Good News in Florida!

In a ruling Wednesday by the Florida 4th District Court of Appeal, banks trying to foreclose based on what they allege to be a promissory note, must first prove that the note is, in fact, a note, that it is for the property involved in the case, and that said lender actually owns it at the time of foreclosure. in the case, Robert McLean v JP Morgan Chase, the court ruled against the bank, reversing a lower court decision favoring Chase, saying that Chase had originally filed suit claiming the note was lost or stolen, and thus the bank could substitute another document for the original note. The court further said that the note not only had to be available, but it had to be endorsed and dated BEFORE the filing for foreclosure by the bank. The court then concluded that the borrower is entitled to a full hearing on the merits of the case BEFORE the foreclosure can proceed.
Should any of my readers wish to chat with an attorney on this, the plaintiff's attorney was Tom Ice, founder of Royal Palm Beach based Ice Legal.
Good luck!

Nevada News

Just a quick note if you owned real property in Nevada and were foreclosed in the past couple of years--the Nevada Attorney General has filed suit against Lender Processing Services (LPS), alleging fraudulent practices and procedures in the filing of documents related to foreclosures that subsequently occurred. If you had property in Nevada that was foreclosed, you should contact the Nevada AG to see if his action relates to your property and if any relief gained as a result by the suit will go to you.
Good luck.

Deficiency Judgments

One thing I haven't written about previously is deficiency judgments. These are the amounts that the foreclosing or short sale agreeing bank is short after the transaction on the home. For example, let's say your mortgage balance is $100,000 when the bank forecloses. Yet all they are able to get from sale of the home is $85,000. That leaves a deficiency of $15,000. So the bank sues you to get that amount, the deficiency, back. A similar situation occurs when a bank agrees to allow you to complete a short sale. Let's say you are able top conclude a sale of your home for $125,000. But the amount still owing on your mortgage is $137,500. That means the bank comes up short in an amount equal to the difference between what the home sold for and the amount that you still owed on the mortgage--$12,500. So, once again, the bank attempts top get that back as well by filing suit against you for the $12,500--the deficiency.
Until now, as far as I am aware, no state had ever made the filing of such an action by a lender illegal. The only existing limit on filing such a suit was the individual state's statute of limitations on how long after the transfer/foreclosure of the home the lender could file the action. Now, in the Congress, New York's Ed Towns has introduced a bill limiting the filing of such suits to 12 months after the foreclosure (shorts not included), except in cases where a given state's law is a shorter period of time. Presently, state limits vary from six months to six years.
Called the Fairness In Foreclosure Act, it would also restrict deficiency judgments filed against all low income families. It would also prohibit a lender reporting the deficiency to credit bureaus as a bad debt, a practice that is commonly done today by lenders.
While this is at this point just a bill in the House of Representatives, and, if passed there, will also have to pass the Senate and then be signed into law by President Obama, it is a definite starting point. For details of the proposed legislation, contact either Rep. Towns or your own representative. For reference, the bill is H.R. 3566.
Let's keep our collective fingers crossed.

SCRA Investigation

Recently I wrote of apparent violations of the Servicemembers Civil Relief Act (SCRA) in which case many major banks had illegally foreclosed on active military servicemembers' homes. Under the SCRA, a foreclosure is not permitted on the home of any active duty military personnel. Apparently, in a number of cases, this federal statute hasn't stopped some lenders from proceeding anyway. Now the Office of the Comptroller of the Currency (OCC) has commenced an investigation into the foreclosures of as many as 5,000 servicemembers' homes--all allegedly in violation of the SCRA--by ten of the country's largest banks.
The investigation is based on info provided by the lenders themselves. Additionally, the New York state attorney general, Eric Schneiderman, has undertaken an investigation as well. Members of Congress have publicly advocated for criminal prosecution of offending lenders and their involved staff. The law provides for both criminal and civil penalties, and, in fact, BofA agreed to a $20 million settlement for this earlier this year.
If you or someone you know is on active duty in the military and facing foreclosure or already been foreclosed upon during their military service, call your Congressional representatives or the OCC.
Good Luck.

Massachusetts Update

The Mass attorney general, Coakley, has filed suit against the 5 largest mortgage lenders. The suit alleges fraud via robo-signing, and seeks relief and compensation to harmed homeowners. The suit is good news to a degree, but, even if successful, likely will take several years until any judgment or settlement is reached. Lenders named are: Citi, JP Morgan Chase, GMAC, Wells Fargo and Bank of America.

Good News From The Sunday Papers

One of my 60 year plus rituals is a nice relaxed breakfast Sunday mornings, while carefully perusing the Sunday papers. In the midst of all the reportage of wars, crime, protest, 'who-cares' gossip, pepper spray and protest, you sometimes find something truly GOOD! Sometimes. Today is one of those times!
There is a charitable foundation established and run by a financial services firm based in Minnesota called Gradient Gives Back. Each year since its founding, the program assists families that find themselves in deep financial trouble by paying their mortgage or lease for 12 months--a full year. In some cases, they will also provide free lifetime full financial service for the people they help.
As I have mentioned in many public comments, as well as my book, Save Your House From Foreclosure!, most folks at risk of foreclosure are not there because of financial profligacy or being deadbeats. Most of the folks hurting are in their situation because they were hit by one of the Deadly Four: Life, Wife, Health or Wealth. Somehow something in these major areas of their lives went south and, as a result, they find themselves in dire straits including possible loss of their homes to foreclosure. When it happens, often the homeowners are unable to pay their mortgages and so risk loss of the home to foreclosure.
When something like Gradient Gives Back shows up, it is refreshing to report. They don't have funds to help everyone out there, and they do have a limited period each year for those in need to apply for help. This year's applications are full, but 2012's will commence shortly. For more info, visit their website: www.gradientgivesback.com , or call them at: (800) 407-4137.
As always, Good Luck.

Good Holiday News

Well, I hope you all had a pleasant Thanksgiving holiday with friends & family. Going forward, I came across the following good news this morning about foreclosures, evictions and lockouts during the holiday season.
Wells Fargo has suspended evictions from its foreclosed properties that it owns or services for other lenders from November 23 to the 25th, and again from December 19 to January 2, 2012.
JP Morgan Chase Bank said it won't complete foreclosure sales or evictions between December 22 and January 2, 2012, except for Fannie Mae & Freddie Mac loans. Fannie, in turn, said it will soon announce a suspension of evictions "for the holiday period", although they have yet to specify the exact dates for the suspension.
Bank of America issued a statement to the effect that on its own loans and those it services, unless the owning lender instructed otherwise, it has "a policy and procedures to avoid foreclosure sales or displacement of homeowners or tenants around the Thanksgiving and Christmas holidays." Exact specific of the 'policy and procedures' have not been announced, so if your loan is connected to BofA, you'll have to check with them directly.
Ally, parent of GMAC Mortgage, hasn't committed to any program and Citigroup and Freddie have not yet announced what, if any policy they will follow for the holidays.
Irrespective of who your lender is, the best advice is to contact them directly to see if they have such a policy in place, and how you can qualify under it. In fact, even if your lender has not announced this type of policy, contact them and see if they can make some accommodation for your holiday needs.
Good Luck.

Good News For Foreclosed Servicemembers

Not sure how I missed this announcement, particularly since I am a Vet (armor platoon leader), but the day before Veteran's Day (11-10-11), the Department of Justice announced that it had arranged for Bank of America to settle with a number of Service Members whose homes were illegally foreclosed upon, as per the rules under the Service Member Civil Relief Act (SCRA). This law was designed to protect active duty service personnel from losing their homes to foreclosure while serving on active duty in the military. Each claimant under the settlement will receive $116,785 plus payment for any lost equity as a result of the wrongful foreclosure. Overall, this will cost BofA $20 million covering 160 wrongfully foreclosed service members. These foreclosures happened between 2006 and 2009, and were done by Countrywide Bank, subsequently purchased by BofA. Thus, BofA must cover the former Countrywide liability.
While no criminal charges have been filed against BofA, although they theoretically could be, a number of states have commenced civil legal action (suits) against the bank to further hold it liable for actions related to this and similar situations. Bottom line: if you're military active duty and/or were from 2006 onward and have been foreclosed upon, sit down with your JAG officer, or call a civilian attorney and check out your situation as regards possible compensation under an SCRA violation.
As always, Good Luck. Happy Thanksgiving.

More News on Scams!

A few days ago, I commented on how the Special Inspector General of TARP (SIGTARP) had begun to take a really major swipe at on-line scams related to loan mods. Subsequent to this, it intervened to block at least 40 such scams that had been advertised on Yahoo or Bing. As a result of this action, Microsoft, owner of Bing and a major tech supporter of Yahoo acted immediately to terminate 400 advertisement contracts that scammers had entered into solely to their (scammers) benefit. Again, if you've recently gotten short changed by some on-line loan mod deal that you feel was not above board, contact your consumer affairs officer of your local atty general.
Good Luck and a Happy Thanksgiving!

Nevada Foreclosure? Call Your Attorney!

