Write Your Congressmen/Senators!: For those of you who are, or have recently, undergone a foreclosure, short sale or principal reduction in your mortgage(s), an important date is soon to arrive. It's December 31, 2012. What, besides New Year's Eve, is so important about that date? It's the date that the Mortgage Debt Relief Act of 2007 is set to expire. If you're not familiar about the law, this is the federal law that Congress passed in 2007 to help homeowners avoid income tax liability on any amounts of mortgage debt written off by a lender in a short sale, foreclosure or principal reduction. Under already existing law, ANY debt that is forgiven by a lender is considered taxable income in the year it's forgiven. Worse, it's taxed at regular tax rates. So, let's say you did a short sale for $50,000 less than the amount of your mortgage. That means that the bank holding your loan forgave $50,000 and you would normally have to pay tax on that fifty grand as if you'd earned it as salary! Bad enough you lost your home--you then had to pay taxes on it as well! Well, Congress in 2007 passed the aforementioned law to help homeowners like you avoid such a tax obligation if you fit within a very broad set of parameters. (Check with your CPA.) So, getting back to the start of this item, that law is set to expire at year end. So far, fortyone state attorneys general have written to Congress asking for the law to be extended. DON'T SIT BACK AND WAIT FOR ACTION! CALL OR WRITE YOUR US SENATORS AND CONGRESSIONAL REPRESENTATIVES & TELL THEM YOU WANT THE LAW EXTENDED! DON'T WAIT! I know it's Thanksgiving and then you have to shop for the holidays. But the law will expire if nothing is done about it! CONTACT THEM NOW! The tax you save may be your own! Good luck.

POSSIBLE COMPENSATION FOR LENDER FORECLOSURE ERROR?: In an advertisement published in major newspapers across the country over the weekend, the Federal Reserve and Office of the Controller of the Currency (who regulates nationally chartered banks) list a number of lenders and servicing institutions who may have made errors in foreclosing on many homes nationally. The list of lenders is as follows: America's Servicing Co.; EMC; PNC Mortgage; Aurora Loan Services; EverBank/EverHome Mortgage Co,; Sovereign Bank; BAC Home Loans Servicing; Financial Freedom; SunTrust Mortgage; Beneficial; GMAC Mortgage; US Bank; Chase; HFC; Wachovia Mortgage; Citibank; HSBC; Washington Mutual (WaMu); CitiFinancial; IndyMac Mortgage Services; CitiMortgage; MetLife Bank; Wells Fargo Bank, NA; Countrywide; Nagtional City Mortgage; and Wilshire Credit Corporation. If, according to the ad, you feel there were errors made in or related to a foreclosure that cost you money, you can request a free review of your foreclosure by a neutral party, and you MAY get compensation for these errors. Compensation could be up to a maximum of $125,000 PLUS equity. Call (855) 778-0855 or go online: occ.gov/independentforeclosurereview or federalreserve.gov/consumerinfo/independent-foreclosure-review.htm . Sounds like a good thing for possible help if you were victimized by erroneous foreclosure action. Good luck.

BofA Paying It's Share!: In an announcement today, Bank of America has confirmed that it has already completed or approved for processing $15.8 Billion in consumer relief for 164,000 homeowners under its agreement in the recent mortgage settlement agreement it participated in. This is as of September 30. One form is forgiveness of first liens in the amount of $4.75 Billion in principal forgiveness offered to 30,000 borrowers. The bank has also provided short sale or deed in lieu settlements to an additional 62,000 borrowers. As far as second line borrowers, they have also been helped by BofA. In an other form of relief, the bank has provided interest rate relief to another 1,000 borrowers. If you're a BofA borrower, hopefully you've already been in one of these groups. If you are with BofA and haven't yet been offered any relief under the settlement, you should get in touch with BofA now to see what their plans are for you, and if your obligation is included in their relief activities. As always, Good Luck.

Is Your Loan LIBOR Pegged? Five Alabama homeowners have filed suit against a large group of lenders, BofA, Barclays and Citibank chief among them, for allegedly rigging the LIBOR rates that their mortgage loans are pegged to. The basis for their claims is simply that, if proven, the alleged rigging of the rates on their loans cost them a great deal more money than they otherwise would have had to pay without rigged interest rates. Who's right? Were their rates rigged? Those answers will have to wait for a court trial. However, if your loan is LIBOR-based and provided by one of the named lenders, you may want to have someone such as a lawyer and/or accountant review your loan documents and then compare them to the LIBOR rates that existed at the time of your loan. For that, you may also need to enlist the help of a banker from one of the large banks NOT named in the suit. Aside from extra costs, such a rigging could conceivably contribute to a foreclosure if the increased rigged cost made it difficult or impossible for you to pay your mortgage. Hoping you aren't a victim, Good Luck in your investigation.

BofA FORGIVENESS: Bank of America, BofA, has announced that it is sending letters to 130,000 second mortgage customers across the country that it is outright forgiving their second mortgages to BofA. Saying that the recipients of these notifications, must achieve a "specific threshold" level of delinquency, without publicly defining what that level may be, the bank noted a borrower cannot volunteer for the forgiveness program. BofA determines who benefits and will receive the notices. They also note that being the lucky recipient of this notice won't also forgive a delinquency or pending foreclosure from a separate first mortgage held by BofA. A further note: if you are lucky enough to receive one of these forgiveness letters, you may still be liable for federal and/or state income taxes on the amount of the loan that is being forgiven. Check with your accountant for advice in this regard. How do you know if you're getting a notice? Wait for it to arrive, or, initiate action yourself by calling BofA and seeing if: a.) they will tell you directly before any letter is sent; and b.) if, given their willingnes to supply information, you are one of the lucky intended recipients. As always, Good Luck.

More Good News in California: Jerry Brown has completed the Homeowners Bill of Rights legislation. When passed, a total of six bills made up the legislation helping homeowners to keep their homes. He initially signed three into law, and yesterday signed the remaining three. For detailed info on how these can help you, contact either the Governor's office or the Attorney General's. As always, good luck.

A LITTLE HELP IF YOU'RE DISABLED & DEALING W/BANK OF AMERICA: If you're dealing with Bank of America and are disabled and using your disability funds for your loans, you may have had some issues with the way BofA works with this. Now, as a result of a lawsuit and subsequent settlement between BofA and the Justice Department, BofA has settled the DOJ suit without litigation. Accused of violating Fair Housing and Equal Credit Opportunity Acts, BofA was accused of requiring disabled mortgage loan applicants to get letters from their doctors documenting the borrowers' disability income amounts. In some cases the bank was accused of going beyond that by inquiring into the details of the borrowers' medical situations. In addition to paying a total of $125,000 to the three original litigants, the bank will also pay anywhere from $1-5,000 to every other loan applicant found to have been subjected to this process. They are also hiring a special third party administrator to review about 25,000 applications from people with SSDI benefits who may have been affected to help determine eligibility. If you're in this class of borrowers with BofA, good luck and hope this makes it a bit easier for you.

