Tag Archives: Foreclosure Prevention

The Air Force uses visual flight simulators to train its pilots for the actual experience. Virtual reality simulation models are used to help people overcome their fears or uneasiness about certain real-life situations. Fannie Mae is applying this same idea to foreclosure prevention. The GSE has unveiled an interactive multi-media tool called WaysHome that allows homeowners to put themselves in real-life situations they can identify with, make financial choices, and immediately see the outcomes of those actions.

The Federal Housing Administration (FHA) aims to assist senior borrowers with its newly released guidance on reverse mortgages, or the Home Equity Conversion Mortgage (HECM) program. According to the federal agency, some elderly homeowners are struggling with outstanding property taxes and unpaid hazard insurance premiums. Those who neglect to pay these expenses may face foreclosure, even in instances where the homeowner's mortgage is paid in full.

The HOPE NOW industry alliance completed its fourth year in existence in 2010. The organization's latest market report estimates 1.65 million homeowners received permanent loan modifications from January to November 2010. The organization says it plans to be even more aggressive in its outreach efforts to distressed homeowners this year. Going forward, each of its members will participate in one major outreach event per month, in regions that have been most heavily affected by the mortgage and foreclosure crises.

Marshall & Ilsley Corporation (M&I) has extended its foreclosure moratorium for distressed homeowners through March 31 as part of its Homeowner Assistance Program. M&I originally instituted the foreclosure freeze in December 2008, as has been a typical practice for many lenders around the holiday season since the housing crisis set in. The company has been regularly extending its suspension on home repossessions ever since to afford customers who are struggling with their mortgage payments the opportunity to keep their homes.

There has been no shortage of reports of state attorneys general seeking accountability from servicers that they allege mishandled foreclosures. Now it's being reported that attorneys general in all 50 states are near to reaching settlements with the nation's top five mortgage servicers, including Bank of America and GMAC Mortgage. The states are looking to develop separate agreements, rather than one encompassing settlement; and they plan to pursue a civil investigation rather than a criminal one.

Indiana Attorney General Greg Zoeller on Monday filed a petition asking the Indiana Supreme Court to impose new procedures for foreclosures filed in the state. Zoeller says with some mortgage lenders trying to foreclose on distressed homeowners by filing court documents that are unverified, unauthenticated, or riddled with errors, Indiana is not going to wait for the federal government to take action to ensure borrowers' rights are protected.

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.

New data from federal regulators show that the nation's largest banks and thrifts repossessed nearly 187,000 homes during the third quarter of 2010. The number of foreclosures completed during the three-month period is up 57.5 percent from a year earlier. The report shows that new foreclosures initiated also rose to more than 382,000. Although foreclosure activity increased during the quarter, servicers reported almost twice as many home retention actions as completed home forfeiture actions.

The Obama Administration announced on Thursday a round of grants totaling nearly $73 million to more than 500 national, regional, and local organizations to provide housing counseling services. Agencies receiving the grants will focus on helping homebuyers and homeowners understand their financing and down payment options, and will help combat predatory lending by assisting borrowers with reviews of loan documentation. The new round of grants represent a 22 percent increase over last year's funding.

The government's key foreclosure prevention program has put 504,648 distressed homeowners into permanently modified loans since its launch in March 2009. Treasury released new numbers for the Home Affordable Modification Program (HAMP) Wednesday, and in addition to crossing the 500K threshold, the data show that servicers stepped up their use of the program. Permanent modifications in November rose 26 percent compared to October, and 20 percent more trial mods were started.