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Ocwen loan modification

Discussion in 'Loan Modification' started by Daisybaby, Aug 25, 2013.

  1. Daisybaby

    Daisybaby LoanSafe Member

    I got approved for a loan modification on my mortgage, but the new mortgage is an adjustable interest rate that can be changed whenever Ocwen feels like it. Can this be legal? my original loan is FHA and has been fixed rate since i had my house, and now i feel like i don't have no options than going for this; Otherwise, my loan will go on default if i don't take their offer. Any advice on what to do regarding refinance after my modification.
    any advice would be helpful.
    Thank you very much in advance.
  2. Cat Damiano

    Cat Damiano Mortgage Wars

    What type of loan modification does the paperwork state? If you had an FHA loan, then the modification would be either an FHA HAMP Modification if you meet the criteria or an FHA Standard Modification in which case, all FHA Loan Modifications must result in a fixed rate loan.

    Here are the options available for an FHA loan;

    Servicing and Loss Mitigation Frequently Asked Questions - HUD

    If you have an FHA loan and you need assistance in determining why you didn't receive a fixed rate modification, you can contact them directly here;

    FHA staff are available to help answer your questions and assist you to better understand your options as an FHA borrower under these loss mitigation programs. There are several ways you can contact FHA for more information, including:

  3. Evan Bedard

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

    Hello Daisy,

    I definitely agree with Cat, virtually all loan modifications come with a fixed interest rate or step-rate program. You may be getting confused with a step-rate which is completely different from that of an ARM, but generally all FHA modifications end up in a fixed-rate loan. Did you receive the loan mod package outlining the terms of the agreement or was this just a verbal approval?

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