If your home is at risk of foreclosure and you live in any of the following states, I have some really good news for you! If you're in California, Arizona, Florida, Michigan or Nevada, you may be eligible for what amounts to foreclosure avoidance financial aid from the Federal government and administered by your state. The US Treasury announced yesterday that these states' "hardest hit" assistance programs have been approved for a total sum of $1.5 Billion is aid to assist homeowners in danger of foreclosure.
Arizona's receiving $125.1 million to aid in principal and/or interest rate reductions or extensions of the term of the mortgage. The state may also provide aid to unemployed/underemployed in finding a new job. This help will be in the form of mortgage payments or removal of subordinate mortgages in some cases.
California is receiving $699.6 Million of these funds, and will use the funds to either reduce loan principal balances or make payments for unemployed homeowners until they get new jobs.There will be a maximum term for such payments.
Florida's $418 million will go to help unemployed/underemployed borrowers make their mortgage payments while seeking new employment.
Michigan's $154.5 million will largely be used in a similar way. Also, it may be available to help homeowners pay off loan payments that are now late.
The state of Nevada's $102.8 million will go to help make loan mods.
Additionally, some, if not all of these states will also provide some assistance to remove or modify second mortgages that are complicating working out assistance for the firsts.
As with any government programs, the details are many more than can be covered here, so contact your local state government housing offices.
Good luck!
Thursday, June 24, 2010
Saturday, June 19, 2010
More Gulf Mortgage Good News
Following on and expanding yesterday's comments, additional lenders have announced suspension of mortgage payments by borrowers and foreclosure proceedings in the Gulf area affected by the massive BP oil spill. B of A and Wells Fargo announced disaster relief programs for their borrowers. In B of A's case the relief is a forbearance from making mortgage payments on home loans for up to 90 days. Their program is one, they noted, similar to others they have instituted after other various disasters such as Hurricane Katrina. In the case of Wells Fargo, the bank is suspending foreclosure proceedings for home owners adversely affected by the oil spill disaster.
Further also to yesterday's commentary, I must correct an error. I said Freddie Mac was developing a program to assist those homeowners adversely affected by the spill and its effects. Actually, that was Fannie Mae. However, if your loan is held or guaranteed by Freddie, today's news covers you. According to Ingrid Beckles, Sr. Vice President of Freddie Mac, they are commencing a program of forbearance in making mortgage payments for any homeowner negatively affected by the spill in the Gulf area. While typical Freddie programs of this nature provide for suspension of payments entirely for up to three months or reduction in the payment amount for up to six months, Beckles noted that in this case, based on individual situations, Freddie may grant forbearance of some form for up to a full year. Gulf Homeowners: CALL YOUR LENDER--NOW!!
Good Luck!
Further also to yesterday's commentary, I must correct an error. I said Freddie Mac was developing a program to assist those homeowners adversely affected by the spill and its effects. Actually, that was Fannie Mae. However, if your loan is held or guaranteed by Freddie, today's news covers you. According to Ingrid Beckles, Sr. Vice President of Freddie Mac, they are commencing a program of forbearance in making mortgage payments for any homeowner negatively affected by the spill in the Gulf area. While typical Freddie programs of this nature provide for suspension of payments entirely for up to three months or reduction in the payment amount for up to six months, Beckles noted that in this case, based on individual situations, Freddie may grant forbearance of some form for up to a full year. Gulf Homeowners: CALL YOUR LENDER--NOW!!
Good Luck!
Friday, June 18, 2010
A Sorely Needed Bit of Good News in the Gulf
Well, it may be a classic example of 'damned by faint praise' or something along those lines, but a couple of announcements were made today regarding mortgage payments for those living in the Gulf Coast area affected by the BP oil spill disaster. Citibank and Freddie Mac both announced a willingness to allow homeowners up to three months time to NOT make scheduled mortgage payments IF their employment is negatively affected by the effects of the oil spill. While I am sure that said Gulf residents would rather make their payments and not have the spill at all, and while the effects of the spill may be felt way beyond three months, this is a most welcome gesture by these lenders. I feel confident in saying it very well could help many folks in the affected area avoid default and foreclosure. DETAILS: CHECK YOUR LENDER--AND DO IT NOW!!
