HAMP Program Is Extended Until 2015: What does this mean for homeowners in San Jose and Sunnyvale California?

The Obama Administration announced today that the HAMP program has been extended until 2015.  This is an important development because the program was set to expire at the end of 2013.  ForeclosureHelp and our seven partners had signed a letter earlier this year, asking that the program be extended because it has been such an important tool in helping families to remain in their homes.

In the past few months, homeowners have contacted ForeclosureHelp and worked with our certified housing counselors when they’re struggling with their mortgages and possibly facing foreclosure because of a death of a spouse, chronic unemployment, predatory hard money loans, student loans, divorce, etc.

HAMP is an important program that a housing counselor can use to help a homeowner stay in their home.  Other programs include Keep Your Home California  or Conserva Tu Casa California. The Unemployment Mortgage Assistance Program will pay your mortgage for up to 9 months), HARP, and private, in-house modifications.

A few stats about HAMP from the most recent report on loan modifications in the fourth quarter of 2012:

  • Among HAMP modifications, servicers reduced interest rates in 81% of those modifications, deferred principal in 29.2%, and reduced principal in 24.9%
  • HAMP modifications reduced payments by an average of 35.4%.

If you’re a homeowner in San Jose or Sunnyvale, pick up the phone and call ForeclosureHelp today.  Our certified counselors can help you analyze your situation, determine which programs may help you (and they’ll assist you to apply) and create a sustainable plan forward.

###

Foreclosure Help is a coalition program funded by the city of San Jose through a HUD Community Development Block Grant and the city of Sunnyvale, and we can directly assist homeowners  and tenants in San Jose and Sunnyvale who are facing foreclosure.   However, we are unable to assist homeowners/former homeowners in other cities and states.  If you need housing counseling, we suggest using the interactive map on HUD’s website.

ForeclosureHelp partners include the Housing Trust Silicon Valley (lead agency), the Fair Housing Law Project at the Law Foundation of Silicon Valley, SurePath Financial Solutions, Project Sentinel, Asian Inc, Neighborhood Housing Services of Silicon Valley, and the Santa Clara County Association of Realtors.

If you are a homeowner living in San Jose or Sunnyvale and are struggling with your mortgage, please contact ForeclosureHelpSCC, a program funded by the City of San Jose through a HUD Community Development Block Grant and the City of Sunnyvale at (408)-293-6000 or visit us: www.foreclosurehelpscc.org

Our housing counselors can help you evaluate your options, learn more about federal and state programs that may help you with your mortgage issues, and will help you create a plan forward.

Please note: All content included in the ForeclosureHelpSCC blog is provided for information only and should NOT be considered legal or tax advice. If you have any questions, please feel free to contact us on our hotline: (408)-293-6000, or visit our website: www.foreclosurehelpscc.org or send us an email: help@foreclosurehelpscc.org.

Si usted es dueño de una casa en San José o en Sunnyvale y están luchando con su hipoteca, por favor póngase en contacto con ForeclosureHelpSCC, un programa financiado por la ciudad de San José y la ciudad de Sunnyvale, al (408) -293- 6000, o visite nuestro sitio: www.foreclosurehelpscc.org.Nuestros consejeros puede ayudarle a evaluar sus opciones, aprender más acerca de los programas federales y estatales que pueden ayudarle con sus problemas de hipoteca, y le ayudará a crear un plan para seguir.

Por favor, tenga en cuenta: Todos los contenidos incluidos en el blog ForeclosureHelpSCC se proporciona únicamente a título informativo y no debe ser considerada como consejo legal o fiscal. Si usted tiene alguna pregunta, por favor no dude en contactarnos a nuestra línea directa: (408) -293-6000, o visite nuestro sitio:www.foreclosurehelpscc.org o envíenos un correo electrónico: help@foreclosurehelpscc.org.

Nếu bạn là một sinh hoạt chủ sở hữu nhà ở San Jose hoặc Sunnyvale và đang đấu tranh với nợ nhà, xin vui lòng liên ForeclosureHelpSCC, một chương trình được tài trợ bởi thành phố San Jose và thành phố của Sunnyvale ở (408) -293-6000 hoặc truy cập trang web của chúng tôi: www.foreclosurehelpscc.org.

Nhân viên tư vấn của chúng tôi đã được HUD chấp thuận có thể giúp bạn đánh giá các lựa chọn của bạn, tìm hiểu thêm về các chương trình của liên bang và tiểu bang có thể giúp bạn với các vấn đề thế chấp của bạn, và sẽ giúp bạn tạo ra một kế hoạch phía trước.Xin lưu ý: Tất cả các nội dung trên Blog ForeclosureHelpSCC được cung cấp thông tin duy nhất và không nên coi là hợp pháp hoặc tư vấn thuế. Nếu bạn có bất cứ câu hỏi , xin vui lòng liên hệ với chúng tôi qua đường dây nóng: (408) -293-6000, hoặc truy cập vào trang của chúng tôi: http://www.foreclosurehelpscc.org hoặc gửi email cho chúng tôi:help@foreclosurehelpscc.org.

fair_housing_logo

FAIR HOUSING AND ANTI-DISCRIMINATION POLICY

It is the policy of ForeclosureHelp not to discriminate against any person because of that person’s race, color, religious creed, sex (gender), sexual orientation, marital status, national origin, ancestry, familial status (households with children under the age of 18), source of income, disability, medical condition or age. Color or “ethnic group identification” means the possession of the racial, cultural or linguistic characteristics common to a racial, cultural or ethnic group, or the country or ethnic group from which a person or his or her forebears originated. As required by law, we agree to take the affirmative steps needed to further fair housing.

ForeclosureHelp will consider any and all requests for reasonable accommodation in the application of its rules, policies, practices, and services, and in the use of its physical structures, in accordance with the requirements of state and federal laws. You can ask ForeclosureHelp to consider any reasonable accommodation you may have. Please consult with the Program Manager (408-293-6000 or via email: help@foreclosurehelpscc.org) to request this accommodation.