The following may be a good reason to contact an attorney if you live in Clark County, Nevada.Nevada Attorney General Catherine Masto has filed criminal charges against two title officers employed by Lender Processing Service (LPS) for robosigning involving tens of thousands of allegedly fraudulent documents. The allegedly fraudulent docs were passed through the Clark County recorder's office between 2005 and 2008. The accused officers, Gary Tafford and Gerri Sheppard, are each charged with at least 100 counts of criminal action. According to Masto's office, they allegedly instructed employees to forge their names on documents and then notarize the forged signatures. Once this was allegedly done, the docs were then filed with the Clark County Recorder's office.
LPS reportedly acknowledges that "the signing procedures on some of these documents were flawed,” but then insists that "these documents were properly authorized and their recording did not result in a wrongful foreclosure.” While the accused will have their day in court and it will be up to a jury of their peers to decide on the validity of these charges, it would appear that an investigation into this situation might be advisable if you happened to lose your home to foreclosure during the above mentioned time period, feel you were wrongly foreclosed upon and your property was in Clark County.
Good Luck.

Good News & Bad

Well, today's update has good news and bad, depending on where you are located. If you are in Michigan and trying desperately (or any other way) to avoid foreclosure, the news is anything but good. The Michigan Supreme Court, in a reversal of a lower Michigan appellate court ruling, ruled that MERS does have the legal right to initiate foreclosures in Michigan. It said that as long as MERS has the legal position as mortgagee, it has the legal right to proceed in foreclosures related to those properties. It also ruled that any related suits trying to stop MERS-based foreclosures must now be dismissed. If you are involved, you and your attorney (call Legal Aid if you can't afford one via normal means) should immediately look at the possibility of a further appeal to the US Supreme Court.
Now, for the good news! One of the problems whenever folks get in trouble en masse is that all of the slime crawls out from under whatever rock it's been hiding under. The foreclosure crisis is no different. Every day there is another horror story or ten about some homeowner that contacted a person or firm that had claimed to be able to save their home from foreclosure, only to find out that the only thing that individual/firm did that it had promised to do was take the homeowner's money. Usually, it/he then disappeared and the home was foreclosed. I have often said here and in a number of other locations that if something appears too good to be true, it usually is. The place I have recommended for these slimeballs is prison--for as long as possible! I also am always available for anyone and their attorney, as well as any prosecutor, to act as an expert witness to put these clowns out of business and behind bars where they belong! Now, for the related good news: the Special Inspector General for the Troubled Asset Relief Program (SIGTARP) yesterday announced that it has recently shut down 85 scams operating on-line that promised to help troubled homeowners obtain loan modifications. As always with these guys, no mods were forthcoming--just a loss of the homeowners' cash and, frequently, their homes.
Never one to miss an opportunity to better their service, Google then jumped on the bandwagon and has been working with SIGTARP to suspend fraudulent advertisers from placing their ads on Google. Google claims to have suspended over 500 such advertisers so far, and intends to maintain the pressure to clean up their clients' posted ads in this regard. A loud "THANK YOU" to both SIGTARP and Google. If you think you have been scammed in this manner, call or email SIGTARP immediately! Also, notify your local law enforcement officials. Usually the local district attorney or state atty general has a consumer fraud division that would be only too happy to help you by getting these sleazy folks off the street.
Good Luck!

An Assist from Fannie & Freddie

Well, the two federal government supported mortgage entities, Fannie Mae and Freddie Mac, just announced a number of steps designed to ease the way for homeowners trying to refinance under the Government's HARP (Home Affordable Refinance Program) program. These steps were taken to make it a bit easier for homeowners struggling with high interest rate loans to be able to make their mortgage payments on time, and thus not have to worry about a default and possible foreclosure.
With the revisions, Fannie & Freddie have raised, and in some cases, eliminated the loan to value cap on refi's. What this means is that at a minimum, the amount relationship of the loan to the total value of the financed home can be higher, so borrowers can borrow a higher percentage of the appraised value of the home as part of their refi. In some cases, the cap is now eliminated completely.
These two entities have also relaxed representation and warranty stipulations. This latter step is expected to heat up competition among lenders to make new refi loans, and thus drive down borrowing costs for homeowners.
For more details, either check these items with your lender or contact Freddie or Fannie, whichever institution is backing your loan.
Good luck.

Positive Note From NY

New York, the home of the Giants, Yankees and wonderful hot dog push carts (Used to love lunch at those things), has reached agreements with three major mortgage servicers. The agreements were made by the state's Department of Financial Services. The servicers voluntarily agreed to abide by improved mortgage servicing standards that are focused on fairer treatment of borrowers whose loans they service. The servicers in the agreements are: Texas-based Saxon, a Morgan Stanley subsidiary, and American Home Mortgage Servicing, and Oklahoma-headquartered Vericrest Financial. These new standards are the same as those previously agreed to by Ocwen and Goldman Sachs. They include termination of robo-signing and "dual tracking". The latter is proceeding on a foreclosure course with a homeowner while simultaneously negotiating a loan modification. Also provided for is a single point of contact at the servicer for borrowers who are involved in one or more of these processes. Past violations still may not be investigated, however.
If you need more info, check with your servicer, or contact the New York Department of Financial Services. Its web site is: www.dfs.ny.gov . As always, Good Luck.

Latest News On California Help

Well, here's the latest on the Keep Your Home California program which we've talked about previously. As I mentioned about a week ago, some of the restrictions and limits in the program have been relaxed. Now we have the details!
The time period during which a homeowner can receive assistance from the program has been extended from the previous six months to nine months. Amounts available have been raised to $3,000 per month. So far a total of 8,000 homeowners have been assisted through one part of the program or another.
It operates through four sub-programs: the Unemployment Mortgage Assistance Program, the Mortgage Reinstatement Assistance Program, the Principal Reduction Program, and the Transition Assistance Program. In these sub-programs, many prior limits have been eased. The Mortgage Reinstatement program has increased its maximum assistance level from $15,000 to $20,000. The Principal Reduction program will help reduce a homeowner's mortgage by as much as $100,000, providing up to half that amount as long as the servicing entity matches it.
For homeowners who complete servicer-approved short sales or deeds in lieu of foreclosure, the Transition Assistance program will provide up to $5,000 in assistance, intended to aid in the homeowner's transition from the prior home.
Overall, the Keep Your Home California program will now also allow owners of more than one home to apply for assistance.
For more info, contact your servicer or the California Housing Finance Agency.
As always, Good luck.

More Help in California

The following helping homeowners save their homes program info (some of which has been discussed here before) is an update from the San Diego Union Tribune. It includes web addresses for more detailed info as well.

Mortgage aid open to more Calif. borrowers
The state-run program, “Keep Your Home California,” which helps homeowners struggling to pay their mortgages now has broader eligibility guidelines. Borrowers who did “cash-out” refinances and own multiple properties now are eligible for the program, according to California Housing Finance Agency officials.
Making sense of the story
• To date, Keep Your Home California has helped approximately 8,000 low- and moderate-income households that are behind on loan payments or close to default.
• There are four parts to the program: Mortgage help for the unemployed, mortgage aid for homeowners with documented financial hardship, relocation help for those in the midst of a short sale or deed-in-lieu of foreclosure, and reduction of principal.
• Homeowners who completed “cash-out” mortgage refinancing now are allowed to take part in the four programs outlined above, and borrowers who own more than one property also can apply for the program. Previously, these two groups of borrowers were excluded from participation.
• Mortgage aid to unemployed borrowers also has been extended to nine months, instead of six. Such homeowners can receive up to $3,000 a month. To qualify, borrowers must be receiving unemployment benefits.
• Additionally, the program has reinstated up to $20,000 in past-due mortgage payments instead of the previous $15,000 cap.
• To review qualification guidelines, visit www.KeepYourHomeCalifornia.org or www.ConservaTuCasaCalifornia.org.
As always: Good luck.

More Chances to Play the HARP

In a move to expand eligibility for the Home Affordable Refinance Program (HARP), Sens. Barbara Boxer (D-California & Johnny Isakson (GA), have requested the Obama administration to expand eligibility to more homeowners who have higher equity in their homes. Currently, the highest equity level permitted is 20%. If their request is granted, as many as 12 million additional borrowers would be eligible for the program. Questions? Contact either Senator's office or your own Senator.
Good luck.

"Independent" Foreclosure Reviews

I mentioned in some detail yesterday that independent reviews of foreclosure actions and foreclosures may be reviewed at the request of the affected homeowner, as per policy confirmed by the Office of the Controller of the Currency, the Fed and the Office of Thrift Supervision. Apparently, there is some question about how arm's length this process may turn out to be. Congresswoman Maxine Waters, joined by 15 of her colleagues, has called on the regulatory agencies involved and the participating lenders to make the process more transparent insofar as choice of the reviewers and their connections, if any, from prior or concurrent business with any of the lenders may possibly interfere with the degree of independence of the review. It is easy for one to envision, she argues, that a company that is picked to review a transaction or transactions may not be as inclined to support the legitimate complaints of a homeowner if that same firm has other business relationships with the bank that it is reviewing.
Questions: contact Ms. Waters at here congressional office, or your own representative.Good Luck.

