What Ocwen calls this is a S.A.M. or “Shared Appreciation Mortgage”. It is modeled after the original FHA Equity Share Mortgage. Other lenders are now catching on and yes, it is exactly like HOPES except without an EHTrust in place. Our goal is to show each lender that a S.A.M., in the form of an EHTrust is a much safer and superior arrangement.
With a HOPES arrangement via an EHTrust, there is never a need to foreclose on a defaulting resident or to Short Sale a property. We simply replace the current resident with no further qualifying, red tape or hassle. As long as they can afford the closing costs and monthly payments, they can be the resident. No Down, No New Loan!