Advertisements

Foreclosure Help’s Update on the Independent Foreclosure Review, Debt Collectors, Making Home Affordable, Hispanic Homeownership,and “Zombie Foreclosures”

March Housing Update1) UPDATE: DEADLINE EXTENDED TO APRIL 26th, more information here. Today is the final day for homeowners to mail their registration forms for the Lending Discrimination Settlement between the Department of Justice and Countrywide Financial Corporation.  Borrowers must mail their forms in by TODAY (MARCH 29, 2013).  Individuals with questions about the United States v. Countrywide Financial Corporation lending discrimination settlement may contact Rust, in English or Spanish, by telephone at 1-800-843-5148 or by email at info@CWFLSettlement.com, or visit the DOJ’s website.

2) The OCC just released a report on loan modifications in the fourth quarter of 2012 A few interesting facts about the Making Home Affordable Program (HAMP):

  • Among HAMP modifications, servicers reduced interest rates in 81% of those modifications, deferred principal in 29.2%, and reduced principal in 24.9%
  • HAMP modifications reduced payments by an average of 35.4%.

As a reminder, HAMP is currently set to expire in December 2013.  While it isn’t a perfect program, it has helped hundreds of thousands of Americans to remain in their homes, and housing counselors and advocates have already begun efforts to extend the program.

3) On March 18, 2013, Rust Consulting began mailing postcards to 4.2 million homeowners about the Independent Foreclosure Review, notifying them that they will receive payments.   According to a recording on the Rust Consulting phone number (1-888-952-9105), payments are supposed to start mailing out in the next four to eight weeks.  For more information about the Independent Foreclosure Review, visit our earlier blog post:  Independent Foreclosure Review: Update on $3.6 Billion in Cash Payments and $5.7 Billion in Modification Assistance.”   (Spanish version and Vietnamese version)

Financial Freedom, which is an affiliate of One West (formerly IndyMac) bank has been added to the Indepedent Foreclosure Review website as one of the four banks that are NOT participating in the review.  ForeclosureHelp has watched the Indepdent Foreclosure review process closely, and it seems strange that Financial Freedom would be added to the website AFTER the deadline has already passed for homeowners to apply- the deadline was December 31, 2012.   To see our other concerns with the Independent Foreclosure Review, visit:  Seven Reasons to Postpone the Independent Foreclosure Review.

A law firm in Washington DC has filed a Freedom of Information Act request related to the Independent Foreclosure Review to determine how the Office of the Comptroller of the Currency defined “independent” in the context of the “independent consultants” that conducted  the reviews.  More information: Thomson Reuters: Washington law firm sues bank regulator over foreclosure reviews

 4) Has Medical debt affected your credit report or score?   At ForeclosureHelp, some of the homeowners we assist are struggling with their mortgage because of their own medical issues, or a family member may have medical issues that have either prevented a person form working, or forced them to reduce their hours.  The Consumerist website is featuring stories about people whose credit scores have been tarnished because of Medical Debt.  Federal legislation that was introduced last year didn’t advance, so Consumerist is asking for stories from people dealing with medical debt so that Congress and lawmakers can see how this problem affects everyday Americans.  To read a few of their stories, visit:  Consumerist Readers Make The Case For Wiping Paid Medical Debt From Credit Reports

5) Speaking of debt collection, Dave Ramsey, a staunch advocate of getting out of debt, is trying a new approach to attacking debt collectors who engage in illegal debt collection practices.  Ramsey is using his bully platform (with his radio show and website) to not only educate people about their rights under federal law, but also to connect borrowers with attorneys who will sue debt collectors for violating federal debt collection laws.  The lawyers will be working on a contingency fee, meaning they don’t charge up front, but they do take a percentage of any settlement money if they are successful in their lawsuit.  ForeclosureHelp is not endorsing Dave Ramsey or these attorneys, but we do think this may put some collection agencies on notices that violating laws like the Fair Debt Collection Practices Act may be very expensive if you are sued by a lawyer, and we’re happy to see more attention drawn to abusive collection practices.  We earlier re-blogged a post from the Consumerist that is helpful for consumers and we recommend reviewing it if you’re dealing with debt collectors: 23 Things Debt Collectors Are Not Allowed To Do.

6) The National Association of Hispanic Real Estate Professionals recently released their 2012 State of Hispanic Homeownership Report.   A few interesting points:

  • While the Hispanic homeownership rate has decreased from 47.5% down to 46.1% since 2010, the total number of owner households has increased by almost 500,000, due to a net increase of more than 1 million total Hispanic households during the same two-year period.  (The homeownership rate is the number of owner households divided by the total number of households).
  • In 2012, Hispanics accounted for 355,000 or 51% of the total net increase of 693,000 owner households in the U.S.
  • Hispanics strongly believe in homeownership, “Fifty-six percent of Hispanics said that a major reason to buy a home was because it represents a symbol of success or achievement compared to only 32 percent of all Americans”

7. RealtyTrac released a report on 3/28/13: “Q1 2013 Foreclosure Inventory Update.”  Some interesting stats about foreclosures and foreclosure inventory:

  • 28,821 homes in the foreclosure process in California are now vacant- meaning the homeowner abandoned the home or moved during the 1st quarter in 2013.  California has the 3rd largest inventory of these homes (which have not yet been foreclosed on), only Florida and Illinois have more.  RealtyTrac was able to assess this by comparing foreclosure records against post office records.
  • Foreclosure Inventory is still strong: Fannie Mae, Freddie Mac and FHA/HUD have the largest percent of foreclosure inventory, representing 12% of the national total.  Bank of America is in second place with 11%, Wells Fargo represented 10%, and Chase is 7%.
  • There was a 58% increase in Chase being listed as the foreclosing entity as compared to a year ago, other large increases (as compared to a year ago) include Nationstar Mortgage (101%); Green Tree Servicing (89%), OneWest Bank (67%), and EverBank (61%).

