A loan modification program offers a change in the rate and term of your existing home loan resulting in an affordable and sustainable monthly loan payment. The Ocwen loan modification program may include a reduction in the interest rate, a longer loan term, and most of the time, a reduction in the principle balance.
Your lender is willing to offer a loan modification program to you if it serves their best interest. Meaning, Ocwen will agree to a loan modification program if it is more cost effective to modify your home loan so you can afford to keep making payments as opposed to the cost of a foreclosure proceeding. Banks are saddled with record high foreclosures and with the continuing decline in home values, the lender will probably lose more money foreclosing and trying to sell your home than if they take a loss on the loan, because you keep making loan payments to them. Banks have to answer to the FDIC if they have too many non-performing assets on the books-like REO's (foreclosed houses)
The number one deciding factor for your lender is your ability to afford the new payment, now and in the future. You have to show the lender that based on your income and expenses; you will be able to sustain the new house payment. Since modification is not an obligation for any mortgage company hence investors decision is final if the loan servicing company or the lender or the investor think that giving out a modification is not worth, they will not approve any kind of modification plan.
Yes, part of the negotiation process is to have your missed payments added back into the new loan and spread out over the term in an affordable payment structure. Also our team of professionals tries and negotiates to have a chunk of your principal balance waived off to bring down the unpaid balance.
First of all, you are legally entitled to a complete, detailed accounting of all fees & penalties, depending on your type of loan, the lender may be required to WAIVE those fees & penalties, after a successful loan modification.
That could actually work in your favor or against you. If the investor of your loan sees this as a profit after foreclosing your house they may be able to sell it for a higher price or sometimes they may agree on reducing your payments depending upon the equity you have in your house.
Generally, yes, you have to show Ocwen that you will have the income necessary to pay the new loan payment. If you have a VA or FHA loan, there are some loan modifications programs that will give you time to find a job before you start making payments again. The foreclosure process is halted during this time. But if you are unemployed and do not have any income we can still help you.
The hardest part of a loan modification program is actually picking up the phone and calling your lender to start the process. But remember, hundreds of thousands of homeowners are in the same boat as you-your bank has a special department set up just for this purpose, unfortunately these departments have limited staff and because of huge number of applications in queue they keep delaying the process stating that the documents are not complete or incorrect and this increases the frustration in the borrower and at times people lose their homes only because their documents were not complete. Our team of professionals helps you prepare the documents that have 100% chance for approval.
You may find a lot of law offices or agencies offering you similar services or even people with similar email’s promoting our services, however they will take an upfront fee from you and also they do not guarantee a loan modification. We take up your file only after reviewing and discussing your situation with a loan manager in your servicing company and if there is a chance for an approval, we go ahead and get it done for you else we do not waste your time. We have got the approvals on the most difficult files where in lender kept denying our clients several times until they approached us.