Ocwen Releasing The Lien, Forgiving The Debt, And Not Pursuing Foreclosure

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aeryn

LoanSafe Member
May 28, 2016
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After almost 2 years of waiting for Ocwen to start foreclosure proceedings on my home because I haven't been able to pay a predatory balloon payment that matured (and due to other financial issues -mainly large medical debt - I haven't been able to refinance it - was denied for refinance and loan mod), I received this letter in the mail yesterday...

It states that they are releasing the lien, forgiving the debt, not pursuing foreclosure, will let creditors know the debt is cancelled, etc. Great news, right!?!

But then it gets to the last sentence in the paragraph and says I'm allowed to occupy the house until a sale or title transfer occurs. But doesn't mention any details about any sale. From my research, it looks like they are forgiving the debt so they can write-off the loss on their books, which would mean they wouldn't be selling it right? Can they sell it? I guess I just don't understand the last sentence...

I did some research about what happens after you pay off your mortgage but can't find any info about what happens after something like this... other than that I'll owe IRS tax.

Can I apply to my county for the deed, just as if I'd paid off the mortgage? Do I now actually own my house? How do I get the title, which I understand is different than the deed?

Thanks for any help!
 

Moe Bedard

Call 1-800-779-4547
Staff member
Loan Safe Mortgage
Aug 10, 2007
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Hello,

They are not going to foreclose and or place the home for sale because they are forgiving the debt and also releasing their lien. The only way they can sell the home is if they officially foreclose on your home through proper legal procedures which must be done in court and with proper legal notices.

I assume this is your first mortgage? If so, once they release the lien, you will then not have a lien on the property and have clear and free title.

A mortgage or a deed of trust is a form of lien against real property.