If you are a homeowner living in San Jose or Sunnyvale and are struggling with your mortgage, please contact ForeclosureHelpSCC, a program funded by the City of San Jose and the City of Sunnyvale at (408)-293-6000 or visit us: www.foreclosurehelpscc.org

Our housing counselors can help you evaluate your options, learn more about federal and state programs that may help you with your mortgage issues, and will help you create a plan forward.Please note: All content included in the ForeclosureHelpSCC blog is provided for information only and should NOT be considered legal or tax advice. If you have any questions, please feel free to contact us on our hotline: (408)-293-6000, or visit our website: www.foreclosurehelpscc.org or send us an email: help@foreclosurehelpscc.org.

Si usted es dueño de una casa en San José o en Sunnyvale y están luchando con su hipoteca, por favor póngase en contacto con ForeclosureHelpSCC, un programa financiado por la ciudad de San José y la ciudad de Sunnyvale, al (408) -293- 6000, o visite nuestro sitio: www.foreclosurehelpscc.org.Nuestros consejeros puede ayudarle a evaluar sus opciones, aprender más acerca de los programas federales y estatales que pueden ayudarle con sus problemas de hipoteca, y le ayudará a crear un plan para seguir.

Por favor, tenga en cuenta: Todos los contenidos incluidos en el blog ForeclosureHelpSCC se proporciona únicamente a título informativo y no debe ser considerada como consejo legal o fiscal. Si usted tiene alguna pregunta, por favor no dude en contactarnos a nuestra línea directa: (408) -293-6000, o visite nuestro sitio:www.foreclosurehelpscc.org o envíenos un correo electrónico: help@foreclosurehelpscc.org.

Nếu bạn là một sinh hoạt chủ sở hữu nhà ở San Jose hoặc Sunnyvale và đang đấu tranh với nợ nhà, xin vui lòng liên ForeclosureHelpSCC, một chương trình được tài trợ bởi thành phố San Jose và thành phố của Sunnyvale ở (408) -293-6000 hoặc truy cập trang web của chúng tôi: www.foreclosurehelpscc.org.

Nhân viên tư vấn của chúng tôi đã được HUD chấp thuận có thể giúp bạn đánh giá các lựa chọn của bạn, tìm hiểu thêm về các chương trình của liên bang và tiểu bang có thể giúp bạn với các vấn đề thế chấp của bạn, và sẽ giúp bạn tạo ra một kế hoạch phía trước.Xin lưu ý: Tất cả các nội dung trên Blog ForeclosureHelpSCC được cung cấp thông tin duy nhất và không nên coi là hợp pháp hoặc tư vấn thuế. Nếu bạn có bất cứ câu hỏi , xin vui lòng liên hệ với chúng tôi qua đường dây nóng: (408) -293-6000, hoặc truy cập vào trang của chúng tôi: http://www.foreclosurehelpscc.org hoặc gửi email cho chúng tôi:help@foreclosurehelpscc.org.

Các chiến lược cho việc tìm kiếm xét Tịch thu nhà độc lập: Cập nhật trên $3.6 tỷ USD trong thanh toán bằng tiền mặt và $5.7 tỷ USD vào việc sửa đổi trợ giúp.

New info on Independent Foreclosure Review

(English version: Independent Foreclosure Review: Update on $3.6 Billion in Cash Payments and $5.7 Billion in Modification Assistance”)

Biên tập viên lưu ý:
(Foreclosure Help)Trợ giúp Tịch thu nhà là một chương trình được tài trợ bởi thành phố San Jose và thành phố của Sunnyvale, và chúng tôi có thể hỗ trợ trực tiếp chủ nhà và người thuê nhà ở San Jose và Sunnyvale những người đang phải đối mặt với nhà bị tịch thu. Tuy nhiên, chúng tôi không thể trợ giúp chủ nhà / chủ nhà trước đây ở các thành phố và các quốc gia khác. Nếu bạn cần tư vấn nhà ở, chúng tôi đề nghị sử dụng bản đồ tương tác trên trang web của HUD và nếu bạn có câu hỏi về thông tin dưới đây, xin vui lòng liên hệ với Rust Consulting (1-888-952-9105).

Một thông cáo báo chí cùng ngày hôm nay do Văn phòng Kiểm soát tiền tệ (Office of the Comptroller Currency) và dự trữ liên bang (Federal Reserve) cung cấp cho chủ nhà thêm một số chi tiết về những thay đổi được thực hiện cho xét Tịch thu nhà độc lập và làm thế nào những thay đổi này có thể ảnh hưởng đến chủ nhà.

Trong tháng 1 năm 2013, các nhà quản lý đã thông báo rằng hầu hết các ngân hàng ban đầu / dịch vụ đã đồng ý để thay thế các chương trình vì những lo ngại về chi phí, đúng thời điểm, và quản lý các ý kiến ​​(Để biết thêm về những mối quan tâm, xem bài trước đây của chúng tôi: 7 lý do để đình chỉ việc Đánh giá Tịch thu nhà độc lập).

13 ngân hàng này là một phần của chương trình thay thế bao gồm:

Aurora, Bank of America, Citibank, Goldman Sachs (Litton Loan Servicing), HSBC, JP Morgan Chase, MetLife Bank, Morgan Stanley (Saxon Mortgage), PNC, Sovereign, SunTrust, U.S. Bank, and Wells Fargo.

Tuy nhiên, ba ngân hàng (GMAC Mortgage, Everbank, và OneWest / IndyMac), không đồng ý thay đổi chương trình của họ, và sẽ tiếp tục sử dụng quá trình Tịch thu nhà duyệt xét độc lập, trong đó có một thời hạn áp dụng ngày 31 tháng mười hai năm 2012. Theo thông cáo báo chí, “Cơ quan quản lý đánh giá cho các servicers được hoàn thành trong quá trình của năm tới.”

