Loan Mods Without the Paper

One of the reasons why some folks don't take advantage of the potential lifesaving device known as a loan modification as a method of avoiding foreclosure is that there is "so much paperwork" to get through. Well, in some cases, that issue may just have become a thing of the past. Yesterday, Fredie Mac and Fannie Mae announced a program that will allow loan mods by a fast track method not using paperwork. Not everyone will qualify, but for those with the following qualifications, they can take advantage of the program. The required pre-requisites are: the loan must be delinquent between 3 and 24 months; it must also be at least a year since it was made; must be guaranteed by either Freddie or Fannie;and must have a loan balance equal to at least 80% of the home's current value. Another unique set of features is that you do not have to verify employment or prove you have a hardship, both items most other loan mod programs do require. Borrowers also must start making the new payments. Once they have made three consecutive ones on time, they'll sign a document making the mod permanent. Prior missed payments will be added to the loan balance, the loan's term will stretch out to 40 years and the interest rate will be at Fannie or Freddie's standard mod rate, which changes regularly. But not to worry there either. Once your loan is agreed to the rate it starts it will be fixed for the life of the loan. The program begins July 1, 2013 and continues until August 1, 2015, and can even be used for rental or vacation properties one may own. There are a few other details, but check with Fannie or Freddie to get the full details and start your mod working as soon as the program begins. The agencies' websites are: www.freddiemac.com and www.fanniemae.com . As always, Good Luck.

Being Stalked by a Zombie?

I know you're thinking, "What is this? Some kind of ad for a new TV show or movie? The latest example of the 'Zombie Fad'? I only wish it were that simple. However, there is an increasingly disturbing form of foreclosure that has been climbing the charts in terms of frequency of occurrence and aggravation for homeowners. This is the Zombie Foreclosure. While the zombies of myth and legend will eat you and any of your fellow humans live, these are far more destructive to your peace of mind and financial health. Their diet is focused on your home and financial well being. The way these come about is a bank commences foreclosure proceedings, but for any number of reasons, never completes the process. This leaves you, the homeowner, thinking you've lost your home already. It's very likely you've already moved to a new residence, thinking that the foreclosure has been completed and you not only don't own the home any longer, but are also off the hook for any ongoing homeowner obligations. These can be property taxes, HOA dues and fees, and any number of other such expenses that an owner would be responsible for. However, because the lending bank never completed the foreclosure, the name on the title remains: YOURS! Because of that fact, you are still liable for all of the aforementioned fees, charges, taxes and other related expenses a homeowner would bear responsibility for. Often, the first indication you may receive that all isn't as you believed it was is when you receive a new default notice, or a collection agency starts calling you and making a nuisance of itself trying to collect sums they believe you owe--and, legally, you very well may! So, what do you do? Well, the first thing to do would be to check the tax records in your county to see whose name is on title. If it shows the foreclosing institution or some other entity, you should acquaint whomever is pestering you of the realities of who is the current legal owner, sending them a copy of the record and requesting confirmation that they've received it. If, however, your name is still on title, your task may be a bit more arduous. If you find your name on title, call your lender who you thought was foreclosing and determine what they plan to do with your home. If they have not, in fact, foreclosed and have no immediate plans of doing so, you may be in time to do a loan modification, a short sale or a deed in lieu. Which would be best for you will vary from acse to case, and you should talk with an attorney and your accountant or financial advisor to decide. Also, check to see what fees, property taxes or assessments may have accumulated, as well as what the physical condition of the property is. If you're on title, the expenses would continue in your name unabated. As for physical condition, often homes that remain empty for long periods of time become havens for squatters, drug users and other undesirable occupants. As they don't own the property, they often take less than the best of care of it and the damage may be more than you would like to take on should you successfully reclaim your home. Having said all of this, if you do want to get back into the home, and can obtain an accommodation with your lender regarding your defaulted loan, then by all means you should move forward and begin the process. As always, Good Luck.

Freddie Mac Complaints Not Handled!

In a report just released, the Federal Housing Finance Agency (FHFA) announced that many consumer complaints have been not handled correctly or, in some cases, totally ignored! While not all were related to foreclosure actions, a large number were. While each case should be handled on its own merits, the best way to get yours moving, if you feel an error has been made, is to get in touch with the FHFA Inspector General. The FHFA website is: www.fhfa.gov . Once on the site, navigate according to the page directory along the side. As always, Good Luck.

Possible Relief From Mortgage 'Help' Scams

The Federal Trade Commission (FTC) recently mailed out a number of checks to homeowners and former homeowners who were damaged to varying extents (including loss of homes) by a rather nasty mortgage "assistance" scam that went on during and immediately before the recent recession. Over 17 thousand checks were mailed out, and, while they were by no means substantial, every little bit helps. Unlike othetr settlements I've written about covering losses of homes and related losses, many of which were for thousands of Dollars, these checks only attempt to allow scammed homeowners to recoup some, if not all, of the fees they were charged by the cheats running the scams. Typicaly, these fees were charged up front for alleged assistance in avoiding foreclosure or restructuring mortgages that were overwhelming the owners. The particular scam referred to here is the Residential Relief Foundation. It is now banned from offering 'mortgage relief' programs. As noted above, the money is small, as it only attempts to cover some of the upfront fees charged for the so-called assistance. Thus, each check is for $62.50. If you have any questions about your eligibility, contact the refund administrator, BMC Group, at (866) 224-6718, or visit www.FTC.gov/refunds for more general information. As always, Good Luck.

From The Settlement Comes (Some) Cash!

Well, for those of you awaiting some form of relief from the previously announced $9.3 Billion settlement on foreclosures between the Feds and 13 lenders, some cash is finally on the way. This cash does not cover all of the $9.3 Bn agreed upon, but only the cash payment portion of the deal. Beyond this there is still some sizable amount, about $5.7Bn of 'foreclosure prevention assistance'. Eligible homeowners will shortly receive a post card regarding their eligibility from the paying agent, Rust Consulting. This card will arrive in about 2 weeks, around the end of the month. About 4.2 million people are estimated to be in line for this, according to the Fed and the Office of the Controller, the federal agencies overseeing the implementation of the deal. This card will be followed in 4-8 weeks by further correspondence and the actual payment. If you think you're eligible or are unsure about your status, you can contact Rust Consulting at 1-888-952-9105. The banks and servicers covered by this payment program are: Aurora, Bank of America, Citibank, Goldman Sachs, HSBC, JPMorgan Chase, MetLife Bank, Morgan Stanley, PNC, Sovereign, SunTrust, U.S. Bank, and Wells Fargo. There are three other institutions that were part of the original settlement that didn't agree to this payout program. They are Ally Financial, EverBank, and OneWest. Negotiations with them are still ongoing. For all those of you who had loans from the aforementioned institutions, or were serviced by same, not every loan is eligible for payment. So, a call to Rust is a good idea. In any event, good luck to you all.

Military Foreclosures

I have briefly discussed this issue previously, but recent statistics have provided a good reason to get it out there again. As more and more digging into the foreclosure records of the large mortgage lenders is completed, it becomes very increasingly obvious that there are a great many homes foreclosed upon that were owned at the time of their foreclosure by active duty military personnel. This is, under Federal law, ILLEGAL! If you are (or were at time of foreclosure) on active duty military service and lost your home to foreclosure, call your attorney as well as your lender IMMEDIATELY. Prompt action should be taken to either have your home returned to you, or to receive financial compensation for your loss. If you're not certain of your status, then contact an attorney. If you cannot afford one, check with legal aid for help with an attorney. Don't wait--do it NOW--that's an order! And, as always, Good Luck.