What About the HARP 2.0 Program for Refinancing? Are There Other Programs, Too?

HARP (the home affordable refinance program) is getting a lot of attention nowadays, since it's more liberal than it used to be.  Who does it help?  It helps people who have a Fannie Mae or Freddie Mac-owned loan (you can find out if that's you by looking here), and meet other qualifications.   

Since you have to have a good repayment record (no missed payments in the last 6 months, and no more than one in the last 12 months), it's not for people between the devil and the deep blue sea, just people who are underwater and would like to get a better deal.  While you are considering it, keep in mind that besides the government qualifications, the lenders may have qualifications of their own, and they may vary from one to another.   So if you get turned down by one, check out other eligible HARP lenders. 

What if you need help, and don't qualify for HARP?  There is a list of other federal mortgage aid programs by the federal government.   You can call housing counselors around the clock at 888-995-4673.  For a face-to-face talk with a reputable person in your area, see the list of HUD-approved counselors.

New Foreclosure Modification Program If You're 90 Days or More Behind

Last March, the Federal Housing Finance Agency announced a new foreclosure avoidance program that starts today, July 1st.  From now until August 1, 2015, borrowers whose mortgages are owned or guaranteed by Fannie Mae or Freddie Mac may be eligible for a mortgage modification, if : 1) they have a firsr-lien mortgage that is at least 12 months old, and 2) are between 90 days and 24 months delinquent and 3) have a loan-to-value ratio equal to or greater than 80%.  It's the "Streamlined Modification Initiative." 

Unlike the hold HAMP program, borrowers do not have to prove financial, income and hardship qualifications.  Mortage servicers are required to identify eligible mortgage owners and send a Streamlined Modification Solicitation Offers to them.  If they can make the new payments for a trial period of 3 months, they may have their payments permanently changed. 

Of course, as this NOLO page points out, if you can submit documentation of financial hardship, you may get a better deal.  For more information on foreclosure prevention, try another NOLO page.  Here's more information from the Freddie Mac page. 

Deadline Approaching for an Independent Foreclosure Review

The deadline for an independent review of your foreclosure process--to see if you were financially harmed by the foreclosure procedure on your home in 2009 or 2010--is December 31, 2012.  You have only a month to file and ask an independent reviewer to look over the details of your foreclosure.  Go to the Independent Foreclosure Review website for all the details.

In a nutshell, you may be eligible for some compensation if: 1) your mortgage was serviced by one of the mortgage servers on the list.  If you're not sure who your server was, call 1-888-952-9105, Monday through Friday, 8 a.m.–10 p.m. ET or Saturday, 8 a.m.–5 p.m. ET.  2) You were in some stage of foreclosure in 2009 or 2010, even if you didn't lose your home and 3) the home was  your primary residence.  If you fit these three qualifications, you may be eligible. 

Remember that this review is FREE--you don't need to pay anybody to help you fill out the forms or file for compensation.  If you or a qualified person needs a translator, that's available, too.  For any help, call 1-888-952-9105.  And remember that you only have until December 31, 2012.

Independent Foreclosure Review Deadline Extended

Your chance to apply for an independent foreclosure review just got extended.  If you were in foreclosure action in 2009 through 2010--even if you did not lose your house--you may be eligible for a financial compensation if you suffered financial loss because of this foreclosure action.  The old deadline was the end of July, 2012, but it's been extended through December 31, 2012.

If your loan servicer is one of 27 affected companies (and if you don't know who it is, call  1-888-952-9105 for this or any other help), you may be eligible.  Here's more information.  You can apply for a review online, or call the number to have someone help you apply.  This program is NOT the same as the foreclosure relief program that came as a result of a settlement between lenders and state's attorneys general.  See this page for some of the differences between the two programs.

And remember, DON'T fall for scams.  You don't have to pay anyone to file for an independent review.  Anyone who asks for payment for filing is a scammer. 

Post-script:  Gee, maybe this is why they've had to extend that independent foreclosure review deadline.  Who could have guessed that the communication would be so obtuse that nobody knew their rights?  So call the toll-free number above, already and check out the website, and see if you have a case.

Information on the Foreclosure Settlement. And Watch Out for Scams.