Tiếp theo là gì?

Theo các nhà quản lý, Rust Consulting, Inc đã được bổ nhiệm là cơ quan quản lý thanh toán và Tư vấn Rust sẽ bắt đầu liên hệ với chủ nhà vào cuối tháng 3 năm 2013. Chủ nhà cũng có thể liên hệ với Rust Consulting để cập nhật thông tin liên lạc của họ (đó là quan trọng để làm, đặc biệt là nếu ngân hàng / dịch vụ thông tin liên lạc chỉ là một địa chỉ gửi thư hoặc số điện thoại cho một ngôi nhà đã được tịch thu trên). Các số điện thoại cho Rust Consulting là 1-888-952-9105, và các đại diện cũng có thể xác minh đủ điều kiện của một người.

Tôi có hội đủ điều kiện khong?

Tương tự như quá trình Tịch thu nhà duyệt xét độc lập, chương trình thay thế là chỉ cho chủ nhà một phần của một hành động tịch thu nhà (đang chờ xử hoặc hoàn thành) giữa ngày 01 tháng 1 năm 2009, và ngày 31 tháng mười hai năm 2010. Chủ nhà đã không phải mất nhà của họ để đủ điều kiện, nhưng cần phải được “trong bất kỳ giai đoạn nào của quá trình tịch thu nhà” trong khoảng thời gian đó.

Được bao nhiêu tiền?

Số tiền này được chia thành hai loại: các thanh toán bằng tiền mặt và hỗ trợ giảm thiểu mất mát.

Thanh toán bằng tiền mặt: 13 ngân hàng / dịch vụ đã đồng ý cung cấp một tổng số $3.6 tỷ USD cho các chủ nhà. Số lượng cá nhân cho các chủ nhà sẽ phụ thuộc vào mức độ nghiêm trọng của những sai lầm ngân hàng / dịch vụ đã làm , và có thể nằm trong khoảng từ hàng trăm đô la lên đến $125,000 USD. The Washington Post đã tạo ra một bảng hữu ích của hạng mục khách hàng vay: Waterfall danh mục vay (từ bài báo của họ: “Tịch thu nhà nạn nhân nhận được thông báo bồi thường trong hợp đồng $9.3 tỷ USD bắt đầu từ thứ sáu” Waterfall of Borrower Categories (from their article: “Foreclosure victims to get compensation alerts in $9.3B agreement starting Friday”

Trợ Giúp sự giảm thiểu mất mát: Những 13 ngân hàng / dịch vụ sẽ cung cấp $5.7 tỷ USD hỗ trợ các chủ nhà thông qua các nỗ lực giảm thiểu mất mát, các ngân hàng và “ưu tiên cho các hoạt động được thiết kế để để giữ các chủ nhà trong nhà của họ thông qua hành động bảo tồn giá cả phải chăng, bền vững, và có ý nghĩa về nhà.” dịch vụ được đưa ra cho đến ngày 07 Tháng 1 năm 2015 để hoàn tất việc hỗ trợ giảm thiểu mất mát.

Ngân hàng / dịch vụ Thanh toán tiền mặt Hỗ trợ sửa đổi trợ giúp
Aurora Loan Servicing $93 triệu $149 triệu
Bank of America $1.1 triệu $1.7 triệu
Citibank $306 triệu $486 triệu
Goldman (Litton Loan Servicing) $135 triệu $195 triệu
HSBC $96 triệu $153 triệu
JP Morgan Chase $753 triệu $1.2 triệu
MetLife Bank $30 triệu $48 triệu
Morgan Stanley (Saxon Mortgage) $97 triệu $130 triệu
PNC $69 triệu $69 triệu
Sovereign $6 triệu $9 triệu
SunTrust $62 triệu $100 triệu
U.S. Bank $80 triệu $128 triệu
Wells Fargo $765 triệu $1.2 triệu
Tổng cộng $3.6 tỷ $5.7 tỷ

Lưu ý: Các số liệu được làm tròn. Nguồn: Chấp thuận sửa đổi Đặt hàng (Amended Consent Orders) posted được đăng trên OCC và liên bang dự trữ (Federal Reserve) trang web.

Tôi nên làm gì tiếp theo? Rust Consulting có thể sẽ bị choáng ngợp bởi số lượng các cuộc minh điện thoại từ các chủ minh trong vài ngày tới, nhưng nó là đáng dành thời gian để gọi cho họ trong vài tuần tới và xác nhận rằng họ có thông tin liên lạc hiện tại của bạn và xác minh đủ điều kiện của bạn.

Để biết thêm thông tin, hãy truy cập:
Cục Dự trữ Liên bang Thông cáo báo chí: “sửa đổi, bổ sung một số điều của lệnh ưng thuận tưởng nhớ $ 9,3 tỷ Hiệp định Tịch thu nhà “Amendments to Consent Orders Memorialize $9.3 Billion Foreclosure Agreement”

If you are a homeowner living in San Jose or Sunnyvale and are struggling with your mortgage, please contact ForeclosureHelpSCC, a program funded by the City of San Jose and the City of Sunnyvale at (408)-293-6000 or visit us: www.foreclosurehelpscc.org

Our housing counselors can help you evaluate your options, learn more about federal and state programs that may help you with your mortgage issues, and will help you create a plan forward.Please note: All content included in the ForeclosureHelpSCC blog is provided for information only and should NOT be considered legal or tax advice. If you have any questions, please feel free to contact us on our hotline: (408)-293-6000, or visit our website: www.foreclosurehelpscc.org or send us an email: help@foreclosurehelpscc.org.

