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.

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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.

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Homeowners Say Customer Service is Still a Problem when They Contact Their Bank or Servicer

Lost documents, robo-signing, getting different messages from different bank departments, broken verbal promises for modifications, loan servicing being transferred, and unexplained modification denials- are these all things of the past with settlements like the Independent Foreclosure Review, Attorney General Settlement, and here in California, the new Homeowner Bill of Rights?

Not exactly.

At the national level, the Consumer Financial Protection Bureau recently made its complaint database public and complaints about mortgage loan servicing issues represent 55% of the 90,000 complaints. The Bureau is making the data public and asking for people’s ideas on how to use the data.  As an example, the Bureau created a sort-able spreadsheet that allows users to sort by the type of complaint, company, etc.

HousingWire recently touched on some of these issues in their April 23rd article, “Loan mods, inaccessible websites irritate servicing customers the most.” The article describes Craig Martin’s recent presentation where he said that loan modification and inaccessible/difficult to maneuver websites are two top complaints of homeowners.   Martin is with J.D. Power and Associates, which publishes an annual rating on mortgage loan servicers.

In J.D. Power and Associates’ most recent survey of 5,623 homeowners ,  BB&T, Regions Mortgage, SunTrust Mortgage, Chase, and PNC Mortgage were ranked the highest quality.  In comparison, the five lowest rated banks/servicers were Aurora Loan Services, OneWest Bank (formerly Indymac), Homeward Residential, Nationstar Mortgage, and Ocwen Loan Servicing.   You can see the full chart of all the banks on page 4:  J.D. Power and Associates Reports: Amid Record-Low Interest Rates and Improved Loan Modification Programs, Customer Satisfaction Increases

If you live in San Jose or Sunnyvale and you’re struggling with your mortgage, you may want to sit down and meet with a housing counselor from ForeclosureHelp.  At your appointment, they’ll review your mortgage, your income/monthly budget, and then help you understand your eligibility for programs like HAMP, HARP, in-house modifications, and Keep Your Home California– a program that over 600 Santa Clara County residents have already accessed and used.

The services at ForeclosureHelp are paid for through a federal Community Development Block Grant from the City of San Jose and from a grant from the City of Sunnyvale- so there is no charge to the homeowner.

 Other resources to review:

Consumer Financial Protection Bureau warns mortgage servicers about legal protections for consumers when transferring loans

The CFPB takes action against mortgage insurers to end kickbacks to lenders

Maggie’s Five Rules for Working with Your Bank or Servicer

California Monitor (for Attorney General Settlement with 5 largest banks) Website

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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.

Check the Facts, Figures and How Keep Your Home California is Helping Homeowners

Have you heard about Keep Your Home California? It’s an important program to consider if you’re struggling with your mortgage, especially if it’s due to unemployment- their Unemployment Mortgage Assistance Program can help keep you on your feet by paying your mortgage for up to 9 months.

Keep Your Home California

Transparency has become a critical issue for government. It’s a phrase – and practice – Keep Your Home California takes seriously.

In fact, our new website (www.KeepYourHomeCalifornia.org) is all about being transparent.

Whether you’re looking for county-by-county data – including how many homeowners have been helped and money allocated – or quarterly update reports to U.S. Treasury, the new website makes it easy to find. You can even check how many applications are approved or the total dollar assistance provided by quarter.Image

In short, we want Californians – from cash-strapped homeowners to those critical of government help – to have access to the mortgage-assistance program’s facts and figures. And the numbers are solid.

Keep Your Home California has provided mortgage payment assistance to almost 25,000 homeowners since the $2 billion, federally funded program started in February 2011. Some other facts and figures on the Reports & Statistics page (

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New Analysis of 2009-2011 Census Data: For Wealthiest 7%, Assets Increased 28%, but for Remaining 93%, Assets Decreased 4%

By Sean Coffey, MPA, Program Manager at ForeclosureHelp

A new analysis of Census Data by the Pew Research Center reveals that the wealth gap in the United States continues to grow, and that the “economic recovery” is mostly benefiting wealthy people.

For example, the mean net worth of the eight million households in the upper 7% increased by an estimated 28%, from $2.4 million in 2009 to $3.1 million in 2011.  In comparison, people in the lower 93% (111 million households) saw their mean net worth decrease 4%, from $139,896 in 2009 down to $133,817 in 2011.

This large difference is due mostly to the differences in assets.  For example, for households with a net worth of more than $500,000, 65% of their wealth is from financial holdings like stocks, bonds, and retirement accounts, while only 17% of their wealth is based on their home value.

In contrast, for household with a net worth of less than $500,000, half of their net worth is from their home, and only 33% is from financial holdings like retirement accounts.

The analysis also examined the time period from 2005 to 2009 (when the housing market crashed), and found that mean net worth declined by 12% for “households as a whole but remained unchanged for households with a net worth of $500,000 and over.”   For the over $500,000 group, they had a mean net worth of $1,590,075 in 2005; $1,585,441 in 2009, and $1,920,956 in 2011.

