principle write down: Principle Write Down, Fo' Reals?
- 07/28/11 06:33 AM
Ocwen Financial Corp. is launching a new loan modification program called Shared Appreciation Modification. Underwater borrowers who qualify will have their principle reduced to 95% of market value. In return for remaining current on their new reduced payment program homeowners agree to "share" the home's future equity. The amount written down (the debt on the negative equity portion) is forgiven in one-third increments over the first 3 year period and when the house is later refinanced or sold the borrower will be required to share 25% of the appreciation with the investor.
This program has been in trial mode since … (1 comments)
Ocwen Financial Corp. is launching a new loan modification program called Shared Appreciation Modification. Underwater borrowers who qualify will have their principle reduced to 95% of market value. In return for remaining current on their new reduced payment program homeowners agree to "share" the home's future equity. The amount written down (the debt on the negative equity portion) is forgiven in one-third increments over the first 3 year period and when the house is later refinanced or sold the borrower will be required to share 25% of the appreciation with the investor. 
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