Complaint Review: Ocwen Finacial - Orlando Florida

If you have made your contractual payment for Jan 2008 before the 31st of Jan 2008 and if your contractually due for 02/01/2008 payment then there is no requirement of a forbearance plan. You can cancel the plan. I would suggest asking Ocwen to send you a re-instatement quote with a good through date of 02/29/2008 to check that Ocwen has your account as paid up to date. If the re-instatement quote shows the next payment due as 02/01/2008, it means you're contractually current. Alternatively you can also check your bill that they should have mailed you after the payment was received by them. I would recommend requesting a re-instatement quote. Cause if you're still on that useless forbearance plan, it will not reflect your contractual due date. A re-instatement quote will show all payments outstanding and also all the fees/expenses outstanding on your account.

THE POINT IS THAT I HAVE NOT BEEN LATE ON MY PAYMENT SINCE OCWEN STARTED THE FORBEARANCE PLAN. WE DID NOT SIGN AND AGREE WITH THAT. PLUS LAST MONTH THEY GOT OUR PAYMENT ON THE 29TH OF JAN AND DID NOT POST TIL THE 31ST OF JAN. I STILL AM NOT LATE.

This is a payment plan setup to help you catch up on the payment that you've missed. In your case i understand that your regular mortgage payment would have been $2400. And on the payment plan we were collecting $2677.58. Assuming you missed your January 2008 payment of $2400 and that we start collecting $2677.58 from February 2008, here's how it would work... The extra payment we're collecting from you is $277.58 each month [i.e 2677.58-2400]. We need to collect $2400 from you every month as a payment is due every month and the extra payment of $277.58 is kept aside in a suspense account. When the amount in the suspense account equals $2400 or more it is applied towards the missing payment. Therefore following the payment plan that you're setup on you would take approximately 9 months to catch up with your payments. [Explanation = $2400 / $277.58 = 8.65] Now the problem when you sign up for a Forbearance plan is that although you maybe making payments on time on your forbearance plan, on your contract [Mortgage Note] you're delinquent. Hence you will be reported negatively to the credit bureaus for approximately 8 months in this scenario and you'll also be assessed late charges for 8 months. Other Options-: Had you missed a payment in January and then made a payment in February in the amount of $4800 [$2400*2], then you've would have been current before end of february and would have been reported late only for january to the credit bureaus. Late charges would have been assessed for january. if the $4800 payment is made on/before february 16th then no late charges would have been assessed for february. PLEASE UNDERSTAND THAT TO AVOID NEGATIVE REPORTING PAYMENTS NEED TO BE RECEIVED BEFORE THE END OF THE MONTH. LATE CHARGES ARE ASSESSED IF YOU EXCEED THE GRACE PERIOD OF 15 DAYS FROM THE DUE DATE. ADJUSTABLE RATE EXPLANATION: if the note that you signed at the time of closing reads "Adjustable Rate Note", then it means that your interest rate will adjust after a certain period of time. i understand that in your case its 2 years. the change in your interest rate is mostly determined by the index. the standard index used is the 6 MONTHS LIBOR [London Interbank Offer Rate]. you can view the present value of this index in a wall street journal or you can ask your bank with whom you may have a checking/savings account as its commonly used by banks all across the world. this is how your interest rate is calculated-: at the time you close there is a margin indicated in your adjustable rate note which is added to the index value and then the total is rounded off to the nearest 0.125%. example-: lets say your margin = 5% index at the time of closing = 1.300 then your interest rate at the time of closing = 5+1.30 = 6.25% [6.30% is rounded off to the nearest .125%] this week the libor stood at 3.18 that means if your interest rate changes today then your new interes rate would be 8.125% [5+3.18=8.18 rounded off to the nearest 0.125%] there may be a cap/ceiling/limit on the interest rate change when the first change happens. this is again mentioned in the NOTE that you signed. EXPLANATION FOR THE $12.95 extra charge-: there are many marketing products/insurance products offered through the billing statements that you receive. sometimes these marketing companies may call and provide you inforamtion on these products and they offer a free trial period of 2 months.... after the trial period expires they add it on to your mortgage. the best way to check this is to look at the billing statement that you receive every month that shows how your payment will be applied. if you find that your amount has changed please check your billing statement. if you still face trouble contact the company providing that service and cancel it before you make a payment on it Ocwen is a mortgage servicer. they are not the original lenders. ocwen is obligated to honour your contract as it was signed at the time of closing. Servicers try their best to strike a balance between the needs of the customers and the lenders/investors but its extremely hard. FORECLOSURE IS ALWAYS THE LAST OPTION. when a house is foreclosed on both parties to the contract usually end up losing. I understand that your credit scores have suffered because of the Forbearance plan. It is always advisable to contact credit counselling agencies recommended by the HUD or the Federal Government, etc or even an attorney before you sign up fr anything so that you understand how it can affect you. when a plan/contract is discussed with you , make notes and ask questions if you haven't understood a particular clause in the contract. i hope this helps you in future.