This May Be the Big One!

In what appears to be a real break for homeowners who have lost their homes to foreclosure, a group of Federal agencies have mandated a new option for those who think they were foreclosed wrongly. Anyone believing their home was improperly foreclosed may now request a free, independent review of the foreclosure action. If the review does find improprieties, the aggrieved homeowner may be entitled to compensation. While no specific details on what the compensation will be have been released, it is assumed that it will be monetary. Three Federal agencies have mandated this process: the Office of the Controller of the Currency (regulates federally chartered banks), Federal Reserve (oversees U.S. monetary policy); and the Office of Thrift Supervision (regulates savings and loans and thrift institutions). The size of the compensation awards are also not yet specified, but appear to be limited to refunds of monetary loss and NOT include punitive damages. The payments will be directly from banks and there is no upper limit set for the awards. Eligibility for the program is limited to those whose foreclosures commenced in 2009 or 2010, and can include those where the actual foreclosure process is still underway but incomplete or those where it began but halted for some reason. Homeowners also must be customers of the 24 lending institutions and servicers that have agreed to take part in the program. For more info, log onto: www.independentforeclosurereview.com , or phone from M-F from 5 a.m. to 7 p.m. at (888) 952-9105. Same number is also available on Saturdays from 5 a.m. to 2 p.m. Homeowners are allowed to apply until April 30, 2012, and the process may take several months, so get started NOW!
Good luck!

Something Positive in Delaware

Well, for those of you in the first state (historically chronologically), here's a bright bit of trick or treat on your approach to the weekend before Halloween. The state attorney general, Beau Biden, has filed suit against the electronic mortgage organization, MERS, and its parent, MERSCORP, alleging that they have violated the state's Deceptive Trade Practices Act in three ways. In these violations, the suit claims that by acting in these allegedly illegal ways, the companies are able to initiate and conclude foreclosures with little, if any, chance for the affected homeowners to respond and try to avoid the loss of their homes. MERS has claims on more than 30% of all Delaware mortgages, and, since 2008, has initiated foreclosure actions on over 1600 Delaware homes, naming itself as plaintiff.
MERS denies the allegations in the suit, but this definitely could be something you Delawarean homeowners might want to pay attention to. Suggest you contact the AG's office for more details. If you own a home some place other than Delaware, you may still want to pay attention to this, as MERS has connections to mortgage/foreclosures in many other states.
Good luck.

More Good News

As mentioned here previously on a number of occasions, the refinance possibilities for 'underwater' homes has been expanded. Announced today, the revised program is broader than previously envisioned. Basically, if your mortgage is guaranteed by either Fannie Mae or Freddie Mac, and hasn't previously been refi'ed under the HARP program, you may be eligible for the newest revisions. Your loan also must have received its Fannie or Freddie guarantee no later than May 31, 2009; the loan to value ratio must be above 80% (which it most certainly be if you're under water); and the loan must presently be current, not past due. On this last point, it also cannot have no late payments in the last six months and no more than one late in the last 12 months. The new rules eliminate the former 125% loan to value cap that had existed on this plan. Now, in theory, no matter how deeply you are submerged, you are eligible (given the other rules cited) for refi. Any questions, contact your lender and/or whichever entity, Fannie or Freddie, that backs your loan.
Good luck.

Possibly More Help

As the negotiations between the various attorneys general of several states with the five largest mortgage lenders in the country continue, discussions have now centered more on the possibility of refinancing existing loans on 'underwater' homes. Underwater homes, those whose mortgage balance is higher than the current market value, would, under proposals by the AG's be eligible for refi with the lenders if the loans were in a current status. Refi would be at today's much lower interest rates, thus saving homeowners hundreds, if not thousands, of dollars every month in payments. One requirement would be that the loan actually was owned by the lender in question, and not just serviced by it. The program hasn't been agreed to, but at least it's now on the table and being discussed. Keep your eyes peeled both here and on the web and newspapers for developments as they occur.
As always, Good Luck.

Good News & Bad

Today, we have a little of both for you. Let's get dispose of the bad first, so at least we'll leave with a good taste in our mouths even if we start out sour. The US Supreme Court has refused to consider an appeal by a San Diego attorney of his client's case regarding the MERS situation. Following a loss in the California Supreme court, he petitioned the US Supremes for a hearing and they denied his petition. They did not rule on the merits of the case.They just exercised their right to refuse to hear it.

On a brighter note, the U.S. Senate has had a bipartisan group request immediate action from four federal agencies, the Federal Housing Finance Agency (FHFA), Treasury, HUD, and the National Economic Council,to relax their standards regarding a new program for underwater homeowners announced recently to get refinanced mortgages at lower rates to help save their homes. These loans would be available to those owners whose existing loans are backed by either Fannie Mae or Freddie Mac. Check with your lender to see if you qualify, and, if you don't get a satisfactory answer, call/write/email your US Senator.
Good luck.

Mass. AGen Fights

Well, not satisfied with major lenders and servicers "attempts" to prove their legal right to foreclose, the Massachusetts Attorney General, Martha Coakley, has filed suit against a number of them contesting whether their procedures to begin and complete foreclosure procedures are fair and just. As in the case of a number of attorneys general across the country, she had been negotiating with these institutions to establish a solid format for such actions by the lenders and servicers. However, she has been unsatisfied that said firms are doing much toward that end. While no final settlements or programs leading to settlement have been reached, Coakley has now become the third state AG to withdraw from the negotiations. The other two are from New York, and, last week, California.
So, you ask, what does this have to do with me and my own situation? Simple! If it can be shown that the processes used by your lender or servicer to initiate foreclosure procedures are illegal, the process could be voided, thus helping you to delay or avoid foreclosure, at least until the firm 'gets it right'. That extra time could be what you need to derive some plan to save your house from foreclosure. My advice: keep aware of the news as it's released in such cases as to how your AG is doing. If you're unsure, check with your attorney, or, assuming a lawyer is a luxury you can't afford at present, ask for assistance from Legal Aid.
Good luck.

Help & A Good Example for Other States to Follow

The Federal Reserve Bank of Boston has recommended that the various states of the nation trying to find reasonable ways to assist homeowners avoid possible foreclosure should pay attention to processes established in New England by each of the six states in that region. Each of the involved states has its own process, some different from the others, most at least similar to the others, but all worth paying attention to, and learning from, as ways to help struggling homeowners dig themselves out of trouble and save their homes.
Five of the states have mediation programs, while my original home state, Massachusetts, has a program that allows negotiation without the services of a mediator. Why is mediation better than financial assistance? The answer is simple. In the former, a homeowner doesn't have to achieve a specific income or credit standard, as is common in assistance programs. Statistics indicate these programs are working as well. Connecticut, for example, show that 78% of those involved in its mediation program saved their homes from foreclosure. The Boston Fed has also recommended making the participation in such programs automatic for homeowners in a default situation.
Another state taking similar action in analyzing its mediation program's success is Florida. However, in this case, it wasn't the Fed doing the analysis. It was the state's Supreme Court.
How does this affect you? Well, if you're in one of the New England six, you can get in touch with the state for info as to how to attempt participation. Ditto for Florida. If you're not in one of these states, check with your state government to determine if it has some form of mediation program, or is planning to start one. In either case, get the info and then, if it makes sense, get started. The home you save would be your own!
Good luck.

Write Your Congressman (& Your Senator, too)

In the past those of you who follow this blog have heard me inform about programs to assist those who are unemployed manage to maintain their mortgages as current. HUD's Emergency Homeowners' Loan Program is the leading such national program. It is getting very close to its expiration deadline for applying. As of yesterday, the majority of its applicants have failed to qualify, based on the strictures established by the legislation. Over 200,000 applications have been downloaded from the web site, but many of those weren't ultimately filed, or do not qualify. The deadline fro application in most participating states was September 15, but in Pennsylvania, Connecticut, Delaware, Idaho, and Maryland, the expiration is on the 30th of this month. While the enabling legislation provided funds up to a total of $1 Billion, it now appears that a large portion of this will not be used.
Disturbed? Call, write, email your Congressman and/or Senators. Let them know and have them extend the program at least through the first of next year, if not longer. Don't wait--Do it NOW!! The home you save may be your own! Good Luck!

Take Action In Florida!

The state of Florida is one of twenty in the country that is a judicial foreclosure state. What that means is that before a foreclosure can be completed, it must go through the court system before it becomes final. Local legislators are taking a close look at changing this, removing this requirement. The reason: they feel that it's taking too long to foreclose and take away someone's home. While this argument may very well be legitimate in some cases, the judicial requirement is definitely helpful in saving the homes of some owners who, with time and assistance that could be provided by such things as loan mods, could avoid being foreclosed upon. If this applies to you, or if you think it may, get in touch with your legislators and tell them to leave the judicial requirement alone!
As always, Good luck.

