All Forum Posts by: Frank Beans

As I understand, the recent CFPB settlement that punishes Ocwen for reprehensible actions related to foreclosures ALSO mandates Ocwen spend 2Billion on principle reductions for underwater homeowners.

I believe Ocwen was supposed to initiate contact with "eligible" homeowners. I have been after a principle reduction from Ocwen for YEARS yet at no point did Ocwen ever mention they have a mandate to oblige people like me. My house is underwater (a LOT).

We'd like to stay, but not at the current $2800/mo payment. This incidentally is $1000 LESS than it was a year ago. We managed to use a govt agency with an "inside" Ocwen guy that helped get our 7+% int rate down to %4.6. Great, but not enough. The house is worth 1/2 of the $400K we owe. Nov 2010 we discharged this house via chap7.

Now I'm worried because Ocwen is TRANSFERRING my mortgage to another servicer on June16th!! So I have almost NO time to get this principle reduction process started! Ocwen wants us to complete a "mod" package. I am angry because I know the info a mod package requires: what we make, what we pay, who we pay, etc. I FAIL to see how ANY of that has any bearing on how much my house is worth vice what I owe on it. Seems like a stall-tactic. Why can't they order an appraisal & adjust the principle to a reasonable match?

I am wondering if  transferring my loan on June 16th absolves Ocwen of the obligation they had to help me with a principle  reduction. I suppose the smart approach is to shut-up & get on with completing the mod-package asap so as to get the process started. Thoughts?

Background (if interested):

We bought this place in 2007...we emptied our condo, fixed it up, listed it & watched is sit on the market a YEAR! We paid this new mortgage AND the condo for a year. We even tried to short-sell the condo, but B of A never responded to even ONE of the 5 offers we got. We broke-down & rented, but the renters left in the middle of the night. We fixed the damaged condo & re-listed. After 4 years on the market we finally claimed chap7 (included both properties) because it seemed the condo would NEVER sell & the new house was already underwater. Ironically the condo sold the following summer...B of A finally decided to honor a short-sale offer once we stopped sending the mortgage.

Well I appreciate the quick response! Sounds like it could pay-off if I put the time in. In Dec, 12 (just before Ocwen took over) I submitted a package thru a housing counsellor (because they had the ability submitted it electronically). Never heard a word about it...so I just submitted another by mail, this time to Ocwen. I know the investor doesn't want this house back...I want to work around Ocwen & get reach the investor to arrive at a suitable solution!

We bought "high" in '07 & got STUCK carrying previous residence (condo).

Eventually lost all $ carrying both mortgages & did chap7 fall, 2010 (unsecured debts only).

Condo finally went in a short-sale summer, 2011. I'm 2-3 mos late a few months now, & send a payment just often enough to reset the "clock".

My Freddie loan (serviced by Ocwen) is ~$380K @ ~7+%. House now worth ~ $250-270K. Is THIS possible:
1. Determine what a sheriff’s sale on this house could LIKELY fetch
2. offer to stay if my principle is is reduced to $50K over that figure. $50K MORE than they'd get if I left, right? Too crazy?

I WOULD make the necessary sacrifices to stay on-time IF the house was worth CLOSE to what we owe, but now I'd rather send just enough to stave-off foreclosure & have some $$$ for an emergency.

Sorry, but priorities are in survival mode now. We are past living like starving college-students to stay on-time for a loan $120K more than the house is worth...

Is it worth approaching the investors? Is my idea stupid? Sorry if I sound like a nut...desperate times call for desperate measures...just sent Ocwen a mort-mod package but I will be amazed if the endeavour is fruitful...

We make $150K/combined but FRUGAL living (never had honeymoon or vacation) plus medical, stud-loans & the $3700/mo payment is still too-tight.