Dual Tracking Derailed by FED

Well, if you're in the process of trying to get a loan mod situation and simultaneously facing foreclosure, you may have just gotten a lifeline thrown your way! Frequently, people facing an imminent foreclosure on their homes try to avoid it by applying to their lender for a loan modification. Some succeed, some don't. However, all too often the left hand in the bank never tells the right hand what's going on and the foreclosure happens even when a loan mod is underway, or, in some cases, approved. This is what's referred to as the 'dual track'. Under new regulations issued by Federal regulators this month, banks MUST cease foreclosure action against any homeowner who has been approved for a loan mod, regardless whether the approval is a trial loan mod or a permanent one. If you are in this situation, get in touch with your banker IMMEDIATELY, and get confirmation, preferably in writing, that your lender is aware of this new regulation and has covered your situation with it.
For those of you in California, a new bill is in the state Senate, SB729, that would go even farther if approved. Authored by Mark Leno and Darrell Steinberg, it seeks to immediately stop foreclosures the instant that a loan mod application is made. This would allow the homeowner time to negotiate the mod with the lender without that foreclosure sword dangling dangerously over his or her head. At first reading, it failed to clear committee, tying 3-3. But another reading is scheduled on Wednesday, May 4. California Mortgage Bankers Association, as you would expect, is totally opposed to the bill. What to do? Call, write, email your legislator and tell them to support the bill. The home you save may be your own!

Good News In Florida

If you're in Florida and having trouble making your mortgage payments because you're either unemployed or underemployed, you just got some good news! The Florida Housing Finance Corporation, which has been providing financial assistance to make mortgage payments since last October on a test/limited pilot program, has announced that the program is now going statewide. Beginning on April 18 (which by the way for this Boston native is also Patriots Day--pretty good symbolic coincidence, don't you think?), homeowners who are out of work or just hanging on in a job level well below what they previously were before the recession gutted the economy, can make application for this assistance. It is estimated that the number of those qualifying for this program will more than double. It is directed at those up to 180days delinquent in mortgage payments. It will pay up to $12,000 for delinquencies, for up to six months, or until you can resume making the payments yourself, whichever cones first.Also, you must make at least 25% of the monthly payment yourself, minimum amount of $70. For more info immediately get in touch with the folks at Florida Housing Finance Corp!
And, as always, GOOD LUCK!

Good News in California!

The California Housing Finance Agency (CalHFA), a state agency to help homeowners, broadened its eligibility for a number of its programs to help California homeowners qualify for these programs dedicated to help homeowners in danger of losing their homes avoid foreclosure.The program, Keep Your Home California, is a federally funded program with $2 Billion to assist homeowners avoid foreclosure. There are three programs in this overall Program: Unemployment Mortgage Assistance, Mortgage Reinstatement Assistance, and Transition Assistance. UMA can provide up to $3,000 month;y if you can't pay your loan because of unemployment;MRA pays up to a max of $15,000 based on you documenting a financial hardship that';s preventing you paying your mortgage; and TA will help by funding your relocation costs if you are losing your home by foreclosure or deed in lieu. Each case is decided on its own merits. For more info, call your lender or servicer NOW!

GOOD LUCK!

Cash for Keys Increase?

While I usually write about info that can be of assistance in avoiding foreclosure, today's bit involves a process that usually only pops up immediately before foreclosure or afterwards when the owners/occupants are still living there. It is called Cash for Keys, and means exactly what the term says. It is a way of the lender getting full possession of the property, vacant and empty, without having to wait for an eviction or other drawn out process to empty the home. Usually, CFK can be anywhere from $500 to $5,000, depending on locale, bank, and particular circumstances of the situation. However, according to an article in the Financial Times, there is a move to require the five largest lenders to offer up to a max of $21,000 in CFK. At this stage, it's just a proposal, and final terms and/or agreement from the lenders have not occurred. When/if we hear more, we'll post immediately.

Good luck.

A Few Very Interesting Items

Hello, again! It's been a few days, but we haven't forgotten any of you. Whenever we have something of importance that can help you, we're blogging to get the news out.

Yesterday, the folks at Freddie Mac announced that they have issued new guidelines to servicing companies barring any further foreclosures if Mortgage Electronic Registration Services (the dreaded MERS) is involved. You may recall that MERS is the institution that was heavily involved in the robo-signing scandal of last fall. Fannie Mae had previously made this decision and now Freddie has joined the party. This ruling covers any MERS registered mortgages referred for foreclosure after April 1, 2011. How do you know if your loan is MERS-registered? Pay close attention to any documents relating to notices of default, notices of sale or anything else you receive relative to the potential of your home being foreclosed upon. It should include some reference to MERS or its full name (above). If in doubt, ask your lender if you are MERS-registered.

Separately, last week, after the Republican-led House finished trying to decimate any rules that might help you avoid foreclosure, one of the House members began to circulate a bill draft to possibly replace one of the recommended programs the House wants to cancel. Not enough details are yet available as it's still in committee, but once we learn the details, we'll pass them along.

Keep fighting and good luck!

HOUSE DOES IT AGAIN!

For those of you facing possible foreclosure & loss of your home because you lost a job and thus don't have the money to make your payments, take note & come November 2012, REMEMBER! The program that existed to provide loans for up to 6 months of your mortgage payments came under fire from Republicans who voted on a bill to kill this form of help. If this bill were to pass the Senate and get signed by the President, it would end this very necessary helpful assistance to those of you who are unable to pay your mortgage due to a loss of job. I hate to be political here--I just want to help those of you needing help, but when I see a good program designed to do just that--help those who, through no fault of their own who need the help to pay their mortgages and save their homes--get gutted, I have to do more than just shake my head and say, "Too bad." This is the second vote of this type in two days in the House, and while it is unlikely to pass the Senate, and, if it did, very likely to be vetoed by Pres. Obama, the very fact that your elected reps care so little about your well being DEMANDS that you respond now by writing your elected reps in both houses of Congress, and respond again next year at election time to show them that this game goes BOTH ways!
Get moving NOW!!

House Votes to Kill Help

Well, as discussed here twice recently, the House of Reps voted yesterday on the first of four sources of help for financially troubled homeowners. As expected, the largely party-line vote, led by the Republicans, voted to KILL the FHA's Short Refi Program. Vote was 256-171. Designed to help homeowners whose homes were worth less than the amount owed on the mortgage(s),it allowed homeowners to refi with FHA at a lower loan amount. It has to now clear the Senate before going to the President, so perhaps there is hope that the bill will not become law. Obama has said he'll veto, but why let it get that far? But you must contact your Senators to insure this horrible piece of legislation dies without becoming law. I don't want to jump on a soapbox here, but I fail to see what the problem is with helping people keep their homes--NO MATTER WHAT YOUR POLITICAL AFFILIATION! The House wants to stop this helpful program. Guess none of them are at risk of foreclosure.