The settlement between forty nine states’ attorneys general, the federal government and five of the largest mortgage servers (Citi, Ally/GMAC, Wells Fargo, JP Morgan Chase, and Bank of America) in the United States has opened up an avenue of help and compensation for many people that are in danger of foreclosure, are underwater in home value, or even those who have already been foreclosed on and lost their homes since 2009 (Oklahoma’s Attorney General reached a separate settlement.  See their website for more information).  How can you tell if you are eligible for help?
 

A great webpage has been set up to give you a place to start looking for the answers.  National Mortgage Settlement has all the information you need-- contact numbers, eligibility information-- and ALL FOR FREE.  If anybody contacts you and offers “help” for a fee, slam the phone on them.  It’s a scam.  Click here to findout how to recognize signs of scammers trying to take advantage of people, and what to do about it.

There is a page especially for homeowners that gives the contact numbers for the mortgage servers involved, but the link to the state’s attorney general’s offices is dead.  Try this one instead. However,  anyone whose mortgage is held by Freddie Mac or Fannie Mae is not eligible.  You can find out if your mortgage is held by either of them here and here.   Here’s another link to a page dealing with U.S. military members that are eligible relief.

Officials are in the process of appointing administrators, figuring out who is eligible, and will contact them.   The whole process should take place over the next three years.  If you feel you may be eligible or need more information, contact the attorney general’s office of your state or your mortgage holder, especially if you think that officials may have a hard time tracing you.

You can even get an independent review of your case.  Again, FOR FREE.  Nobody is charging for this.  But the deadline to apply for the independent review by July 31, 2012.  There’s a website with all the information that you need, but if you like to get your information from humans, there’s a toll-free number, too: 1-888-952-9105, from 8 a.m-10 p.m. Monday through Friday, Saturday from 8 a.m. to 5 p.m.  And assistance is available in Spanish, Chinese, Korean, Vietnamese, Tagalog, Hmong and Russian. 

Even more information is available at this online pamphlet from the Center for Responsible Lending.

Ohio Makes More People Eligible for Foreclosure Help

The Ohio Housing Finance Agency is making it easier for more homeowners to get financial help if they are in danger of foreclosure in that state.  More people are now eligible for help  Among the changes:
 •An increase in the amount of liquid assets a homeowner are allowed to have; now up to 6 month’s payment expenses instead of 3.  NOTE: the eligibility page still has 3 months—it hasn’t been updated.  Talk to the person at the toll free number.
•Homeowners residing in manufactured homes titled as real estate are now eligible
•Homeowners who have a discharged Chapter 7 are now eligible even if they did not reaffirm their mortgage, subject to approval by their mortgage servicer;
•Homeowners who have missed mortgage payments but are now able to make payments on their own may access up to $25,000 to reinstate their mortgages; and
•Homeowners who are unemployed and underemployed may receive full mortgage payments for up to 15 months or $20,000. 
If you are an Ohio homeowner in any danger of losing your home through foreclosure, see the webpage for help,  as soon as possible or call 888-404-4674 for more information.

Find a Foreclosed Property From One of the Bigger Holders (Fannie Mae)

The foreclosure crisis has sparked an interest in finding foreclosed properties, either as an investment or a personal residence. One of the bigger holders of such properties is Fannie Mae, the quasi-federal agency that originated many home loans.  They own thousands of properties, and have created some ways of listing and financing them that they hope will make it easier for buyers to take them off their hands.  While foreclosed homes are subject to the same (ridiculous) urban legends about pennies-on-the-dollar buys, there may be one worth your while.

Their website for houses, as well as financing, is Homepath.  You can search for homes by city, state, or zipcode, by price range, and features like beds and baths.  You are shown homes that fit your criteria, with more features, and links to Neighborhood Navigator with information on schools and economic features of the surrounding neighbhorhood. 

There is also a tab on financing through Homepath.  You don't have to finance through them, but there are some interesting features: if you have a credit score of at least 660, you may put down as little as 3% downpayment, and the down payment could come from a gift, grant, or loan from a nonprofit (for some ideas on where to get this, see this link).  The seller may be able to contribute more to the closing costs, and mortgage insurance may not be required.  Also, some homes are eligible for a Homepath Renovation Loan, which allows you to loan not only the purchase price, but money towards the rennovation of the house, if necessary.  Also, under the First Look Program, personal residential buyers get the first shot at homes for 15 days (30 in Nevada), after which investors get a crack at a home. 