This data was interesting in light of the work we do at ForeclosureHelp- for many homeowners who live here in San Jose and Sunnyvale and who contact our program, they have already attempted at least once to ask their bank to modify their mortgages.  Unfortunately, modification requests don’t always go smoothly the first time (paperwork gets lost, etc), and many homeowners cite a list of reasons they don’t want to apply again (it’s been referred to as “modification fatigue”).

However, the analysis above clearly demonstrates that a house is the largest asset for most Americans, and that’s why we encourage homeowners to meet with one of our housing counselors who is certified in foreclosure prevention counseling.

The counselors know the programs like HAMP, HARP, or Keep Your Home California, and can work with you to understand your eligibility for these programs and to submit a modification request- even if you’ve asked for a modification before and were unsuccessful.

For more reasons working with a housing counselor makes sense, visit our earlier blog post:  Five Reasons Working With A Housing Counselor is Better Than “Going Alone”

En Espanol: ¿Por Qué Trabajar Con Un Consejero de Casa?

This post has also been popular with our blog visitors: Helpful Resources if You’re Facing Foreclosure By Foreclosure Help SCC

To read the full Pew analysis, visit: A Rise in Wealth for the Wealthy; Declines for the Lower 93%

Foreclosure Help is a 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.

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 to request this accommodation.

Six Things I wish I would have done differently: How to Avoid Foreclosure in San Jose and Sunnyvale

Foreclosure Regrets in San Jose and Sunnyvale

By Sean Coffey, Program Manger, Foreclosure Help

Unfortunately, some of the homeowners who call Foreclosure Help have already lost their house to foreclosure or are so close to a trustee sale that their only option to delay a trustee sale is to file bankruptcy.  Based on these conversations, we are providing a few points that might be helpful for people who are starting this process.  This is not legal advice/financial advice, and if you have questions, call us.

1) Deal with the problem earlier.   Meeting with a housing counselor can be one of the first steps to dealing with the problem.  Is the housing counselor going to have 100% good news?  Not necessarily, but they will provide you with a clear, unbiased,  analysis of your situation and what state programs (like Keep Your Home California) and federal programs (like the Making Home Affordable Program) could be helpful with your situation.  For example, if you were recently laid off, the Unemployment Mortgage Assistance program, part of Keep Your Home California, could pay your mortgage for up to nine months while you secure a new job.   If keeping the home isn’t an option, counselors can discuss things you need to know about a short sale, and also discuss transition assistance programs, like Keep Your Home California’s Transition Assistance Program.

2) Made this process a priority.  There’s an old saying: “Nobody cares about your home like you do.”  If you are trying to address the situation, you’ll need to 100% engage in the process and “be in the driver’s seat” to make sure that the process continues moving forward.  You should not rely solely on your bank or your housing counselor to handle the problem for you. They are part of the process, but you need to be the driving force, making follow-up phone calls, checking in with your bank or servicer, and making sure that you spending sufficient time with the process, and that you are the “squeaky wheel that gets the grease.” 

 3)  Worked with a housing counselor from the beginning.  Our society has become very specialized- think about the number of specialized services that you rely on in a given week.  You have your car fixed by a mechanic because they know what they’re doing.  In working with a counselor from a HUD-approved agency, you are getting specialized services from a trained professional, who is bringing the skills, training, and contacts that can make the difference in getting your loan modified, getting honest advice about your situation, and escalating your case at the bank when necessary.   Housing counseling agencies are paid for through government and private grants, and this means they don’t have an incentive to “sell” you on a particular option.   Instead, they’ll give you an honest evaluation of your options and empower you to decide what you want to with your home.

 4) Got all of my paperwork together.   You are essentially asking the bank or servicer to re-write an IOU.  To do this, they are going to need all of your documents they requested, and you have a much higher chance of success if you get all of the documents together, send them all in at the same time, and have confirmation from the bank or servicer that they received the paperwork.   Are you going to send this paperwork in more than once?  Probably.   If you want the modification process to move forward, you need to get all of your paperwork together, organized, and into the bank or servicer, and getting it in a few days ahead of the deadline will give you a “buffer” in case the paperwork gets lost along the way.   Don’t forget to call 2-3 days after you mail in your paperwork, and confirm that they received all of the paperwork and that there is nothing else they need.

5) Not believed the “too good to be true” scam artist who promised to modify my loan.   It seems unbelievable that there are still scam artists going after homeowners in desperate situations.  And yet, we still see examples of these letters every week from homeowners who received them in the mail, with offers to modify loans or provide other “assistance.”   Phone calls, house visits, and even word-of-mouth referrals are another way that scam artists will contact you.

