

Once you receive your loan number from Ocwen you can begin the process here;

https://www.ocwencustomers.com/oc/Fi...romloginpage=1

[LiveYourLife]

Cat, thank you for sharing this link; our family 1st mortgage loan servicing will be transferred from BofA to Ocwen next month and hope to have better luck negotiating a mod with them.

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

Once you receive your loan number from Ocwen you can begin the process here;

https://www.ocwencustomers.com/oc/Fi...romloginpage=1

[Cat Damiano]

Cat, thank you for sharing this link; our family 1st mortgage loan servicing will be transferred from BofA to Ocwen next month and hope to have better luck negotiating a mod with them.

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

I can say with certainty that you will have a much better experience with the modification process with Ocwen versus BofA if you are eligible for the modification. Please keep us posted on how it goes.

[Eureka]

Hi Evan/All experts,
I received Ocwen Modification Letter. Here are details, wondering if their can be any further scope for better mod terms negotiation. Please advice. Particularly wish to get rid of any "balloon payment".
PS: Not mentioned here I have 2nd loan too

Original Loan information when transferred to ocwen from BOA:
Unpaid Principal Balance: $390,135.79
Original Principal Balance: $399,600.00
Length of the Loan (Months): 360
Origination Date: 11/22/2010
Maturity Date: 12/01/2040
Interest Rate (%): 4.375
Monthly payment: $2371.53 (including Property Tax)


Current home value: $324,000


I'm 4-months behind my mortgage.

Ocwen's modification terms:


New principal balance: $396,003.62
"Deferred Principal Balance": $9,0187.27 (Ocwen also call this "Balloon Payment")
"Interest Bearing Principal Balance": $386,985.35
Monthly payment after trial period: $2005.70 (includes Property tax)
Loan period: 40 yrs (till 12/1/2052 - Maturity Date)
Interest Rate (%): 4.25


Along with below condition:


"I agree to pay in full the Deferred Principal Balance and any other amounts still owed under the loan documents by the earliest of:
(i) the date I sell or transfer an interest in the property, (ii) the date I pay the entire Interest Bearing Principal Balance, or (iii) the new Maturity Date"


I see lot people in this forum getting better terms, is this best I can get ?
Your's/this forum suggestion will be very valuable to me.

[Cat Damiano]

Hi Evan/All experts,
I received Ocwen Modification Letter. Here are details, wondering if their can be any further scope for better mod terms negotiation. Please advice. Particularly wish to get rid of any "balloon payment".
PS: Not mentioned here I have 2nd loan too

Original Loan information when transferred to ocwen from BOA:
Unpaid Principal Balance: $390,135.79
Original Principal Balance: $399,600.00
Length of the Loan (Months): 360
Origination Date: 11/22/2010
Maturity Date: 12/01/2040
Interest Rate (%): 4.375
Monthly payment: $2371.53 (including Property Tax)


Current home value: $324,000


I'm 4-months behind my mortgage.

Ocwen's modification terms:


New principal balance: $396,003.62
"Deferred Principal Balance": $9,0187.27 (Ocwen also call this "Balloon Payment")
"Interest Bearing Principal Balance": $386,985.35
Monthly payment after trial period: $2005.70 (includes Property tax)
Loan period: 40 yrs (till 12/1/2052 - Maturity Date)
Interest Rate (%): 4.25


Along with below condition:


"I agree to pay in full the Deferred Principal Balance and any other amounts still owed under the loan documents by the earliest of:
(i) the date I sell or transfer an interest in the property, (ii) the date I pay the entire Interest Bearing Principal Balance, or (iii) the new Maturity Date"


I see lot people in this forum getting better terms, is this best I can get ?
Your's/this forum suggestion will be very valuable to me.

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

Is your loan backed by Fannie Mae or Freddie Mac, you can check here?

For Fannie Mae: 1-800-7FANNIE (8am to 8pm EST)
www.FannieMae.com/loanlookup

For Freddie Mac:
1-800-FREDDIE (8am to 8pm EST)
www.FreddieMac.com/mymortgage



What type of modification does it say it is on the trial letter?

[Eureka]

Thanks for quick reply.
Yes, my loan is FreddieMac backed. It says "Standard Modification Trial Period Plan Notice".

