Need Help with Ocwen Loan Modification

bmillsap

LoanSafe Member
Feb 3, 2009
16
0
1
My home is in Encino, California and I purchased it in 1995 and at my husband’s direction, refinanced numerous times. Ocwen is my servicer and Deutsche Bank is listed as the Trustee of the loan. My home is seriously underwater due in part to all the ridiculous fees and penalties Ocwen continues to add. The loan balance is approximately $1,070,000 and my home is worth approximately 640,000. It is important to note that at the time of the last refinance my loan balance was $780,000 in July 2005. While the loan was an ARM, and I could only afford to make the interest only payments, I did not default until September 2008, by then the loan balance had risen to $849,000.

Back in 2011 I decided that a short sale would be the best option. I listed my home and immediately got an offer of $550,000 cash, which Ocwen accepted. I was shocked the offer was accepted since I had been begging for a workable modification to no avail. I called Ocwen and basically said how come you agreed to accept that deal and you won’t work with me? When they could not give me an answer, I was outraged and informed them I would not sell my home and I wanted that deal. Ocwen refused, giving me no reason. I didn’t have enough money to hire capable, well experienced attorneys, so I hired the next best – a disbarred attorney, who did all the paperwork and he then paid an attorney friend to make the appearance. I won’t go into all the legal escapades that ensued, suffice it to say that early December 2012 my case was dismissed on demurrer. In January 2013, come to find out while the litigation was ongoing, Ocwen authorized it’s counsel to make me a loan modification offer, but somehow, the ball got dropped by Ocwen’s counsel and the offer never got made. I only found out about it by accident on one of my numerous calls to Ocwen when they slipped and asked me why I never responded to their loan modification offer. Believe me they tried everything they could to backtrack that statement, but I knew that was going to be the only chance I would get and I wasn’t about to let it go. It took me many letters and many phone calls all the while Ocwen blatantly stated they had no knowledge of any such offer. I went back to the attorney who had actually appeared in Court for my case and told him the situation and he agreed to call Ocwen’s counsel to get me a copy of the offer, which they sent him. Once I had the letter offer, Ocwen insisted I send them a copy, which I did and while their demeanor certainly changed, they still held firm that was not a modification they were willing to offer.

I have gone back and forth with Ocwen trying to get a loan modification that I can actually afford. I have submitted all the documentation they requested numerous times and still they come back with a modification I cannot afford. When I questioned Ocwen why they aren’t taking into account my monthly expenses and adjusting the payment to something affordable for me as well as lengthening the loan period from 21 years to 30 or 40 years, I was advised that Ocwen has a modification program that computes the figures, not necessarily allowing for my expenses, but what Ocwen believes my expenses should be and gives the numbers. What I should also mention is since January 2013 my home has been scheduled for Trustee’s Sale each and every month with the next date scheduled for September 23, 2013. While I have pointed out to Ocwen that “dual-tracking†my home for foreclosure is a violation of the California Homeowner’s Bill of Rights, they continue to violate the law.

The latest modification offer Ocwen has made is what they refer to as "SAM" and their proposed terms:
Principle Reduction Would Bring my Loan Balance to: $641,250 (At the end of 3 years per SAM Program)
Monthly Payment: $ 3,691 (Which includes $669 for property taxes)
Loan Term: 21 Years
Interest Rate: 2.00%

The principle reduction and the interest rate are good, the problem is the amount of the monthly payment. I can't afford that. I work full-time and make a good salary and don't have much debt to speak of. I am a divorced mother of 2 children, 1 of which is special needs and receive no child support so I'm on my own. If for example, Ocwen were to keep the principle and the interest rate the same but lengthen the loan term to 40 years or do 30 years financing $525,000 making the remainder due in a balloon payment, either one of those options would bring my payment to around $2,665 (including taxes), I could afford that.

What I’m hoping for is the truth and some direction. I guess what I’m asking is can I ever expect to get a loan modification that I can actually afford or am I stuck with what Ocwen is offering me? I would sincerely appreciate any advice you may have.

Thank you for your time.