The Next Stage

Well, the folks at Wells Fargo just announced a new opportunity in its loan modification program, particularly if you're one of the 478,000 customers of Wachovia, whom they recently took over.If you're facing possible foreclosure or are already in the process that finishes with your home being foreclosed, you can get an extension from Wells to February 28 to work on a "new solution most appropriate for your circumstances". This could be extending the loan term to 40 years, cutting interest rates, or even a reduction in the amount of the loan principal.Call Wells NOW while you have the extra month and change to possibly avoid losing your home to foreclosure!

More Good Ideas

Well, at least there are plenty of people thinking of ways to ease the housing/foreclosure crisis. This past week, representatives of the National Association of Homebuilders were in Washington, DC pressing for passage of a bill they wrote that would, if passed, help straighten out the housing market. Titled "Fix Housing First", it would have the federal government provide fixed rate mortgages at rates not seen for over fifty years.

The bill would have the feds provide federally-subsidized mortgages of 30 years at a fixed interest rate of 2.99% on all home purchases, regardless if the home were new or a resale. The purchase and its related loan would have to close by June 30 of this year. If it did not close by then, the fixed rate would be a still spectacularly low 3.99% for the same loan, as long as it closed by the end of the year.

I don't think these rates are likely under a federal subsidy due to the sheer amount of money the government would have to front. However, had you asked me last June about some of the bailout numbers currently bouncing around, I also would have been very skeptical then too. So, it will all come down to what the new administration, working with Congress decides is a reasonable number, given the severity of the economy in general and the housing market in particular.

V-E-R-R-Y Interesting--and sad!

For those of you who have followed this blog regularly, and/or purchased my book, 'Save Your House From Foreclosure!', you've heard me say time and time again that when you find yourself in trouble making mortgage payments, one of the first things you should do is contact the bank and see what can be done to help you save the house, including a loan modification (change in the terms of the mortgage loan).
Well, it seems that some members of the lending community may not be living up to their commitment to help out homeowners.

In a court in New Hampshire, a couple is suing Countrywide for allegedly stringing them along for 8 months in hopes of a loan modification before denying them the modification, after which the lender foreclosed. The facts of what really happened will be determined as the case plays itself out, but what is really interesting is that, as reported on MSNBC today, Countrywide said in court that its ads offering loan modification assistance for troubled homeowners are "mere commercial puffery", and "Countrywide's vague advertisements", not an obligation or promise to actually do anything.

This is particularly troubling for Countrywide, because the lender is one of a number of institutions who joined the Hope Now group last year to try to work and stem the rising tide of foreclosures by a variety of means, including loan modifications.

Keep watching for more news as this case wends its way through court.

More Possible Relief

As the new Congress gets into its work, to be followed in a week by Obama's inauguration, there is increasing talk of additional ways to help homeowners facing foreclosure. While no specific plan is yet available or close to becoming law, a variety of things is being discussed. Among these are moratorium periods before foreclosure is initiated, a redrafting of the bankruptcy laws, an extension of the TARP bailout for homeowners facing foreclosure and a fee-driven incentive for lenders to be more pro-active on loan modifications.
While nothing is in writing yet, much less in stone, something is likely to happen. Keep your eyes here for updates when it happens.