Tag Archives: Foreclosure Prevention

A new rule from the Federal Trade Commission that aims to protect homeowners from mortgage relief scams may impact real estate professionals who represent clients involved in short sale transactions. The Mortgage Assistance Relief Services rule bans all upfront fees for renegotiating mortgage terms and mandates certain consumer disclosures. It is primarily directed at companies offering modification services, but the National Association of Realtors says certain conditions also apply to practitioners working with short sales.

The New Jersey HomeKeeper Program officially launched this week to provide payment assistance to homeowners in the state who are at risk of losing their homes to foreclosure as a direct result of unemployment or underemployment. The zero percent interest rate loans offered through the program will be forgiven in full as long as the homeowner remains in the home for at least 10 years. The latest figures from the state reveal New Jersey's unemployment rate rose to 9.3 percent in March.

Wells Fargo says as of March 31, the company had 664,195 loans in active trial or permanent mortgage modifications. Eighty-six percent, or 568,548, were through Wells Fargo's own modification programs. Loans restructured through HAMP tallied 95,647. At the same time, 7.22 percent of all first mortgage and home equity loans serviced by the company were past due or in foreclosure in the first quarter, down from 8.02 percent. While past-dues are dropping, litigation expenses related to foreclosures are expected to rise.

MLSListings, Inc., a not-for-profit, California mutual benefit corporation formed by eight Northern California Realtor associations, will participate in the Fannie Mae Short Sale Assistance Desk program. MLSListings, which represents more than 18,000 subscribers in 6,000 firms in an area covering 28,000 square miles, is the first multiple listing service (MLS) in California to participate.

Hawaii Gov. Neil Abercrombie has signed into law a measure aimed at stemming foreclosures in the state by bringing homeowners and their lenders together to negotiate an alternative resolution. Based on first-quarter foreclosure activity, RealtyTrac reports that Hawaii had the 11th highest foreclosure rate in the nation, with one in every 201 homes in the state receiving a filing during the first three months of this year.

Sixteen percent of homeowners receiving permanent assistance through the government's Home Affordable Modification Program (HAMP) have been disqualified from the program for missing three consecutive payments, according to Treasury. Federal officials say HAMP's permanent mods are performing well over time, with a better track record of sustainability than the industry's private modifications. There are currently 587,000 borrowers in a permanent HAMP modification.

California's Code 3 Realty & Mortgage Inc. will begin foreclosure prevention conference calls this month to provide information to homeowners facing foreclosure, as well as owners and renters occupying homes after they have been foreclosed. While many real estate companies host foreclosure prevention workshops for distressed homeowners, Code 3 contends that attendance at these events is usually low because foreclosure is such a sensitive topic and can be embarrassing for many. The company believes telephone conferences offer a discrete alternative.

Bank of America said Thursday that the company plans to more than triple its number of customer assistance centers to help borrowers who are having trouble making their mortgage payments. The expansion will bring the number of BofA mortgage help centers to 40 in 22 states by early summer. The bank is already operating 12 fulltime customer assistance centers, where counselors have met with more than 17,000 homeowners. Beginning this month and into July, it plans to open 28 new centers.

In an effort to help mortgage servicers respond to the consent orders issued by regulators last month, Lender Processing Services (LPS) has announced enhancements to its mortgage loan servicing platform (MSP). The consent orders require servicers to provide borrowers with a dedicated single point-of-contact for specific loss mitigation and servicing functions. Via LPS's MSP, clients can assign, view, and obtain detailed information on the single point-of-contact assigned to each specific loan throughout the life of the loan.

Fannie Mae sponsored a special open house event Wednesday in Philadelphia to mark the opening of its latest Mortgage Help Center. The Philly location is the ninth in a series of planned nationwide centers to provide assistance to homeowners in default or at risk of foreclosure. Fannie Mae president and CEO, Mike Williams, joined representatives from the Philadelphia area public and private sectors to mark the occasion.