Foreclosure Agreement May Expand: You probably recall that a few months ago, the Attorneys General of 49 states reached a historic agreement with the five largest mortgage lending institutions (JP Morgan Chase, Citigroup, Wells Fargo, Bank of America, and Ally Financial [formerly known as GMAC] to try to allay at least some of the damage caused by such actions as robosigning and other improper practices by the foreclosing institutions and their representatives. Well, the same attorneys general are pushing another four major mortgage lenders to agree to the terms of the agreement. While these lenders are not of the same magnitude as the original five, they still do have a sizable portfolio of mortgages and related foreclosures/defaulted properties. The lenders in this latest action are reported to be: US Bancorp; PNC Financial Services Group; Sun Trust Banks and HSBC Holdings. The reported negotiations with the newest four lenders are unconfirmed as talks are 'private'. However, it's a reasonable bet that the identities are correct as the names wouldn't likely be reported if someone close to the negotiations hadn't leaked some info on them. What to do if you're mortgaged with any of these lenders or have lost your home to one of them. Pay close attention to the news for more info and check regularly with your state attorney general for any additional confirmation or info. As always, Good Luck.

Attention California

Well, it's the start of Labor Day weekend and amidst all of the long weekend relaxation, beach going or whatever you plan to do,a brief item of note has come up fpor those in California. The state's Atty. General, Kamala Harris, has announced that the final parts of the California Homeowners Bill of Rights have passed both houses of the legislature. They only await Governor Brown's signature to become law and begin helping California homeowners. For details, check with your legislator or the Atty. General's office. Have a great holiday weekend and see you in the autumn!

IMPORTANT: OHIO FORECLOSEES: If you're a victim of foreclosure in the state of Ohio, you may want to pay attention. While most foreclosures are unfortunately legitimate, there are, unfortunately, those that turn out to be fraudulent or erroneous and that possibly should not have occurred. In late July, a suit was filed in Cuyahoga County Common Pleas Court, alleging fraud in a number of foreclosures. Seven homeowners were named as plaintiffs, but as it's a class action suit, others can be added. For details, check with the firm filing the lawsuit: Kaufman & Co. of Cleveland. There are also four or five other law firms involved in the filing, but a call to Kaufman should reveal if you're someone who should consider joining in as a plaintiff. As always, good luck.

HOMEOWNERS RESOURCES TO HELP AVOID FORECLOSURE: You've heard me talk about the recent $25 Bn settlement between 49 states and the five largest mortgage lenders, as well as a number of other recent items to help you avoid a possible foreclosure. In line with that information, I'm providing for your info and use a number of websites that give specific guidance and help in these and related areas. Take them down; contact as many as you feel would be helpful in your case and good luck in your efforts. (Due to space involved in their info, I cannot provide specific info on each one beyond what I note here. The rest of the details will come when you log on. www.nationalmortgagesettlement.com -- this relates to the actual $25Bn settlement; www.oag.ca.gov/hbor -- helps with the recently passed California Homeowner Bill of Rights which goes into effect on 1-1-13; www.hud.gov/counseling -- alternatively, call (800) 569-4287; helps homeowners seek loan mods for free; www.independentforeclosurereview.com -- Helps those who were foreclosed upon in 2009 and 2010 get a fre review of the foreclosure by federal regulators to check for errors in the process, which could lead to compensation to the homeowner.Deadline is 12-31-12, so don't wait!; www.consumerfinance.gov -- From the new government agency that oversees both housing issues and credit cards, from the consumer's point of view; www.makinghomeaffordable.gov -- the site for the Federal foreclosure prevention program, it has links to a number of subjects including loan mods, underwater refis of homes, reduction of loan principal and loan payment forbearance for unemployed owners; www.keepyourhomecalifornia.org -- the site for a California state run program offering temporary mortgage help for unemployed, catch-up payment aid for those behind on payments, reduction of loan principal and other things. These may not cover the entire waterfront of helpful sites out there, but they make a damn good starting point. As always, good luck.

Foreclosure Even When You Pay Your Mortgage: Usually, when someone gets foreclosed upon, it is due to nonpayment on a mortgage or line of credit on the house. However, there are other, less well known circumstances that can lead to foreclosure that you ought to know about. These fall generally into the classification of "tax liens", and result from nonpayment of a tax or tax-based bill on the property. If you don't pay your property tax, it could be sold at foreclosure. What gets really surprising is that in some towns and counties, utility or other similar services are provided by the municipality and billed accordingly. If the homeowner doesn't pay, they are sold at foreclosure as unpaid tax liens, often for very small amounts of money. In one case in New Jersey, a man lost his home over a $140 water bill that wasn't paid on time. An investor bought the home at foreclosure for the $140, and then, after negotiations, resold it to the original owner for about $37,000. Nice profit, huh? Because of the cash shortages that many cities and towns now face, this is becoming an increasingly common practice. The city needing cash sells the lien to an investor, who then forecloses on the home. In another equally ridiculous, but very legal, case, a Washington, DC owner found his home being foreclosed over an allegedly delinquent property tax bill. It seems the city had erroneously removed a homestead tax exemption, resulting in an increased tax bill. He was not aware of the change as the removal of the exemption was erroneous and continued to pay what he thought was his correct property tax when due. The home was foreclosed by the purchaser of the tax lien, and the owner has had to hire an attorney and sue to reverse the tax sale and get his home back. Results still pending, but, as he notes, he did nothing wrong. The city erroneously revoked the exemption about 6 years ago, and has acknowledged the error by restoring it subsequently. So, the word here is keep just as close watch on your tax obligations and municipally provided services as you would your mortgage. Good luck.