Reasons you should view all offers of “help” critically:

  • It is illegal in California to charge an upfront fee to modify a mortgage.
  • The foreclosure process doesn’t stop just because you hired a scam artist.   If you hire a scam company, and it takes you three months to figure out that they took your money and didn’t do anything, you are now 3 months into the foreclosure process, with fewer options, and more pressure from the bank.
  • If you’re spending money paying a scam artist, that’s less money that you have to pay your mortgage.
  • They will say whatever you want to hear, regardless of whether or not it’s true.  It would be great if 100% of people were going to get their loans modified, but the reality is that there are a number of other variables (like the NPV test, your income, who the investor is, whether or not your bank is participating in government programs, the size of your mortgage, etc) that will determine if and to what extent your loan is modified.  For these reasons, anybody who promises a loan modification is telling you a lie in order to get your business- and you should run away from them (and report them to the District Attorney).
  • There are FREE housing counselor services available that are paid for through a government grant. These skilled, experienced, counselors are from agencies certified by the federal government (HUD), and will provide you an unbiased analysis of your situation and options.

6)  Made a contact at the bank or servicer.  Think about all the jobs you’ve had.  Were there ever situations where your authority or discretion could help or hurt a customer?  Or, where you could share information with a customer that would help them better understand a process, product, or timeline?  Think of the waitress who tells you “No, you don’t want that meal, this other meal is our most popular.”  Now, apply that to your experience with the customer service person at the servicer or bank. If you can make “friends” with the person, they may be willing to share tips or strategies with you that can help you in this process.

While the new California Homeowner Bill of Rights  (Spanish: La Declaración de Derechos de los Propietarios de Vivienda en California and Vietnamese: Luật Dân Quyền cho Chủ Nhà ở trong Tiểu Bang) California mandates a single point of contact (and you should remind your bank or servicer about this), it’s also a good policy for you to try and develop a single point of contact at the bank who knows your story and who will be there throughout the process.

If you have questions, please contact your housing counselor directly, or call Foreclosure Help at 408-293-6000 or email us: help@foreclosurehelpscc.org.  You can also visit our website: www.foreclosurehelpscc.org

If you are struggling with foreclosure in San Jose or Sunnyvale, please give us a call. The sooner you pick up the phone, the sooner we can help, and the earlier you start in the process, the more options you will have to create a plan forward.

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 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.

Loan Modification: How To Be Successful

By Stephanie Vang, HomeOwnership Program Manager at Neighborhood Housing Services of Silicon Valley, one of the members of ForeclosureHelpSCC

Do you ever wonder what does it take to get successful loan modification from your lenders?  How long is the loan modification process?  From our experiences of working with distressed homeowner in imminent danger to default and homeowners already in foreclosure; the answer to these questions is TIME.  You must take time away from your busy work schedule to visit your lender’s website to educate and empower yourself and you must allow time for your lender to respond to your request.

Lenders put useful links on their website to help struggling homeowners know their options.   By empowering yourself with this information, you will be better equipped when communicating with your lender about your hardship.  Although every homeowner’s hardship is unique, banks and servicers know which homeowners did their research and which ones did not.  You must take at least a day or two to fully understand what options are available.  You should also visit helpful sites like: www.makinghomeaffordable.gov, www.keepyourhomecalifornia.org, or www.conservatucasa.org, www.hud.gov, and knowyouroptions.org.

You must also take time to prepare a timeline of events with concrete dates of when your hardship started.  When applying for a loan modification, it takes twice if not three to four times the effort as when you initially purchased or refinanced your home.  Like before, you have to get all your documentation ready and prepare yourself when calling your lender.

This call should not be made during a 15 minute break and not during your lunch hour.  This call should take place when you have more than two hours to spare.

Through Neighborhood Housing Service Silicon Valley’s Successful Loan Modification Survey, 31% of the homeowners that were able to prevent foreclosure noted a wait time of 20 – 30 minutes when calling their lenders.  Of the 31% percent, half noted that they outreached to their lender once a week to verify that status of their loan modification and had to repeat the same information every time they contacted their lender.  Some even designated a specific notebook where they recorded the date, time, the conversation, the lender’s representative and the representative’s I.D. number.

Lastly, loan modification varies from lenders to lenders.  If you’re applying for a loan modification, do not expect to get your lender’s response within 30 days.  On average, loan modification can range from 30 to 45 or more business days in response time or longer.  During this time frame, you must stay focused on your goal and stay connected with your lender.  Set aside ample time when calling, designate at least one day out of the week to call and always prepare yourself when calling your lender.  These are some helpful tips from our past homeowners who received successful loan modification.

You may also enjoy our earlier blog posts related to this topic:  “Maggie’s Five Rules for Working With Your Bank or Servicer,”Foreclosures in San Jose and Sunnyvale: Three Reasons Time is NOT on your Side,” and “Five Reasons Working With A Housing Counselor is Better Than “Going Alone.”

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.