Company Will Modify Your Mortgage And Reduce The Principal If It Can Share The Equity

Ocwen Financial Corporation, a leading mortgage servicer, has launched an
innovative loan modification program. The program, Shared Appreciation
Modification, will help homeowners who are underwater with their mortgages.

The program writes down a homeowner's principal balance to 95% of market
value. Thus immediately creating equity of 5%. The amount that is written down
is forgiven over a period of three years. This amount is in three equal portion.
One of the conditions stipulates that the homeowner must remain current with the
mortgage over the three year period.

Ocwen makes their money when the house is sold or is refinanced. The
company collects 25% of the amount appreciated. In other word if the house
appreciates $20,000 then Ocwen get $4,000. In addition, it makes money on the
interest rate charged on the mortgage.

The pilot program was launched back in August 2010. So far it has garnered an
approval rating of 79% from homeowners, and less than 3% of borrowers
re-default.

SAM is now set to be offered in 33 states. If the program continues to be a
success, there will be less foreclosures in many communities across the nation.