What If You're Foreclosed? Those of you who regularly follow this blog know that it's designed to help you avoid foreclosure if at all possible. With that in mind, I regularly post the latest helpful info as I learn of it, often referring you on to additional information sources for still more info. But for some of you, no matter what you do to avoid the dreaded foreclosure, or for those of you who find yourself involved due to the problems of an unrelated owner (if, for example, you're a tenant), the axe does fall and the bank now owns the property. What do you do? Well, obviously the lender that has foreclosed wants the property vacant as soon as reasonably possible. If you don't go willingly, they can and will file an eviction action to get you out. Do you have to move? Most likely, yes. The bank, after all, does own the property and, like any homeowner, can evict folks that it doesn't want in the property. However, in many cases, they are willing to allow you a little bit of time to get your things packed and moved to where-ever you're going. Usually, the first person you'll see representing the bank is the real estate agent they've hired to handle the property's sale to a new owner. The Realtor is instructed to determine if anyone, former owner, tenant, whatever, is living there and what their plans are--how soon are they vacating; are they determined to stay as long as possible; whatever. In many cases, you will be able to negotiate the time you'll be allowed to stay as you prepare your departure. You very well may even be able to negotiate some cash from the foreclosing lender as a payment for your departure. These funds are generally referred to in the trade as Cash For Keys (CFK), and the amount you may receive varies from lender to lender and is also related to how long you plan to stay before leaving. The amounts I have seen offered have ranged from a few hundred dollars to as much in a couple of cases as $10,000. The payment is not usually per person. In other words, it makes little difference if there's just you there or if you have a family of ten. There is still only a single payment made, whatever the total. Some factors affecting the time you'll be able to remain involve such things as school term schedules, availability of your planned new residence to move in; or other important 'life' issues. My advice: if the foreclosure is legitimate, don't fight with the agent over when you'll leave. He/she is just the messenger, not to mention, your only point of contact with the bank for now. Explain your situation and why you want to be allowed to stay as long as you do. The agent will forward your wishes along to the bank that owns the property for their response. The agent will also usually be the one to provide the options of CFK, if it is offered. Again, the sooner you move, usually the more you get. If CFK isn't offered, you can tell the agent that you've heard that occupants frequently receive funds to help them move and could he see what the bank is willing to pay you in your case. Again, nothing ventured, nothing gained. There are no guarantees here, but asking never hurts. Finally, a word of caution: if you are provided with Cash for Keys, remember, it's definitely taxable as normal income. You'll receive a 1099 at the end of the year to file with your tax return next April 15. However, in spit of that ugly fact, usually the CFK payments can be a welcome bit of assistance at this very dark time in your life, so don't let their taxability defer you from accepting the payment. As always, good luck.

California Homeowners Bill of Rights--Update: This bill, previously discussed here, was signed into law on the eleventh by Governor Brown. These provisions take effect January 1, 2013. If you think you were wronged due to some of the actions undertaken by your lender in foreclosing or trying to foreclose on your home, call an attorney, or contact the state Attyorney General's office. Good luck.

Were Your Wronged By Wells?: Yesterday a settlement with the Federal Givernment on claims of racial discrimination in making loans was agreed to by Wells Fargo. They will write a rather large check to settle the claims arising from a Federal investigation that alleged independent brokers steered minority borrowers to Wells, where they were placed in higher interest rate loans than white borrowers in similar economic circumstances. Wells did not admit any guilt in mkaing the settlement. Oh, you ask how much was the check Wells wrote to settle? It was $175 million. Begs the question if you ar4e a minority borrower with a mortgage from Wells, were you discriminated, and, if so, do you have a potential action against them for damages based on any discrimination that may have occured? Check with your attorney if you think so. Good luck.

As If We Didn't Have Enough to Worry About! Well, I'm sure that all of you out there are aware of foreclosures due to mortgage nonpayment issues. However, not paying the mortgage is only the most common area for foreclosure. However, there is a major second foreclosure issue that has always existed, and is now growing at such a pace that it thre3atens to become a second foreclosure wave. What is this? It is foreclosures for failure to pay real estate taxes and/or any related late fees. In many states a home may be foreclosed upon via the familiar public auction route for even the smallest of amounts due. Even a few hundred dollars is not too small an amount! Where it gets really sticky is the local laws' provision to somewhat protect the defaulting homeowner. In most cases (check your local laws to get exact details), once the home is foreclosed, the homeowner has the right to buy it back from the foreclosing buyer for what the buyer paid. The catch? Well, most statdes also allow the foreclosing buyer to charge a fee to the former homeowner in addition to the amount paid at foreclosure. So, you say, how much of a fee can it be? Well, in some states the fee can be as much as 20% of the home's value. Let's do the math. Let's say you lost your home for a delinquent tax of $200. So, you scrape together the $200, contact the auction buyer and he says he'd love to sell you your house back. Just one thing--he's had "expenses" and related activities to handle relative to its purchase/ownership and so forth, so he 'needs' to add a fee to the cost for you. But it's "only" 20%. Well, if your home is valued at $100,000, that "only 20%" is $20,000! Not so "only" is it? What can you do? You might want to call your state legislator and any pro-housing group and start pushing for a change in the law to eliminate or at least severly reduce these fees. Also, for more info, check out the National Consumer Law Cdenter (NCLC). They can be found on the web: www.nclc.org . If you're affected, good luck.

Confusing Forms?: When you consider taking out a mortgage or equity line of credit, do the forms, and there are so many of them, seem confusing? If so, then you share a complaint with many others that has existed over the years. Unfortunately, this is what happens when attorneys draft forms that cover a loan and still protect their clients, the lenders. Well, under a recommendation, non-binding, of course, by the Consumer Financial Protection Bureau (CFPB), this issue would become a thing of the past. They have recommended that forms used in the lending be more easily understandible & less confusing. Sample forms would be provided after loan applications are filed and before closing. Want more info? Contact either the CFPB or your lender about these forms and their availability. Good luck.

California Homeowners Bill of Rights--The Details: A few days ago, I wrote of the passage in the California Assembly of the bill for what is now called the Homeowners Bill of Rights. Well, it has now passed the state Senate as well, mostly on a straight party line vote (one Republican did vote to support--just one!). The Governor, Jerry Brown, has said he will sign the bill and it would then go into effect on January 1, 2013. There are six major provisions: 1.) it effectively bans 'dual tracking', the current method by which banks maintain the foreclosure process on a home at the same time they are considering a loan modification. The result in many cases, is a home is foreclosed before any mod can be done due to constant delays in the mod process. Under the new law, if you seek a mod, the lender cannot proceed with a foreclosure until the mod decision is final and, presumably, rejected. 2.) Contacts: a lender MUST provide a borrower with ONE point of contact in the bank. That one person will be responsible for updating the homeowner with any details or actions on his/her home be they foreclosure or loan mod. This way should eliminate the current situation where all too often the right hand doesn't know what the left is doing. 3.) If a borrower's loan mod request is rejected, the bank MUST clearly explain why it was rejected. 4.) Borrower Recourse: This gives borrowers the right to sue lenders for "significant, material violations" of the law. 5.) Fines: Provides lender fines of $7500 per loan for filing and recording unverified documents (and, before you ask, no, I don't know exactly what constitutes such a document, but your attorney should know). 6.) Limits: This law ONLY applies to first mortgages for owner occupants. So, if your issue is with a Home Equity or 2d mortgage, or if the property in difficulty isn't your primary residence, you have to look elsewhere for help because this is just for your primary residence first mortgage. Looking forward to January 1, 2013, I wish you Good Luck.

