Profile picture for agency position

Home loan modification

Long story so bear with me. Need some solid advice. Feb of 2014 will be 5 yrs that we've been working on a modification with BofA then Ocwen. It's been one "missing or incomplete" doc after another with these guys as you can probably imagine. Seems like they've been trying to stall at every turn. Horrible experience. Initially we were having financial difficulty but now making more money than we were when we got the loan. Ocwen says the balance, with penalties and interest, is over 280,000. Initial loan was for 192K and house right now is worth about 220K. Loan is in my wife's name. My credit I'd almost to the point where I can buy one in my name. I'm not willing to pay more for a house than its worth just because they decided to drag this out for this long. Especially when my wife can almost walk away with a deed in lieu or BK. We want to keep it but wonder if the penalties can be negotiated down to what the house is worth. Not trying to get away with anything but feel like they've had more than enough time and info to make a decision long before it got to this point.
  • December 13 2013 - Raleigh
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Be a Good Neighbor. Be respectful and on-topic. No spam or self-promotion! See our Good Neighbor Policy.

 
 

Answers (4)

Profile picture for keith shelton425
[Spam deleted by Zillow moderator. See our Good Neighbor Policy for information.]
  • December 14 2013
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

In a recent North Carolina Bar Association newsletter it is stated that foreclosure defense in North Carolina is based upon the premise that any other available option is better for both the borrower and the lender and that attorneys should use strategies such as short sales, loan modifications, continuances, and financial workout that convince the lender that foreclosure is not in their best interest.

Regardless of the reason for possible foreclosure homeowners can protect their home from foreclosure and access free counseling by contacting the State Home Foreclosure Prevention Project (SHFPP) which is funded and led by N.C. Office of the Commissioner of Banks in cooperation with state and federal agencies, legal assistance organizations, mortgage servicers and community organizations. Foreclosure counseling and other services are provided by participating HUD-approved counseling agencies statewide at no cost to homeowners. SHFPP homeowners can receive help seeking loan modifications and providing counsel on options to avoid foreclosure

N.C. Foreclosure Prevention Fund are federal funds offered through the N.C. Housing Finance Agency, a self-supporting state agency. More info at www.NCForeclosurePrevention.gov 888-623-8631 or 866-234-4857

If loan restructuring is not possible, then a short sale may be a good option for you. In a short sale, the ideal outcome is that Lienholder(s) agree to take less than the full, remaining balance on your mortgage and other debts and agree to not attempt to sue you or pursue other collection methods against you for the unpaid balance. You also do not face an eviction, but instead have a closing date and set time to move.

Foreclosures are different. After you default on a loan, the lienholder may use the foreclosure process to force the home sale, take ownership of the property and attempt to recover their investment. Communication with you is on an "as required" basis and when foreclosure occurs or if you voluntary surrender of title without foreclosure (called deed in lieu of foreclosure), there is no "agreement" between you and the lender. The lender retains all rights under law to pursue you to get a judgment and collect the unpaid balance, plus any allowable penalties, attorney costs, etc. You may also face eviction which can force you to move and can include removal of you belongings from the home and a sheriff's officer forbidding re-entry.

A short sale while involving an uncertainty of time is the preferable way to sell your home for less than what you owe, because it allows negotiation of terms that put you in the most advantageous legal and tax position most favorable to you. You should talk to a real estate attorney to understand the legal consequences of your decision(s).

  • December 14 2013
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Profile picture for sunnyview
I would get legal advice and look to cut ties with Ocwen. If that means that you can qualify to buy on your own and walk, then I would consider that. Signing anything agreeing to 100K in penalties or additional mortgage balance is foolish so I am glad you are not considering it.

Ocwen is one of the worst to deal with and they will string you along making your payments for as long as possible without providing ANY resolution. You can try to negotiate, but I would start looking for another house. If any lender desereves the buy and bail after almost 5 years, it's Ocwen. Do what is best for your family.
  • December 13 2013
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

As a Licensed Loan Officer, I can't tell you to let this one go and buy another in just your name. What I can tell you is to have your wife call and explain to them that she is ready to walk from the home if there is not a remedy immediately. 5 years is about 4 years and 9 months too long to get a loan mod. Have you spoken to an attorney? Close to $100k in interest and penalties seems obscene to me.
  • December 13 2013
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.