From the category archives:

loan modification

Should homeowners turn to strategic default?

by Arnie Levine on February 4, 2012

in San Diego Foreclosure news,San Diego Short Sales,loan modification

  • As the housing market continues to struggle for stabilization, many homeowners are turning to strategic default.  Almost 11 million homes are now underwater, according to Corelogic.  Around 3.5 million homeowners are behind in their payments and another 1.5 million homes are already in the foreclosure process, according to RealtyTrac.
     
  • Aside from the moral quandary of whether strategic default is the right decision, there also are other factors to consider.
  • The borrowers’ credit scores will take a hit. According to FICO, someone with a 680 credit score would see their score decline anywhere between 85-100 points after a strategic default, and someone with a 780 credit score could lose 140-160 points.
  • Borrowers who are considering strategically defaulting on a house should look at it as a last resort, not a first option.  Financial troubles could be eliminated by refinancing, especially if the Obama administration’s program is implemented.
  • Each state has its own rules and regulations regarding foreclosures, which affect both the length of the process and what the borrower could be liable for in the end.

If you have equity in your home, we will sell your home and get top dollar in this challenging market, go to County Properties Marketing Homes.

Want to know what your home is worth?

If you do not have enough equity, and you must sell your property as a short sale we have the expertise to do so also and close escrow in 45-60 days or less. Learn more about mortgage relief options and how to take advantage of our FREE REALTOR (R)  CONSULTATION for loan modification and or selling .  or go to www.ShortSaleRealtors4U.com

More questions we can help you, at County Properties, 25 years of brokerage experience, trust and a Member of the local Better Business Bureau! Want to know what your home is worth? Click here for a free market evaluation !

By the way…if you know of someone who would appreciate the level of service in real estate we provide, please call me or have them go to www.CountyProperties.net and I’ll be happy to follow up and take great care of them.

New changes for Gov’t HAMP principal reductions on existing home loans

by Arnie Levine on January 29, 2012

in Latest News,San Diego Foreclosure news,San Diego Short Sales,Short Sales,loan modification

Treasury to pay investors triple for HAMP principal reductions

triple hundreds1 e1327700239209 New changes for Govt HAMP principal reductions on existing home loans

Officials announced several critical changes to HAMP, including an enrollment extension to Dec. 31, 2013, from its original expiration date at the end of this year.

The Treasury will also require servicers to factor in second liens and other obligations in the debt-to-income ratio calculation. Previously, if a borrower’s first-lien mortgage monthly payment was below 31% of the income, the borrower was deemed ineligible. Factoring other debts to the DTI evaluation will expand the pool of borrowers who could receive the assistance.

To combat blight, officials said they would also expand HAMP to investors who are renting properties to tenants.

Since HAMP launched in March 2010, more than 900,000 permanent modifications have been conducted. The Treasury originally estimated the program to reach between 3 million to 4 million borrowers. As of Dec. 1, less than 1 million were estimated to be eligible for the program under past rules.

Of the modifications already given, roughly 36,400 resulted in reduced principal as of Dec. 1. The Treasury paid between six and 21 cents to the investors for each dollar forgiven under HAMP, but that will grow to between 18 and 63 cents, under the rule changes.

In a conference call Friday, Treasury Assistant Secretary Tim Massad would not estimate how many borrowers would be eligible after the changes, but he did say mortgage servicers were signaled some expansion, even for principal reduction.

“We have previewed the changes with the servicers,” Massad said. “We got a very positive initial reaction.”

Department of Housing and Urban Development Secretary Shaun Donovan said in the conference call Friday that the Treasury would make these payments to Fannie Mae and Freddie Mac if they participate in the principal reduction program.

To date, the GSEs have not committed to such a program.

Both GSEs owe the Treasury $151 billion in bailouts, and their regulator the Federal Housing Finance Agency said a wide-scale principal reduction program would cost Fannie and Freddie $100 billion.

“FHFA’s assessment of the investor incentives now being offered will follow its previous analysis, including consideration of the eligible universe, operational costs to implement such changes, and potential borrower incentive effects,” said FHFA Acting Director Edward DeMarco in a statement Friday.

Of the $29.9 billion allocated for HAMP and other housing programs, the Treasury has spent only $2.3 billion. The Treasury still owes another $9 billion to $10 billion for the modifications already done, Massad said.

