Archive for the ‘Mortgage Loan’ Category
Fannie Mae Extends Moratorium on Home Foreclosures
10 Mar
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Fannie Mae has announced it is extending — through March 31, 2009 — its moratorium of all eviction proceedings involving Fannie Mae funded mortgage investments, as the government-sponsored enterprise (GSE) implements new initiatives aimed at helping more distressed homeowners save their homes.
In making the announcement, Fannie Mae also issued special foreclosure sale requirements in response to the Obama administration’s Making Home Affordable program. According to the GSE, a foreclosure sale may not occur on any Fannie Mae loan until the loan servicer verifies that the borrower is ineligible for a “Home Affordable Modification” and all ...
Are Bank-Owned Loans Better Candidates for Loan Modification?
08 Mar
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There are two kinds of mortgage loans in this world — bank owned and investor owned — and the type you have often determines the level of difficulty you face in obtaining a loan modification. A bank-owned mortgage is one that the bank services and owns (the bank is also the investor). An investor-owned mortgage is one that has been repackaged as a mortgage-backed security (MBS) and sold to Wall Street investors or sold on the secondary market as a pool or package of whole loans. A servicer collects and processes the payments, but the servicer does not ...
California Loan Modification Companies May Soon Become a Thing of the Past
08 Mar
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If a group of consumer-minded California State Senators get their way, loan modification companies may soon find themselves out of business or scratching their heads as they consider how to successfully adjust their revenue model.
California Senate Bill 94 (SB 94), which looks like it might be days away from being passed by the full California State Senate, would prohibit the charging of advance fees to homeowners in connection with a loan modification, and require anyone who wishes to charge a fee for loan modification services (after performing them) to provide a state mandated notice beforehand regarding the availability of non-fee ...
Is My Loan Eligible for Modification Under the Obama Plan?
05 Mar
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The U.S. Department of the Treasury recently released its Home Affordable Modification Program Guidelines, which include eligibility requirements to determine which homeowners qualify for relief under the plan. Following are the eligibility requirements as specified in the guidelines:
Mortgage must have originated on or before January 1, 2009.
Home must be an owner-occupied primary residence (verified with tax return, credit report, and other documentation such as a utility bill) – this program is not designed for investor-owned properties.
Home must be a single family 1-4 unit property (including condominium, cooperative, and manufactured home affixed to a foundation and treated as real ...
Answering Questions about Front and Back DTI Calculations
04 Mar
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Back on the 17th of March, I published a blog entry that generated a lot of follow-up questions (see “Understanding Debt-To-Income Ratio“). One such question–and its multiple answers–appears below.
Question: Thank you for your article about DTI ratios. I have a couple of follow up questions. My wife and I own a rental property which has a positive cash flow of 100 per month. Both of our names are on the title and on the loan. On our primary residence, we have a first mortgage and an HOEL. On the primary residence, only my name is on the title ...
FICO’s Web Initiative May Help Those Seeking Loan Modification
04 Mar
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FICO/Fair Isaac, the company that manages the all-important credit-scoring formula used by lenders when making mortgages, today unveiled Mortgage Relief Online, a new website that supposedly lets you know within seconds whether you qualify for a loan modification or refinancing under the Making Home Affordable Program.
Here’s Wall Street Journal blogger Mary Pilon’s take on the site/service:
If a borrower fills out the form and qualifies for free mortgage counseling, Fair Isaac will give applicants a free credit score and credit report. (You’re entitled to your free credit report once a year from each of the three credit reporting agencies at annualcreditreport.com.) ...
Our Former Sponsor
04 Mar
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With very little fanfare, something recently changed here on KeepMyHouse.com. If you were paying close attention, you may have noticed on Tuesday, March 31, I removed all advertisements and sponsorship images & links for a California-based law firm called Federal Loan Modification Law Center, LLP (FLM).
As some of you know, I previously agreed to serve as FLM’s national spokesperson. I did so because I believe homeowners facing foreclosure need as much help as possible in saving their homes or getting out from underneath a home loan they no longer can afford, and I had reasonable assurances from FLM that they ...
Congressman John Conyers says Loan Modification Can Stop the Foreclosure Crisis
03 Mar
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United States Congressman John Conyers—a Democrat from Michigan who serves as chairman of the House Judiciary Committee—says loan modification can help stop stem the tide of foreclosures. From today’s Wall Street Journal:
This week the House Judiciary Committee approved legislation aimed at helping Americans keep their homes through bankruptcy.
I introduced the Helping Families Save Their Homes In Bankruptcy Act of 2009 to give courts the power to modify mortgages to bring them in line with underlying home values. For families in distress, this is a much-needed reform. And considering the realistic alternatives, it is fair to all concerned.
I have ...
Foreclosure Statistics for February 2009
17 Feb
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The latest foreclosure statistics are out and news isn’t very good. Foreclosure filings in February jumped nearly 6% from January, despite foreclosure moratoriums and prevention programs around the country, according to RealtyTrac’s 2009 U.S. Foreclosure Market Report.
Foreclosure filings were reported on 290,631 properties in February, up almost 30% from February 2008. The report, which was issued just a few hours ago, also reveals one in every 440 U.S. homes received a foreclosure filing in February.
The increase in foreclosure activity from January to February is more than somewhat surprising, especially given that many of the foreclosure ...
Settlement Agreement with Countrywide Means More Loan Modifications for Virginians
11 Feb
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The State of Virginia has joined a nationwide settlement agreement with Countrywide that spells good news for the state’s distressed homeowners. In total, the settlement will provide more than $8 billion in loan modifications and foreclosure relief to as many as 397,000 homeowners across the United States, including projected relief of $210 million for nearly 9,000 homeowners in Virginia. (Countrywide was acquired by Bank of America Corporation in July 2008.)
Under terms of the settlement, Countrywide and its affiliates have agreed to offer loan modifications for eligible borrowers, allowing hundreds of thousands of Americans to keep their homes. According ...