Tuesday, January 27, 2009
The Next Stage
Well, the folks at Wells Fargo just announced a new opportunity in its loan modification program, particularly if you're one of the 478,000 customers of Wachovia, whom they recently took over.If you're facing possible foreclosure or are already in the process that finishes with your home being foreclosed, you can get an extension from Wells to February 28 to work on a "new solution most appropriate for your circumstances". This could be extending the loan term to 40 years, cutting interest rates, or even a reduction in the amount of the loan principal.Call Wells NOW while you have the extra month and change to possibly avoid losing your home to foreclosure!
Monday, January 19, 2009
More Good Ideas
Well, at least there are plenty of people thinking of ways to ease the housing/foreclosure crisis. This past week, representatives of the National Association of Homebuilders were in Washington, DC pressing for passage of a bill they wrote that would, if passed, help straighten out the housing market. Titled "Fix Housing First", it would have the federal government provide fixed rate mortgages at rates not seen for over fifty years.
The bill would have the feds provide federally-subsidized mortgages of 30 years at a fixed interest rate of 2.99% on all home purchases, regardless if the home were new or a resale. The purchase and its related loan would have to close by June 30 of this year. If it did not close by then, the fixed rate would be a still spectacularly low 3.99% for the same loan, as long as it closed by the end of the year.
I don't think these rates are likely under a federal subsidy due to the sheer amount of money the government would have to front. However, had you asked me last June about some of the bailout numbers currently bouncing around, I also would have been very skeptical then too. So, it will all come down to what the new administration, working with Congress decides is a reasonable number, given the severity of the economy in general and the housing market in particular.
The bill would have the feds provide federally-subsidized mortgages of 30 years at a fixed interest rate of 2.99% on all home purchases, regardless if the home were new or a resale. The purchase and its related loan would have to close by June 30 of this year. If it did not close by then, the fixed rate would be a still spectacularly low 3.99% for the same loan, as long as it closed by the end of the year.
I don't think these rates are likely under a federal subsidy due to the sheer amount of money the government would have to front. However, had you asked me last June about some of the bailout numbers currently bouncing around, I also would have been very skeptical then too. So, it will all come down to what the new administration, working with Congress decides is a reasonable number, given the severity of the economy in general and the housing market in particular.
Thursday, January 15, 2009
V-E-R-R-Y Interesting--and sad!
For those of you who have followed this blog regularly, and/or purchased my book, 'Save Your House From Foreclosure!', you've heard me say time and time again that when you find yourself in trouble making mortgage payments, one of the first things you should do is contact the bank and see what can be done to help you save the house, including a loan modification (change in the terms of the mortgage loan).
Well, it seems that some members of the lending community may not be living up to their commitment to help out homeowners.
In a court in New Hampshire, a couple is suing Countrywide for allegedly stringing them along for 8 months in hopes of a loan modification before denying them the modification, after which the lender foreclosed. The facts of what really happened will be determined as the case plays itself out, but what is really interesting is that, as reported on MSNBC today, Countrywide said in court that its ads offering loan modification assistance for troubled homeowners are "mere commercial puffery", and "Countrywide's vague advertisements", not an obligation or promise to actually do anything.
This is particularly troubling for Countrywide, because the lender is one of a number of institutions who joined the Hope Now group last year to try to work and stem the rising tide of foreclosures by a variety of means, including loan modifications.
Keep watching for more news as this case wends its way through court.
Well, it seems that some members of the lending community may not be living up to their commitment to help out homeowners.
In a court in New Hampshire, a couple is suing Countrywide for allegedly stringing them along for 8 months in hopes of a loan modification before denying them the modification, after which the lender foreclosed. The facts of what really happened will be determined as the case plays itself out, but what is really interesting is that, as reported on MSNBC today, Countrywide said in court that its ads offering loan modification assistance for troubled homeowners are "mere commercial puffery", and "Countrywide's vague advertisements", not an obligation or promise to actually do anything.
This is particularly troubling for Countrywide, because the lender is one of a number of institutions who joined the Hope Now group last year to try to work and stem the rising tide of foreclosures by a variety of means, including loan modifications.
Keep watching for more news as this case wends its way through court.
Wednesday, January 14, 2009
More Possible Relief
As the new Congress gets into its work, to be followed in a week by Obama's inauguration, there is increasing talk of additional ways to help homeowners facing foreclosure. While no specific plan is yet available or close to becoming law, a variety of things is being discussed. Among these are moratorium periods before foreclosure is initiated, a redrafting of the bankruptcy laws, an extension of the TARP bailout for homeowners facing foreclosure and a fee-driven incentive for lenders to be more pro-active on loan modifications.
While nothing is in writing yet, much less in stone, something is likely to happen. Keep your eyes here for updates when it happens.