Good luck!
Good luck!
Friday, June 11, 2010
Some Good Fortune in Utah: Peter
Don't know how long it will last, but if you live in Utah, have your mortgage with Bank of America, and are facing foreclosure, you got at least a temporary reprieve this past week. A court ruling held that B of A must, at least for the time being cease foreclosures under such loans as, according to the judge, B of A is not licensed to conduct business in the state of Utah. I'm sure that the bank won't take this lying down, but how soon they get it straightened out and resume foreclosures again is something to keep your eyes peeled for. Check your papers regularly and stay in touch here. If I hear of anything further, you'll all be the first to know.
Good luck.
Good luck.
Wednesday, June 2, 2010
Cause and Effect
In information released yesterday, it was announced that by far the largest single cause of homes going into default, possibly followed by foreclosure, is the loss of a job by the homeowner or homeowners. With a homeowner's employment usually as the primary source of mortgage repayment, it is obvious how sever an impact loss of employment can have on making the payments.
"So what? This isn't news", you say. Well, that's probably true. However, what can you do if you find yourself in this situation? If you know for certain that it's only a temporary situation, such as seasonal retooling or staff reductions, and that you definitely will be back at work in a short period of time, you may already have planned how to handle your payments in the interim. If not, you may want to seriously consider initiating the conversation with your lender to see if a temporary forbearance period can be arranged on your normal payments. If your previous payment history is good, a lender will be more inclined to work with you on such a request, especially if you can prove that you do have a job to go back to on a specific date in the near future.
What if your situation is not this type? What if you're out of work and no immediate prospects? There are a number of different things you can try. One is to take on temporary work until you can land a full time position. Another is, once again, to contact the bank holding your mortgage. Se if you and they can work out some form of forbearance on payments or a reduction in the size of your payments. Perhaps an agreement to pay interest only for a specific number of months can be arranged. Again, the bank's willingness to work with you on a solution will be based to some degree on your history of making payments in full and on time up to now. Another type of loan mod that may work is to extend the term of the loan. Say your present mortgage is for thirty years. Perhaps you can get the bank to change the terms to a forty year loan, payments to commence in three months. That will give you both a smaller payment and some time to try to gain meaningful employment before you have to resume payments.
Every person's situation is unique, so what may work for one won't necessarily work for another. But give it a try! Remember: the home you save IS your own!
Good luck.
"So what? This isn't news", you say. Well, that's probably true. However, what can you do if you find yourself in this situation? If you know for certain that it's only a temporary situation, such as seasonal retooling or staff reductions, and that you definitely will be back at work in a short period of time, you may already have planned how to handle your payments in the interim. If not, you may want to seriously consider initiating the conversation with your lender to see if a temporary forbearance period can be arranged on your normal payments. If your previous payment history is good, a lender will be more inclined to work with you on such a request, especially if you can prove that you do have a job to go back to on a specific date in the near future.
What if your situation is not this type? What if you're out of work and no immediate prospects? There are a number of different things you can try. One is to take on temporary work until you can land a full time position. Another is, once again, to contact the bank holding your mortgage. Se if you and they can work out some form of forbearance on payments or a reduction in the size of your payments. Perhaps an agreement to pay interest only for a specific number of months can be arranged. Again, the bank's willingness to work with you on a solution will be based to some degree on your history of making payments in full and on time up to now. Another type of loan mod that may work is to extend the term of the loan. Say your present mortgage is for thirty years. Perhaps you can get the bank to change the terms to a forty year loan, payments to commence in three months. That will give you both a smaller payment and some time to try to gain meaningful employment before you have to resume payments.
Every person's situation is unique, so what may work for one won't necessarily work for another. But give it a try! Remember: the home you save IS your own!
Good luck.
Subscribe to:
Posts (Atom)