Of course, nothing in here is an "automatic bargain," but it offers you more options.  The houses are pretty much sold "as is," so an inspection by a professional that you hire is strongly recommended.  If you need help sorting out your options, you could contact a HUD certified housing counselor to show you your best bets.  More on this via HSH.

Is a Mortgage Audit Worth It? Probably Not.

The foreclosure crisis in our country is only about half over, according to the Mortgage Bankers Association.  One estimate is that we are three to four years away from "normal."  That means we still have desperate people, and people willing to part people from their money. 

A new wrinkle has come in: the mortgage audit.  What is this?  It's a thorough investigation of the mortgage for legality.  Supposedly, if the auditor can find a defect in the mortage, you may get out of the mortgage.  This sounds great, but in fact if there is a defect,  you don't automatically get out of the mortgage, or get the money.  You have just won the right to sue, which is expensive and lengthy.  And which will probably not net you any money.  A bank has the financial resources to outwait and outwrangle you, and probably will.

The Federal Trade Commision put it bluntly in a warning on mortgage audits:

...there is no evidence that forensic loan audits will help you get a loan modification or any other foreclosure relief, even if they’re conducted by a licensed, legitimate and trained auditor, mortgage professional or lawyer.

some federal laws allow you to sue your lender based on errors in your loan documents. But even if you sue and win, your lender is not required to modify your loan simply to make your payments more affordable.
if you cancel your loan, you will have to return the borrowed money, which may result in you losing your home.

Or, according to the way the scam is reported to have run in a town in Wisconsin, you may be targeted for fraud even if you are not threatened with foreclosure.  People there got a financial audit notice, (which they could get for $99), and if they didn't find a defect, they could get their money back.  Since defects are often found, they weren't eligible for a refund, or course, but neither did they get rich off the defective loan.  Getting money from the mortgage holder over a defect would require the expensive and lengthy legal action discussed above.  So you are out $99. 

If you have reason to believe that something is seriously wrong with your mortgage, or you are in a foreclosure situation, run, don't walk, to a HUD-approved counseling agency in your area.  They have the savvy to help you out with legit help.

Foreclosure Scam Prevention/Homebuying in Toledo @ Your Library (Includes Neighborhood Stabilization Program)

Blog and other internet postings are all good and well, but don't you wish you could meet experts, face to face, to untangle problems?  The Toledo-Lucas County Public Library is having two programs next month to help with two big issues: keeping the home you have, and buying a new one.

On September 13th, we host Foreclosure Scams: Don't Get Taken! at the Main Library on 325 N. Michigan from 6:15 till 8:15.  People from the Ohio Attorney-General's office, Northwest Ohio Development Agency, ABLE (Advocates of Basic Legal Equality), and the Fair Housing Center will talk about how to smell a scam, and legitimate sources of help in northwest Ohio.

On September 20th, we host Getting Financially Ready for Home Buying, also from 6:15 till 8:15 at Main Library.  Local experts from the Neighborhood Housing Center, Northwest Ohio Development Agency, and Consumer Counseling Credit Service will tell you how to get your financial house in order so that you can get a home of your own.  Best of all, a representative from the Toledo Housing Department will talk about--and have material on--the Neighborhood Stabilization Program.  Learn how you can get financial help to buy beautiful houses in several different neighborhoods.  All for free!

If you live in other places, there is still a way to find legitimate foreclosure help.  Call one of the nonprofit agencies approved for home counseling by HUD.  And to find out more about steering away from foreclosure scams, see this informative website by the Federal Trade Commission.

The All-Scam Edition: Foreclosures and Missing Money

Today's entry features a story on finding missing money scams, as reported by the Toledo Blade.  According to an official at the Ohio Department of Commerce:

"He says the emails claim to come from the National Association of Unclaimed Property Administrators, which includes his department's Division of Unclaimed Funds. But Goodman says Ohioans with money they've lost track of would never be asked to pay a fee or provide bank account information, as scam victims may be instructed."

Well.  When I was young, hustlers were enterprising enough to actually charge you for finding your money, not lie entirely.  But where ever you live, or whichever state (or federal agency) owes you money, you need never pay a dime.  Here's a rundown of all the entirely free places you can go to find missing money owed you.