Donovan renewed calls for servicers to ramp up principal reductions, and reiterated that they would be a main tool in crackdowns stemming from the ongoing foreclosure settlement talks and the securitization investigations launched this week.

“These changes aren’t going to solve all the problems in the housing market, but they shouldn’t have to wait for the market to hit bottom before getting some relief,” Donovan said.

If you have equity in your home, we will sell your home and get top dollar in this challenging market, go to County Properties Marketing Homes.

To find out the value or your home. Click here for a free market evaluation !

If you do not have enough equity, and you must sell your property as a short sale we have the expertise to do so also and close escrow in 45-60 days or less. Learn more about mortgage relief options and how to take advantage of our FREE REALTOR (R)  CONSULTATION for loan modification and or selling .  or go to www.ShortSaleRealtors4U.com

More questions we can help you, at County Properties, 25 years of brokerage experience, trust and a Member of the local Better Business Bureau! Want to know what your home is worth? Click here for a free market evaluation !

By the way…if you know of someone who would appreciate the level of service in real estate we provide, please call me or have them go to www.CountyProperties.net and I’ll be happy to follow up and take great care of them.

New program home forbearance relief for unemployed borrowers on March 1, 2012

by Arnie Levine on January 21, 2012

in Latest News,Real Estate news,San Diego Foreclosure news,San Diego Short Sales,loan modification

Fannie Mae will require mortgage servicers to install a new program providing forbearance relief to unemployed borrowers beginning March 1, according to guidance released Wednesday.

Servicers will be able to provide up to six months of relief without getting approval from the government-sponsored enterprise. Special consideration can be given to borrowers who require up to 12 months of forbearance.

According to the GSE, the program “simplifies and streamlines the use of forbearance options” by providing specific guidelines.

Freddie Mac will begin FNMae forbearance 2012 12-month forbearance plans on Feb. 1. GSE servicers provided more than 7,000 forbearance plans in the third quarter, down from 8,000 the prior three months, according to the Federal Housing Finance Agency. Forbearance offers peaked in the second quarter of 2010 at around 20,000.

Delinquent borrowers and others on the verge of default are eligible for the program, however second homes and investment properties will not be considered. Servicers must determine that a borrower has less than 12 months worth of mortgage payments in reserves and has monthly housing expenses above 31% of their income before extending a forbearance plan.

For loans pooled into mortgage-backed securities, Fannie said the forbearance plan cannot extend past the last scheduled payment. For MBS pools issued between June 1, 2007 and Dec. 1, 2008, servicers can offer forbearance plans of up to six months. Longer plans can be granted for MBS issued before May 1, 2007 and after Jan. 1, 2009, according to the guidance.

Fannie requires servicers to evaluate borrowers deemed ineligible for the forbearance program to find other alternatives to foreclosure.

Servicers can make decision based on verbal information provided to them by the borrower, however the company must document it reasons in the loan file. For a borrower to receive an extension, he or she must submit a documentation package before the first forbearance plan runs out.

The servicer must determine the status of the borrower’s employment between days 120 and 135 of the forbearance plan. The firm must also contact the borrower every month during an extended forbearance plan and redetermine the borrower’s eligibility.

Fannie will require servicers to keep any prior mortgage insurance intact, and must get consent from the MI company before taking action if the policy requires it.

Also, servicers are not allowed to accrue late charges to the borrower during the forbearance program. If the borrower receives a modification through the Home Affordable Modification Program or another Fannie initiative, all unpaid late charges must be waived, according to the guidelines.

If you have equity in your home, we will sell your home and get top dollar in this challenging market, go to County Properties Marketing Homes.

 If you do not have enough equity, and you must sell your property as a short sale we have the expertise to do so also and close escrow in 45-60 days or less. Learn more about mortgage relief options and how to take advantage of our FREE REALTOR (R)  CONSULTATION for loan modification and or selling .  or go to www.ShortSaleRealtors4U.com

More questions we can help you, at County Properties, 25 years of brokerage experience, trust and a Member of the local Better Business Bureau! Want to know what your home is worth? Click here for a free market evaluation !

By the way…if you know of someone who would appreciate the level of service in real estate we provide, please call me or have them go to www.CountyProperties.net and I’ll be happy to follow up and take great care of them.

