I thought the days of Lenders demanding that you be late was over particularly with even HAFA relaxing the rule in Nov. I have a customer who is current yet they have to move out of state to care for a sick family member and will be taking a new job there too. Even after just the day before ordering a BPO which was completed today, Ocwen initiated a denial letter today because they can currently pay mortgage so I have to go through the process of  getting them to see that delinquency is immiment which was very clearly described in their hardship letter. I thought these days were over with Short Sales? I'll never understand why a customer being proactive isn't desired over having to wait until they're late when this only incurs additional losses. I'm in contact with mgmt to see how I can push this along. Never a dull moment.

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The mortgage loan should be delinquent or default should be reasonably foreseeable.
Loans currently in foreclosure or bankruptcy are also eligible.

https://www.ocwencustomers.com/oc/documents/pdf/HAFAMatrix.pdf

Yes, Kevin default is reasonably foreseeable.

Hi Lynn,

I just went through this very same thing with OCWEN. Our client was only 30 days late when we started the process with OCWEN.  Like your story, they didn't feel the need to tell us she was "not delinquent enough" until after they ordered the appraisal and got about 3/4 of the way through the process before sending the denial letter.  Then when I called to question the denial I was given three different reasons as to why.  I finally got in touch with our Customer Relations Rep and she explained about the required delinquency of at least 60 days.  We had to put the short sale on hold and wait.  Ridiculous.  Luckily we did not have to start from scratch.  Just had to submit an updated HUD and the contract again.  Though we had to submit other docs 2 and 3 times before they actually "received" them.  Best of luck!

Hi Jen, it's incredible isn't it? Instead of being proactive to lessen losses lets just wait until we're late a few months and then approve; nothing has change other than Lender being out more money. Not a very good business decision I'd say.

I thought these days were over with Short Sales? - Wishful thinking and will never be the case in my opinion.

Kevin, I've had Short Sales approved while customers were current as it just made sense as they had a hardship and I'm not talking about say the strategic default when a borrower just wanted out of their home. For example, my example here, perfectly good reasons why they should be considered for a Short Sale. Otherwise, they've going to move anyway for the new job and to take care of sick family member, stop paying their mortgage because now they can't pay while in another state and then the losses just increase for Lender. Crazy bad business decision by Lender.

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