Worth Reading – New Tack in Default Battle: Cutting Mortgage Principal
 | Posted by Steve Rhode Ask me your question. | Click on the star rating below to rate this article.
 (No Ratings Yet) Loading ... |
Sphere: Related ContentReducing 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 that has shrunk the amount owed on 10,884 delinquent mortgages as of Sept. 30. That is 23% of all the loans modified by Ocwen so far this year.
Ocwen estimates the company’s foreclosures result in an average loss of $122,000, or 59% of the loan amount. The figure has more than doubled since last year, causing Ocwen to look harder at lowering principal payments.
Early trends are encouraging. A recent study by Credit Suisse found that roughly 12% of Ocwen borrowers who had their loan balances reduced in April were at least 60 days past due five months later. In comparison, the default rate on less-aggressive loan modifications was 22% or more.
Other Related Articles to Read
Do You Have a Get Out of Debt Question You Want to Ask?
I'm happy to answer any question you have about how to get out of debt, as honestly as possible by sharing with you my experience and truth that I learned from helping thousands of people to get out of debt. Don't be shy, if you need help, ask now, click here.And if you want to follow the latest questions and answers, just subscribe to my site RSS feed or get the email newsletter for free.
"
Comments
No comments yet.
Leave a comment