This loan product was created back when many mortgage holders were under water and owed more than the property was worth. Ocwen offered some refinances as a loan modification in which they would write down the mortgage owed under a provision that allowed them to recapture some or all of the write off if the property was sold or refinanced which would result in a net gain to the borrower.
I really like the sound of this but the 18 pages of fine print associated with it is extremely confusing to say the least. They give several examples to help explain the various scenerios; however some appear contradictory to me. For example: "One eachanniversary of your modification effective date...Ocwen will permanently forgive one-third (1/3) of the Deferred Amount until it is reduced to zero. If you choose to pay off your loan before the third annivsary...the entire Deferred Amount will be deducted from your pay off amount."
I am not sure why they mention the 1/3 annually instead of just saying after 3 years it is forgiven?
If sold after the second year, it appears that one sentance has already forgiven 2/3 of the Deffered Amount; however the next statement says the entire amount is due?
I would appreciate your feedback if you have any experience with these since it has been over a month since I requested a pay off amount from Ocwen and they just this week said we needed to do an appraisal first. It is hard to do a net sheet for a seller before listing their house without all the facts!
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