Why just Fannie/Freddie?

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lagofamily

LoanSafe Member
Jun 2, 2012
14
0
1
LFP, WA
Our mortgage was with Premiere, then Wilshire, then Chase and was just recently sold to Ocwen. We have never missed a payment, have decent credit, and are underwater only about $50K. Ocwen has recently increase our payments due to escrow and that bump up is putting us in the danger zone--$2803 a month is going to be very difficult to manage. Everything I've read about HARP says the loans must be held by Freddie or Fannie. WHY? According to Ocwen, Aurora owns our mortgage. So this means we don't qualify for HARP? What do we do?
 

Jeffrey L. Shurtliff

LoanSafe Member
Dec 4, 2010
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Your mortgage investor is private and you must work with them. Ocwen does have a more friendly loan mod program and they have the highest rate of approval.
 

Cat Damiano

Mortgage Wars
Sep 10, 2007
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Colorado
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Hi lagofamily,


Welcome to the forum and thank you for joining.........

If the HARP 3.0 program gets passed, this will open up the HARP refi to underwater loans that are not backed by Fannie or Freddie, but will most likely have the stipulations that it will be voluntary for the investors to participate. You may want to keep an eye on that program and in the meantime see if the lender can spread your escrow shortage out over 60 months if they have not done so.

HARP 3.0 Mortgage Loan Refinance | Beyond HARP 2.0
 

Evan Bedard

Call 1-800-779-4547
Loan Safe Mortgage
Aug 26, 2007
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48
San Diego, California
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I do hope HARP 3 is approved because it is very unfortunate that many homeowners cannot receive assistance under this program because their mortgage isn't backed by Fannie Mae or Freddie Mac..
 

Jeffrey L. Shurtliff

LoanSafe Member
Dec 4, 2010
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I have read an extensive report on Freddie mac and am convinced they do not want to modify, refinance or do anything except get out of conservatorship. However I do not think this is going to happen as they have already switched the payment method of the employees to the Federal Wage Scale. They state this will make many knowledgable and talented people leave for other jobs.
 

lagofamily

LoanSafe Member
Jun 2, 2012
14
0
1
LFP, WA
I do hope HARP 3 is approved because it is very unfortunate that many homeowners cannot receive assistance under this program because their mortgage isn't backed by Fannie Mae or Freddie Mac..
Me too. The program should be available to all homeowners. It isn't like we had any control over who bought our paper. And my husband and I have been responsible homeowners: we didn't overbuy, didn't refi for cash, have made only modest and practical improvements, and so on. We planned on living in this house for the next 30 years....now, I'm not so sure.
 

Evan Bedard

Call 1-800-779-4547
Loan Safe Mortgage
Aug 26, 2007
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48
San Diego, California
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You are right no one has control on who owns their mortgage once it has been originated and it is very unfortunate for many borrowers who cannot receive assistance under certain programs such as HARP just because a certain investor does not own their account. This has been a major issue with other programs in the past as well and hopefully they will stop making programs that are only specialized for certain investors and have them include anyone who is willing to participate..
 

Cat Damiano

Mortgage Wars
Sep 10, 2007
10,541
39
48
Colorado
www.loansafe.org
Hopefully the HARP 3 will come to fruition and soon as it is unfortunate that many can not refi due to the current restrictions.
 

Tee-Dub

LoanSafe Member
Apr 1, 2012
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Don't feel bad, my mortgage is owned by Fannie but due to credit enhancements, or "GSE Pool Insurance" our loan does not qualify for HARP 2.0. I've given up on getting any help at this point, but I can't even begin to describe how many shades of angry I'll be if HARP 3.0 (or whatever they call it) also excludes us. This program is a farce, an absolute joke, that is full of so many pitfalls I can't imagine it is helping much more than 50% of the people that apply.
 

lagofamily

LoanSafe Member
Jun 2, 2012
14
0
1
LFP, WA
And a new worry for us: we just found out that my husband's job will end August 31st. So, should we bite the bullet and start the process for HAMP or some sort of loan mod with Ocwen right now? I've heard such horror stories about them that I'm afraid to even click on the link on the Ocwen website. We'll be able to make our payments on time and in full through October/November, maybe, but not after that unless he gets another job.
 

Jeffrey L. Shurtliff

LoanSafe Member
Dec 4, 2010
3,823
139
63
And a new worry for us: we just found out that my husband's job will end August 31st. So, should we bite the bullet and start the process for HAMP or some sort of loan mod with Ocwen right now? I've heard such horror stories about them that I'm afraid to even click on the link on the Ocwen website. We'll be able to make our payments on time and in full through October/November, maybe, but not after that unless he gets another job.
Historically OCWEN is the most workable institution out there and their rate of approval exceeds the rest.
 

lagofamily

LoanSafe Member
Jun 2, 2012
14
0
1
LFP, WA
Historically OCWEN is the most workable institution out there and their rate of approval exceeds the rest.
Our experience with Ocwen just as a servicer hasn't been so great. The first we knew that we had been sold to them was a late notice when we weren't even late. Every payment we make (on the first of the month) gets an emailed "acceleration warning" and twice now we have received "friendly reminder" letters 25 days after Ocwen has taken the full payment from our account. I have complained to their Ombudsman--the response was that these were "clerical errors" and for us to "please disregard". Oh, and they increased our escrow to the absolute legal limit, even though it had historically never been underfunded. When I asked why they did that, their response was essentially "because we can"....nice.

