My clients were denied a loan mod back in January and were suggested by Ocwen to find a shortsale agent and list their home for sale. So that's what they did, they contacted me and we listed their home. My clients accepted an offer and we emailed it to the bank along with the RMA and all corresponding documents to initiate the shortsale in March. I was told it would be 45-60 days for the review process and I was given an appt. with the "relationship manager" for end of May. In our first conversation, she confirmed all documents were in and under review, scheduled another appt. for two weeks later, said the file had to first go through a govt. budget and finance review to proceed. Secondly it would have to go through another loan mod review (even though it was just denied for loan mod) and then proceed to the shortsale review, it was going to take some time. So we talked every two weeks on our scheduled appts and in between I would call the bank to see if there were any updates. Last month they wanted updated bank statements and paychecks so I emailed right away. Last week, I was told the review was just about complete and that I should have the HUD  90045 by this week. In our scheduled appt, the relationship manager said she had a "surprise to tell me", that my clients were approved for a LOAN MOD! Apparently, FHA guidelines have changed and they now qualify. Well, my client's are all packed, ready to move! We have an ALL CASH buyer, who has waited ever so patiently, ready to close escrow! LOAN MOD? ARE YOU KIDDING ME?!!!! I asked what were their options, and she said if they don't do the loan mod, the bank will foreclose, no option for shortsale! I'm shocked, I was told I would have a HUD 90045 today and instead got a Loan Mod Approval! Where do I go for help? Any suggestions?

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Comment by Barbara Mills-DuBois on August 27, 2014 at 4:41pm

No sale date as of yet. And yes they were denied a LM in January, but say the "FHA guidelines" have just recently changed. Their FICO's are above 600 but that is because Ocwen hasn't reported them as late. Thanks for the info.

Comment by Brett Goldsmith on August 27, 2014 at 4:19pm

Is there a sale date on this property? I would of opened up a ticket right away if they already denied your client in the past for a LM review. Also, please confirm the following information with HUD as I am not a HUD counselor and this information should not be taken as absolute:

If a homeowner has a fico score under 580 I believe they are able to opt out of the modification and into a short sale. If not they need to accept the modification. If they are denied for the modification due to not being able to afford the modification plan they should be able to opt into a short sale.

Open up a ticket at HUD to have a HUD counselor assigned who can assist you on this matter with any information you may need.

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