Sunday, July 10, 2011

Extended Mortgage Forbearance for Unemployed (Foreclosure News)

HUD made a major change to foreclosure policies for mortages serviced through the FHA.  Unemployed people behind on their mortgages (starting August 1st), will be given 12 months forbearance before foreclosure procedings begin, rather than the three months currently available.  Servicers (institutions that make loans), will be given 60 days to implement this.   This is NOT required of loans through Fannie Mae and Freddie Mac--their forbearance periods are between 3 and 6 months. And, at the end of the forbearance period, lenders must review the case to see if the borrower is eligible for any other foreclosure programs.  If they are not, they must notify the homeowner with a reason why within seven calendar days. 

If you are having a foreclosure problem, whether you are eligible for this program or not, find a good, non-ripoff foreclosure counselor to advise you on your next steps.


New Reader! said...

I'm surprised you don't mention Matthew Lesko on here, being that's he's the most infamous "Free Money" scammer out there.

Pretty good summary here:

Free Money for bills?

Linda Koss said...

I don't bother mentioning by name--let them buy their own space-- but if it's too good to be true, it's NOT TRUE!

FWIW, here's a word from Ohio congressman Steven Latourette:

re: Lesko and others promising "free money."