2do Mortgage - Ocwen PHH NewRez Nationwide Direct Inc

CYJ

LoanSafe Member
Jan 14, 2020
1
0
1
After many loan transfers from a mortgage company to another, Ocwen offered us a loan modification 10 years ago. The loan modification was only for the 1st mortgage. We got a debt cancellation form as well from them. We have been paying them since then and now Ocwen is PHH/RewRez. Since then, we never knew about what really happened to the 2nd mortgage since Ocwen never collected the loan. We are now trying to sell the house and it looks like that there is a lien on the 2nd mortgage with Nationwide Direct Inc and according to NDI, Ocwen wrote off the 2nd mortgage. NDI now tells us that we owe the loan. There is no documentation that Ocwen, or PHH/New Rez can produce about the 2nd mortgage.

The loan does not show in our credit reports. NDI has not made any attempt yet in collecting the loan.

The property title points to the first mortgages for the house. The mortgage company already sold the mortgages to another company.

Any ideas on how to solve this? How do I really know if there is a lien? Why the loan modification did not include the 2nd mortgage? Is the loan tied to the mortgage? Is there a statute of limitations? The house in question is in Florida.
 

Jzone

LoanSafe Member
Jun 20, 2017
176
24
18
69
After many loan transfers from a mortgage company to another, Ocwen offered us a loan modification 10 years ago. The loan modification was only for the 1st mortgage. We got a debt cancellation form as well from them. We have been paying them since then and now Ocwen is PHH/RewRez. Since then, we never knew about what really happened to the 2nd mortgage since Ocwen never collected the loan. We are now trying to sell the house and it looks like that there is a lien on the 2nd mortgage with Nationwide Direct Inc and according to NDI, Ocwen wrote off the 2nd mortgage. NDI now tells us that we owe the loan. There is no documentation that Ocwen, or PHH/New Rez can produce about the 2nd mortgage.

The loan does not show in our credit reports. NDI has not made any attempt yet in collecting the loan.

The property title points to the first mortgages for the house. The mortgage company already sold the mortgages to another company.

Any ideas on how to solve this? How do I really know if there is a lien? Why the loan modification did not include the 2nd mortgage? Is the loan tied to the mortgage? Is there a statute of limitations? The house in question is in Florida.
Was this a bankruptcy case? Or did you simply stop paying the second mortgage? 10 years is a long time to go without realizing that the 2nd is still a valid lien.

First thing you need to do is check with your county register of deeds and see who holds the lien. Mortgages/liens can be assigned/transferred and that's probably what happened.

When loans are "written off", it simply an accounting term for the bank. They don't plan on getting the money, so its written off. However, there is still a lien that secured the loan and that is where the problems begin. Liens don't simply go away if you don't pay.

The bad news is that now NDI knows you want to sell and have no incentive to offer you a settlement.

Start by seeing who actually holds the lien and start negotiations with them. Then find out if there are statue of limitations for real property in Florida. Im in a similiar situation in Michigan, but I went through chapter 7 bankruptcy. The debt is gone, but lien was sold to a debt collector. In Michigan there is no SOL on real property. The lien holder can hold out for as long as they want, hope that you will eventually sell and then collect.

Good luck.