Freddie extends mortgage forbearance for unemployed

by Arnie Levine on January 7, 2012

in Latest News,San Diego Foreclosure news,San Diego Short Sales,Short Sales,loan modification

freddie mac1 e1264089291508 Freddie extends mortgage forbearance for unemployed

Mortgage finance firm Freddie Mac will give unemployed borrowers a break on their mortgage for up to one year.

“These expanded forbearance periods will provide families facing prolonged periods of unemployment with a greater measure of security by giving them more time to find new employment and resolve their delinquencies,” said Tracy Mooney, senior vice president of single-family servicing and REO at Freddie Mac.

“We believe this will put more families back on track to successful long-term homeownership,” Mooney adds.

Freddie said the new deal expands the powers of mortgage servicers. The edict gives servicers the ability to forebear a mortgage for six months without prior approval from Freddie. Freddie Mac can approve an additional six months after that.

Previously, Freddie Mac allowed servicers to grant up to three months of forbearance with no payment, or six months at a reduced payment, without prior approval.
The new options go into effect on Feb. 1.

Longer forbearance times used to be restricted to events such as natural disasters, permanent disability or long-term medical emergencies — and required prior approval.

William Dudley, president of the Federal Reserve Bank of New York, called for principal forgiveness from Fannie Mae and Freddie Mac, something both GSEs say is not worth doing.

If you have equity in your home, we will sell your home and get top dollar in this challenging market, go to County Properties Marketing Homes. If you do not have enough equity, and you must sell your property as a short sale we have the expertise to do so also and close escrow in 45-60 days or less. Learn more about mortgage relief options and how to take advantage of our FREE REALTOR (R)  CONSULTATION for loan modification and or selling .  or go to www.ShortSaleRealtors4U.com

More questions we can help you, at County Properties, 25 years of brokerage experience, trust and a Member of the local Better Business Bureau! Want to know what your home is worth? Click here for a free market evaluation !

By the way…if you know of someone who would appreciate the level of service in real estate we provide, please call me or have them go to www.CountyProperties.net and I’ll be happy to follow up and take great care of them.

Home Affordable Modification Program expires at the end of 2012

by Arnie Levine on January 7, 2012

in Latest News,Short Sales,loan modification

The Home Affordable Modification Program expires at the end of 2012 and the Treasury Department is not ruling out guideline changes before then.

The program launched in March 2009 to pay mortgage servicers for modifying loans on the verge of foreclosure. The Treasury capped its payments to servicers at $29.8 billion, according to its December transaction report. The Treasury initially expected to spend $75 billion through the program, with $50 billion from the Troubled Asset Relief Program and the rest from Fannie Mae and Freddie Mac.

Through October, participating servicers offered 1.9 million three-month trials and transferred 883,000 of them into permanent status. After redefaults are counted, the Congressional Oversight Panel, which kept watch on the implementation of the program, expected roughly 800,000 permanent modifications by the time the program expires Dec. 31.

Because the program was initially touted to reach between 3 million and 4 million borrowers, servicers have come under heavy criticism for a lack of performance along with the Treasury for not enforcing its guidelines more effectively.

When asked if servicers should be bracing for any new changes in the last year of the program, a spokesperson would not rule any action out.

“Treasury has always closely monitored its existing programs to determine if there are ways to strengthen implementation. There are currently hundreds of thousands of homeowners who are struggling with their mortgage payments but eligible for assistance through HAMP,” the official said. “We remain committed to helping as many homeowners as we can.”

The Treasury currently estimates more than 965,000 borrowers in 60-day delinquency or worse are potentially eligible for the program. They either have debt-to-income ratios above 31%, will likely pass the net-present value test that servicers use to determine if a modification is better than foreclosure, or their household still has someone employed.

More than 62% of the borrowers in the program cited a loss of income as their reason for hardship. The next closest, excessive debt, was the primary hardship for 11% of HAMP borrowers.

The program came under a series of changes since its early troubles. In the summer of 2010, the Treasury required servicers to collect all necessary documentation before starting a permanent modification. It also began releasing scorecards on servicer performance in 2011, and withheld payments to those servicers that did not score high enough.

JPMorgan Chase   and Bank of America  the two largest servicers participating in the program, had payments withheld for three consecutive quarters in 2011.

The Special Inspector General for TARP said in a report released last year that there is much Treasury could do, such as penalize servicers that take too long to convert trials into permanent mods.