REVERSE MORTGAGES HAVE THEIR PITFALLS TOO! In a report by the Consumer Financial Protection Bureau (CFPB), statistics on Reverse mortgages show an alarming possibility to create problems for the homeowners where there shouldn't be any. The biggest problem is in the borrower fully understanding all of their obligations under the mortgage. The process is set up so that the owner makes no mortgage payments, and the loan is eventually repaid from the sale proceeds when the owner either dies or moves. One exception, however, is that all taxes and similar obligations must be paid by the owner. Failure to do so is a default and can lead to foreclosure. Apparently many owners availing themselves of the Reverse Mortgage do not fully understand this, and, as a result, are risking foreclosure. Also, many owners fail to grasp the relationship of their equity in the home to the loan, and can also find themselves in trouble as a result. If you have, or are thinking of getting a reverse loan, check very carefully with your lender, and, if you feel it necessary, bring along your attorney to help review the documents and your obligations.

POTENTIAL GOOD NEWS IN CALIFORNIA: A couple of days ago, some potentially good news for homeowners at risk for foreclosure came out of committee in the Legislature. The Homeowners Bill of Rights, as it's been referred to, passed in committee and now will eventually go forward for a vote on the floor of the full legislature. Basically, as it currently is designed, it would give homeowners a variety of new procedures to better enable them to qualify for loan mods and other foreclosure avoidance or delaying procedures. I'm not going into details here because anything could be changed by the time the final version of the bill gets voted on. However, if you are interested, contact your representative in the legislature. Good luck.

Good News for Military Personnel: If you're currently active duty in the mil and considering a short sale, but don't want to have late payments on your record in addition to the short sale, there is good news for you. If your existing loan is a Fannie Mae or Freddie Mac loan, the Director of the Federal Housing Finance Agency has announced that military members who have received a PCS order can sell their home via short sale without first having to go into default (missing payments) first. Even better, the lender will not pursue a deficiency judgment after close of the short sale. The reason for this new policy is that when a PCS order is received, the military member hasn't any option about staying or going. Often, this forced move requires a sale of the home so that the serviceperson will be able to buy a new residence at the new PCS location. This policy applies to all homes purchased prior to 30 June 2012.

Is This Fair? If it is shown that a bank included fraudulent documents in filing a foreclosure case, should that same bank be allowed to dismiss the case, remove the fraudulent documents and then re-file the case without the documents? There is a case winding its way through the Florida courts, Roman Pino v. Bank of New York Mellon, in which Pino, the homeowner, is trying to prevent the bank from refiling its foreclosure action due to the fact it originally included a fraudulent document. Some analysts expect a ruling in favor of the lender due to the fact that the state already has adequate fraud remedy statutes available for the homeowner to pursue his case, while allowing this type of case to proceed would likely slow down resolution of the state's foreclosure-related cases. Seems to me that if a bank tries to foreclose using a fraudulent document, that should bar them from getting your home. But, hey, I'm no lawyer.

Help for Vets In Massachusetts! Well, as reported in the Haverhill Gazette (my hometown paper as a lid in the Boston suburbs), MassHousing's Homes For the Brave program is designed to both help vets in buying homes and, equally important here, helping them avoid possible foreclosure woes in the event of either a job loss or redeployment (if the borrower is still in the mil). In the latter case, the program will pay up to six months of mortgage payments for the vet/borrower. For more info, call your local ban in Mass, or, if you're in Haverhill, call Pentucket Bank. As always, good luck.

EARLY RELIEF?: As those of you who follow this site already know, a recent $25 Billion settlement between the nation's five major mortgage lenders and 49 of the 500 states has opened up the possibility of opportunities to avoid foreclosure through a variety of ways. One immediate problem for homeowners who might otherwise qualify, but are already in the foreclosure process: if you get foreclosed before the July 1, 2012 start date for the settlement, the options there available do you no good! It'll be as if they didn't exist. With this in mind, the mayors of four California cities: San Francisco, Sacramento, Fresno and San Jose are sending a joint public letter to the five lending institutions asking them to briefly create a moratorium on any loans currently undergoing foreclosure proceedings if those loans would otherwise qualify for the relief envisioned in the settlement. The requested moratorium would only be until the July 1 start date of the settlement process. For more info, call the offices of any of these mayors. As always, Good Luck.

BofA Helps Shorts Move! If you are doing a Short Sale with BofA,you may be eligible for some cash to help you move from the home you're leaving. Obviously, due to the way a short sale works, you're not going to be getting any cash from the sale of your home to buy a new home. You're getting absolutely nothing from the sale. BofA is stepping up to attempt to make the process flow a bit smoother. Are they doing this from any great spirit of good feeling for you? I doubt it. It's a simple business decision. If you, the Seller, is able to move more easily out of the property, then they can be assured that the sale will not get hung up on your vacating the place and possibly causing the sale to fall apart. The result of that happening would be no cash to BofA in partial payoff of the mortgage they hold. So, the terms under which they'll consider ponying up some cash--up to $30,000, by the way-- are: the Short sale must be started by the end of this year, 2012. It must close no later than September 26, 2013. Sellers must also proactively work with the bank to obtain an acceptable sale price for the short sale BEFORE the offer from the buyer is submitted.Once things are approved, the actual cash payment to you will be made at closing of the deal. The actual amount will vary from case to case, from $2500 to a max of $30,000. Call BofA for more information. Good Luck.

Good News For Mil Members! Well, if you're in the military and have been prevented from taking advantage of HAMP, the loan mod program, due to the fact that your duties keeping the country safe have you living somewhere else while you're on duty, take heart. Effective June 1, according to an announcement by the US Treasury and the Consumer Financial Protection Bureau, you may be eligible to take advantage of the program if you're away from the home due to a transfer out of the area (PCS), intend to return to the home ultimately and do not own any single family home elsewhere. For further info, you can check with either of these offices or with Hope Now. Hope Now can be reached at (888)995-HOPE . Good luck, and, from a Vet, thanks for all you do.

GREAT BofA NEWS!! As previously hinted at, the recent $25 Billion mortgage settlement has produced solid results for Bank of America borrowers. BofA announced today that it is mailing letters to 200,000 'eligible' borrowers offering mortgage principal reductions to those of the recipients who are qualified. If you get this letter and toss it, don't try to jump on board later--you're out! If a letter from BofA comes to you, and you have a mortgage with them, OPEN IT AND READ IT; THEN FOLLOW ITS INSTRUCTIONS! The lender estimates that if everyone receiving a letter gets a reduction, the AVERAGE reduction will be $150,000 per homeowner. Who will qualify? If a borrower was underwater on their loan as of January 31, 2012 (the loan was more than the house was worth), is already delinquent in payments by at least 60 days, and the bank either owns the loan, services it, or has an investor in the note agreeing to the process, that borrower is eligible. What to do? If you are with BofA, CALL THE BANK! If you get a letter from BofA, don't just toss it, thinking it's just junk mail. Open it and read it! It may save you quite a bit of money--and it just may SAVE YOUR HOME! If everyone qualifies, the total would reach $11 Billion. BofA has also stated that if the value of loans that those responding to the letter exceeds this amount, they are prepared to include them as well. Good Luck!