Obama Calls for Help!

During his major Jobs address last evening, the President also took some time to pledge help to homeowners trying to stave off foreclosure of their homes. He pledged to assemble a refinance program that would allow suffering homeowners to refi their existing loans at today's lower rates. The specifics of such a plan have not yet been announced, but it is clear that any type of program along these lines would save hundreds of thousands of people's homes. It would cost the lending institutions money in terms of reduced interest income, but, since accounting rules require lenders to write off the entire principal amount when they foreclose, it would seem here that even a relatively small loss in expected income would be far better than a total actual loss on the value of the mortgages involved that would result from foreclosures. Suggestion at this point: Get on your Congressperson's bask, and your Senators' backs and push on this idea. It certainly is a good one, and could very well be second only in importance to reviving the economy to job creation.

Possibly Some Help for You in NY

The operative word here is "possibly". What has happened is that a pair of economists from the Federal Reserve Bank of New York have made the suggestion that states could possibly make 'bridge' loans to unemployed homeowners to help the owners cover their mortgage payments until they again are gainfully employed. The economists are modeling their suggestion on just such a plan that Pennsylvania has had up and running since 1982--long before the current crisis. Of the people who took advantage of this program over 80% have repaid the short term bridge loans they received. The Federal government did have a similar program earlier this year, EHLP, but even with two extensions for applications, it has now expired. A suggestion here might be in order--call, write, email or just visit your local state legislator and put the idea past him. It can't hurt and might be the one thing you do that provides enough breathing room to help you save your home from foreclosure.

Good luck.

Some More Help On The Way

This past Friday, HUD announced it is going to spend some more money on counselling to homeowners to assist them in avoiding foreclosure. A total of $10 million will be spread across the country to a variety of counseling firms and agencies to advise and help homeowners avoid foreclosure. The total breaks down to $3 Million going to 139 local counseling agencies, and the remaining $7 Million to 23 housing counseling intermediary agencies. The largest geographic concentration of these funds nationally will be to areas that are the more severely affected areas in terms of foreclosures. Some of the money will also be directed to agencies dedicated to exposing foreclosure "help" scams, including counseling on how to avoid being burned by such scams. If you have any questions, contact HUD immediately.
Good Luck.

Help From Obama

Reuters reports that the Obama administration is planning to release a new program next week that will help homeowners retain their homes and avoid foreclosure. Set to work with loans guaranteed by Freddie Mac and Fannie Mae, as well as loans by FHA, this will help those who are unemployed or underemployed avoid foreclosure by reducing interest rates or extending loan terms, thus making it easier for homeowners to make their payments and thus, keep their homes. Keep your eyes peeled for more info as it becomes available.
Have a happy Labor Day, and Good Luck.

Emergency Home Loan Program Extended

This program, offered by HUD to homeowners in danger of losing their home to foreclosures because of unemployment or underemployment, is being reopened with a new final deadline date. Previously, your application had to be into HUD by 27 July, itself an extension from the original 22 July cutoff. Now, a new deadline has been established of 15 September 2011. There is no guarantee that HUD will extend again, so my advice would be to contact HUD ASAP to determine what exactly you have to do to qualify. Don't wait! It's too important.
Good Luck.

Potential Help from Washington

Just last week, as everyone's focus was getting more and more on the Atlantic Coast hurricane, Irene, it started to look as if there might be some help coming for homeowners from the nation's capital. Now that it's Good Night, Irene we can get to serious stuff. Indications are (and that's all they are for now) that the Federal government is seriously considering some form of refinancing assistance for owners whose existing loans are guaranteed by either Fannie Mae or Freddie Mac. Info leaking out points to the possibility of this being done at today's low interest rates, even if the home is 'under water' or the owner is delinquent on payments. Some experts estimate that, subject to whatever form the actual program finally takes, monthly mortgage payments could be reduced by as much $350 each month. Keep your attention here; as soon as we hear anything, we'll pass it along.
As always, Good Luck.

From Under A Rock

As with any time that people are suffering, along with those legitimately trying to help the folks being harmed, there are others who seem to crawl out from under the nearest rock to take advantage of anyone they can lay their paws on that is less fortunate. In this case, we have the constant presence of 'people' trying to take advantage of those facing foreclosure. They always have some scam that's "guaranteed" to stop any foreclosure proceeding you face and, in some cases, get you cash to boot.
In this case, the California Attorney General has joined with officials from a number of their states to stop the activities of a national ring of foreclosure scammers whose sole real objective is to see how much money they can screw out of innocent people facing foreclosure. The ring that is now faced with prosecutions in a number of states, California among them, sent an estimated 2 million pieces of mail to victims in at least 17 states, promising a variety of forms of assistance or relief to the intended recipients. Included were promises of stopping foreclosure actions, principal reductions and forgiveness, lowering of rates and the filing of suits against the homeowners' lenders. All that was necessary by the homeowners was an up front fee or fees usually in the thousands of dollars to retain these scammers. Millions of dollars were handed over to these crooks. Actual fees charged were up to $10,000 per person. Out of all the promised things that actually happened was the scammers took the money from the innocent victims and many of them additionally lost their homes in foreclosure.
In California, the principals in this scam were three lawyers, four law firms and at least 14 other defendants. As part of its enforcement action, the California Department of Justice, assisted by the Department of Housing & Urban Development (HUD's Inspector General)and the California State Bar, seized the law practices mentioned above as well as a number of non-attorney firms engaged in the scam. Civil and criminal cases are likely to follow.
As I've said before here, if someone approaches you to "help" you in such a situation and insists on money before anything is done, there are two things to do immediately: 1.) Run like hell away from this crook; and 2.) call the authorities.

If you have been approached and, unfortunately, laid out any cash to these individuals or anyone like it, call the California Attorney General's office. If you are in another state, contact the attorney general of your state. Let's help these guys get a new home they so richly deserve--PRISON!

More Unemployment Bennies for Homeowners

A group of lawmakers in Congress is pushing the White House to extend the foreclosure forbearance period to twelve months for unemployed homeowners whose loans are owned or guaranteed by Freddie Mac or Fannie Mae. The lawmakers are all Democrats and are, in essence, trying to have the White House duplicate the July extension provided to FHA loans. If approved, this would be a significant action on the part of the Obama administration as Fannie and Freddie collectively own or guarantee half of all home mortgages in the country. Stay tuned for more as it becomes available. Meanwhile, however, check with your Congressman (if he or she is a Democrat) and see if they can give you further details, especially on what will qualify one for the extension if it is made available.
Good luck.

Mods From BofA

HUD and BofA have reached a settlement on roughly 57,000 government-issued mortgages now in delinquent status. Under the settlement, BofA agrees GOING FORWARD to pursue loan mods with the 57,000 such loans that it previously hadn't dealt with in this area. This is only going forward. The fact that the bank hadn't already done so, even though legally required, will not result in any penalties for the bank. Advice here is: if you have a HUD loan serviced by Bank of America, and you're delinquent, get in touch with BofA immediately and start discussing the possibility of a loan mod. No guarantees made, but you have to get the discussions going. I wouldn't wait for the bank to contact you--be proactive.
Good luck.

Two New Items

Well, today I have two bits of interesting news for you. One involves Bank of America and its mortgage reduction proposals. The other is California-centric and relates to making foreclosures illegal(unlikely to happen any time soon, but worth the discussion).
In the first case, BofA is, like most other major mortgage lenders, in intense negotiations with various regulators (read HUD; US Dept. of Justice and many state attorneys general)about ongoing investigations into faulty foreclosures based on incorrect paperwork and/or illegal affidavits on the foreclosures. As part of the negotiations, the lenders are making various offers to assuage the regulators and possibly avoid or reduce potential penalties as a result of past practices. The talks, however, have slowed to almost a stop, and the lenders are trying to figure out what to do next. BofA has suggested a possibility of more definite amounts of principal reduction in exchange for avoiding any liability for its past errors. Lenders overall have sought a blanket protection from liability and regulators, while willing in some cases to discuss partial liability protection, have not been willing to just provide total blanket avoidance for lenders. The parameters for this have been bandied about by many of the major lenders for a while now, but BofA is apparently getting specific with their numbers (exact figures not available, although rumored to be an original principal amount of not over $1 million). Where this may all end up is anybody's guess at this point, but we'll do our best to keep you informed. Keep your eyes peeled for more info as it becomes available.

Now--making foreclosures illegal. A Sacramento resident has proposed an amendment to the California constitution that would outlaw foreclosures. He feels that banks have not been fair or easy enough to work with in avoidance programs, and so wants to abolish the foreclosure altogether. In California, voter initiatives are used to pass various laws, most of them, under state code, becoming amendments to the state constitution. So far this individual has filed notice he wants to qualify an initiative for the ballot. Now he needs 807,615 signatures to get it on the ballot. He has until December 27 to collect these signatures. If he does, see you in June, 2012. If not, it's just another interesting footnote to our foreclosure crisis.

Stay tuned, and, as always, good luck.

