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.