You would be better off to get thru a short sale or deed in lieu of foreclosure if you can.
Worst case, it's time to notify them in writing that you are officially unable to repay, are legally in default, advise them to foreclose and walk away.
OCWEN may stink; but the Fed's want them to try and solve these issues, and you actually have an upper hand here; you can always walk away.
First, see if you qualify for a HARP refinance. They maybe can run it out to 40 years to take the payment pressure off a bit.
I would also suggest looking at a reverse mortgage in some cases, but you are upside down on this one so probably not available to you.
Ocwen is just servicing your loan for the investor that actually owns it, but they are the ones you have to deal with. You should contact them and ask to speak to a loss mitigation specialist. Ask them what your options are. They don't want the house back, so if they have any program at all that may help they will work with you. You also don't say what state you are in, but some states have assistance programs as well, if you qualify.
I am seeing much fewer short sales lately because house prices have escalated in most places. If you have difficulty making the payments and could rent locally for a lot less money per month - then I would call OCWEN and see what they can do. recasting the loan or short sale or deed in lieu. or something else. Just walking away would be the worst thing to do.
If you are in UK you may wish to consider a Debt Relief Order or Bankruptcy. This relieves all the debt [you will lose the house] and gives you a fresh start.
Disadvantages are that you will never get credit and it may be difficult to rent
Walk away is worse. At least make it look like you are making an effort not to steal the bank's money.
Any way you slice it, your credit will be shot.
Please advise if you know the best options I can do. I am 63 so I am now drawing my social security just to survive and I don't know if I should even consider a short sale or just walk away. I have no other debts and have a perfect credit record so far. Any suggestions?
