Months ago, we achieved fantastic mortgage settlements with Ocwen Loan Servicing on behalf of our Clients, Jack, Ben and Jim. What made these settlements so special was the fact that they involved significant
principal loan balance reductions. These settlements caused our Client’s monthly mortgage payments to drop drastically. In light of a recent event, looking back on those unbelievable settlements makes us wonder
whether they may have been the precursor for more good things to come for many homeowners with troubled Ocwen mortgages.
The event we are referring to occurred just a week ago when the federal government and 49 state Attorney Generals (including Ohio’s), announced a $2.1 Billion settlement with Ocwen, ending a lawsuit against that Company based upon its fraudulent mortgage servicing practices. Importantly for consumers, the settlement amount to be paid by Ocwen will be in the form of mortgage relief to homeowners whose mortgages it services. That relief in turn is to be through interest rate reductions and even principal balance write downs! For homeowners with underwater Ocwen mortgages, this is indeed noteworthy, as it suggests that it is a great time to reach out to Ocwen, and demand some mortgage relief.
Jack, Ben, and Jim’s cases all highlight this point very vividly. Just consider the numbers in terms of dollars savings achieved by them when they stood up to Ocwen and insisted on mortgage relief. After making
their new reduced monthly payments for a period of three years, Jack will have his principal mortgage balance reduced $92,000 (from $156,956 to $65,000), Ben - $69,000 (from $245,000 to $176,000) and Jim -
$23,000 (from $77,000 to $54,000!)
Obviously, these phenomenal results do not guarantee that you, as a homeowner with an Ocwen mortgage, will necessarily achieve the measure of success Jack, Ben or Jim did. On the other hand, these settlements certainly should, at a minimum, lead those with Ocwen mortgages to ask; “Can I get real help on my mortgage?"
Note from the author: If you have questions or comments- regarding this or any Foreclosure Story article or should you like to have a “free mortgage analysis”, please visit www.mcgookeylaw.com
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Kate Eyster and Lauren McGookey contributed to this article.
Copyright 2013 Daniel L. McGookey