“With just one year left for new mortgage modifications in HAMP, it is not too late for Treasury to make changes to the program,” SIGTARP said in the report, “and there remains much that it can do to improve.”

If you have equity in your home, we will sell your home and get top dollar in this challenging market, go to County Properties Marketing Homes. If you do not have enough equity, and you must sell your property as a short sale we have the expertise to do so also and close escrow in 45-60 days or less. Learn more about mortgage relief options and how to take advantage of our FREE REALTOR (R)  CONSULTATION for loan modification and or selling .  or go to www.ShortSaleRealtors4U.com

More questions we can help you, at County Properties, 25 years of brokerage experience, trust and a Member of the local Better Business Bureau! Want to know what your home is worth?

By the way…if you know of someone who would appreciate the level of service in real estate we provide, please call me or have them go to www.CountyProperties.net and I’ll be happy to follow up and take great care of them.

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Foreclosure counseling doubles your chances of mortgage modification

by Arnie Levine on December 23, 2011

in Latest News,Real Estate news,Short Sales,loan modification

debt eraser e1264459339913 Foreclosure counseling doubles your chances of mortgage modification 

 Borrowers who received foreclosure counseling through a national program were twice as likely to receive a modification, according to a study released Monday.

The Urban Institute evaluated roughly 800,000 homeowners who took help from the National Foreclosure Mitigation Counseling program from January 2008 through December 2009. NeighborWorks America administers the program with federal funds. 

The counselors are approved by the Department of Housing and Urban Development. They work on homeowner budgets and guide borrowers through the various options provided by the mortgage servicer to avoid foreclosure. 

Those who went through the program were at least 67% more likely to remain current within nine months of receiving a modification, according to the study. Borrowers who went through the program had their payment reduced by an average of $176 per month. 

Congress slashed funding for HUD housing counseling programs earlier in the year. The administration and the mortgage industry called for lawmakers to restore the money because of the more than 5 million homeowners who are at least 30 days delinquent, according to Lender Processing Services. 

In November, Washington restored some of the money, and HUD was allowed to grant $40 million to counselors. 

Eileen Fitzgerald, CEO of NeighborWorks America, said the program and others like it help homeowners and servicers alike by reducing redefaults. 

“In short, the personalized work nonprofit housing counselors do to help homeowners improve their overall financial situation had the greatest effect on a homeowner not falling behind again on their mortgages in the future,” Fitzgerald said.

If you do not have enough equity, and you must sell your property as a short sale we have the expertise to do so also and close escrow in 45-60 days or less. Learn more about mortgage relief options and how to take advantage of our FREE REALTOR (R)  CONSULTATION for loan modification and or selling .  or go to www.ShortSaleRealtors4U.com

If you have equity in your home, we will sell your home and get top dollar in this challenging market, go to County Properties Marketing Homes. More questions we can help you, at County Properties, 25 years of brokerage experience, trust and a Member of the local Better Business Bureau! Want to know what your home is worth? Click here for a free market evaluation !

By the way…if you know of someone who would appreciate the level of service in real estate we provide, please call me or have them go to www.CountyProperties.net and I’ll be happy to follow up and take great care of them.

Fannie, Freddie Mac complete nearly 2 million foreclosure-prevention actions

by Arnie Levine on December 16, 2011

in Latest News,San Diego Foreclosure news,San Diego Short Sales,loan modification

Foreclosure-prevention actions by Fannie Mae and Freddie Mac increased in the third quarter of 2011, according to a report by the Federal Housing Finance Agency.  Since entering conservatorship in 2008, the GSEs have taken nearly 2 million foreclosure-prevention actions and completed 1 million loan modifications.   

According to the FHFA report, the increase in completed foreclosure prevention activity in the third quarter was driven primarily by loan modifications and repayment plans. Two-thirds of all borrowers who received loan modifications in the third quarter had their monthly payments reduced by more than 20 percent. Additionally, the GSEs’ cumulative refinancings through the Home Affordable Refinance Program (HARP) increased 11 percent during the third quarter to nearly 928,600 loans.