Also, the Toledo-Lucas County Public Library is having a program on avoiding foreclosure scams on September 13th from 6:15 till 8:15 in the evening at Main Library, 325 N. Michigan.  No registration, just check out how to avoid being ripped off while trying to save your home.

Finally, look out for this rip-off.  It's something terribly new, and even my housing contacts don't know what to make of it.  But apparently in the state of Nevada, ground zero in the foreclosure crisis, something called a forensic mortgage audit is marketed to people in danger of foreclosure.   It's supposed to protect your property, but may only empty your pocket.  Proceed with caution, and contact a HUD-approved housing counselor if you are in foreclosure danger. 

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.

Newest Source of Funding for Foreclosure Help. But You Have to Act Fast

Another (small) program has opened up for some homeowners caught up in the housing crisis.  For people NOT living in the 17 states covered by the Hardest Hit Fund Program, another program has been set up, the Emergency Homeowner's Loan Program.  For up to 30,000 homeowners, applications will be taken to be put into a lottery for no-interest, forgivable loans of up to $50,000 that can cover back payments and partial payments of future mortgage payments up to 24 months, or up to $50,000 total loan.  There are, in fact, lots of limits: you can't be in the 17 states covered by the Hardest Hit program, and even if you qualify, the program is limited by money: there is only enough funds for 30,000 participants.  You must be at least 90 days overdue on your mortgage, and involuntarily unemployed or underemployed.  And you must apply by July 22, 2011.  For more FAQ, see this site.

Of course, since these are loans, NOT grants, there is a chance that 1) you will have better times ahead, make more money, and be able to repay them or 2) you won't and you will be in more debt than before.  To talk to someone about this, don't bother calling any commercial services to help you: free help from HUD counselors can answer any of your questions.  See this page to find qualified ELP counselors.

Find Legit Foreclosure Prevention, Anywhere in America

The last post described places where Ohioans can find counseling and classses to deal with foreclosure threats, but there's a link that can find legit, nonprofit foreclosure counselors all over the country.  They won't promise they can save your home--nobody can--but they will give you honest advice and work with your lender if possible.  You can also call (800) 569-4287 to locate a counselor.

Also at HUD, some ideas for when a lender won't work with you.  This includes your options when the loan is guaranteed by the Veteran's Administration, and FHA guaranteed loans (they suggest calling the toll-free FHA loan servicing number at (888) 297-8685.  But the operative idea is to do it now!  The sooner you act, the more likely your home can be saved.

Find a Foreclosure Prevention/Homebuying/Credit Counseling Seminar in Ohio

Ohio's Save the Dream campaign, a coalition that works with homeowners to stop foreclosure, is putting on a series of workshops all over Ohio for Ohioans who are in deep with credit problems, foreclosure threats...or want to learn how to buy a house, or improve their financial fitness and money handling skills--all for free.  Some of these are about other issues, too--like general legal issues for those unable to afford to talk to a lawyer.  IF YOU NEED TO TALK TO A COUNSELOR RIGHT NOW ABOUT HOW TO SAVE YOUR HOUSE, CALL  888-404-4674

But there are all sorts of efforts to make the average Ohioan smarter about money.  The Ohio Treasurer's Office also hosts programs around the state on how to handle money in their "Smart Money" classes and many others.  Finally, the Attorney General's office will host programs upon request on consumer fraud, scams and credit.  For more information, give them a call at (800) 282-0515.

New Money to Prevent Foreclosures

Fresh money is being pouring into the fight against foreclosure in 17 states. The Hardest Hit Fund is being strengthened in the ten states that originally got two rounds of cash—Arizona, California, Florida, Michigan, Nevada, North and South Carolina, Ohio, Oregon, and Rhode Island—and seven new states: Alabama, Illinois, Kentucky, Mississippi, New Jersey and the District of Columbia. These are all areas that have experienced unemployment rates higher than the national average. In total, $3 billion will go towards helping out homeowners whose ability to pay their mortgages was hit by an event such as the loss of a job. Homeowners may be eligible for up to $50,000 in interest-free loans to cover mortgage interest and principle, mortgage insurance, hazard insurance, and taxes until they are employed once again and can resume their home payments.
Other states with unemployment higher than the national average may apply for housing funds, too. Right now, each state is responsible through their state housing agency for their own particular guidelines. If you are a resident of one of these states, contact your housing authority (links above) to see when the rollout will be for your state. For instance, Ohio’s is September 27th. Remember that while the general purpose is the same, each state will have its own rollout date AND eligibility rules. Finally, other states may apply for money, too, so if you are in a high-employment state or locality, check your housing authority or foreclosure resources in your state.

