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Ocwen loan modification 2013

Discussion in 'Stop Foreclosure and Tell Us Your Story' started by joshuatee, Jul 25, 2013.

  1. joshuatee

    joshuatee LoanSafe Member

    Hello, I came across this site while searching for Ocwen success / failure stories on the internet and I makes me feel a little better to hear that some of these modifications actually work out.My story is still in the making. Long story short I was divorced in 2010 and I kept the house. The payments were a little much so I applied for a HAMP with my then service provider AHMSI. I wasn't underwater in my house (yet) and the payments only lowered about $70. But it caught me up, and was a little savings so I did it. Completed the trail process and everything was good.

    Through other circumstances I feel behind again. Trouble is for the past year and a half, I would pay my mortgage every month, only it was always a month late. So it would be late, late fees pile up, I'd pay it, let the late fees pile up, I'd pay it, month after month.So in my mind I knew I had to do something. My late fees are equal to another mortgage payment, and my credit I'm sure takes a hit each time I'm late. While I was a month late, I contacted OCWEN and asked if there was anything I could do to catch me up. Maybe pay my late payments over a period of time, put that late payment at the back of the loan, anything. They said as long as my HAMP is in good standing there was nothing they could offer. So through some research and sleepless nights I've decided to let me HAMP go into default.

    When I was always my usual month late I knew I was still ok. But I've never gone this late in my mortgage before. My house is now about $20k underwater. Ocwen has an in house (SAM) program that will lower your balance to 95% of you house value and lower your interest to 2%. That is what I am aiming for.I've done research and I found after 90 days a HAMP is considered in default. I spoke with my relationship manager at Ocwen and informed them of my plan. She said she can't tell me not to pay my mortgage, but understands why I am letting my HAMP go into default.So after my long winded explanation I wanted to ask this. Has anybody gone down this path before? Has it worked? I do want to stay in my home, and I felt this is the best path to achieve that. As of today, I am 55 days past due (June 1st) So I'm working my way towards something.

    In order to get something accomplished, I will need to be at least 90 days late to qualify for anything, and as I understand this process it's no guarantee that this will actually work. If anybody out there has any insight about this company, or process it would be greatly appreciated.Thank you.Josh
    Last edited by a moderator: Jul 25, 2013
  2. Evan Bedard

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

    Welcome and thanks for joining the LoanSafe community Josh.

    You seem to have done all the necessary research to help you achieve your goal and obtain a lower payment. It's true that most servicers will require that you are at least 90 days behind on a permanent HAMP mod to qualify or even apply for another loan mod. Ocwen's SAM program is known for providing excellent terms and often will save homeowners hundreds of dollars a month. You can find a huge discussion (and many who have been approved) for the SAM program here:

    http://www.loansafe.org/forum/loan-...fication-sam-anyone-have-any-information.html
  3. joshuatee

    joshuatee LoanSafe Member

    Thanks for your reply. I get a little nervous letting my mortgage get that late but I believe it might be the only way to get something accomplished.

    Under this SAM program, I've heard that it will reduce your principal balance by 1/3 each year? I'm confused by that. I owe 179k, and according to my tax statement I received a few weeks ago, the house it worth about 155k. My rate is currently at 3.4% and under this SAM program it would drop to 2%.

    So according to those numbers, does mean each year my principal balance reduces by $8,000? Does my payment go down each of those first 3 years as well? Or do they jsut give you a modified payment at the start of this program and it stays the same?

    Thanks!
  4. Evan Bedard

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

    I definitely understand why you would be nervous stopping payments and it's important to keep in mind that a SAM (or any modification) is never guaranteed. Your gross monthly income will always be compared to your current mortgage payment for any program.. The 2% rate and the principle forgiveness under SAM are the best terms any lender has to offer, but these are their own in-house programs and you will want to make it clear that you are pursuing this program. Is your current payment 31 percent or less than your gross monthly income?
  5. joshuatee

    joshuatee LoanSafe Member

    According to the AGI on my 2012 taxes my total mortgage payment is 32.5% of my monthly income. And I didn't get a raise this year so that hasn't changed. Does that make a difference if it's over 31%?

    Thank you,
    Josh
  6. Lavender

    Lavender LoanSafe Member

    Hello All,

    I have a few questions. I will submit paperwork for the Hamp program as I am currently in default due to marriage and income issues. I know that I will not qualify for the Hamp Tier 1, however I am not quite sure if I will for Hamp Tier 2. Here's my situation: I currently have a in house modification thru GMAC (now transferred to Ocwen) with 2% for life of loan, piti is $1180.00 per month, and huge balloon payment due at end of loan that is so much more than my home is worth. I owe over $400K, but my home is only worth $170k now. My gross income is $4059.00 monthly with no other monthly debts..just basic utilities, food etc. If I am calculating correcting, this means that my DTI is 41%, Will I qualify for Tier 2? I am hoping I will not as you can see, my house is underwater - the SAM program could save me from literally paying double. Any help would be appreciated. Thanks!
  7. TomEason

    TomEason LoanSafe Guide Staff Member

    Lavender

    Thanks for your post. I presume math was not your strongest subject ;)

    Your DTI is not 41 %; it's 29 %, e.g. $1,180/$4,059.

