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!