Some Disturbing News! According to documents that Congressmen Cummings (MD) & Tierney (MA) received recently, in the case of Fannie Mae - connected borrowers, the reason that loan principal reductions are being frequently shot down is that the acting Director of FHFA, Edward DeMarco, is ideologically opposed to loan principal reductions. FHFA claims all decisions are fact-based, but, as far as can be seen, he doesn't want to push for many reductions for fear that it will have to be taxpayer supported,even if taxpayer support of saving folks' homes wouldn't be such a bad idea.Might be a good reason to write to your Congressman and/or Senator and rattle someone's cage. Good luck.

Lender Settlement: A Quick Word

As those of you who regularly follow this blog know, the five largest mortgage lenders recently concluded a $25 Billion settlement with 49 of the 50 states, which will put some cash into the hands of foreclosed homeowners and possibly provide some alternate resolution to others facing foreclosure. There has been a push recently to get Fannie Mae and Freddie Mac to sign on to the settlement as well, which would only benefit homeowners in distress, although exactly how much is not yet known. While neither Freddie nor Fannie have acceded to this idea, please be aware that it is out there and when something happens, good or bad, we'll get you the info as soon as it's available.
Good Luck.

They Keep Crawling From Under Their Rocks!

I've occasionally talked here about scams to avoid when it comes to saving your home from foreclosure. Unfortunately, as new government aid and legal settlements with major lenders are accomplished or announced, the scam artists just jump out and want their ill gotten share of the pie--like cockroaches in a kitchen where food has been left out! According to the Home Preservation Foundation, there are more of these scum around than ever before. Without getting into specific scam details, the general rule is: If it seems too good to be true, it probably is. If someone offers to "help" you, but wants up front money, or offers services to help you avoid losing your home and charges a fee, RUN--FAST--IN THE OTHER DIRECTION!! Contact the HPV for details or your local district attorney's office, in the fraud section.
Good Luck!

More On Short Sales: Good News

Continuing on our recent tack on shorts, BofA has announced plans to make short sales less time consuming than they have been to now. Starting April 14 (this coming Saturday), BofA will institute a process designed to cut the consideration time for a proposed short sale down to a max of three weeks. Previously, such decision time ran from 45 days upward to several months. Realtors doing shorts will be required to submit five specific documents (•Purchase Contract including Buyer’s Acknowledgment and Disclosure
•HUD-1
•IRS Form 4506-T
•Bank of America Short Sale Addendum, which includes the Agent Certification form
•Bank of America Third-Party Authorization Form)
to the bank along with their offer, at the time of offer. Simultaneously, the bank will work with agents and attorneys to get collection of docs, valuations and such done more quickly to help reduce time for a decision.
If you are considering doing a short sale and your loan(s) is with BofA, contact them immediately. Involve your Realtor in the conversation as well.
As always, Good Luck.

Short Sale: Pros & Cons

AS we get farther and farther into the foreclosure crisis, more and more is being heard about Short Sales as an alternative. Yet you find yourself asking just what is a short sale, and is it better for me than being foreclosed upon? Well, let's look at the details and then you can better decide what benefits you most (or hurts you the least).
In a foreclosure, the lender takes away your home--short and sweet (well, maybe we can forget the sweet here as there's nothing sweet about losing your home). You probably won't qualify credit wise for another mortgage for at least seven years, assuming your other credit is kept OK. You potentially could end up owing income tax on the lost home as well, if the foreclosure price paid at the public auction is higher than what you paid originally, but, given recent years' values, that's not very likely.
A short sale, however, is different, although it's still not a bowl of cherries. In a short, you sell your home to a third party buyer, subject to bank approval, at an amount that is less than the bank is owed on the mortgage--in other words, short of what is owed. Do you get any cash from it? No! You just avoid foreclosure.
However, there are some definite negatives.First, contrary to some claims, your credit is still going to be trashed if you do a short. It just won't likely be trashed quite as badly. For instance,if the rest of your credit is good and stays that way, you very well may qualify for a mortgage to buy another home in 3 years rather than the post-foreclosure seven.
As far as possible tax liability is concerned, traditional tax law makes ANY forgiven debts taxable income at regular tax rates in the year that the creditor (your lender) says, "Oh, what the hell--forget it; let's let bygones be bygones." However, due to the severity of the foreclosure/mortgage crisis of the past few years, a law was passed by the Feds that exempts some (NOT all) borrowers who do shorts from being liable for income taxes on the forgiven amount of the mortgage. So, how do you know if you're exempt? Call your accountant and/or your attorney. This advice also goes for just doing a short--protect yourself on the obligations of your proposed short and make certain the docs for the transaction aren't any more onerous to you than is absolutely necessary!
Good luck!

Federal Housing Counseling Grants

Well, today we get a quick look at some new federal money to help first time buyers avoid financial and unaffordable borrowing pitfalls. Previously established, housing counseling had been cut back last year with various budget cuts by Congress. However, after some strong prodding, some funds for the program have been restored to HUD's budget.
Basically, these funds, totalling $42 Million, will be used mainly for counseling to first time buyers so that they intelligently can analyze and proceed on the mortgage part of their purchase.
If you have any questions about the program, contact HUD directly. Good Luck!

Oklahoma Settlement Info

Well, if you're in Oklahoma, the following is of interest to you regarding the recent huge settlement made with the five largest mortgage firms/servicers. In order to benefit from funds under the settlement to be disbursed in Oklahoma, you must file claims not later than September 13, 2012. As Oklahoma originally was the lone state rejecting participation in the settlement that the other 49 states agreed to, the state atty. general worked out a settlement that ended up providing more cash to Oklahoma homeowners, and in real Dollars, than what was originally envisioned. Under the terms reached, Bank of America will pay the state $8.4 million, Citigroup will pay $1.5 million, GMAC pays $935,000, JPMorgan ante's up $4.0 million, and Wells Fargo’s share is $3.8 million. This is a grand total of almost $18.6 million, quite a bit more than the state would have received, $10 million, under the terms of the original deal. The atty general says that payments to individual homeowners will be based on a showing of actual harm to the homeowner. He says that applications should include any and all documentary or other proof of the harm suffered. A simple claim without supporting evidence, apparently, will not cut it. File claims with the state attorney general's office; applications are available through the office or on line at: www.oag.state.ok.us .
As always, Good Luck.

