Pages Navigation Menu

Servicers Make More Money By Modifying Than By Foreclosing

Posted in Mortgage Modification

Thanks to Martin Andleman and Mandleman Matters Why Does Ocwen Want to Modify Loans? Answer: Because they profit by doing so.   In case you haven’t noticed, over the last month or so there’s been an ongoing debate of sorts happening on Mandelman Matters as to whether mortgage servicers make more money modifying loans… or foreclosing. It’s the same debate that’s been going on informally all over the country since 2009, when everyone was trying to explain what the Sam Hill was going on with servicers who at the time, seemed to be doing everything but modifying loans. And, if you remember, I’ve been saying that servicers cannot possibly be making more money by foreclosing today… perhaps they did to a point, but not for a long time now.  Late fees are great… to a point.  Once everyone’s late,...

Read More

Jumbo Modification

Posted in Lenders, Mortgage Modification

A residential property where the first loan was more than around $729,000 at the time of the default is not eligible for modification under the Making Home Affordable program. However, home owners with jumbo-size loans should not despair – especially if their home is under water. Many lenders will modify. Consider this modification in which the owners owed $1.078 million. They received a Making Home Affordable like modification in which their rate was reduced to 2.0% for five years, then 3.0% for one more year, with a probable permanent rate thereafter of under 4.0%. The amortization was 40 years. And they received a principal reduction of $316,000! The servicer is Ocwen, and the trial payment program is here. The final modification is here. The key to the modification is this: The property is now worth only around $700,000. The...

Read More

OCWEN – Principal Reductions – 2% Rate

Posted in Mortgage Modification

OCWEN Principal Reduction: We negotiated a $93,000 principal reduction for this couple, provided they remain current on their payments for three years. The rate is 2.0% fixed for 25 years. Read the modification documents here: http://jamesrobertdealattorney.com/wp-content/uploads/2012/08/ocwen-final-hamp-mod-1-19-12-CrNo.pdf. Ocwen Backs Principal Reductions, Mandatory Outsourcing to Improve HAMP By: Carrie Bay 03/03/2010 Ocwen Financial Corporation has one of the industry’s most impressive track records when it comes to restructuring loans under the federal guidelines of the Home Affordable Modification Program (HAMP). Thecompany is converting trial mods to permanent status at a rate that is 10 to 20 times higher than some of the biggest banks. And the Florida-based servicer is ensuring borrowers are given sustainable solutions. Ocwen says its three-month re-default rate on HAMP modifications is under 5 percent – well below the industry’s average range of 19 to 34 percent. Based...

Read More

Tag Cloud

Subscribe To Our Newsletter

Subscribe To Our Newsletter

Sign up to receive helpful information from attorney James Robert Deal about seller-finaincing, lease-option deals, wrap-around deals, and mortgage modification.

You have Successfully Subscribed!