Si usted es dueño de una casa en San José o en Sunnyvale y están luchando con su hipoteca, por favor póngase en contacto con ForeclosureHelpSCC, un programa financiado por la ciudad de San José y la ciudad de Sunnyvale, al (408) -293- 6000, o visite nuestro sitio: www.foreclosurehelpscc.org.Nuestros consejeros puede ayudarle a evaluar sus opciones, aprender más acerca de los programas federales y estatales que pueden ayudarle con sus problemas de hipoteca, y le ayudará a crear un plan para seguir.

Por favor, tenga en cuenta: Todos los contenidos incluidos en el blog ForeclosureHelpSCC se proporciona únicamente a título informativo y no debe ser considerada como consejo legal o fiscal. Si usted tiene alguna pregunta, por favor no dude en contactarnos a nuestra línea directa: (408) -293-6000, o visite nuestro sitio:www.foreclosurehelpscc.org o envíenos un correo electrónico: help@foreclosurehelpscc.org.

Nếu bạn là một sinh hoạt chủ sở hữu nhà ở San Jose hoặc Sunnyvale và đang đấu tranh với nợ nhà, xin vui lòng liên ForeclosureHelpSCC, một chương trình được tài trợ bởi thành phố San Jose và thành phố của Sunnyvale ở (408) -293-6000 hoặc truy cập trang web của chúng tôi: www.foreclosurehelpscc.org.

Nhân viên tư vấn của chúng tôi đã được HUD chấp thuận có thể giúp bạn đánh giá các lựa chọn của bạn, tìm hiểu thêm về các chương trình của liên bang và tiểu bang có thể giúp bạn với các vấn đề thế chấp của bạn, và sẽ giúp bạn tạo ra một kế hoạch phía trước.Xin lưu ý: Tất cả các nội dung trên Blog ForeclosureHelpSCC được cung cấp thông tin duy nhất và không nên coi là hợp pháp hoặc tư vấn thuế. Nếu bạn có bất cứ câu hỏi , xin vui lòng liên hệ với chúng tôi qua đường dây nóng: (408) -293-6000, hoặc truy cập vào trang của chúng tôi: http://www.foreclosurehelpscc.org hoặc gửi email cho chúng tôi:help@foreclosurehelpscc.org.

Fannie Mae and Freddie Mac May Allow Some Deeds-in-Lieu

Freddie Mac Deed in Lieu of foreclosure

By Sean Coffey, Program Manager, Foreclosure Help

Bloomberg reports that Fannie Mae and Freddie Mac recently announced a change to assist homeowners who are current on their mortgages but who are upside down and now need to move.

The title of the article “Fannie To Allow Walkaways by On-Time Borrowers: Mortgages”  is a bit dramatic, as homeowners will still need to demonstrate a hardship, and the deed-in-lieu of foreclosure (handing the house back to the bank) will still be reported to credit agencies.  In addition, Fannie Mae and Freddie Mac may also require homeowners to pay back some of the difference between the outstanding mortgage balance and the current value of the property if they have the means.

Fannie Mae and Freddie Mac have been criticized in the past because of their reluctance to use principal right downs to assist homeowners.  Kurt Eggert, the author of “Limiting Abuse and Opportunism by Mortgage Servicers” suggested in the Bloomberg article that Fannie Mae and Freddie Mac were “playing catch-up” and that this change should have happened earlier.

According to the article, the new program is aimed at homeowners who have remained current on their mortgages, but need to move out of their home because of a job offer, deployment, illness or other hardship.  Homeowners will also need to demonstrate that they have a 55% percent debt-to-income ratio.

In their report for 3rd Quarter 2012, (FHFA: “Foreclosure Prevention Report Third Quarter 2012“) Fannie Mae and Freddie Mac reported allowing 3,994 deeds-in-lieu during Q3 2012.   In comparison, the two agencies allowed 33,972 short sales.

There were 145,000 delinquent Freddie Mac/Fannie Mae mortgages in California as of September 30, 2012 (out of a total of 3.5 million Fannie Mae, Freddie Mac loans).

To read more about the changes, visit Bloomberg: “Fannie To Allow Walkaways by On-Time Borrowers: Mortgages

If you are a homeowner living in San Jose or Sunnyvale and are struggling with your mortgage, please contact ForeclosureHelpSCC, a program funded by the City of San Jose and the City of Sunnyvale at (408)-293-6000 or visit our website: www.foreclosurehelpscc.org.   Our HUD-approved counselors can help you evaluate your options, learn more about federal and state programs that may help you with your mortgage issues, and will help you create a plan forward.

Please note: All content included in the ForeclosureHelpSCC blog is provided for information only and should NOT be considered legal or tax advice. If you have any questions, please feel free to contact us on our hotline: (408)-293-6000, or visit our website: www.foreclosurehelpscc.org or send us an email: help@foreclosurehelpscc.org.

Si usted es dueño de una casa en San José o en Sunnyvale y están luchando con su hipoteca, por favor póngase en contacto con ForeclosureHelpSCC, un programa financiado por la ciudad de San José y la ciudad de Sunnyvale, al (408) -293- 6000, o visite nuestro sitio: www.foreclosurehelpscc.org. Nuestros consejeros aprobados por HUD puede ayudarle a evaluar sus opciones, aprender más acerca de los programas federales y estatales que pueden ayudarle con sus problemas de hipoteca, y le ayudará a crear un plan para seguir.

Por favor, tenga en cuenta: Todos los contenidos incluidos en el blog ForeclosureHelpSCC se proporciona únicamente a título informativo y no debe ser considerada como consejo legal o fiscal. Si usted tiene alguna pregunta, por favor no dude en contactarnos a nuestra línea directa: (408) -293-6000, o visite nuestro sitio:www.foreclosurehelpscc.org o envíenos un correo electrónico: help@foreclosurehelpscc.org.

