Mortgage Payment Assistance

In addition to various previous payment assistance plans for those unable to make their mortgage payments, Congress just this past week added another source of funding to the list of help for struggling homeowners. Included in the new financial regulations bill that became law last week, the program, Emergency Mortgage Relief, makes loans available from the Federal government to homeowners who are unable to pay their mortgage loan payments. It is specifically directed at those at least three months in arrears on their payments, and will provide loans up to a maximum of $50,000 for coverage of these payments. The reasons for the delinquency must be either unemployment or medical problems that have caused the delinquency on the mortgage. The loans will be made available beginning October 1 of this year from the U.S. Department of Housing & Urban Development (HUD). You can find them in the 'Government' pages at the front of most phone books today or go online: www.hud.gov . Good luck!

BofA Help in Massachusetts & Florida

Well, readers, this week Bank of America has announced more assistance for some of its customers. They have opened OutReach Centers in Dedham, MA and Ft. Lauderdale, FL to provide assistance to home borrowers who are having trouble making mortgage payments to the bank. In order to get the maximum benefit in each case, individual private appointment will be used by the bank to assist the borrowers. If you're in South Florida or Massachusetts, and have a mortgage with BofA, call. This may be the call that helps you save your home. Good luck!

Healthy California Trend

According to Foreclosure Radar, the month of June evidenced a healthy trend in foreclosures in the Golden State. While it is only a trend, it is encouraging. The number of actual foreclosure auction sales being cancelled--no foreclosure completed--increased 27% since May of this year and 153% since June a year ago. What this would indicate is an increased number of homes facing foreclosure ending up averting the auctioneer's hammer by reason of loan modification. The largest number of these is with JP Morgan Chase, largely due to its acquisition of Washington Mutual and that lender's large default portfolio. So, if even a share of these loan mods remain healthy, a major step has been taken to reduce the overall effects of the foreclosure crisis.

REMEMBER: If you do accept a lender's loan mod terms, make certain it is something that you truly can afford so that you don't find yourself back behind the eight ball a few months later under the loan mod's terms.

Good News in Massachusetts!

Well, if you happen to live in my original home state, the Bay State (GO RED SOX), I've got some good news for many of you who may have had sub-prime mortgages. The Mass Attorney General, Martha Coakley, announced that her office has obtained a nearly $102 Million settlement from Morgan Stanley due to their practices in the securitization and warehousing of sub-prime loans for such firms as New Century. Some of this settlement will go to homeowners to help them avoid foreclosure, while the rest will be split between the Massachusetts Pension Fund and the state's general fund. The breakdown is as follows: $58 million to over 1000 homeowners affected; $23 million to the pension fund to restore lost investment funds due to the sub-prime catastrophe; and the remainder, $19.5 million to the state's general fund. This last amount recovers lost taxpayer funds. Are you eligible for the homeowner reimbursement portion of this? Call the attorney general's office. Good luck!

To The Rescue!

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!

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!

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!