Good News From BofA

Well, if your mortgage is held by Bank of America, there's some good news today. BofA has announced it will expand its participation in the Principal Reduction Program in California. Previously, the bank was limiting its participation only to what can best be described as a pilot 'test' version of the program. The program, a federally funded one that helps provide funds to reduce the borrowers' principal balance of their mortgages, covers potential reductions of up to $100,000 in principal amount. That figure is divided between two sources: the state's Keep Your Home California program ($50,000 max) and the participating lender (BofA in this case)(the other max of $50,000. Eligibility is subject to program guidelines. For example, loans owned or guaranteed by Freddie Mac or Fannie Mae are not eligible. However, BofA has stated that any ineligible applicants will be considered by the bank for one of its other assistance programs, such as interest rate reductions, extensions of loan terms or reduction of principal to some degree. For exact info as to your eligibility and terms you can possibly qualify for, call BofA or the California Housing Finance Agency. The agency can be found on the web at: www.calhfa.ca.gov .
Good luck.

There's Still Time!

Those of you who follow this blog regularly may recall that there is a program to help out folks who've lost their jobs when it comes to meeting mortgage obligations. Run jointly by HUD and NeighborWorks, it's called the Emergency Homeowner Loan Program (EHLP). It will provide financial assistance in the form of emergency loans for up to two years or $50,000, if someone became unemployed for no fault of their own, or is underemployed in spite of trying to find new employment. These loans are interest free, and specifically for payment of the homeowner's mortgage. Originally, the cutoff date to apply was July 22, last Friday. However, it has been extended through this Wednesday, July 27. If you need this help, check with HUD or NeighborWorks. Go online or try the phone. But don't wait--July 27 is the day after tomorrow!
Good luck.

A Word to the Wise--RoboSigning Still Happening!

You'd think that the banks and other lenders who are foreclosing on allegedly delinquent mortgages would have gotten the word by now. Robosigning is illegal! Further, they all swore that they'd looked into it at their institutions and had made sure that if it had ever happened, it would immediately cease and never happen again. Well, apparently many of these assurances aren't worth the paper they're printed on--or the lenders swearing it was over had their fingers crossed behind their respective backs. At any rate, in Congress this week, a number of Reps and Senators have requested that the Fed and the Controller of the Currency take a fresh look at the problem because it's apparently still going on in many states by many lenders.
If you're concerned that you may be affected by robosigning, contact your Congressman, Senator or any (all) of the regulatory agencies that may have authority over the lenders: state banking commissioner, Fed, Controller of the Currency, FDIC.
As always, Good Luck.

It's Official--No More Extended Danger From Shorts

Well, for those of you who follow us regularly, you are already aware, as of July 16, that a bill made it through the California legislature terminating lenders' ability to agree to short sales and still come after you for a deficiency judgment afterwards. Well, it's now official! Governor Brown signed it into law yesterday. If you're considering a short sale, check with your attorney as to how this new law applies to you. If you can't afford an attorney, call Legal Aid. But, under the bill, the sale price agreed to in the short is it--no more bank payments after the sale is done!

As always, Good Luck.

More Help For Homeowners

The Helping Responsible Homeowners Act, sponsored by Sen. Barbara Boxer, apparently is gaining support in the Senate. Boxer just announced that Sen. Isakson of Georgia has signed on as co-sponsor. This carries more than the normal support of a co-sponsor, as Isakson previously ran one of the country's largest independent real estate brokerages.
The bill would do a number of important things. Most important are the following two. First, it would remove refi fees charged by Fannie & Freddie from refinancings handled by these two organizations. The fees, up to 2% often make many qualified owners reluctant to borrow the loans. Second, it would help many qualified homeowners whose loans are current refinance when they are 'under water'--the loan is more than the current market value of the home--also refi at current low rates. The idea behind the bill is to remove as many of the procedural barriers to borrowing that qualified homeowners face as possible. For more info, contact Senator boxer's office. As always, good luck.

Less Liability for You in California Shorts

No, I'm not referring to any form of fashion. I'm talking about the removal from further liability to any individual in California when selling their home in a short sale. Usually done to avoid the loss of a home by foreclosure, short sales occur when a homeowner sells the home for a price lower than the outstanding principal balance of their mortgage. Don't get the idea that doing a short sale is a wonderful thing--it isn't. Your credit still gets trashed, although possibly not quite as much as in a foreclosure. You may very possibly find yourself owing a possibly substantial sum in income taxes to both the Feds and the state (how much, if any, depending on your particular situation--check with your accountant). But, if you do a short sale, you at least avoid foreclosure and your mortgage travails are over. At least that's what you expect to be the situation when it's completed.
However, in an increasing number of cases, the banks holding your mortgage have been requiring you, the selling homeowner, to agree to pay a deficiency payment, or acknowledging that they may retain the right to sue you for a deficiency after the short has concluded. A deficiency is the amount left unpaid and supposedly forgiven by the bank that makes your transaction a short sale.
Well, under a new law taking effect today, Californians are no longer liable for a deficiency judgment in the short sale of their homes. Passed as California Senate Bill 458, the law prohibits any deficiency judgment in short sales of residential properties, one to four units, and also precludes ANY lender (regardless if it's your first mortgage or your fifteenth) requesting you to agree to make any form of deficiency payment or judgment after the conclusion of your short sale. The law says that any such payment shall be void as against public policy. What that fancy bit of lawyer language means is that the law regards such payments as harmful to the general public, and thus not permitted. This law doesn't,however, prohibit borrowers from offering a payment as an inducement to the lender to approve a short sale. It also doesn't protect the homeowner in cases of his/her fraud or waste to the property, or where the homeowner isn't a natural person or has cross-collateralized the mortgage with more than one property.
If you're considering doing a short sale, definitely check with your attorney to be certain if you qualify for this new protection. Like I said at the start, it's not a wonderful thing, but it's a hell of a lot better than a foreclosure--and a hell of a lot better than it was as recently as yesterday.
Good luck.

A Couple of Items

Two new things today--
One: The Congresswoman from Ohio, Marcy Kaptur, has gone on record as asking that lenders offer a moratorium on foreclosures due the fact that so many homes not yet lost are well "under water" in terms of their value compared to how much is owed on their mortgages.Noting a precedent during the Great Depression by Minnesota, she filed a House Resolution requesting President Obama declare a national foreclosure moratorium until the overall situation has improved. No specific amount of time was suggested. For more, contact her in the House of Representatives--or call your own congressional rep.

Two:Homeowner Reward, a subsidiary of PMI Group, is starting a program to support homeowners whose mortgages are larger than their homes' current values.Limited to homeowners whose loans are insured by PMI, the program offers cash rewards to homeowners who elect to remain in their homes, as opposed to just walking away, when the values are less than the mortgage amounts owed. If you are, or think you may be insured by PMI, contact them immediately to determine your eligibility for the program.

And, as always, Good Luck.

Great News For FHA Borrowers!

Just announced a few minutes ago--starting August 1, 2011, the Federal Housing Administration, better known by its initials: FHA, will extend and expand its foreclosure forbearance program for unemployed mortgage holders. Presently limited to a max of 3-4 months, the revision will allow qualified FHA borrowers who are unemployed to go as long as one year without having to make mortgage payments. After the year is the earliest that foreclosure proceedings could commence under the expanded program. This new program applies ONLY (I'll repeat that:ONLY) to loans that are backed by the FHA. If you're not sure, check with your lender or call the FHA directly.If you are accepted into the program you will eventually have to repay the entire loan, just as you're currently obligated to do. But the delay in payments is the important thing if you're unemployed. It's one less strain on a what likely is a very limited budget for you.
Additionally, the Government is hoping that the country's private lenders as well as Fannie Mae & Freddie Mac, , following the FHA's lead, will develop similar policies on their own. If you're unemployed and have a mortgage that is FHA backed, don't wait! Call your lender or the FHA NOW!
As always, good luck.

Help From HUD/Neighborworks

As more and more people have come face to face with the spector of foreclosure due to loss of jobs, a new program was established yesterday by HUD and Neighborworks. With funding totalling $800 million, it is designed to assist those whose income has dropped and now face possible foreclosure because of it.
Covering 27 states and Puerto Rico, it's called Emergency Homeowners Loan Program, or EHLP. It will provide interest free mortgage funds for up to two years or $50,000, whichever comes first. It also covers those in trouble due to underemployment or illness. For more info, contact HUD or Neighborworks America. Its web site is: www.nw.org/network/forsclosure/nfmcp/EHLPconsumers.asp .
As always, good luck.

The Streaks Continue!