***Update: for states not covered by this, a new program has emerged in 2011. 

More Funds for States Hardest-Hit by Foreclosure

One and a half billion dollars have been released to five states particularly hard hit by the foreclosure crisis: California, Michigan, Florida, Nevada, and Arizona. Each of these states is setting up a program for helping homeowners in danger of foreclosure with money, rather than simply asking for forebearance from banks (a policy that has not borne a lot of fruit so far).

If you are a homeowner in one of these states and need foreclosure help, click the link above for your state and get answers about your state's program from the housing authority. You can find out if you are qualified to receive aid from the Hardest Hit fund. More severely effected states are expected to get funding soon, so stay tuned.

Save the Dream--Avoid Foreclosure Scams

In the Toledo Blade on Sunday, June 27th, a letter appeared from Bill Farnsel of Neighborhood Housing Services. In it, he pleads for desperate homeowners in danger of foreclosure to think and choose carefully when “foreclosure rescue” firms come calling. He listed two things to look out for in particular: 1) they ask for money up front and 2) they guarantee results. Legitimate help can be had for free from HUD-approved agencies like NHS, (419-691-2900. Here's a nationwide list of HUD-approved counselors.) and NOBODY can guarantee results, period.
In a way, it reminds me how we all got into this. Back in the ‘90s, I met patrons who turned up their noses when I told them about nonprofit agencies that offered to get them into their first homes, because those agencies advocated the old-fashioned way to home ownership—only buy the house you can afford to pay for and keep up, no tricky mortgages, getting your own financial house in order first, etc. But they met subprime folks who told them that stuff was all for suckers, that there was a better, faster way to buy a lot of house for no money down. It looked a little tricky, but it would all work out. Until the layoff happened, or the adjustable mortgage adjusted. And then it didn’t work out.
Now we all know better. The guy in the nice suit, or the nice TV commercial, is once again telling you something too good to be true. If you are having foreclosure problems, or trouble paying your mortgage, go to legitimate sources of help. Neighborhood Housing Services is one, and more help is available at Save the Dream for Ohio homeowners, the Michigan State Housing Development Authority, or nationwide at HUD, a site with a list of counselors around the U.S and other advice. Talk to them before you talk to people in television ads.

Foreclosure Trouble? Maybe You Can Rent From Fannie or Freddie

Fannie Mae announced that they have come up with a new plan for home owners threatened with foreclosure--if Fannie holds your mortgage. If you cannot keep up with your mortgage, you may be able to strike a deal to hand over ownership to the mortgage holder, and at least keep living in your house as a renter. This might be worth the while if you are terribly upside down on your mortgage--if you bought at the top of the housing bubble. To see if your mortgage is held by Fannie Mae, check this website.

A similar plan is available from its sister agency, Freddie Mac. To see if your mortgage is held there, check here. To get more information on the Freddie Mac program, check this page.

New Opportunity for Freddie Mac Mortgage Holders

If you hold a mortgage owned or guaranteed by Freddie Mac, but have been unable to refinance because you owe more than the house is worth, help may be on the way. Freddie Mac will now allow refinancing up to 125% of the home's value. This could be helpful if your area has had a downward shift in values in the last few years.

How do you know if your home mortgage is owned or guaranteed by Freddie Mac? Ask the mortgage servicer--those people you send the mortgage to each month-- or fill out this online form to find out.

One Stop Ohio Foreclosure Shop

The state of Ohio has a one-stop website that has everything on foreclosure prevention, including local legal help, information on how to spot "foreclosure prevention" scams and avoid them, and how to avoid predatory lending, and your legal rights. It even has a page on rebuilding your credit.

It's appropriately called Save the Dream, and while it has a shortage of future events listed, the rest of the stuff is solid.