Ocwen Loan Modification HAMP Successfully Obtained for Homeowner Located in Redlands, CASubscribe to Rss Feed
The Law Offices of Michael Gaddis recently successfully obtained an Ocwen loan modification for a homeowner located in Redlands, CA. The Ocwen loan modification was a HAMP loan modification. When the homeowner originally retained Michael Gaddis Bank of America was servicing the homeowner’s file. However, shortly thereafter, Bank of America transferred servicing to Ocwen. Whenever a transfer takes place there is a period of time where nothing can be accomplished until the new lender acknowledges the new servicing and issues a new loan number. Once the file was firmly in place at Ocwen Michael Gaddis and his staff promptly submitted a loan modification package to Ocwen. Roughly thirty (30) days later Ocwen issued the HAMP loan modification documentation. The HAMP documentation was a little different than normal because it was the final documentation with a built-in trial plan. Typically, lenders will issue trial loan modification documentation followed three (3) months later, contingent upon successful completion of the trial period, by final HAMP loan modification documentation. In this instance, the paperwork states that the documentation is the final HAMP paperwork and that the loan modification will be autumatically modified on April 1, 2013 if the homeowner is current on the payments and nothing else has changed the homeowner’s financial. There is no mention of the trial period other than the fact that April 1, 2013 is exactly 3 payments after the payments are to begin. Michael Gaddis has never encountered HAMP modification paperwork like this before.
The HAMP loan modification calls for a step-rate modification with an initial interest rate of 2% for the first five (5) years followed by 3% in year six (6) followed by a final fixed interest rate of 3.375% for years seven (7) until the maturity date. The initial payment of $1,554.69 represents an over $1,100 reduction from what the homeowner was paying prior to becoming delinquent.
As always, Michael Gaddis and his staff will continue to monitor the homeowner’s loan modification to ensure that the homeowner properly makes his initial three (3) payments and to ensure that Ocwen receives the signed HAMP loan modification paperwork; that upon successful completion of the first three (3) payments Ocwen properly modifies the loan; that Ocwen properly uploads the modified terms into their system; and that Ocwen returns the homeowner’s file to regular servicing.