Lenders have long resisted cutting loan amounts for struggling homeowners, fearing it would entice more borrowers to default.
But one locally based servicer, Ocwen Financial Corp., believes it has found a solution.
The company is rolling out a new loan modification plan for underwater borrowers that lowers the amount owed on the loan – thus reducing the monthly payment – but asks for a share in the appreciated value when the house is either sold or refinanced.
via West Palm Beach firm rolls out a new loan modification for underwater borrowers.