You don’t mention what the house is worth, but the best option may be selling it. The good news is that title is now in her name, so at least that aspect is taken care of. She would be receive any sale proceeds after Ocwen’s lien is paid. Ocwen has little incentive to forgive the debt, and there is no way to compel them to do a short sale. It does seem very odd that they reduced the payment for only 3 months, most modifications last far longer than that. I’m guessing it was more of a courtesy, given her circumstances, than a legally binding modification. You might check with Beyond Housing (or your local housing non profit) to see if they can assist you, but selling the house (if value is sufficient) seems the path of least resistance. Since the mortgage is NOT in her name, the late payments (or even a foreclosure if all else fails) should not impact her credit, assuming Ocwen did not add her name to the loan during this process.
Thank you so much, Mr. Rood, for your quick and helpful response.
My stepfather had gotten the modification, he had been going through the trial since August 2013, after trying for 3 years. The relationship manager at the time had told my mother to continue paying the modified amount of the mortgage.
The house is appraised at approximately $92,000 and there is about $60,000 still owed on it. It was a 30 year fixed at 6.25%, from January 2003.
My mother’s name is not on the loan, the bill still comes to the estate. For quite some time, Ocwen would not speak with my mother. They demanded to speak to my stepfather, and when they were told he was deceased, they asked numerous times for the death certificate, which we faxed, emailed, and sent. Even afterwards, they still wanted to speak with him.
We are behind about $7,000 in payments (my mother was advised by a reverse mortgage company not to pay the mortgage until things get done.) We are unsure of what to do. She wants to sell the house and move back up North, where we have family.
Any advice is appreciated.