Home Loans and Support

loan modification w/principle reduction from ocwen

Discussion in 'Stop Foreclosure and Tell Us Your Story' started by toogood, Jan 27, 2012.

  1. toogood

    toogood LoanSafe Member

    not very good with computer.but i just want to encourage everyone,who has ocwen to continue to pursue a loan modification.they were very helpful and the process was relatively quick.here is my story.i was eight months behind.not because i couldnt afford the payments,but because i was so deeply underwater.i decided to stop paying,honestly i was thinking of eventually walking away.ocwen took over my loan from litton.spoke to ocwen ,they sent me a modification package,first i was denied a hamp,because i made more than the 31%. two days later i recieved an approval for in house modification,detail as follows.outstanding balance 337.000.reduced to 151.000.2percent fixed for the life of the loan.old payment 2634.new payment.926.including taxes and insurance.arrears were forgiven.I THOUGHT THIS WAS TOO GOOD TO BE TRUE. I RECIEVED MODIFICATION OCTOBER 2011,FIRST PAYMENT WAS DUE WITH RETURNED PAPER WORK BY NOVEMBER.paid nov , december and january payment.then request a loan pay -off .pay off amount was less than 151.000. i again call ocwen.they confirmed that was the pay-off.i asked what about the balloon payment ,they stated ballon payment is calculated on the term of the loan.for instance;if i was to keep the loan for the full 26 years at the end i would owe about an additional 40.000.something about the loan being amortized over an additional 5yrs ,but your payments are only reflecting payments on 26 years.so at the end of 26 years ,you still owe five more years,the ballon payment is essentialy the five years.something to that effect,so basically the longer you keep the house.the more of the balloon payment you owe.i was told this is not a share appreciation mortgage,but rather another in house modification.please continue to have hope. dont give up.i am new to this site .again not proficient with computers .hope i will be able to answer any questions you have.thank you and good luck to everyone in obtaining a modification that works for you,ocwen web site really encourages you to apply for modification.
  2. ConcernedinCA

    ConcernedinCA LoanSafe Member

    That sounds good and I hope it works out. I too have been offered a loan modification from Ocwen with principal reduction in California on my first loan and am working with them on a payoff of the second. All terms seem acceptable but I do not understand this language in the agreement: "Upon modification, the new amount payable under your note and the Mortgage will be increased to theactual amount of debt owed on your loan". Also, my mortgage was purchase money only making it non-recourse. Does anyone know if signing a modification in California makes it a recourse loan? Any help would be appreciated.
  3. wealth2008

    wealth2008 LoanSafe Member

    Hey TooGood, your mod seems very similar to mine, except I did receive an "excellent" MHAMP .... However, I learned when reviewing my papers Ocwen proposed a "balloon payment" on the end of the loan. I, too, seem to have a 26 year amortization loan, but don't quite understand the "balloon payment" part of the loan. Any advice would be helpful???
  4. Evan Bedard

    Evan Bedard Call 1-800-779-4547 Loan Safe Mortgage

    Congratulations toogood on your modification with Ocwen!

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