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Ocwen Loan Modification

Discussion in 'Loan Modification' started by GoldenSunshine, Sep 15, 2012.

  1. GoldenSunshine

    GoldenSunshine LoanSafe Member

    I'm new to this forum, but have been reading about everyone's experiences with modifications and was hoping I could get some insight.

    We have been in Chapter 13 bankruptcy since July 2011. We have always been current with our mortgage, even though the payment is incredibly high [$2900/month] due to refinancing a few times over the years.

    Yesterday when we went to pay our mortgage for the month, we were told by Ocwen that the payment due was almost $300 more than the statement they sent us due to an escrow assessment. They told us on the phone that they could not accept a payment lower than $3200, even though they bill in our hands said otherwise. [They can not even automatically take a payment from us while in chapter 13, so how they could demand we pay an extra $300 is beyond me!?] They would not even explain fully what the increase was from, said the paperwork had to be 'reviewed' before they would email it to us.

    We ended up paying the extra $$, because we were so shocked at what was happening and didn't want to be late. We called them back a little later and essentially learned that the increase was so that they had a $2500 - $2900 cushion in the escrow account.

    But an extra $300/month is exorbitant to us in our situation right now and with the price of everything rising [gas, food, etc.] to pay that would be extremely hard on us and leave us with no "emergency" money for anything! They told us we could look into mortgage modification and so we contacted our bankruptcy lawyer about that, but I just wanted to see if anyone has been in a similar situation and what the outcome was?

    We own a small business and income has greatly decreased due to the economy. Our interest rate is 8.2% and the house is underwater - our lawyer estimated it at $242,000 and the loan is for $275,000ish. We have never been late.

    Any help, advice or similar situations out there?
  2. Cat Damiano

    Cat Damiano Mortgage Wars

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

    We have had members that were going through the process of modification during a chapter 13 bk, here are a couple of threads for you to ask questions about the process;


  3. GoldenSunshine

    GoldenSunshine LoanSafe Member

    Thanks, I will check out those threads.

    We actually spoke with our lawyer who advised us to pursue the modification on our own. We were told that the success rate is not increased with a lawyers help and as long as we are organized and polite, we should not run into any problems.

    I downloaded a very detailed packet from Ocwen's website and we are going to start working on it shortly. I look forward to reporting back with [hopefully] great news, but will be sure to drop in if I have any questions during the process, as well :)
  4. GoldenSunshine

    GoldenSunshine LoanSafe Member

    Well, we spoke with someone at our attorneys office yesterday and they were insistent that as long as we are organized and polite, we should have no problem doing the loan mod ourselves.

    So, we received a very detailed packet from Ocwen online and will start giving them all information they are requesting. I hope to be back with great news of a mod sooner than later, but if I have any questions I'll be sure to stop by too :)
  5. Cat Damiano

    Cat Damiano Mortgage Wars

    Good Luck with the modification, please keep us posted!
  6. GoldenSunshine

    GoldenSunshine LoanSafe Member

    Heard from Ocwen today in regards to one thing we were missing. We sent it right over to them this afternoon and the representative set up an "appointment" for Monday afternoon where our Relationship Manager will call and speak with us.

    Does anyone have any insight as to what this conversation may be about? Is it to discuss the options of the mod?

    We've really enjoyed working with Ocwen on this - they have been quick and helpful! Any insight is appreciated :)
  7. Cat Damiano

    Cat Damiano Mortgage Wars

    I had answered this question in the other thread. Once the information given is put into the system, they will go over everything with you to make sure it is accurate.
  8. GoldenSunshine

    GoldenSunshine LoanSafe Member

    Yes, thank you! I only posted it in the other thread too, because it seemed to get more activity.
  9. GoldenSunshine

    GoldenSunshine LoanSafe Member

    Had our 'first interview' and they had never received the extra requested paperwork, so she told us to send again and helped us edit the wording a bit, because she knew what the underwriters would be looking for. We sent that in yesterday and she said they would need a few days to confirm receipt and add to our file and then about a week to review it, so she scheduled us for a 'second interview' next Weds.

