Disclaimer: These results should not be taken as a guarantee, as each case is unique. We have helped over 7,000 homeowners, here is one of their stories.
In 2014 we were retained by a homeowner in New Jersey who hadn't paid her mortgage to Ocwen since 2009, and had been in foreclosure since 2010. I'll call her Diana to protect her privacy.
Diana was a staggering $185,000 past due on her mortgage. She had a good job, but a lot of bills besides her mortgage to pay each month, and Ocwen didn't think she could afford to keep her home.
Diana wanted to keep her home, but was worried that she would lose it to foreclosure, and that she and her young child would have to find somewhere else to live.
Diana had reason to worry. She was in foreclosure, and the bank was trying to sell her home in a foreclosure auction.
After hiring us, our home retention department started working on Diana's RMA (Request for Mortgage Assistance). Unfortunately Diana did not get us all of her financial documents (tax returns, etc) required to complete her application as soon as we would have liked, and there was no way we could get them without her.
Insufficient Income For Loan Modification
By late 2015 we had received all the required documents, and submitted Diana's application to Ocwen. It was denied on the grounds that she didn't make enough money to afford her mortgage loan and her other bills. Fail.
After this denial, did we tell Diana to give up and consider a deed in lieu of foreclosure agreement and think about where she'd like to rent an apartment?
No. Diana was motivated to keep her home, and sought advice to make it possible.
We knew that Ocwen would not approve Diana for a loan modification with the income she had, and getting a better paying job before her house was lost in the foreclosure wasn't likely. She needed a way to show more income now.
The solution Diana found was to have her father move into her house so he could help with the bills and so his income could be considered when evaluating her for a loan modification. We knew that, even though her father didn't have a lot of income, it would be enough to be approved for a loan mod.
Reapply, Denial, Appeal, Success
We reapplied for a loan modification with an application that showed the updated income information. The application was submitted on May 3, 2016.
On May 4 we were notified that Ocwen had denied the RMA, saying it was submitted too late and they didn't have enough time to review it.
A sheriff's sale was set for May 10!
We immediately appealed this denial and reminded Ocwen that they had told our client in writing and on the phone that she had until May 3 to submit the RMA, which we did. So what the heck, Ocwen?
We sent a letter to Ocwen's attorney that made those points and concluded:
“Therefore, Plaintiff's adjournment of the Sheriff's sale scheduled is in order to allow for the completion of the RMA review. I request that your office verify this information and request an adjournment of the sheriff's sale accordingly.”
That's how our attorney told Ocwen's attorney “This is your fault. Don't even try to sell this home.”
We included a copy of the letter from Ocwen that said the RMA was due by May 3, to prove to them why the sale should be postponed and, and how we had done exactly what they asked.
Our appeal worked, and Ocwen did cancel the sale.
Then the application was reviewed, accepted, and a trial modification was approved. Now Diana has made her trial modification payments and her loan will be returning to normal servicing once her final modification is recorded. She and her child will not have to move out, and will be making more holiday memories in their home this year.
The road to avoiding foreclosure and getting a loan modification is rarely straight and level. There are detours and bumps on the journey. If you don't have someone on your side who knows how to navigate it, you might never reach your destination.