BofA Principal Reductions

Well, some of the first evidence of benefits from the recent $25 Billion settlement has surfaced. BofA has announced that, in some cases, reductions of loan principal may reach as high as $100,000.About 200,000 owners fit this group, and this is to bring things in line with current market values. So who's most likely to get this size reduction? According to the securities rating firm, Fitch, those loans originated between 2005 and 2007 are most likely to receive this type and size reduction. Suggestion from here: if you have a BofA loan and you're underwater, call BofA and ask if you're getting a reduction of principal, and, if so, how much.
Good Luck.

Another Source of Help

For homeowners who are under water on their mortgages or having difficulty making their payments on time, there is a national nonprofit that will provide free counseling. The organization is called CredAbility, and in February alone they counseled 6433 homeowners, a 16% jump from the January figure.
You can find them online at credAbility.org or call: (800)251-2227.
Good Luck!

Help for Wells Clients in SF Bay Area

Wells has announced a free 2 day workshop for borrowers in the San Francisco Bay Area having trouble making payments. Located in Richmond, the workshop will have 100 Wells staff members, including people who can speak Spanish, Mandarin,Cantonese, Tagalog, Arabic and Farsi. Additionally, there will be a multi-lingual phone line there. Subjects covered will be loan mods, forbearance, refinance, repayment plans, short sales, and deeds in lieu.
The Home Preservation Workshop will be held Wednesday and Thursday (March 7-8) from 9 a.m. to 7 p.m. at the Craneway Pavilion. It's located at 1414 Harbour Way South in Richmond, CA. While walk-ins are welcome to attend, Wells recommends pre-registration to guarantee a one-on-one meeting with a representative. Signups can be done no later than today at: sfg.ly/AeYoIS. You can also call: (800) 405-8067. If you're a Wells client and having trouble with your mortgage, you can also call (800) 678-7986. Sounds like a good opportunity!
Good Luck!

Foreclosure Errors in San Francisco

According to an audit of foreclosure cases by the San Francisco assessor, errors were found in 84% of all foreclosures from January 2009 to October 2011. This was of 382 homes foreclosed upon in San Francisco county. Errors ranged from failure to notify the homeowner of the fact that they were in default, usually the first step in the process leading to foreclosure,to transfers of loans from one holding or servicing entity to another, to errors in the MERS process now commonly used by lenders.
Think you were wrongly foreclosed during this period in the San Francisco county area? Call the SF county assessor and ask for info on your property's foreclosure history.
Good luck.

Homes For Military Personnel/Vets

In a move to help current and former active military personnel and their families, Chase Bank has partnered with Operation Homefront to provide homes for at least 100 Wounded Warriors, military and veterans' families into permanent housing. Acting through the Homes on the Home Front program, Chase provides the homes from its foreclosed inventory, and Operation Homefront handles all of the detail work prior to actual deed transfer to the service member. Eligibility is based on one being on active duty, Reserves or Guard, or having been honorably discharged. The individual also cannot already own a home, and must demonstrate the ability to handle the financial responsibility of home ownership.
Check with Chase or Operation Homefront. Online application is possible: go to www.OH.net . Good Luck!

Two Bits of Good News

Well, today brings us a couple of items to help you out. One relates to foreclosure review rights, and the other proposes to extend the period available to do a short sale without owing the IRS a bundle as well.
In the former item, consumers who feel they have been wronged by the foreclosure process have had the opportunity to have federal reviewers examine their individual situations to see if errors were made, and if, because of those errors, the homeowners have suffered financially. This process has a deadline, but the Federal Reserve and Office of the Controller of the Currency (OCC) have jointly announced an extension of the deadline. Under this announcement, homeowners now have until July 31, 2012 to request such a review of their cases. This covers perceived errors in 2009 or 2010. A large number of servicers have agreed to participate in the program. If you want more info, check with your lender or servicer, or, failing any help there, talk with the Fed or the OCC.

The latter bit of good news relates to short sales. Under existing tax law, short sales can create a tax obligation for the seller as tax codes stipulate that forgiveness of debt is taxable income in the year forgiven. However, in order to reduce the additional burden of homeowners having to pay income tax on the amount forgiven, in addition to having to sell their homes to get out from under, Congress previously passed an exception to this part of the tax code, depending on when the mortgage debt was incurred. This was called the Mortgage Forgiveness Debt Relief Act of 2007. Now, President Obama has proposed as a part of his 2013 budget an extension of this exception. The proposed extension would forgive any tax obligation on forgiven debt that occurred any time before January 1, 2015. Also, the Government would be allowed to periodically reassess the market and make further extensions as it then felt necessary. Now, this is just a proposal. It will certainly be one of the many items negotiated over and discussed ad infinitum as part of the final budget, and that will likely take months. However, this is one of those situations when a call, letter or email to your Congressman and Senators would be a good idea.
Good Luck!

Good News for Military Foreclosure Victims

Everybody has heard by now of the settlement between the five largest lenders and the states that was reached last week. The news has been full of details of how borrowers who're trying to avoid foreclosure, as well as some of those who have already lost their homes may obtain some relief from the settlement.
What hasn't received much coverage at all is the benefits in the settlement for military active duty individuals who may have been foreclosed upon. Let's rectify that omission right now! Four of the five lenders involved, JP Morgan Chase, Citi, Wells and Ally, have agreed to review foreclosures of active duty military personnel that were made since January 2006. This is to determine if any of these were in violation of the Servicemembers Civil Relief Act, a federal law to protect active duty mil personnel during time of service from certain financial issues/problems they may confront.Wells, Citi and Ally have agreed to compensate those who wrongfully lost homes a minimum of $116,785, as well as to reimburse the service member for lost equity. In the case of Chase, the bank will either allow the service member to return to the home with all debt on it erased, or, failing that, reimburse the full value to the service member as of the time of sale.
If all of this isn't enough for you, Citi, Wells and Ally have also agreed to compensate all service personnel with interest rates over 6% who have wrongfully been denied refinancing to lower interest rates. BofA isn't mentioned in this deal as it had previously agreed to an assistance plan for mil personnel in May, 2011.
So, the message here is: if you or a family member or friend is an active service member and have/has been having difficulties with any of these lenders over a mortgage on your personnel home, call the lender IMMEDIATELY and get them to discuss your situation in view of this info and the Servicemembers Civil Relief Act. That's an order!
Good luck!

Outrage By Walker in Wisconsin!!