[Cat Damiano]

Thanks for quick reply.
Yes, my loan is FreddieMac backed. It says "Standard Modification Trial Period Plan Notice".

Thank you for checking, in that case you have been given the best modification that you are eligible for and unfortunately Freddie Mac as well as Fannie Mae will NOT allow principal reductions of any kind.

[Eureka]

Hi Cat,

May not be right thread.
My second loan ($93,000) is with BOA and I have stopped paying from July 2012 (> 90days delinquent).
Is it right time now to try DOJ with BoA for forgiving my second loan ? Any thoughts (or) suggestion ?

Thanks for you timely/valuable replies.

[Evan Bedard]

Hi Cat,

May not be right thread.
My second loan ($93,000) is with BOA and I have stopped paying from July 2012 (> 90days delinquent).
Is it right time now to try DOJ with BoA for forgiving my second loan ? Any thoughts (or) suggestion ?

Thanks for you timely/valuable replies.

Hi Eureka,

If your 2nd is owned by BofA as well I would inquire about the DOJ settlement to see if you may qualify..

Modification, Refinance, and Short Sale Program Enhancements | Bank of America

Will my home equity loan or line of credit be eligible for a modification?

Your home equity loan or line of credit may be eligible if it is owned by Bank of America or another participating investor. Freddie Mac, Fannie Mae, the Federal Housing Administration (FHA) and the Veterans Administration (VA) are not participating in the programs provided under the settlement. Customers whose loans are owned or insured by one of those entities are not eligible for relief through these programs.

[Cat Damiano]

Hi Cat,

May not be right thread.
My second loan ($93,000) is with BOA and I have stopped paying from July 2012 (> 90days delinquent).
Is it right time now to try DOJ with BoA for forgiving my second loan ? Any thoughts (or) suggestion ?

Thanks for you timely/valuable replies.

Yes, however, you should have received a letter, but some have not so you would need to call in to see if your loan is eligible for that program here;

If you do not know whether or not your loan is owned by Bank of America or another participating investor, please call us at 1.877.488.7814 (Mon-Fri 8am-12am ET, Sat 8am-8pm ET, Sun 3pm-12am ET).

[LiveYourLife]

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

I can say with certainty that you will have a much better experience with the modification process with Ocwen versus BofA if you are eligible for the modification. Please keep us posted on how it goes.

Cat, thanks for the welcome. BofA canceled my loan servicing transfer to Ocwen, and started foreclosure process. I asked to re-review my application, found a mistake, and waiting for BofA; not holding my breath and looking at plan B to save my house on this thread: Notice of Default Filed Before Bankruptcy

[Cat Damiano]

Cat, thanks for the welcome. BofA canceled my loan servicing transfer to Ocwen, and started foreclosure process. I asked to re-review my application, found a mistake, and waiting for BofA; not holding my breath and looking at plan B to save my house on this thread: Notice of Default Filed Before Bankruptcy

Well that is a bummer, do you know why that happened? That is a good plan B, we would be unable to refer you to any one specific attorney from the forum, but you can do a search in the following places for a bk attorney in your area;

National Association of Consumer Advocates | Consumer Protection Advocates and Attorneys - Help for Consumers

Lawyer Referral Services (LRS)

[shidanam]

Congratulations!!!
I had the same problem like you with BOA. OCWEN took over my Loan then a few months later they offer me a trial period of 3 months, payments of $1100
made my 7th months payments already, signs 2 copy of the new loans agreement notarized it and send it back, they send it back to me, signed from the OCWEN
but is not recorded did you get your back and recorded?

[LiveYourLife]

Hi shidanam, I was never offered a mod and trail payment. Been dealing with BofA for months now and asking for mod, but no luck yet.

Then BofA was to transfer my loan to OCWEN back Sept 2012, but shortly after (Nov 2012) changed its mind and loan stayed with BofA loan servicing (investor is BofA also). Now I am waiting for in-house mod from BofA.

Sounds like you got your mod and made payments, but not recorded; sorry to hear that. Hope you get this straighten out. Is your mod offer from OCWEN documented? If yes, I would use that document to help straigthen this out and get it recorded. Good luck!