Nếu bạn là một sinh hoạt chủ sở hữu nhà ở San Jose hoặc Sunnyvale và đang đấu tranh với nợ nhà, xin vui lòng liên ForeclosureHelpSCC, một chương trình được tài trợ bởi thành phố San Jose và thành phố của Sunnyvale ở (408) -293-6000 hoặc truy cập trang web của chúng tôi: www.foreclosurehelpscc.org. Nhân viên tư vấn của chúng tôi đã được HUD chấp thuận có thể giúp bạn đánh giá các lựa chọn của bạn, tìm hiểu thêm về các chương trình của liên bang và tiểu bang có thể giúp bạn với các vấn đề thế chấp của bạn, và sẽ giúp bạn tạo ra một kế hoạch phía trước.

Xin lưu ý: Tất cả các nội dung trên Blog ForeclosureHelpSCC được cung cấp thông tin duy nhất và không nên coi là hợp pháp hoặc tư vấn thuế. Nếu bạn có bất cứ câu hỏi , xin vui lòng liên hệ với chúng tôi qua đường dây nóng: (408) -293-6000, hoặc truy cập vào trang của chúng tôi: http://www.foreclosurehelpscc.org hoặc gửi email cho chúng tôi:help@foreclosurehelpscc.org.

Six Reasons to Deal with Your Foreclosure Problem Today, not Tomorrow

Deal with your Foreclosure Today, not TomorrowBy Sean Coffey, Program Manager at Foreclosure Help

Editor’s Note: Foreclosure Help is a program funded by the Cities of San Jose and Sunnyvale, California, to assist  homeowners and tenants in these two cities.  If you are outside of San Jose or Sunnyvale, we suggest locating the nearest HUD-approved housing counseling agency on the HUD website:   HUD Approved Housing Counseling Agencies.

1) It’s almost impossible to stop a trustee sale at the last minute:   We have had a number of homeowners in San Jose or Sunnyvale who contacted Foreclosure Help a week before the trustee sale, or even a day or two before the trustee sale.  While we will make every effort to assist them, the unfortunate truth is that options become very limited the closer you are to a foreclosure trustee sale.   The bank/servicer can’t necessarily postpone the sale if it’s too close to the sale date (because of their internal policies), and there isn’t time to get your documents together and submitted and accepted by the bank or servicer.  While we can try and overcome some of these obstacles, it is far less stressful and you increase your chances of success if you can begin working with a housing counselor when you first have problems with your mortgage.  Filing bankruptcy may be an option to stop your trustee sale, but it’s better if you’re making the decision to file bankruptcy because you’ve considered all your other options and it makes the most sense in your situation.  Filing bankruptcy also takes time to do, and filing it a week or two before your trustee sale (instead of trying to do it the day before) will give you the time you need to meet with a reputable attorney, get your paperwork together, etc.

2) Don’t let “bank run-around fatigue” be the reason that you let go of your home.   In the beginning of the foreclosure crisis, many homeowners I spoke with had no idea where to turn, what to do, or how to work with their bank.  Now, in 2013, most of the homeowners that contact our program have already tried working with their bank once or twice to request a modification.  They may have been denied a modification for any number of reasons, including:

  • The bank or servicer said the package was incomplete (even though you may have sent the same documents to them multiple times).
  • The bank or servicer said that the Net Present Value (NPV) test was negative.
  • The bank or servicer did not give a reason.
  • The bank said they would call me, but they didn’t, so I assumed they were working on it, but it turns out they weren’t, and my file was closed.
  • My income wasn’t sufficient when I first submitted my request.

These are all complaints that homeowners cite when we ask if they’ve tried to modify their loans before.   This is where working with a HUD-approved housing counselor can be so important.  While you as a homeowner are only working on one mortgage, a certified housing counselor has likely worked with hundreds of homeowners before your case.  This means they bring experience and expertise in assisting you, can help you put together a complete and accurate package to send to your bank or servicer, will work with you on your budget to increase your chances of a modification, and often have contacts/channels at banks or servicers that ordinary homeowners (or “expert loan modification companies”) do not have access to.

3. If you’re able to hold on, the market is improving.   Ask any real estate agent in San Jose or Sunnyvale about the market right now, and you’ll hear how dramatically it’s improving.   If you’re able to get a modification from your bank so that you can continue making payments, then you will have time for the equity in your home to increase as the market continues to improve.

4. Foreclosure Stress is not good for you or your family.  You’ve probably heard that money issues are one of the biggest stresses in a marriage.  It is incredibly stressful to deal with foreclosure, mortgage, and money issues, and it impacts the entire family.  Part of the stress may be the uncertainty you feel about whether or not you have a real chance at a modification and holding on to your home.  By working with one of our HUD-approved housing counselors, you’ll get a much better understanding of the programs that exist like HAMP, Keep Your Home California, HARP, etc.

Instead of wondering about your eligibility for these programs and whether or not they could have helped you save your home, come meet with a housing counselor who will give you a direct, unbiased assessment of your situation.   While we can’t guarantee a loan modification (and we’d recommend running away from anybody who guarantees you a loan modification) , we can help you understand your eligibility for programs and how to be a successful candidate for a loan modification.

5. Your friend means well, but they don’t know what they’re doing:  You may have had offers of help from a friend who is an attorney or a real estate agent who thinks they can help you.   While they may have good intentions, the end result is often ugly.  We’ve had a number of homeowners who contact us after a failed attempt at a modification by an attorney or a loan modification expert.   Sometimes they’ve paid for the modification, sometimes it was done for free.   (As a side note it is ILLEGAL in California to charge an upfront fee for a loan modification).

The bottom line is that you want to work with a housing counselor who knows the programs inside and out, who doesn’t have an incentive to “sell” you on a particular solution (like a short sell), and who knows the foreclosure timeline and process in California.   Good intentions are nice for birthday presents and greeting cards, but when it’s your home on the line, you need to seek out expert, trained, and certified counselors.

