Good News in Florida Loan Modifications for Homeowners serviced by Ocwen Financial Corp.

The Palm Beach Post in Florida had a very interesting article about the future loan modification plans of Ocwen Financial Corp. We quote the article as follows:

Lenders have long resisted cutting loan amounts for struggling homeowners, fearing it would entice more borrowers to default.

But one locally based servicer, Ocwen Financial Corp., believes it has found a solution.

The company is rolling out a new loan modification plan for underwater borrowers that lowers the amount owed on the loan – thus reducing the monthly payment – but asks for a share in the appreciated value when the house is either sold or refinanced.

The kickback to the lender may deter people who can afford to make their payments from defaulting, while giving an incentive to either the lender or investor to modify the loan.

“We think this answers some of the critics who say that by reducing principal, you are rewarding imprudent borrowing behavior,” said Ocwen Executive Vice President Paul Koches. “What we see is unprecedented delinquencies, and we’re doing our best to resolve them

The following two tabs change content below.

Law Office of Ray Garcia, P.A.

Our mission is to provide our clients with legal services that not only meet their needs but exceed their expectations. We approach all practice areas with care, knowledge, experience, and determination. Trusted In South Florida For Decades.

Latest posts by Law Office of Ray Garcia, P.A. (see all)

Skip to content