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

By
Real Estate Broker/Owner with Ikem Chukumerije - MillionDollarLiving.com 01751046

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.



Comments (3)

Jordon Wheeler
The Jordon Wheeler Group - Fairburn, GA
J W Group Real Estate Sales and Service

Hey Ikem,

I have not heard of this loan modification program.  Sounds very interesting and a win-win for all parties involved.  SUGGEST.  Thanks for the post and much continued success to you sir!

Dec 07, 2011 06:41 PM
Pamela Seley
West Coast Realty Division - Murrieta, CA
Residential Real Estate Agent serving SW RivCo CA

Sounds too good to be true. I'll wait and see on this one. I wonder how many Ocwen mortgages are left in California that haven't gone to foreclosure that might benefit from this program?

Dec 07, 2011 07:06 PM
Paddy Deighan MBA JD PhD
federalfinanciallawgroup.com - Vail, CO
Paddy Deighan J.D. Ph.D

great blog on an interesting program...it appears to be a viable alternative for a lot of home owners in distress!!!!

Dec 07, 2011 07:41 PM