Tag Archives: Foreclosure Mediation

Last year the Florida State Courts Administration asked its legislators for $9.6 million to try to clear its massive backlog of foreclosures. Since the courts received the money and began working through the backlog in July 2010, the state has cleared more than 110,000 foreclosures from its system. That, however, leaves more than 350,000 foreclosures to work through.

Sen. Sheldon Whitehouse is pushing legislation that would allow bankruptcy court judges to order foreclosure mediation between homeowners and lenders. His proposal is modeled after a program in his home state of Rhode Island. He says it would not give judges the power to slash mortgage debt like the many bankruptcy cramdown measures that have fallen short, but instead would force lenders to open up the lines of communication to find a solution that is in the best interest of both homeowners and investors.

According to a new report released this week by the Nevada Association of Realtors, nearly one in four Nevada homeowners who have lost their homes to foreclosure admit to ""walking away"" as part of a strategic default. The report also revealed that most of the state's homeowners facing foreclosure were not aware of federal and nonprofit programs designed to help them. Sixty-one percent said they'd never heard of the federal government's HAFA short sale program.

Fannie Mae will utilize eMASON's Web-based Clarifire application to comply with the foreclosure pre-filing mediation process mandated by the Florida Supreme Court. Issued in December 2009, the statewide mediation program aims to open up communication between lenders and distressed borrowers prior to foreclosure proceedings. eMASON says Clarifire works to improve the prospect and cycle times associated with assisting borrowers by offering mediation and related workout options early in the loan's delinquency.

After reviewing a report and recommendations presented to him, New Jersey Chief Justice Stuart Rabner announced on Monday a series of steps to protect the integrity of foreclosure filings in the state. The report featured a review of robo-signing irregularities by mortgage lenders and servicers and included analysis of actions other states had taken.

CitiMortgage will host a mortgage assistance call-a-thon on Wednesday for customers who have concerns about paying their mortgages. The event begins at 7 a.m. on December 15, and continues until 1 a.m. on the morning of Thursday, December 16, EST. CitiMortgage borrowers can call the company's foreclosure prevention centers for information and advice during these expanded customer service hours. Foreclosure prevention experts will staff the event, but senior managers and supervisors will be on hand to provide additional support.

In order to deal with the influx of loan modifications that many banks are dealing with, Bank of America Home Loans has made the decision to move some of its mortgage loan originators and other staff to the loan modification department. The company plans on shifting around 2,500 employees to the modification side, where they will remain for at least the majority of 2011. That will bring the bank's team of home retention professionals to nearly 30,000.

The law firm of Harwood Feffer, LLP has filed a class action lawsuit against Wells Fargo Bank and its servicer, America's Servicing Company (ASC). The suit alleges that ASC induced borrowers to default on their mortgages by telling them they would not be eligible for a loan modification if they were current on payments. Harwood Feffer claims ASC was looking to boost its revenue by assessing additional penalties and fees and collecting interest on the nonperforming loans it services.

The National Association of Realtors (NAR) issued a notice this week explaining Wells Fargo's new rules surrounding short sale transactions when a foreclosure is pending. Earlier this month, Wells Fargo advised NAR that it has modified its existing guidelines to allow the postponement of a scheduled foreclosure in connection with a short sale, but only in limited situations. Specifically, Wells Fargo must have an approved short sale contract in hand, and the transaction must close within 30 days of the scheduled foreclosure sale.

A new Federal Trade Commission (FTC) rule bans providers of foreclosure rescue and loan modification services from collecting fees until homeowners have a written offer from their lender or servicer that they decide is acceptable. The rule also requires mortgage relief companies to provide their clients with a document describing the key changes to the mortgage that would result if the consumer accepts the offer. They must also remind consumers of their right to reject the offer without any charge.