6. Our services are already paid for by the Cities of San Jose and Sunnyvale through a grant:  This mean we don’t charge homeowners for our services.  This means our housing counselors can give you an honest, up-front assessment of your situation and they’re not financially motivated to try and steer you towards a certain outcome.

Call us at: 408-293-6000, visit our website: www.foreclosurehelpscc.org, or send us an email: help@foreclosurehelpscc.org.   The sooner you call us, the more options you have and the more helpful we can be.

If you are a homeowner living in San Jose or Sunnyvale and are struggling with your mortgage, please contact ForeclosureHelpSCC, a program funded by the City of San Jose and the City of Sunnyvale at (408)-293-6000 or visit our website: www.foreclosurehelpscc.org.   Our HUD-approved counselors can help you evaluate your options, learn more about federal and state programs that may help you with your mortgage issues, and will help you create a plan forward.

Please note: All content included in the ForeclosureHelpSCC blog is provided for information only and should NOT be considered legal or tax advice. If you have any questions, please feel free to contact us on our hotline: (408)-293-6000, or visit our website: www.foreclosurehelpscc.org or send us an email: help@foreclosurehelpscc.org.

Si usted es dueño de una casa en San José o en Sunnyvale y están luchando con su hipoteca, por favor póngase en contacto con ForeclosureHelpSCC, un programa financiado por la ciudad de San José y la ciudad de Sunnyvale, al (408) -293- 6000, o visite nuestro sitio: www.foreclosurehelpscc.org. Nuestros consejeros aprobados por HUD puede ayudarle a evaluar sus opciones, aprender más acerca de los programas federales y estatales que pueden ayudarle con sus problemas de hipoteca, y le ayudará a crear un plan para seguir.

Por favor, tenga en cuenta: Todos los contenidos incluidos en el blog ForeclosureHelpSCC se proporciona únicamente a título informativo y no debe ser considerada como consejo legal o fiscal. Si usted tiene alguna pregunta, por favor no dude en contactarnos a nuestra línea directa: (408) -293-6000, o visite nuestro sitio:www.foreclosurehelpscc.org o envíenos un correo electrónico: help@foreclosurehelpscc.org.

Nếu bạn là một sinh hoạt chủ sở hữu nhà ở San Jose hoặc Sunnyvale và đang đấu tranh với nợ nhà, xin vui lòng liên ForeclosureHelpSCC, một chương trình được tài trợ bởi thành phố San Jose và thành phố của Sunnyvale ở (408) -293-6000 hoặc truy cập trang web của chúng tôi: www.foreclosurehelpscc.org. Nhân viên tư vấn của chúng tôi đã được HUD chấp thuận có thể giúp bạn đánh giá các lựa chọn của bạn, tìm hiểu thêm về các chương trình của liên bang và tiểu bang có thể giúp bạn với các vấn đề thế chấp của bạn, và sẽ giúp bạn tạo ra một kế hoạch phía trước.

Xin lưu ý: Tất cả các nội dung trên Blog ForeclosureHelpSCC được cung cấp thông tin duy nhất và không nên coi là hợp pháp hoặc tư vấn thuế. Nếu bạn có bất cứ câu hỏi , xin vui lòng liên hệ với chúng tôi qua đường dây nóng: (408) -293-6000, hoặc truy cập vào trang của chúng tôi: http://www.foreclosurehelpscc.org hoặc gửi email cho chúng tôi: help@foreclosurehelpscc.org.

Independent Foreclosure Review Program is Replaced With New Settlement

Independent Foreclosure Review is Replaced

By Sean Coffey, MPA, Program Manager of ForeclosureHelpSCC

It is now official, the Independent Foreclosure Review program is being replaced with a program that will provide direct cash payments to homeowners that were foreclosed on inappropriately between 2009-2010.

According to a Federal Reserve press release: “A payment agent will be appointed to administer payments to borrowers on behalf of the servicers.  Eligible borrowers are expected to be contacted by the payment agent by the end of March with payment details.  Borrowers will not be required to execute a waiver of any legal claims they may have against their servicer as a condition for receiving payment.  In addition, the servicers’ internal complaint process will remain available to borrowers. “

Is this a success?  It’s difficult to say.  The administration of the Independent Foreclosure Review, and the outreach to eligible borrowers was roundly criticized, so this may be a better way to actually get the money to people who dealt with robo-signing issues.  For example, our program was still receiving phone calls from people after the December 31 deadline, asking how they could apply for the Independent Foreclosure Review.

Comments on our petition also highlighted the weaknesses in the outreach of the program, with one homeowner explaining that the letter she received looked like a scam letter, so she had tossed it aside until she saw a news program about the Independent Foreclosure Review the night before the deadline.

On the other hand, there is also a question about the actual amount of compensation that homeowners will receive.  Gretchen Morgenson at the New York Times (“Surprise, Surprise, the Banks Win” January 5, 2013) suggests that depending on the number of people who receive the compensation, this may not be as beneficial to individual homeowners as the money they could have received from the Independent Foreclosure Review:

Some back-of-the-envelope arithmetic on this deal is your first clue that it is another gift to the banks. It’s not clear which borrowers will receive what money, but divvying up $3.75 billion among millions of people doesn’t amount to much per person. If, say, half of the 4.4 million borrowers were subject to foreclosure abuses, they would each receive less than $2,000, on average. If 10 percent of the 4.4 million were harmed, each would get roughly $8,500.

This is a far cry from the possible penalties outlined last year by the federal regulators requiring these reviews. For instance, regulators said that if a bank had foreclosed while a borrower was making payments under a loan modification, it might have to pay $15,000 and rescind the foreclosure. And if it couldn’t be rescinded because the house had been sold, the bank could have had to pay the borrower $125,000 and any accrued equity.

As a reminder, a study released in November 2012, found that 800,000 more homeowners should have qualified for the HAMP program, except that a few large banks and servicers were not modifying mortgages at the same rate as their more efficient peers.

