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Recently in conversations with a negotiator in the Freddie Mac department at Ocwen Mortgage we had an in depth conversation leading us to final result of having a full understanding of their break down paid to Jr. Lien holders. Frequently, lenders in specific, have what they call a “Martix”. The Matrix we are referring to is not the movie but a general format used by most major companies to disseminate information in a chart/list format that matches up options to their perspective counter parts. So in this example we are referring to the relationship between total amount owed to the Jr. Lien and Ocwen’s policy of how much to pay out to that lien holder would be when completing  a short sale.  The Ocwen Pay Out Matrix is as follows:

  • 1-40K = 1K Pay Out
  • 40-60K= 2K Pay Out
  • 60k+= 3k Pay Out

This basically is a rule that is set in stone by the investor Freddie Mac as a blanket policy for all the loans serviced by Ocwen. Overall, as an example, if Ocwen held the first mortgage on a property and let’s say Bank of America held the second with a balance of 300k the most that Freddie Mac would allow Ocwen to pay would be a total of 3k to the second lender.

We understand that many times the second mortgage lender will request more funds than what is provided by the first mortgage but a skillful negotiator can many times find the way to avoid your deal from going sour. We are approached every day by real estate agent’s who’s deals are on the verge of being on the chopping block and have seen that with a few phone calls things turn right around.

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