So, you can see why our consumer confidence isn't very high--if they can't get it right when we are giving them the full payment on time, how badly are they going to screw things up (and us) if we try for a mod? :suspicious:
 

Evan Bedard

Call 1-800-779-4547
Loan Safe Mortgage
Aug 26, 2007
18,837
48
48
San Diego, California
www.LoanSafe.org
Hey lagofamily,

I definitely understand your frustrations and it is very common for events such as this to happen when your mortgage is transferred to a new servicer. Like Jeffrey stated Ocwen is actually the best lenders to work with on a loan modification especially the last couple of years they have been doing a great job getting issues resolved. You are in a tough position because if you do not apply for the loan mod now you may not qualify later because your husband will be unemployed. But if you do apply for the mod and are approved, the payments will be based off the income you provide and if your husband has not landed a new job by then they may be very difficult to manage..
 

lagofamily

LoanSafe Member
Jun 2, 2012
14
0
1
LFP, WA
Hey lagofamily,

I definitely understand your frustrations and it is very common for events such as this to happen when your mortgage is transferred to a new servicer. Like Jeffrey stated Ocwen is actually the besrt lender to work with on loan modification especially the last couple of years they have been doing a great job getting issues resolved. You are in a tough position because if you do not apply for the loan mod now you may not qualify later because your husband will be unemployed. But if you do apply for the mod and are approved the payments will be based off the income you provide and if your husband has not landed a new job by then they may be very difficult to manage..
Thank you Jeffrey and Evan. I downloaded the paperwork last night and plan on wading through it this weekend. But I thought unemployement was a reason one could qualify for a loan mod?
 

Evan Bedard

Call 1-800-779-4547
Loan Safe Mortgage
Aug 26, 2007
18,837
48
48
San Diego, California
www.LoanSafe.org
Thank you Jeffrey and Evan. I downloaded the paperwork last night and plan on wading through it this weekend. But I thought unemployement was a reason one could qualify for a loan mod?
Yes being unemployed is definitely a hardship and a reason many people pursue a loan modification. However, lenders cannot offer permanent loan mods based off unemployment income and will only offer temporary solutions such as a forbearance. A forbearance will lower your monthly payments for generally about 6 months while you work on finding a new job.
 

lagofamily

LoanSafe Member
Jun 2, 2012
14
0
1
LFP, WA
So we've done it--submitted a mod application to Ocwen. Even though the application was sent in a high-resolution-photo-quality-enlargeable-to-200%-pdf format, we have received two emails stating various documents were unreadable and to re-send them. Oh, baloney. Our phone conversation with our "relationship manager" was confusing--the docs he said to re-send were different from the ones we received emails about. I'm hoping these are just little bumps in the road. Interesting change in our payment, though: I complained to Ocwen several times about them raising the escrow, and cited that in the hardship letter as well. Hey presto!--just this month our payment went down to the amount it was before they raised the escrow. Helpful, but not as helpful as them not gouging us in the first place....:notrust:
 

Evan Bedard

Call 1-800-779-4547
Loan Safe Mortgage
Aug 26, 2007
18,837
48
48
San Diego, California
www.LoanSafe.org
I'm hoping these are just little bumps in the road. Interesting change in our payment, though: I complained to Ocwen several times about them raising the escrow, and cited that in the hardship letter as well. Hey presto!--just this month our payment went down to the amount it was before they raised the escrow. Helpful, but not as helpful as them not gouging us in the first place.
Yes these are the little bumps in the road everyone who applies for a loan modification is going to endure. Just try to stay positive and send them any information they are requesting as soon as possible. I would personally suggest sending your info certified mail return receipt requested to ensure that all the paperwork has been received.
 

lagofamily

LoanSafe Member
Jun 2, 2012
14
0
1
LFP, WA
I did a little figuring and think I know why Ocwen says we don't qualify for a HAMP mod. Remember a little while I ago when I mentioned that they had increased our escrow significantly and then two months later reduced it with no explanation? Well, that reduction put us under the 31%. So, when we applied for the HAMP mod, our payment was at 34% of our income. Ocwen reducing the escrow to where it was when they bought our mortgage from Chase puts at 28% of our gross, or at least at 28% before my husband lost his job last month.....

What to do now? Wait and see what in-house offers they have?
 

Cat Damiano

Mortgage Wars
Sep 10, 2007
10,541
39
48
Colorado
www.loansafe.org
I did a little figuring and think I know why Ocwen says we don't qualify for a HAMP mod. Remember a little while I ago when I mentioned that they had increased our escrow significantly and then two months later reduced it with no explanation? Well, that reduction put us under the 31%. So, when we applied for the HAMP mod, our payment was at 34% of our income. Ocwen reducing the escrow to where it was when they bought our mortgage from Chase puts at 28% of our gross, or at least at 28% before my husband lost his job last month.....

What to do now? Wait and see what in-house offers they have?
After being denied HAMP, Ocwen would have to see if you are able to qualify for any other modification options.