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.