Yesterday, you read details of the just-concluded foreclosure settlement completed among the largest banks, the OCC and the attorneys general of 49 of the 50 states. While far from perfect, it did provide a number of benefits to suffering homeowners--EXCEPT THOSE IN WISCONSIN!! Was Wisconsin supposed to be an exception to the deal? NOOooooooo!! However, in a decision supported by his Atty Gen, Governor walker has announced that he'll take (a very accurate word in this case)over 81% (that's more than four fifths) of the $31.6 million coming directly to the state for the crisis and place it in the state general fund to reduce the state's overall deficit, rather than put it to the use intended--helping suffering desperate homeowners avoid foreclosure or get at least a pittance to help get back on track if they've already lost their homes. Walker uses the lame (try, limp; better yet, try RIDICULOUS) excuse that the foreclosure crisis has so damaged Wisconsin and its budget, that it's OK for him to derail these funds and use them to try to balance his state budget. For those of you reading this in Wisconsin, or who know suffering homeowners in the Badger state, it's time to get on the phone, email, US Mail or any other way you communicate and let those owners AND the governor know that this is totally unsatisfactory and about as good a reason to be removed from office by recall as any I could have thought up were I a Wisconsin resident/taxpayer. Historically, I have tried and managed pretty well to remain out of politics and just helped out those of you suffering from the foreclosure situation. But this action by the Wisconsin governor is so beyond the pale, I cannot just stand by.
Good luck!

Mortgage Settlement Details!

Well, as I'm certain many of you have heard by now, the huge settlement between most of the states and the largest mortgage lenders/servicers in the nation is now a done deal! Only one state did not ratify it, leaving 49 who did. Most observers had expected about 40-45 states would initially join, so this is a plus. An even bigger plus: both California and New York joined in, something that hadn't been expected since their attorneys general had rejected the original settlement terms early on. As it turned out, with some tough negotiating, both states got a larger settlement for their constituents than originally proposed.
The terms, in general, follow:
Total amount is $26 Billion, and is among the 49 states, the federal government and the five largest mortgage banks, AS FAR AS THEIR LOANS NOT BACKED BY FREDDIE MAC OR FANNIE MAE; these five are Ally (formerly called GMAC), BofA, Citigroup, JP Morgan Chase and Wells Fargo.
Reductions in loan principal, refis, help in short sales and foreclosure forbearance will be offered to homeowners, the specifics varying with each homeowner and loan. Those who have already lost their homes to foreclosure may be eligible for up to $2,000 apiece.
The settlement will be spread over three years as follows. In the next 2 months, an administrator will appointed to oversee the execution of the deal's terms. In six to nine months, homeowners eligible under the plan will receive notification letters. Anyone not wanting to sit back and wait can be proactive and contact their lender directly.
Finally, for more info, you can call your state's attorney general or either of the following two web sites: oag.ca.gov or nationalmortgagesettlement.com .
Some of the terms may not be great, but it finally is a start to help many who have been severely under the gun.
Good luck!

Banks Hit w/Robosigning Penalties

Today, there will be two posts, one now and one in a couple of hours. The first is to announce that the Office of the Controller of the Currency (OCC) has assessed the five largest mortgage servicers with financial penalties totalling $765 Million. These firms are JP Morgan Chase, BofA, Wells, Citi and Ally (formerly known as GMAC). These penalties are for "unsafe and unsound mortgage servicing and foreclosure practices" by these firms. Now three quarters of a billion taken against the total assets of these five firms is not a lot of money, but it's still a pretty large piece of change, and you can bet the institutions aren't happy having to pay it. Perhaps it will cause them to avoid such practices as robo-signing in the future.
The second posting today, come back later today, will detail the massive settlement between the major lenders and 49 of the 50 states.

Cash For Short Sales

In a recent, but largely unannounced move, some major lenders are not only agreeing to do short sales as a way of ending troubled homeowners' mortgage problems, but also paying cash bonuses to those homeowners as an incentive to the homeowner to proceed. Ranging from $2,000 to as much as $35,000 per deal, the bonuses are not discussed as an available program by the banks, but are awarded on what appears to be a random basis to homeowners as part of their deal on close of escrow. The qualifications thta make one owner able to receive a bonus, and not another, as well as how much of any bonus will be paid have not been announced either. Clearly, paying banks have started a program, and do have a list of qualifications, but, for obvious reasons, they are not making broad announcements of either. Banks known to have such incentive bonus programs so far include Wells Fargo and Chase. Thinking of a short? Curious if your bank hasd such a program & if you qualify, check your lender. But be prepared to be denied on both questions, at least initially. Remember--it's only been very recently that lenders have gradually begun to make getting a short sale approved easier than it had been.
Good luck!

Missouri Chases Robosigner

The attorney general of Missouri has filed charges in a criminal prosecution against DocX, LLC and its founder, Lorraine Brown, alleging forgery and false declarations on mortgage documents. This action is based on a 136 count criminal indictment against the firm and Brown that was recently handed down by a grand jury.The claims of forgery are the usual ones one sees in such a case: the named individual on various deeds submitted for recordation were not signed by that person. Brown can face up to seven years imprisonment on each of the more serious charges, and fines for the others, as can Doc X.

If you have been foreclosed upon in Missouri, and feel, or know, that DocX was involved, I suggest you contact the attorney general, as well as your own attorney.
Good luck!

Fraud & Settlements

Well, there are a pair of items to discuss today, and while they don't specifically link to each other, the subject matter seems appropriate to cover simultaneously. First, we'll discuss fraud. In this case, it's NOT fraud by a lending institution trying to take away your home in some egregious manner. No, here it's a case of someone claiming to be a "housing counselor", someone who claimed she would be able to help the suffering homeowner avoid the devastation of losing a home to foreclosure. What she actually did was to take up front fees from troubled homeowners, guarantee she'd help them avoid foreclosure, often by getting a loan modification, and then in actual fact use the funds lifted from victimized homeowners' wallets to both pay her own mortgage and cover her gambling debts. The gambling debts were apparently fairly substantial. When all was said and done, she'd burned through nearly $300 grand of her unsuspecting clients' money and about $2,000 of Federal grants obtained through the Buffalo Urban Renewal Agency. The results: well, according to authorities quoted at her sentencing, "some" ,no number was mentioned, of her 136 clients' homes were lost to foreclosure due at least in part to her actions. If there is any good from this story, it's the fact that she now has the next six years in a much smaller residence with bars on the windows (no mortgage, though) to contemplate her nefarious deeds. After she gets out, she also has three years court supervision to oversee her court ordered restitution of $298,639 to her clients.
A lesson from this? If you're in trouble with your mortgage and the person you consult to 'help' you requests an up front fee and/or 'guarantees' they'll be able to help you avoid foreclosure, run....AWAY FAST! The only thing they'll be saving is your money that you paid as a fee --in their bank account. If they claim this is normal, ask for references , check the Better Business Bureau, call your lender to see f the 'consultant' is known to them, and call the police to see if the consultant has a record for doing this (not the record he or she wants you to see). While I'm at it, if this situation seems to fit anything you've been subjected to over the last few years, you may want to check with the authorities. This perp is named Lori J. Macakanja.