Well, since Game 2 in Yankee Stadium, when the Sox had their longest string of YS success since 1939, they played the last game of the series there and--WON AGAIN! This means that the Sox have now won six in a row in YS for the first time ever. Their other streaks, six games overall and seven in a row over the Stripes obviously continue unbroken. Last night's game was one that I had thought would never get started due to a 3 hour plus rain delay at the start. When it got to 7:30 pm here on the left coast, I figured that's 10:30 pm in My and that would mean a finish, barring long innings or extra innings of at least 1:30 am (as it turned out, it was closer to 2 am), and that wasn't going to happen. Wrong! So the Hose, again with a team effort, backing JB's excellent pitching (after the 1st inning) won the series finale 8-3. JB gave up the first two Stripes runs in the 1st, then shut the team down. However, CC was pitching for the Y's and doing just fine--only a single hit through six. However, this game, barring rain, is played for nine innings and in the 7th, Papi led off with a single. This was his first response to being hit by CC a few innings earlier. When next he stepped to the plate, it was still the 7th, and he finished off the seven run inning he'd begun with his single by driving in more with a solid, ringing two bagger. The teams finished out with each adding a single run in the 9th, final being 8-3. The Dustman missed the game for an exam of his knee in the Hub, an injury that he sustained a little while ago against the Birds that has been hurting him and his plate work. Fortunately, surgery is not necessary for now.

Good News For Californians!

In an announcement made yesterday, the California Housing Finance Agency said that a total of twenty mortgage servicing firms have now joined in participating in its federally funded Keep Your Home California program. Designed to help struggling homeowners make their mortgage payments, even if unemployed, the program uses federal funds to assist those owners. The twenty firms include the six largest in the state and is an increase from the original eight that started in February The group as a whole services about 80% of all home mortgages in California. So this is an important step.
Under the plan, there are a number of different programs that can be accessed, depending on the individual owner's situation. The program also has both Spanish and English language web sites for more information: Keep Your Home California and Conserva Tu Casa California. Google these names for exact site addresses. Alternatively, if you need help, call your bank immediately and see if they participate, and, if they do, how you can get the help you need.
As always, Good Luck!

Multiple Streaks!

Well, tonight the Sox beat the Stripes in Yankee Stadium (the House that George Remodeled). "Great", you say. But that's just the beginning. It's way better than that. Tonight's win is the fifth in a row overall and 18th of 24 for the Sox, and it's the 6th in a row by the Hose over the Stripes. Not enough? OK, here's the big one. It's the fifth in a row over the Stripes in the Stadium. Why is that such a big deal? The reason is that it's the first time the Sox have beaten the Stripes at Yankee Stadium five straight since 1939--72 years! That's saying something!
The way it was done was simultaneously a rout and a very tense game. How is that possible? Simple! The Sox opened with three in the first, topped off by Big Papi's 15th tater of the year, on the way to a seven zip lead. Sure has the makings of a rout. Just one inning later, it's 7-4, Sox. After the Hose extend the lead to 8-4, the Evil Empire's guys move to within three and still have three innings to go. Tightening up!This brings us to the Sox 9th. First two guys up are quickly retired. Will The Laser be called on to hold the lead--at three?He's all warmed up. But wait! Crawford turns on a pitch and the next you know, it's deep in the right field cheaps--9-5 Sox. Scutaro does his part, reaching base. Next up is JD, going O for the game so far. Not any more! He leans into an 0-1 pitch and drops it in the bullpen beyond the outfield. On it's way there, it hits the top of the wall and drops over--2 run homer; Sox 11-5. With that breathing room, Pap is sat back down, and Aceves gets to earn his first save in 2011. Although he does give up a harmless run, he closes out the Stripes, and the Hose 'W' is official--Sox in 1st all by themselves.

Turning The Tables!

I won't tell you that the following will solve your own foreclosure problems, but I do think it'll cheer you up a bit because it shows that the bank isn't always right when it comes to questions of foreclosure and default. With the recent MERS and robosigning scandals, most of us were aware of that, but even so, there are cases where a bank's behavior is so egregious, it bears retelling--especially when the homeowner gets the final laugh!
In Naples, Florida, this past Friday, Warren Nyerges got to turn the table on Bank of America. Seems Mr. N. had purchased a home from BofA in 2009 that the bank owned through a prior foreclosure--nothing to do with Mr. N. He saw the house, liked it and paid $165,000 in cash--NO MORTGAGE-- for the house, a nice 2700 square foot home in Naples. Sounds simple, right? Well, not so fast.
After about four months of living in his new home, a process server showed up one day and handed Nyerges a notice of foreclosure, which, you have to admit, is a pretty good trick when he never had a mortgage on the place.
Anyway, this was the start of 18 months of aggravation for Nyerges--phone calls, paperwork and court hearings, not to mention legal fees. But, finally, in September of 2010, a judge ruled in his favor and ordered BofA to pay Nyerges' legal fees and leave them the hell alone.
As always, time passed and BofA still never seemed to get around to paying the amount the judge said they owed Nyerges. What to do? What to DO?
Nyerges turned one around on the bank. He got a judge to allow him to march up to the local BofA office and seize the bank's assets; that's what to do! Last Friday, June 3, his attorney, in the company of sheriff's deputies, and a moving van, showed up at BofA's Naples office and started taking the bank's furniture out of the bank and into the van. Seems to have worked. An hour later, the bank had written Nyerges a check for $5772.88, and Nyerges had won the day. Is he happy? You bet! Does he wish he hadn't had to do this? I don't know for sure, but I'd bet he is. After all, he just wanted to be left alone to live in his house that he paid for. Now he can.

Loan Mods MAY Be Easier

Today the US Treasury Department issued updated rules for the Home Affordable Modification Program (HAMP) that require large lenders to provide and maintain a single point of contact for borrowers through the entire loan mod process. This should make things a bit easier in keeping track of the progress of your HAMP loan mod while it is under consideration. It should also make it easier to communicate back and forth with your lender when pursuing a HAMP mod. A word of caution, however: this new rule only applies to the largest loan servicers. That is defined as those servicers with a program cap of a minimum of $75 Million. However, Treasury's also "encouraging" smaller servicing firms to also participate. Whether or not they do so remains to be seen. This new rule also applies to Federal short sale and unemployment-related home programs, more formally known as Home Affordable Foreclosure Alternatives (HAFA) and the Home Affordable Unemployment Program (UP).The new rule also doesn't apply to second lien situations that may be covered by other Federally supported programs.
The way it works, basically, is that not later than September 1, 2011, a servicer MUST assign a relationship manager to all borrowers who may be eligible for HAMP mods, and by November 1, must assign by November 1, a relationship manager all borrowers who are either in a HAMP, HAFA or UP plan, or have executed a short sale contract or deed in lieu agreement. Once the relationship manager is assigned, the rule goes on to set specific requirements of how the servicer/borrower relationship must then proceed. For the details, check with your servicer or try the US Treasury (USTreasury.gov website; then go to Making Home Affordable tab).

As always,
Good luck.

Some Help From Bankruptcy Court

For the full legal details of the following, you'll have to call your attorney, or, if you cannot afford one, Legal Aid. But this morning, I just learned of a very interesting detail of the US Bankruptcy law. It's not very well known, even though it's apparently been the law for quite some time now. But it can definitely benefit those of you using bankruptcy to avoid foreclosure.

Basically, it goes like this. Your first mortgage cannot be eliminated by filing bankruptcy if you plan to continue to live in the home; it can only become one of your debts to be paid under your approved bankruptcy payment plan, assuming the court approves of your plan. BUT, and that's a very big 'but', if you have a second mortgage, it may be possible to totally eliminate it if there is no equity left in the home after the first is accounted for. The elimination doesn't happen instantly. Rather, the first becomes part of your repayment plan and the second is put on hold for the duration of the repayment plan, frequently 3-5 years or more. At the end of that time, assuming the debts have been handled according to the plan, the second mortgage is eliminated.
Something this important definitely is worth a call to an attorney if you have a second to consider.

As always, good luck.

Bank of America To Offer More Help

In an announcement yesterday, BofA said it is increasing the number of foreclosure prevention/customer assistance centers around the country. Presently a dozen in number, the bank said that beginning in July it will add another 28 to bring the total to 40 nationally. This expansion will see centers added in 22 states. For details, call your BofA branch or loan officer.
As always, good luck!

Good News in S. Carolina

For those of you in SC, there's good news this morning! The state Supreme Court has ruled that all foreclosure actions by banks must be halted as of May 9, until the lender can demonstrate that it has attempted to pursue either a loan modification or other loss mitigation action. This effectively does a couple of things. First, it requires that your bank work with you to try to achieve a loan mod or alternative action to avoid foreclosure. Second, it eliminates, for the present at least, the situation known as "dual tracking" that I talked about here just a few days ago. In cases where the lender attempts a solution with the borrower, but is unable to accomplish this, the ruling requires the lender to certify this to the borrower in writing. More info on this good news? Call your attorney, and if you don't have, or cannot afford one, call Legal Aid.
Good luck.

