At least one loan servicing company is retooling mortgages to lower the loan balance as well as the rate in order to keep borrowers in their homes. Reducing the principal on mortgages is “a last resort,” says Paul Koches, executive vice president at Ocwen Financial Corp., a West Palm Beach, Fla., loan servicer. Ocwen has reduced the amount owed on 10,884 delinquent mortgages as of Sept. 30. That’s about 25 percent of all loans modified by Ocwen this year. Dropping the principal has looked like a last resort to many lenders and servicers because they fear investor backlash. Ocwen says the writedowns are generally less than the company’s average loss of $122,000 on a foreclosure. Ocwen is the nation’s sixth-largest subprime-mortgage servicer, according to Inside Mortgage Finance, with about $45 billion of mortgages under management.
Source: The Wall Street Journal, Ruth Simon
Great news! We have another short-sale win, this time in Westview! While it’s been a 10mths struggle to get the bank to come around- it’s also been 10 months of preventing an owner from being foreclosed on!! I’m very excited about this win as I have seen many agents attempt to negotiate short sales in the past and fail. “Thank you”, to my wonderful Short Sale partner and attorney, Cameo Nichols.
1716 Rogers Ave will have a new owner in no time! We are due to close on the 18th *send prayers up that all goes well* The new owner is looking forward to being apart of the community and restoring that beautiful double lot home to it’s glory. The old owner is looking forward to this being over and restoring her life after this battle with JP Morgan Chase.
As much of an emotional battle it is, I am willing to continue to help those facing foreclosure and under water in their mortgage, try to obtain a short sale with their bank. The process is long but worth the fight- (the relief on this Seniors face for Rogers was worth every minute). Please feel free to refer me to anyone you know facing these difficulties, most of the time help is not requested and many are living in fear silently until they are foreclosed.
Good things are happening in Westview and West End, let’s keep up the great energy and continue to help our neighbors while building our neighborhood!
What’s a Short-Sale?
A short sale occurs when a property is sold and the lender agrees to accept a discounted payoff, meaning the lender will release the lien that is secured to the property upon receipt of less money than is actually owed.
Examples: If the unpaid balance of a loan is, say, $100,000 and a property sells for $90,000, under a short sale the lender might accept $90,000 as payment in full.
Def from About.com