If you`re struggling to make mortgage payments and are behind on your payments, you may be wondering what your options are. One option is a discounted payoff agreement (DPOA) with your lender.
Ocwen, one of the largest mortgage servicers in the United States, offers DPOA programs to eligible borrowers. A DPOA is essentially an agreement between you and your lender to pay off your outstanding balance in one lump sum, but at a discounted rate.
The benefit of a DPOA is that it can help you avoid foreclosure and minimize the impact on your credit score. It`s also a way to settle your debt with your lender and get back on track financially.
To be eligible for a DPOA with Ocwen, you must meet certain criteria. These include being at least 90 days delinquent, having a loan balance that is less than the value of your home, and having a hardship that makes it difficult for you to make your payments.
If you meet these requirements, Ocwen may offer you a DPOA that reduces your outstanding balance by a certain percentage. This percentage varies depending on your individual situation, but it can be a significant amount.
Of course, there are some drawbacks to a DPOA. The most obvious is that you`ll need to come up with the lump sum payment to pay off your balance. This can be difficult for many borrowers, especially if they are in the midst of a financial hardship.
Additionally, a DPOA will have an impact on your credit score. While it may not be as damaging as a foreclosure, it will still show up on your credit report and may make it harder for you to qualify for credit in the future.
If you`re considering a DPOA with Ocwen, it`s important to understand all the terms and conditions of the agreement. Be sure to read the fine print and ask questions about anything that is unclear.
Overall, a discounted payoff agreement with Ocwen can be a helpful option for borrowers who are struggling to make their mortgage payments. It`s important to weigh the benefits and drawbacks carefully before deciding if it`s the right choice for you.