Dual Tracking Derailed by FED

Well, if you're in the process of trying to get a loan mod situation and simultaneously facing foreclosure, you may have just gotten a lifeline thrown your way! Frequently, people facing an imminent foreclosure on their homes try to avoid it by applying to their lender for a loan modification. Some succeed, some don't. However, all too often the left hand in the bank never tells the right hand what's going on and the foreclosure happens even when a loan mod is underway, or, in some cases, approved. This is what's referred to as the 'dual track'. Under new regulations issued by Federal regulators this month, banks MUST cease foreclosure action against any homeowner who has been approved for a loan mod, regardless whether the approval is a trial loan mod or a permanent one. If you are in this situation, get in touch with your banker IMMEDIATELY, and get confirmation, preferably in writing, that your lender is aware of this new regulation and has covered your situation with it.
For those of you in California, a new bill is in the state Senate, SB729, that would go even farther if approved. Authored by Mark Leno and Darrell Steinberg, it seeks to immediately stop foreclosures the instant that a loan mod application is made. This would allow the homeowner time to negotiate the mod with the lender without that foreclosure sword dangling dangerously over his or her head. At first reading, it failed to clear committee, tying 3-3. But another reading is scheduled on Wednesday, May 4. California Mortgage Bankers Association, as you would expect, is totally opposed to the bill. What to do? Call, write, email your legislator and tell them to support the bill. The home you save may be your own!

Good News In Florida

If you're in Florida and having trouble making your mortgage payments because you're either unemployed or underemployed, you just got some good news! The Florida Housing Finance Corporation, which has been providing financial assistance to make mortgage payments since last October on a test/limited pilot program, has announced that the program is now going statewide. Beginning on April 18 (which by the way for this Boston native is also Patriots Day--pretty good symbolic coincidence, don't you think?), homeowners who are out of work or just hanging on in a job level well below what they previously were before the recession gutted the economy, can make application for this assistance. It is estimated that the number of those qualifying for this program will more than double. It is directed at those up to 180days delinquent in mortgage payments. It will pay up to $12,000 for delinquencies, for up to six months, or until you can resume making the payments yourself, whichever cones first.Also, you must make at least 25% of the monthly payment yourself, minimum amount of $70. For more info immediately get in touch with the folks at Florida Housing Finance Corp!
And, as always, GOOD LUCK!

Good News in California!

The California Housing Finance Agency (CalHFA), a state agency to help homeowners, broadened its eligibility for a number of its programs to help California homeowners qualify for these programs dedicated to help homeowners in danger of losing their homes avoid foreclosure.The program, Keep Your Home California, is a federally funded program with $2 Billion to assist homeowners avoid foreclosure. There are three programs in this overall Program: Unemployment Mortgage Assistance, Mortgage Reinstatement Assistance, and Transition Assistance. UMA can provide up to $3,000 month;y if you can't pay your loan because of unemployment;MRA pays up to a max of $15,000 based on you documenting a financial hardship that';s preventing you paying your mortgage; and TA will help by funding your relocation costs if you are losing your home by foreclosure or deed in lieu. Each case is decided on its own merits. For more info, call your lender or servicer NOW!

GOOD LUCK!

Cash for Keys Increase?

While I usually write about info that can be of assistance in avoiding foreclosure, today's bit involves a process that usually only pops up immediately before foreclosure or afterwards when the owners/occupants are still living there. It is called Cash for Keys, and means exactly what the term says. It is a way of the lender getting full possession of the property, vacant and empty, without having to wait for an eviction or other drawn out process to empty the home. Usually, CFK can be anywhere from $500 to $5,000, depending on locale, bank, and particular circumstances of the situation. However, according to an article in the Financial Times, there is a move to require the five largest lenders to offer up to a max of $21,000 in CFK. At this stage, it's just a proposal, and final terms and/or agreement from the lenders have not occurred. When/if we hear more, we'll post immediately.

Good luck.

A Few Very Interesting Items

Hello, again! It's been a few days, but we haven't forgotten any of you. Whenever we have something of importance that can help you, we're blogging to get the news out.

Yesterday, the folks at Freddie Mac announced that they have issued new guidelines to servicing companies barring any further foreclosures if Mortgage Electronic Registration Services (the dreaded MERS) is involved. You may recall that MERS is the institution that was heavily involved in the robo-signing scandal of last fall. Fannie Mae had previously made this decision and now Freddie has joined the party. This ruling covers any MERS registered mortgages referred for foreclosure after April 1, 2011. How do you know if your loan is MERS-registered? Pay close attention to any documents relating to notices of default, notices of sale or anything else you receive relative to the potential of your home being foreclosed upon. It should include some reference to MERS or its full name (above). If in doubt, ask your lender if you are MERS-registered.

Separately, last week, after the Republican-led House finished trying to decimate any rules that might help you avoid foreclosure, one of the House members began to circulate a bill draft to possibly replace one of the recommended programs the House wants to cancel. Not enough details are yet available as it's still in committee, but once we learn the details, we'll pass them along.

Keep fighting and good luck!

HOUSE DOES IT AGAIN!

For those of you facing possible foreclosure & loss of your home because you lost a job and thus don't have the money to make your payments, take note & come November 2012, REMEMBER! The program that existed to provide loans for up to 6 months of your mortgage payments came under fire from Republicans who voted on a bill to kill this form of help. If this bill were to pass the Senate and get signed by the President, it would end this very necessary helpful assistance to those of you who are unable to pay your mortgage due to a loss of job. I hate to be political here--I just want to help those of you needing help, but when I see a good program designed to do just that--help those who, through no fault of their own who need the help to pay their mortgages and save their homes--get gutted, I have to do more than just shake my head and say, "Too bad." This is the second vote of this type in two days in the House, and while it is unlikely to pass the Senate, and, if it did, very likely to be vetoed by Pres. Obama, the very fact that your elected reps care so little about your well being DEMANDS that you respond now by writing your elected reps in both houses of Congress, and respond again next year at election time to show them that this game goes BOTH ways!
Get moving NOW!!

House Votes to Kill Help

Well, as discussed here twice recently, the House of Reps voted yesterday on the first of four sources of help for financially troubled homeowners. As expected, the largely party-line vote, led by the Republicans, voted to KILL the FHA's Short Refi Program. Vote was 256-171. Designed to help homeowners whose homes were worth less than the amount owed on the mortgage(s),it allowed homeowners to refi with FHA at a lower loan amount. It has to now clear the Senate before going to the President, so perhaps there is hope that the bill will not become law. Obama has said he'll veto, but why let it get that far? But you must contact your Senators to insure this horrible piece of legislation dies without becoming law. I don't want to jump on a soapbox here, but I fail to see what the problem is with helping people keep their homes--NO MATTER WHAT YOUR POLITICAL AFFILIATION! The House wants to stop this helpful program. Guess none of them are at risk of foreclosure.

Bits & Pieces

I just wanted to take a moment to thank everyone who follows this blog for your visits. Hopefully, you're finding my info of assistance to you in keeping your home. While info can change in some cases almost daily there is a good basic sourcebook to have handy for many different ideas and sources of help in avoiding foreclosure. It's my book, "Save Your House From Foreclosure". Published by iUniverse, it's available from Amazon.com or iUniverse.com . List price is $10.95, although I don't know what, if any discount may be available from Amazon.com . Hope you find it helpful, and keep your browser pointed here to the blog, as I try to give you continuing updates on what's happening out in the world to avoid foreclosure.

Good Luck!

Write Your Congressman & Senators--NOW!!

Very recently, I strongly recommended any of you out there facing foreclosure to immediately write, call, text or email your representatives in Washington to oppose legislation on four bills that would terminate programs designed to help people such as yourselves in avoiding foreclosure. Well, an update: two of those bills, on a totally party line vote, passed House Committee and now go to the full House for consideration. The other two are still in committee.The two bills going to the full House would then go to the Senate if they pass the House. The Democrats, who control the Senate, oppose both bills, so, if the bills get that far, the likelihood is that they'd be defeated. But do you want to take a chance on someone being swayed during negotiations and hearings to vote for the bills? I wouldn't! Protect yourself! Contact your reps NOW & tell them to vote NO on both bills. They are titled HR 830 and HR 836, for your easy reference.
The former targets the existing program that allows a homeowner whose home is worth less than the mortgage to refinance into a new loan that's FHA-insured if the lender will agree to write off at least 10% of the original loan balance.

The latter bill tries to end the program that was created this past summer to help homeowners who've lost their jobs by giving them a "bridge" loan to cover past due loan payments and up to a max of 24 months of loan payments on the mortgage while the homeowner seeks employment. What can be so terrible about a program that helps you save your home?!
Do it NOW!
Good luck!

Foreclosures Suspended At HSBC

Due to cease and desist letters received from both the Controller of the Currency and the Federal Reserve, HSBC has suspended all foreclosures for the time being. These orders were due to regulators discovering "irregularities" in the processing and documentation of their mortgage loans and pending foreclosures. If you have a loan with HSBC, you may want to call them, or call the Office of the Controller in Washington (call information or go online).
Good luck.