While nothing is in writing yet, much less in stone, something is likely to happen. Keep your eyes here for updates when it happens.
Monday, December 29, 2008
Some Encouraging News
Hope Now, one of the largest foreclosure avoidance non-profits out there has announced that it foresees at least 2 million loan modifications in the coming year. This would be as part of their ongoing programs to help homeowners avoid losing a home to foreclosure.
They plan to do this by increasing the number of homeowner workshops by at least thirty over present numbers. This increase will also be accompanied by more use of the internet and telephone to assist homeowners in seeking modification of their loans.
They plan to do this by increasing the number of homeowner workshops by at least thirty over present numbers. This increase will also be accompanied by more use of the internet and telephone to assist homeowners in seeking modification of their loans.
Tuesday, December 9, 2008
Good News...and Bad
Today, we have, so-to-speak, a doubleheader of sorts. Some of this is good news for borrowers, while, unfortunately, some is not. First, the good news.
Birminham, Alabama-based Regions Financial, a multi-state financial services firm of $144 Billion in assets, with offices in 16 states across the South, Midwest and Texas, announced that through its Customer Assistance Program (CAP) it has helped 103,000 of its borrowing clients avoid potential default and/or foreclosure. In use since 2007, the firm offers a wide variety of plans to assist customers in need, some on its own, and others in conjunction with HUD's H4H or through NeighborWorks and other third party organizations.
If you are a client of this organization, you should contact your local Regions office immediately if you are having trouble with your mortgage payments.
Now, the negative. In a news conference held in Washington on December 8, the Controller of the Currency, John Dugan, said that over half of all loans that were adjusted through Loan modification in the first quarter of 2008 have become delinquent again within six months after the modifications were made.
Using figures covering 2008, Dugan said that in the first three months after the loan mod was done, 38% of borrowers had redefaulted, while for loan mods done over six months ago, the rate of redefault was 53% and over eight months it was 58%--none of these being very encouraging figures.
No-one seems certain of the reasons. Items being looked at are poor quality of the moldifications done, transfer of the amount of payments saved by loan modifications to credit card or other debt, as well as a number of other possibilities.
Birminham, Alabama-based Regions Financial, a multi-state financial services firm of $144 Billion in assets, with offices in 16 states across the South, Midwest and Texas, announced that through its Customer Assistance Program (CAP) it has helped 103,000 of its borrowing clients avoid potential default and/or foreclosure. In use since 2007, the firm offers a wide variety of plans to assist customers in need, some on its own, and others in conjunction with HUD's H4H or through NeighborWorks and other third party organizations.
If you are a client of this organization, you should contact your local Regions office immediately if you are having trouble with your mortgage payments.
Now, the negative. In a news conference held in Washington on December 8, the Controller of the Currency, John Dugan, said that over half of all loans that were adjusted through Loan modification in the first quarter of 2008 have become delinquent again within six months after the modifications were made.
Using figures covering 2008, Dugan said that in the first three months after the loan mod was done, 38% of borrowers had redefaulted, while for loan mods done over six months ago, the rate of redefault was 53% and over eight months it was 58%--none of these being very encouraging figures.
No-one seems certain of the reasons. Items being looked at are poor quality of the moldifications done, transfer of the amount of payments saved by loan modifications to credit card or other debt, as well as a number of other possibilities.
Thursday, November 20, 2008
More Relief!
Both Freddie Mac and Fannie Mae, in a burst of seasonal good will, have announced some relief on at least a temporary basis today. They will suspend some previously scheduled evictions and foreclosure sales until at least January 9, 2009. While this won't help everyone in such dire straits, it will provide additional time to at least some of those facing either the loss of their homes or eviction from homes already foreclosed upon.
It applies to 10,000 Fannie Mae owned borrowers and 6,000 borrowers whose loans are Freddie-owned.The properties affected are those currently occupied and either single family or 2-4 unit properties, with foreclosure sales already scheduled between November 26, 2008 and January 9, 2009. It WILL NOT affect vacant properties.
While delaying the pending foreclosures of these properties, it simultaneously allows the owners of these properties the time to take advantage of the recently announced loan modification programs that both of these mortgage firms created. Scheduled start times for those programs is December 15, 2008.
It applies to 10,000 Fannie Mae owned borrowers and 6,000 borrowers whose loans are Freddie-owned.The properties affected are those currently occupied and either single family or 2-4 unit properties, with foreclosure sales already scheduled between November 26, 2008 and January 9, 2009. It WILL NOT affect vacant properties.
While delaying the pending foreclosures of these properties, it simultaneously allows the owners of these properties the time to take advantage of the recently announced loan modification programs that both of these mortgage firms created. Scheduled start times for those programs is December 15, 2008.
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