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.
Tuesday, August 30, 2011
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.
As always, Good Luck.
Friday, August 19, 2011
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!
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!
Thursday, August 11, 2011
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.
Good luck.
Monday, August 8, 2011
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.
Good luck.
Thursday, August 4, 2011
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.
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.
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