Ocwen unveils new principal reduction program | HousingWire

Ocwen is offering principal reductions to borrowers who have negative equity in their homes. If the borrower qualifies, the loan will be written down to 95% of the home’s current value. The reduced amount is forgiven 1/3 per year over three years as long as the borrower stays current on payments. But, when the home is ultimately sold the bank will be entitled to a 25% share in the equity at that time.

This is the first principal reduction program initiated by a private lender without the influence of the government.

http://www.housingwire.com/news/ocwen-unveils-new-principal-reduction-program

2 Comments

Filed under Mortgage Modification

2 Responses to Ocwen unveils new principal reduction program | HousingWire

  1. phil

    Sorry this firm has bad reviews and Fanny excluded it from being involved in their loans….if the firm is based in Florida like this one is IT MUST BE A SHAME…Florida is the center of all Con-Men and Sham Artists.

    • defe3316

      Phil, thank you for your comment. Additionally, Ocwen’s website, the one they provide on correspondence to borrowers, provides no telephone or other contact information for borrowers seeking workouts. Also, if you call the number provided on correspondence to borrowers there is no information on principal reductions and no opportunity to speak to a person.

      This seems to be a PR move not calculated to actually help those seeking assistance.

      Francis M. King, Esq.

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