    Checking our account today, it said our application was now under review. Is it possible that they could present an offer to us on the phone next Weds?!
  10. Cat Damiano

    Cat Damiano Mortgage Wars

    AT that point she may be able to let you know that you are approved and what a trial payment plan would be.
  11. mwilliam

    mwilliam LoanSafe Member

    Ocwen is now servicing my loan at a 10% interest rate. I have applied for a modification and they have requested the same information over and over. Every time I send additional information is something else they state they need. I really feel like I am getting the run around in hopes that I will give up. I will fax additional information for the fifth time this week.
  12. GoldenSunshine

    GoldenSunshine LoanSafe Member

    Thanks, Cat, that would be amazing if that was the case!

    mwilliam - I am sorry you have encountered such trouble. The number one thing our lawyer told us [we filed chapter 13 in 2011, but they told us to pursue the mod ourselves] was to be organized and polite. Send them MORE information than they are asking for [we are self-employed and sent them bank statements for business and personal, along with outgoing checks], etc. Also, we faxed our application [all 92 pages] the first time and it didn't go through - I would suggest if at all possible to scan and create a pdf file and email it to them. Good luck and try to remain patient and calm!
  13. mwilliam

    mwilliam LoanSafe Member

    Ok Thank you! Golden Sunshine and Good Luck!!
  14. GoldenSunshine

    GoldenSunshine LoanSafe Member

    So, I just logged into our online account and much to my surprise it said that our next payment is due DECEMBER 1st and is for $1,358.38!! That's almost $2000 LESS than our current payment. WHOA, WHAT?!

    We are still waiting for an official offer [paperwork], of course, but I am guessing that it is pretty official if it's on our account, yes?!

    We are overjoyed, and anticipate reading the terms. Wow!
  15. mwilliam

    mwilliam LoanSafe Member

    Congratulations golden...i read another thread about Ocwen modification n there was some really good responses of people whose modification was approved!
  16. Cat Damiano

    Cat Damiano Mortgage Wars

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

    Ocwen has one of the best inhouse modification programs out there and they surpass other servicers in completing modifications from trial period to making them permanent. Have you been denied the modification at anytime? If it is paystubs and bank statements that they are asking you to send in, items such as those would need to be updated within 60 days or they are no longer able to use the previous ones.

    If you feel like you are getting the runaround you can also reach out to the Ombudsman for help as well.

    You may contact the Ocwen Consumer Ombudsman a variety of ways as provided below:

  17. mwilliam

    mwilliam LoanSafe Member

    Thank you for your response cat. I was recently denied as of today. I have sent them all paystubs (except for three) as well as bank statements. The owner of the company I work for also sent the general ledger of all paychecks for the year. I get paid monthly and the owner and myself have advised this in writing on multiple times. On my stub, even though they are monthly, it states the pay period as one week which is the last week in the month I am getting paid for. However all the pay stubs are in line and prove my income. Paychex is the processor of our paychecks, I am going to ask the owner if there is anything they can get from Paycheck to support that this paystubs are monthly. It is totally frustrating and I have emailed the Ombudsman and I get a reply to allow 10 days. I started this process the beginning of this month, and I am really trying to stay on top of it so I do not have to apply again. Do you have any suggestions or advice? I also have worked with my relationship manager and do not have another appointment with him until Monday. He has been very helpful however it appears to be the underwriters that are the problem.
  18. Cat Damiano

    Cat Damiano Mortgage Wars

    You are doing everything you can do at this point. See what the RM says on Monday about what options would be available for you. Please post what they say about the reason for the denial.
  19. Jfeldman

    Jfeldman LoanSafe Member

    Hello Cat I am also new to this Thread and am looking for some advice as well as some assistance. I am currently underwater on my house by approximately $150,000. My Loan Servicing company is Ocwen and we actually completed a modification about 4 years ago. The only issue is that back then we did not pay the mortgage for approximately a year and a half due to loss of income and a $650,000 mortgage. So they did grant us a modification at 2.9% but they did not excuse all of the arrears which really did not save us any money monthly. I have been rolling 90 days late for about a year and a half avoiding the foreclosure process in the hopes of obtaining a principal reduction. Ocwen consistently reaches out to us but I am scared to fill out the paper work as I want to make sure that it is filled out properly in order to get the maximum reduction. I have recently got married and now have additional income but I dont want to show too much income either. Can you please point me in the right direction for some assistance. I dont mind paying for the service but would prefer to pay after the modification is completed if possible. thank you so much for your help regarding this matter and look forward to hearing from you.

  20. Cat Damiano

    Cat Damiano Mortgage Wars

    Hi Jeff,

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

    What type of modification did you receive, was it a HAMP modification or an inhouse modification? The modification program only allows for waiver of the late fees, not the past due payments unfortunately, those will be capitalized back into the unpaid principal balance.

    You do not have to pay for help going through this process, help is free through HUD here;

    Speak with a Housing Expert

    Here is some information about the HAMP program and eligibility requirements;

    Home Affordable Modification Program

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