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Ocwen Loan Modification in California

Discussion in 'Loan Modification' started by ConcernedinCA, Jan 28, 2012.

  1. ConcernedinCA

    ConcernedinCA LoanSafe Member

    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.<!-- google_ad_section_end --> The modification offers a principal reduction and reduced interest rate. No mention of a balloon payment. Sounds too good to be true. If it later turns out it is not what it appears I want to still have the option of walking away.
  2. Cat Damiano

    Cat Damiano Mortgage Wars

  3. ConcernedinCA

    ConcernedinCA LoanSafe Member

    Thanks for your reply. At first I thought we were gettingthe SAM but the agreement only states that if we sell the property within 12 months that it reverts back to the full principal balance. I want to accept the agreement but am just skeptical. I want to make sure that we still have the option to walk if the agreement is not what it appears to be so my only concern is that I want to make sure that a modification does change the status from non-recourse to recourse. This is a rental property (which was our principal residence up until 1 year ago) so according to my accountant we can still qualify under the Debt Forgiveness act.
  4. Cat Damiano

    Cat Damiano Mortgage Wars

    A loan modification is a change to an existing loan; it is not a new loan, as in a refinance. In CA a loan's non-recourse status doesn't change because you modify it.
  5. ConcernedinCA

    ConcernedinCA LoanSafe Member

    Thank you for your reply. I appreciate it. I am still skeptical but I think we will go ahead and sign the modification and see what happens.
  6. Cat Damiano

    Cat Damiano Mortgage Wars

    It would also have to state as much in the docs. If you want to be clear, you may want to run it by an attorney to be sure.
  7. ConcernedinCA

    ConcernedinCA LoanSafe Member

    Thank you. I appreciate your replies.
  8. dkmrup

    dkmrup LoanSafe Member

    Hi ConcernedinCA. We are currently renting a home in Texas after having moved out of CA due to a job relocation. We have lived outside of CA for some time, almost 3.5 years and have been renting our home in Fresno California. We have our loan with Ocwen and are deeply underwater. We have contemplated walking away from the Fresno house as most loan mods require home occupancy. I stumbled across OCWEN SAM and your post. I was wondering if you had any details on eligibility for SAM when the home is not your primary residence? Any help would be appreciated.

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