Okay! Now for the second item: Settlement.The much trumpeted nationwide state by state settlement with most of the country's major servicers and lenders was to be settled and signed by last night. So far, there isn't any final figure on exactly how many states actually jumped on the bandwagon. However, best estimates are that about 40 of the 50 states joined in and their attys. general had signed. New York and California were among the conspicuous absentees, both stating that they didn't feel the financial institutions were being punished enough for their actions by the terms of the settlement. There has been some discussion that either or both may join in later after further negotiation, but that is speculative for now. Final details: keep your eyes peeled in the press, the broadcast media or HERE!
As always, good luck.

Bank Foreclosure Settlement Deal Status

Well, today is the supposed deadline for the 50 states (or as many as want to jump on board) to sign off on a deal providing some relief to victims of foreclosure, while simultaneously providing the major mortgage lenders in the country some shielding from further legal liability. So far, both the Atty Gens of NY and California have indicated they will reject the deal, noting that they feel it's not consumer-protective enough. However, even here, late reports have come out that they are willing to be persuaded to reconsider in return for more assistance to foreclosurees and/or future liability for the lenders involved. Final decision yet to be made. There is also a feeling that the overall deal may not actually close today, but could, based on late negotiations, finally get settled and in force later this week. Stay tuned.
Good luck.

NY Atty Gen Sues Banks

The NY state Atty General has filed suit against a number of large banks, alleging fraud in the robo-signing scandal of this past year. His suit alleges that many homeowners who lost their homes to foreclosure were defrauded by the participating banks due to the methodology and procedures used by the robo-signing process. For more, and to see if you are in any way possibly benefited by this suit, contact the NY state Atty General,Eric Schneidermann.
Good luck!

HAMP Chnaged--for the Better

Late yesterday (1-27-12), the Obama administration announced changes in the way the Home Affordable Modification Program (HAMP) will work. Designed to further assist homeowners potentially facing foreclosure, the changes basically allow a more flexible, liberal loan to value analysis evaluation than previously existed under the plan. Additionally, the program will be expanded beyond the existing owner occupant status to included investor owners who use their properties for rentals. As if all of this weren't enough, the administration is also offering much larger incentives to investor/lenders to reduce principal balances, and, for the first time, are extending these incentives to Fannie Mae & Freddie Mac. If you haven't done so already, and you're having trouble making the mortgage payment because of heavy overall debt load, this might be an excellent time to contact your lender, and, if they aren't helpful. then making a contact with the Office of the Controller of the Currency might be in order.
Good luck!

More Fed-Lender Settlement News!

Further to yesterday's info on the pending settlement between the many states' attorneys general and the five largest servicers in the mortgage industry, some additional potential good news hit the streets today. It appears that both US Bank and PNC may join in the settlement, and, in at least PNC's case, have already set aside cash for their possible share of a settlement. Additionally, the US Justice Department is in touch with a number of lenders beyond the initial five I mentioned yesterday to see if any of them would have a willingness to join the settlement being negotiated. Stay tuned, and, meanwhile, good luck.

National Foreclosure Settlement

Well, the rumored deal between the Feds and the 5 largest mortgage servicers is nearly a done deal. A draft of the proposed settlement is, in fact, in the hands of the 50 attorneys general of all of the states for their review and approval or rejection. It had initially been rumored that it would be announced as a done deal in tonight's State of the Union address by Pres. Obama (wouldn't that have been a coup!), but delays in the state AG's review has made that not likely to happen. What does appear definite is that the lenders will give up about $25 Billion, distributed among 750,000 former homeowners who've lost their homes. That works out to about $1800 per individual. There is also the possibility that 1 million homeowners may receive principal reductions once the settlement is finalized and signed off on.
One thing that is agreed upon by moist everyone involved in the deal is that there definitely will not be a unanimous 100% approval by all 50 attys general. Many, California's included, have already rejected the proposed terms, in most cases because the settlement terms also would protect the lenders from future legal liability when and if any proof of improper activity by the lenders was found in cases of foreclosures. What everyone involved is hoping for is that at least 50-75% of the attys general sign on. Also notable is that these 5 lenders account for just 56% of all mortgages, so any deal will not cover private or securitized mortgages. Keep your eyes and ears open and contact your state attorney general for more info.
Good luck.

Help in NY

As the Federal program providing funds to assist homeowners facing possible foreclosure expired,NY's state attorney general, Eric Schneiderman, allotted $1 million to provide them with assistance in avoiding, if possible, foreclosure. The funds will be channeled through a network of non-profit & legal aid societies aimed at helping homeowners. Call your local legal aid office or the atty gen's office in Albany for more info.
Good Luck!

Fannie Moves Forward

As announced here a few days ago, Fannie Mae has broadened its foreclosure forbearance for the unemployed. The official guidelines from Fannie to the servicers have now been issued and are in effect. Basically, these allow up to 6 months forbearance for defaulted homeowners missing payments due to job loss. No prior approval from Fannie is necessary for these cases. In cases exceeding the 6 month time frame, up to a total of one year is possible with prior Fannie approval. If you have, or think you have, a loan from Fannie Mae, and you're out of work, call your servicer IMMEDIATELY!
Good Luck!

Support From the Dept. of Justice

In a report just released, the US Dept. of Justice has recommended more in depth study and analysis in support of mediation programs designed to help homeowners avoid foreclosure. This type of program has in recent months become more common as a way of getting lenders and homeowners together in an attempt to help the homeowner avoid foreclosure, while still allowing the lender to maintain a viable earning asset on its books. As some of these programs haven't been as successful as originally hoped, the DOJ undertook the study to determine if there were things that could be done to make them more successful. The study does that, and supports the idea of mediation.

Freddie Mac Good News

If you're facing foreclosure because you haven't paid your mortgage and the reason is that you are unemployed, and if your loan is with Freddie Mac, there's a bit of good news! If you are unemployed, they will have any servicing institution (where you pay your loan) forbear for up to six months on any foreclosure action. Additionally, if you get prior approval, they may provide up to another six months--a total of a year, in some cases. Before this announcement, the limits were three months--six with prior approval.
If you have a loan from Freddie or backed by them, call your servicer NOW!
Good luck!

Foreclosure Review

We briefly mentioned this program when its original announcement was issued a few months ago. Now, it's official and in action! The Office of the Controller of the Currency (OCC) has begun a series of 6,500 radio and 7,000 small town newspaper advertisements announcing the possibility of independent reviews of foreclosures for those who lost their homes to foreclosure in 2009 or 2010, and feel that the foreclosure was erroneous. Under the program, over four million letters to former homeowners have been sent out. The letters inform the homeowners that they may complete forms for the review and return them to the OCC by the end of April, and they will be considered for review of their foreclosure. Homeowners who feel wronged that did not receive the letter and form may request one via the internet: www.IndependentForeclosureReview.com or by calling (888)952-9105. Those who are found to have been wronged will be entitled to compensation or "other" remedies, although what exactly hasn't been specified. Return of their lost homes is not considered likely to be one of the possible remedies.