Ocwen Financial Corp., a prominent subprime loan servicer and current Shandrow Group client, is officially the first mortgage servicer to begin modifying home loans as part of the Obama administration’s Making Home Affordable (MHA) program.
The $75 billion government loan modification initiative enables at-risk borrowers lower their monthly payments to help them avoid foreclosure or bankruptcy or both. An increasing number of struggling homeowners are opting to sell their homes via short sales. “Responsible homeowners” who meet the straightforward MHA criteria can refinance their loans with interest rates as low as only 2 percent. MHA is scheduled to run through 2012.
If you have questions about the Making Home Affordable initiative and/or subprime loan modification or short sales, call the Shandrow Group for more information today at 562.364.9505.
Ocwen expanded staffing by more than 65 percent in anticipation of the program’s roll-out. Under MHA guidelines, lenders can trim struggling homeowners’ mortgage payments no higher than 38 percent of their income. However, the Treasury Department will share the financial burden with lenders to further lower the debt-to-income ration to 31 percent. Some loans will be eligible to be lengthened over a 40-year term.
Who can participate?
- Homeowners who have an unpaid principal balance up to $729,750
- Homeowner with loans that originated before Jan. 1
Sincerely,
Your trusted connection to the Southern California real estate market,
Mark Shandrow
Real Estate Broker
Shandrow Group
markshandrow.com
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Very useful information . Thanks for sharing. many folks are in need of a loan modification lawyer or a real estate agent show specializes in short sales.