    At 25 % DTI (the lowest allowable under HAMP Tier II), your payment would be $1,147.50.

    I could be wrong, but IMO you won't qualify for a HAMP Tier II mod since you apparently can't afford your current payment of $1,180, which is only $33.50 more.

    However, I suggest you apply anyway. Good luck!
  8. Lavender

    Lavender LoanSafe Member

    No, that was my error. Trying to multi-task did not work well for me today. :laugh: So, i can presume that under Tier 2 the DTI has to be under 31%. Next question: Are they any requirements in place under the SAM program that have a maximum DTI? Side note: I can afford the payments now as I no longer have issues stated prior.




  9. TomEason

    TomEason LoanSafe Guide Staff Member

    Lavender

    Thanks for your post. Under Tier II, DTIs can range from 25 to 42 %. I know nothing about Ocwen's SAM program.
  10. tcbmiway

    tcbmiway LoanSafe Member

    Ocwen-Modification-Denied-State of Texas

    Help...anyone have any suggestions for Texas resident who has been denied Hamp, HARP and in house mods with Ocwen? Have been fighting for 4 years and cannot get any answers from Indy Mac who sold to Ocwen and Ocwen just tells me I do not fit the guidelines. I ask questions the servicer says they will have to get back with. This is a growing nightmare and I have managed to keep the house out of foreclosure and bk but cannot get these people to be honest or help in anyway.
  11. Cat Damiano

    Cat Damiano Mortgage Wars


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

    What is the reason for the denials? What is the percentage to gross income of your payment on a first lien alone PITI?
  12. Elainemich

    Elainemich LoanSafe Member

    I had my loan modified under the SAM program with Ocwen in 2012. I received a 1099-C at the end of 2012 for the debt forgiveness of $274k. I was happy because i didn' have to pay taxes on that in 2012. However, shortly after i filed my taxes, i received a "corrected" 1099-c with $0 debt forgiveness. I didn't bother to amend my taxes as i didn't have to pay taxes on that anyway. This year, I received a 1099-c again from them, this time for $91k. I called ocwen up and i was told that the loan forgiveness is to be spread out in 3 years. If my calculation is right, this is the1st year of reporting and will continue up to 2015! As most of you know, the debt relief act has been extended for until 2013 only, what's worse is that California didn't extend this tax relief. I now owe state tax and not for the federal yet. What's upsetting is why ocwen didn't report debt cancellation in 2012, at least 1/3 of the forgiven loan since the transaction happened on that year. That means, that i am pretty much screwed for the next 2 years in case the tax relief act don't get extended. Do you know a similar situation? Who can we contact for this huge mess?
  13. TomEason

    TomEason LoanSafe Guide Staff Member

    Elainemich

    Thanks for your post.

    At this time each year, there are always questions about 1099-As and 1099-Cs.

    The IRS requires lenders to issue a 1099-A and / or a 1099-C when appropriate; however, it’s important to know that most 1099s issued by lenders contain errors.

    While they’re issued on IRS forms, they don’t have the same gravitas that an IRS issued notice would have.

    The lender 1099 forms are printed out by their computer systems and are based on the data therein. That data is entered by low-level data entry clerks. Most of those clerks have never owned real estate and know very little about mortgage loans and distressed dispositions.

    When a lender issues a 1099 that contains error(s), the taxpayer can write a letter to the lender explaining the mistake(s), and requesting a corrected 1099-A or C.

    It’s recommend that the taxpayer NOT wait for a reply before filing their tax return. The taxpayer can simply retain a copy of the letter with their tax records.

    If it’s evident the 1099 is in error, it’s recommended that the borrower and his/her tax person file the tax return in the way they know to be correct. If it were me I'd not worry about it; I'd consider the debt forgiven in 2012.

    For info on when the two forms are to be issued, and for the meaning of the various boxes on the forms, I recommend you visit the IRS site.
    Last edited: Feb 10, 2014
  14. Elainemich

    Elainemich LoanSafe Member

    Hi TomEason,

    thanks for replying,

    I sent a letter to Ocwen today and the rep I have spoken with opened a case as well. I was advised that it may take up to 15 bus days for a response. Can i call irs and find out what the lender reported in 2012 and 2013 to find out the truth and accuracy of the 1099-c i have? Thanks.



  15. TomEason

    TomEason LoanSafe Guide Staff Member

    Hi Elaine

    Thanks for your post.

    I doubt if the IRS can, or will want to, tell you what the lender reported in 2012 and 2013.
  16. Elainemich

    Elainemich LoanSafe Member

    I am hoping that the debt relief act be extended up to 2016 like they propose. I am sure that I am not the only one in this position right now. Foreclosure will rise again if homeowners like me will have to pay tax on the forgiven debt. Anyway, it has been long nights for me thinking about this matter.

  17. pennygram

    pennygram litigation specialist

    There is also a form you can complete and claim your are insolvent. Ask your tax preparer for this.

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