ForeclosureHelp will continue to post information on our blog as we receive updates, but as of right now, it looks like March 2013 will be one of the big dates with this new settlement, when a payment agent will be appointed.

We are also hopeful that information for homeowners who had their loans serviced by Litton Loan Servicing and Saxon Mortgage will soon be posted to the Independent Foreclosure Review website.

If you are a homeowner living in San Jose or Sunnyvale and are struggling with your mortgage, please contact ForeclosureHelpSCC, a program funded by the City of San Joseand the City of Sunnyvale at (408)-293-6000 or visit our website: www.foreclosurehelpscc.org.   Our HUD-approved counselors can help you evaluate your options, learn more about federal and state programs that may help you with your mortgage issues, and will help you create a plan forward.

Please note: All content included in the ForeclosureHelpSCC blog is provided for information only and should NOT be considered legal or tax advice. If you have any questions, please feel free to contact us on our hotline: (408)-293-6000, or visit our website: www.foreclosurehelpscc.org or send us an email: help@foreclosurehelpscc.org.

Si usted es dueño de una casa en San José o en Sunnyvale y están luchando con su hipoteca, por favor póngase en contacto con ForeclosureHelpSCC, un programa financiado por la ciudad de San José y la ciudad de Sunnyvale, al (408) -293- 6000, o visite nuestro sitio: www.foreclosurehelpscc.org. Nuestros consejeros aprobados por HUD puede ayudarle a evaluar sus opciones, aprender más acerca de los programas federales y estatales que pueden ayudarle con sus problemas de hipoteca, y le ayudará a crear un plan para seguir.

Por favor, tenga en cuenta: Todos los contenidos incluidos en el blog ForeclosureHelpSCC se proporciona únicamente a título informativo y no debe ser considerada como consejo legal o fiscal. Si usted tiene alguna pregunta, por favor no dude en contactarnos a nuestra línea directa: (408) -293-6000, o visite nuestro sitio:www.foreclosurehelpscc.org o envíenos un correo electrónico: help@foreclosurehelpscc.org.

Five Reasons Working With A Housing Counselor is Better Than “Going Alone”

By Aurora Olivares, Housing Counselor at Project Sentinel, one of the members of ForeclosureHelpSCC

Did you call your mortgage company because you are having problems with your mortgage payment? If you live in the state of California you were given the phone number for HUD (HUD stands for The U.S. Department of Housing and Urban Development), a requirement under California law. (This requirement was included in Senate Bill 1137 which was passed in 2008 and is set to expire in January 2013).

If you called that number, you were likely referred to a local HUD approved agency where you can receive free housing counseling services. Many folks wonder about what the benefits may be to working with a housing counseling agency.

Here are my top 5 reasons to work with a housing counselor at a HUD-approved agency:

  1. Honest Advice: A housing counselor will help you by assessing your situation. We will talk to you about the good and the bad with an unbiased opinion, but we bring the background knowledge of the best practices and we uphold the national Industry Standards for Homeownership Education and Counseling. In addition, we have worked with many homeowners, banks, and servicers, and this experience means we know how to keep the process moving forward, and we know the programs that may help your situation.
  2. Explanation of bank letters: A certified housing counselor can help you dissect the terminology used in the correspondence issued by your lender and in the paperwork of the loan modification process. While a bank or servicer may say your loan is “going into foreclosure,” we can help you understand what the actual timeline is for foreclosure and how to look out for important things like a Notice of Default. Understanding letters from your bank or servicer can be especially beneficial for non-English speaking homeowners.
  3. Your Budget: A counselor will work with you to review your budget. Counselors can provide budget counseling and calculate your housing ratios so you understand your ability to afford your mortgage and explain how these same ratios could impact your eligibility for assistance. For example, a counselor can review your income vs. your housing expenses and explain to you how that will impact your eligibility for a program like Making Home Affordable.
  4. Communication with your Bank or Servicer: Have you submitted paperwork to your bank or servicer multiple times, or called your designated representative but were not able to speak to them? While these types of issues can’t be completely eliminated, a certified counselor may have a reliable contact with your lender or have an efficient method of submitting your documents which can help smooth out some of the bumps along the way during the lender’s review.
  5. Resources: We provide you with resources. Did your lender tell you if you were eligible for the Keep Your Home California program? (English Website for Keep Your Home California, Spanish Website for Conserva Tu Casa California) Were you advised if you are a good candidate for a reverse mortgage? Did your lender tell you about an up and coming program your county may be working on to aid homeowners in distress or where you could go to get the much needed repairs to your home? Odds are you were not told about some of the resources that are right in your own back yard. We are local, just like you and we know what programs are truly out there to help the community we live in.

Are you having trouble paying your mortgage and do you live here in San Jose or Sunnyvale California? If so, contact ForeclosureHelpSCC by telephone: (408) 293-6000, email: help@foreclosurehelpscc.org, or visit our website: www.foreclosurehelpscc.org.

ForeclosureHelpSCC is a program that is supported by the Cities of San Jose and Sunnyvale, and staffed by housing counselors from four local, HUD-approved counseling agencies. Our housing counselors can speak to you about what your options are if you’re having trouble paying your mortgage, including programs like Making Home Affordable, Keep Your Home California, the Independent Foreclosure Review, and private, in-house modifications offered by banks and servicers as well. Your housing counselor can work with you to develop a plan of action to begin dealing with the problem instead of ignoring it.

Remember, the sooner you start working with a housing counselor, the more options you will have to address your mortgage situation and potentially remain in your home.Time is not on your side, so pick up the phone and give us a call.

Please note: All content included in the ForeclosureHelpSCC blog is provided for information only and should NOT be considered legal or tax advice. If you have any questions, please feel free to contact us on our hotline: (408)-293-6000, or visit our website: www.foreclosurehelpscc.org