WRITE YOUR CONGRESSMAN/SENATOR

Have you heard this song before? Among the best forms of assistance in possibly saving your home, or at least reducing the damage to your personal credit standing over time is the loan modification. It helps you by getting you and your lender together on a modification of the terms of your mortgage--ideally to something you can better afford than what you presently have. Some of this has been done with Federal government backing. Admittedly, it hasn't worked as well overall as had been hoped, and there have been definite issues under it, but IT HAS HELPED SOME PEOPLE LIKE YOURSELVES! And something is always better than nothing! Well, the newly anointed chairman of the House Financial Services Committee has now decided to hold hearings on eliminating four programs that are central to loan mods. He feels that they are "failed and ineffective....programs". Collecting his salary and benefits from your tax money, however, is not a failed and ineffective program.
While it is true that holding hearings is the first step to changing or ending a government program and doesn't guarantee that what is sought will actually occur, the fact that the suggestion is even on the table is very scary! If you are considering a loan mod, or if you find yourself in need of possible help with your mortgage, don't waste any time! CALL, WRITE, OR EMAIL YOUR CONGRESSIONAL REPS IMMEDIATELY AND TELL THEM TO OPPOSE THIS PLAN! The home you save may be your own! (And you can take that to the bank!)

More On Chase & Military Families

Further to my post of this morning on cases where JP Morgan Chase is trying to reduce foreclosures of homes owned by military families, NBC News reports that Chase has: 1.)Agreed to lower the interest rate it charges to active duty military personnel to 4%; 2.) Establish an enhanced loan mod program for anyone serving in the mil from September 11, 2001 (not a misprint)(This will be for anyone on active duty having trouble making the payments on a JPM Chase loan.); 3.)establish a 24/7 hotline staffed by mortgage experts so military members can talk with someone about their individual mortgage issues on a JPM Chase loan; 4.)Not foreclose on any active duty mil personnel (as I noted in today's earlier post); 5.)donate over one thousand homes to mil families and vets over the next five years; and 6.)help out vets seeking employment by offering more jobs for military vets.
This action by Chase, along with its admission that it had overcharged about 1,000 mil personnel and wrongly foreclosed on at least 14 of them, has also triggered at least one Congressional hearing and a possible criminal investigation by the South Carolina attorney general (officially unconfirmed by the atty gen of SC). The reason for the Congressional hearing and the possible S. Carolina investigation is that active duty personnel are statutorily protected from many mortgage issues under the Federal Service Members Civil Relief Act. This law generally sets a maximum interest rate for mortgages at 6% per annum for such service members, and precludes foreclosures against their homes.
If you think you've been similarly victimized and are on active duty, you should contact your Congressman or Senator, and possibly an attorney.
Good luck.

JP MOrgan Chase Apology & Mil Suspension

JP Morgan Chase Bank CEO Dimon issued an apology to military families who the bank has foreclosed upon, citing the bank's 'errors' in doing so. Beyond the apology, I don't know what else may or may not have accompanied it. I'm not aware of anything like a promise of money or aid in getting a new home. In fact, I haven't heard of any such thing being offered in addition to the apology. Will the apology lead to lawsuits being filed against the bank by those mil families who lost their homes? Only time will tell.
What is good news, however, is that at the same time, the bank also announced it is suspending all future foreclosure actions against those military families facing the threat of foreclosure. How long the suspension will last is anybody's guess, but my advice would be to contact JP Morgan Chase sooner rather than later and ask exactly what the terms of the foreclosure suspension for military families are--how long will it last; does it cover all JPMChase mortgages for mil families, and so on. Might save your home if you're active military and facing foreclosure.
Good luck!
Also, thanks for the contacts from those of you among my faithful followers. It is appreciated and remember, this blog is for you to benefit from, as well as pass on any helpful info you may come across that can help others like you.

Great News in California

The California Attorney General has announced that it will establish a trust fund to help those whose homes were foreclosed or in foreclosure. The fund, totalling $6.5 million, is funded by the settlement reached recently in a state lawsuit against former senior executives of Countrywide. In the suit, the state claimed that Countrywide, led by these execs, used excessively low teaser interest rates to lure homeowners into taking these loans, usually without any information as to attendant risks in the loans. This fund could help many of you out there if you fit its qualifications. Check with the Cal AG's office for details.
Good luck!

Great News in California

Possible Good News from Little Rhody

The Senator from Rhode Island, Sheldon Whitehouse, has introduced a bill that would allow bankruptcy judges to order lenders to begin mediation with homeowners in danger of losing their homes to foreclosure. The hope is that such a process would result in at least some of the homeowners successfully reaching agreement with the lenders in some way to let the owner keep the home and avoid foreclosure. The bill would not give the BK judges the right to force the lender to reduce the amount owed. However, even mandating an attempt at mediation is a step in the right direction.
Good luck.

More Help from Fannie

Fannie Mae this week told all of its servicing institutions that in cases where a delinquent borrower is unemployed and working with his/her state's Hardest Hit Fund programs, the servicer MUST not either refer the property for foreclosure or hold a foreclosure sale for at least 45 days. The period commences when the servicer is formally notified of the homeowner's participation in the program. According to DS News, the 19 states participating in this program are Alabama, Arizona, California, Florida, Georgia, Illinois, Indiana, Kentucky, Michigan, Mississippi, Nevada, New Jersey, North Carolina, Ohio, Oregon, Rhode Island, South Carolina, Tennessee, and Washington, DC. For details, call Fannie Mae or log on to its site: www.fanniemae.com . Good luck.

Banks MUST Keep A Promise!

In what would seem obvious to most people, A California appellate court announced this past Thursday that if a bank makes you a promise not to foreclose without first making a legitimate attempt to do a loan modification, it has to keep that promise. Duhh! Well, it wasn't obvious to US Bank, who broke exactly that type of promise and took a woman's home from her by foreclosure. Seems the lady had taken out an adjustable 30 year mortgage mortgage on her LA home in 2006. After a couple of years, she couldn't afford the monthly payments required by the loan. US Bank did what any bank in these circumstances would do--they filed an NOD and started the foreclosure process rolling. The lady upped the ante by filing for bankruptcy, hoping that by doing a Chapter 13, she'd keep the house and be allowed to repay the bank over a longer period. According to her, the bank then offered her a deal she couldn't refuse. If she dropped the bankruptcy action, they'd sit down with her and put together a loan mod that would allow her to keep her home while making payments she could afford. Sounds pretty reasonable, don't you think?
What happened next, you ask. She unfortunately took the bank at its word, dropped the BK filing and five days later to show their gratitude, the bank scheduled a foreclosure auction for a month later without telling her. The day before the auction, she says the bank did call her and offer to let her stay if she agreed to a new loan at higher payments. What a deal!! The foreclosure took place and the bank got the house, after which it evicted the woman.
Did she take this lying down? Would you? She called lawyer and sued the bank. Round 1: bank wins at trial and her suit gets thrown out. But as with any fight, barring a KO, there are more rounds to follow. She appealed and, as noted above, she won on appeal, a unanimous 3-0 decision by the appellate court. The court said US Bank had acted in bad faith by its actions, and, while not giving the lady her home back, reinstated her suit against the bank for damages. Stay tuned for the final decision on how much she receives in the actual suit.
A word of advice on this if you are in a similar situation: this is a California court decision and is not necessarily binding on other states' courts, but a promise is (or at least should be) a promise. Check with your own counsel (if you can't afford a lawyer, call Legal Aid) for its possible applicability to your own situation--and good luck.

Good News : HAFA Mods & Fannie Video

In the last few days two very exciting items have been made available to homeowners at risk of foreclosure: one from the Treasury dealing with HAFA (Home Affordable mod program); and one from Fannie Mae in the form of an interactive video format.

The first, modifies HAFA's rules for getting a loan modification. There are four primary changes to the rules governing the program:
1.) Loan mod applicants must receive a decision within 30 days from the lender holding the mortgage;
2.) Loan servicing firms no longer have to verify financial info provided by the borrower/homeowner;
3.) Loan servicers also do not have to verify any longer if the borrowers debt to income ratio exceeds 31%;
and 4.) Lenders holding second or other subordinate liens will no longer be required to accept an amount equal to 6% of the existing unpaid balance of the loan.
All of these changes, while by no means guaranteeing a mod will be approved, will at least go a long way to insuring prompt response from the lender/lienholder so that the borrower can know what their prospects are and make any necessary arrangements related to their own situations.

The second item, from Fannie Mae to you, involves the use of interactive videos to attempt to help threatened homeowners learn how to avoid foreclosure. Called WaysHome, it is now viewable on the Fannie Mae website www.knowyouroptions.com .The site has actors playing the parts of distressed homeowners and allows the real homeowner using the site to participate in the fictional homeowner depicted's decision to achieve a remedy to the particular situation depicted. By having the visitors to the site taking the part of the people depicted on the site, it helps them learn different options, allows them to make decisions for each option, and learn what results may be expected in a given situation. Details can be obtained at the web site, or by contacting Fannie Mae.

Good luck in using either or both of these tools.

A Plus From the Bay State

Although the ruling was by the Massachusetts Supreme Court, it may have far wider implications. The court reversed two foreclosures that had been completed, saying that the banks involved didn't prove they held the proof of the debts--the mortgage notes--when they foreclosed. Stay tuned!