I know it may be a little late for a response, but I thought it may help to provide my input with a Ocwen Deed in Lieu.
I know this may sound strange, but Ocwen is one of our favorite loan servicing companies to negotiate mortgage relief options such as a loan modification, short sale or deed in lieu. Many complain about their process, and it is a difficult process, but with experience, the process is simple.
When it comes to Ocwen, we have negotiated several cases that were approved less than 2 weeks from submitting a complete application. However, every case is different and not all cases are completed in that timeframe. On average we get results with most lenders and servicers within 45 days of submitting the application.
Any deed in lieu application needs to be carefully navigated and planned. Borrowers, with many lenders and servicers, have had difficulties receiving incentives such as relocation assistance after completion. When you understand the process and know the right questions to address it becomes easier to be successful.
When it comes to short sale or deed in lieu they are basically the same process. Under the federal Making Home Affordable program, a short sale and a deed in lieu are reviewed using very similar guidelines. The Home Affordable Foreclosure Alternatives Program (HAFA) guidelines outline the qualifications are lender and servicer requirements.
Regarding credit, most deed in lieu agreements that our office has arranged the agreement clear states that the lender will report to the credit bureau's "Settled for than than owed," or similar language. Some lenders will want to review your agreement when you are creditworthy again to purchase a new home, and may view a deed in lieu as a negative. Many lenders view the credit report language, which may open the door to new financing.
As many have stated in response to your question, the Ocwen deed in lieu process is difficult and should be handled by a professional.
I would be happy to discuss this further if you have any additional questions. You can check our our blog for more facts and information or on Twitter @HomeReliefNews.
However, they send you a Short Sale package and request that it be returned within 30 days..... with a contract? I sent it in with everything else (bank statements pay stubs, hardship letter, etc.) and they let me know I have 10 days to "complete the package" with the listing, signed contract, HUD-1, etc.
Unless the person calls you the second they receive the package, how do they expect that to be accomplished? Not the most realistic bunch...
Short sales are seldom what they are presented to be and often are a frustrating waste of time. Obama discovered that most loans are serviced by agencies that are paid to handle them. They have no incentive to derminate a souce of income with a short sale so will delay until people give up. Short sales are often a marketing ploy. A way to establish a relationship with a potential seller and attract buyers to the ads and open houses.
Best of Luck, stephen