If you have equity in your home, we will sell your home and get top dollar in this challenging market, go to County Properties Marketing Homes. If you do not have enough equity, and you must sell your property as a short sale we have the expertise to do so also and close escrow in 45-60 days or less. Learn more about mortgage relief options and how to take advantage of our FREE REALTOR (R)  CONSULTATION for loan modification and or selling .  or go to www.ShortSaleRealtors4U.com

More questions we can help you, at County Properties, 25 years of brokerage experience, trust and a Member of the local Better Business Bureau! Want to know what your home is worth? Click here for a free market evaluation !

Stop Foreclosure Now


Taskforce created to combat HAMP scams

by Arnie Levine on December 10, 2011

in Latest News,San Diego Short Sales,loan modification

The Office of the Special Inspector General for the Troubled Asset Relief Program (SIGTARP), the Consumer Financial Protection Bureau (CFPB), and the U.S. Department of the Treasury today announced the creation of a joint task force to combat scams targeted at homeowners seeking to apply for the Home Affordable Modification Program (HAMP). The joint task force today issued a consumer fraud alert to protect homeowners from HAMP-related mortgage modification scams. http://www.sigtarp.gov/pdf/Consumer_Fraud_Alert.pdf

If you have equity in your home, we will sell your home and get top dollar in this challenging market, go to County Properties Marketing Homes. If you do not have enough equity, and you must sell your property as a short sale we have the expertise to do so also and close escrow in 45-60 days or less. Learn more about mortgage relief options and how to take advantage of our FREE REALTOR (R)  CONSULTATION for loan modification and or selling .  or go to www.ShortSaleRealtors4U.com

More questions we can help you, at County Properties, 25 years of brokerage experience, trust and a Member of the local Better Business Bureau! Want to know what your home is worth? Click here for a free market evaluation !

By the way…if you know of someone who would appreciate the level of service in real estate we provide, please call me or have them go to www.CountyProperties.net and I’ll be happy to follow up and take great care of them.

How to overcome roadblocks that lead to foreclosure

by Arnie Levine on November 18, 2011

in Latest News,Real Estate news,Short Sales,loan modification

New Mortgage aid programs for Calif. borrowers

by Arnie Levine on November 18, 2011

in Latest News,Real Estate news,San Diego Foreclosure news,San Diego Real Estate,San Diego Short Sales,loan modification

New Mortgage aid programs for Calif. borrowers The mortgage-aid effort, called Keep Your Home California, so far has helped close to 8,000 low- and moderate-income households that are behind on loan payments or close to default, according to agency leaders.

“This expanded eligibility will allow more families to qualify and receive greater assistance,” said California Housing Finance Agency Executive Director Claudia Cappio, in a statement. “We are continuously evaluating our experience so far and making adjustments like these based on the initial results of the Keep Your Home California program.”

Keep Your Home California has four parts that include: mortgage help for the unemployed, mortgage aid for homeowners with documented financial hardship, relocation help for those in the midst of a short sale or deed-in-lieu of foreclosure, and reduction of principal. The programs, paid for by the U.S. Treasury Department’s Hardest Hit Fund, is costing taxpayers $2 billion.

Monday’s announced changes include:

–Allowing homeowners who completed “cash-out” mortgage refinancing to take part in the four programs. Such borrowers were excluded before.

–Allowing borrowers who own more than one property to apply. Program officials said this will be particularly helpful to those who co-signed on properties for family members.

–Offering mortgage aid to unemployed borrowers for nine months, instead of six. Such homeowners can get up to $3,000 a month. To qualify, you must receive unemployment benefits.

–Reinstating up to $20,000 in past-due mortgage payments instead of the previous $15,000 cap.

To qualify, your mortgage servicer must take part in Keep Your Home California.

Info: Call 888-954-KEEP(5337) between 7 a.m. and 7 p.m. Monday through Friday, and 9 a.m. to 3 p.m. on Saturdays. Visit: www.KeepYourHomeCalifornia.org  or www.ConservaTuCasaCalifornia.org .

If you have equity in your home, we will sell your home and get top dollar in this challenging market, go to County Properties Marketing Homes. If you do not have enough equity, and you must sell your property as a short sale we have the expertise to do so also and close escrow in 45-60 days or less. Learn more about mortgage relief options and how to take advantage of our FREE REALTOR (R)  CONSULTATION for loan modification and or selling .  or go to www.ShortSaleRealtors4U.com

More questions we can help you, at County Properties, 25 years of brokerage experience, trust and a Member of the local Better Business Bureau! Want to know what your home is worth? Click here for a free market evaluation !

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