Posts Tagged: ‘HAMP’

Foreclosure Prevention Unknown After HAMP Expires

February 1, 2017 Posted by kingcade

At the end of last month HAMP (The Home Affordable Modification Program) expired and Republican-led Washington has no intention of replacing it. So now it will be up to the private sector to address the lingering issues brought on by the financial crisis.

Banks and mortgage lenders say they are ready to step in with their own foreclosure-prevention programs, modeled on what they learned from the Obama administration’s effort.  However, housing advocates are skeptical, as HAMP had its shortcomings.  The program fell far short of the administration’s goals.

Specifically, banks and servicers routinely ignored the rules, consistently rejected eligible homeowners, processed applications at a snail’s pace and foreclosed on homeowners even when they made their modified payments on time, according to a series of audit reports for the Troubled Asset Relief Program.

Approximately 70 percent of those who applied for the loan modifications were turned down.  Nearly 14 million homes went into foreclosure, according to ATTOM Data Solutions, which tracks foreclosure filings.

Even though the housing market has stabilized, the rate of delinquencies is at its lowest point since 2007, and home prices have risen in many places, there will always be homeowners and families in trouble because of job loss, illness and other unforeseen setbacks.

Click here to read more on this story.

Choosing the right attorney can make the difference between whether or not you can keep your home. A well-qualified Miami foreclosure defense attorney will not only help you keep your home, but they will be able to negotiate a loan that has payments you can afford. Miami foreclosure defense attorney Timothy Kingcade has helped many facing foreclosure alleviate their stress by letting them stay in their homes for at least another year, allowing them to re-organize their lives. If you have any questions on the topic of foreclosure please feel free to contact me at (305) 285-9100. You can also find useful consumer information on the Kingcade & Garcia website at www.miamibankruptcy.com.

Trump’s Treasury Pick Accused of Foreclosure Heartbreak Stories

January 27, 2017 Posted by kingcade

After President Trump announced his Treasury Secretary nominee, Steven Mnuchin, a wave of California homeowners came forward with allegations that OneWest Bank actively steered them away from making timely mortgage payments to qualify for federal loan assistance that never came. Borrowers claim the fraudulent activity occurred under the leadership of Mnuchin.

The accusations center around the government program called the Home Affordable Modification Program (HAMP), which was launched at during the 2009 financial crisis. Under the program, eligible borrowers could receive new, lower payments and the banks that took part would also receive government incentive payments.

“They (OneWest) hired people who didn’t know what they were doing and some bad information was being given out,” a source who was familiar with OneWest’s foreclosure procedures at the time told CNN.

CNN spoke to seven OneWest borrowers who all had similar stories about being advised to purposely miss payments in order to qualify for the HAMP program.

Mnuchin testified at his confirmation hearing where he defended his time as a bank executive and his work in the private sector. However, the Democrats were not buying it, dubbing him the “Foreclosure King.”

Choosing the right attorney can make the difference between whether or not you can keep your home. A well-qualified Miami foreclosure defense attorney will not only help you keep your home, but they will be able to negotiate a loan that has payments you can afford. Miami foreclosure defense attorney Timothy Kingcade has helped many facing foreclosure alleviate their stress by letting them stay in their homes for at least another year, allowing them to re-organize their lives. If you have any questions on the topic of foreclosure please feel free to contact me at (305) 285-9100. You can also find useful consumer information on the Kingcade & Garcia website at www.miamibankruptcy.com.

Related Resources:

http://thehill.com/policy/finance/315143-mnuchin-emerges-from-confirmation-hearing-intact

http://money.cnn.com/2017/01/19/news/mnuchin-onewest-foreclosure/

HAMP Being Replaced with New Foreclosure Prevention Program, Flex Modification

January 11, 2017 Posted by kingcade

Fannie Mae and Freddie Mac have announced their replacement for the Home Affordable Modification Program (HAMP).  The Flex Modification foreclosure prevention program is designed to help families stay in their homes by offering reductions on their monthly mortgage payments.

“The new Flex Modification announced by Fannie Mae and Freddie Mac (the Enterprises) today was designed based on lessons learned from crisis-era loan modification programs to help borrowers stay in their homes and avoid foreclosures whenever possible,” the FHFA said in a statement.

The Flex Modification also reflects input received over the course of extensive engagement with lenders, mortgage insurers, consumer advocates, and other stakeholders, the statement adds.  The FHFA believes that by avoiding the high costs associated with foreclosures, Flex Modification will result in significant savings for the Enterprises and taxpayers, while borrowers facing financial hardships can obtain a sustainable modification.

The new modification will replace the current Fannie Mae Standard and Streamlined Modification offerings on and after Oct. 1, 2017.

Click here to read more on this story.

Choosing the right attorney can make the difference between whether or not you can keep your home. A well-qualified Miami foreclosure defense attorney will not only help you keep your home, but they will be able to negotiate a loan that has payments you can afford. Miami foreclosure defense attorney Timothy Kingcade has helped many facing foreclosure alleviate their stress by letting them stay in their homes for at least another year, allowing them to re-organize their lives. If you have any questions on the topic of foreclosure please feel free to contact me at (305) 285-9100. You can also find useful consumer information on the Kingcade & Garcia website at www.miamibankruptcy.com.

With Foreclosures on the Decline, Loan Modifications Increase

September 20, 2016 Posted by kingcade

HOPE NOW, a private alliance of mortgage servicers, investors, mortgage insurers and non-profit counselors, has released its July 2016 loan modification data. It stated for the month of July that total non-foreclosure solutions (i.e. – the combination of total loan modifications, short sales, deeds in lieu and workout plans) were approximately 112,000. This compares to approximately 25,000 completed foreclosure sales for the month- a ratio of more than four mortgage solutions for every foreclosure sale.

The report states that approximately 5,700 short sales were completed in July 2016 compared to 6,300 in the month prior. This represents a decrease of approximately 10 percent. Short sales were reported to have approximately 5,700 completed in July 2016 in contrast to 7,700 in July 2015, a decrease of 26 percent.

The report also included an estimated 35,000 permanent loan modifications completed in July 2016, compared to 34,000 in July 2015. This was a reported increase of approximately 3 percent. This total includes modifications completed under both proprietary programs and the government’s Home Affordable Modification Program (HAMP).

Of the permanent loan modifications completed in the month of July, the report shows that an estimated 23,000 were through proprietary programs and 12,081 were completed through HAMP. In addition, of the 23,000 proprietary modifications completed in July, 46 percent (or 10,437), reduced the monthly principal and interest payment by 10 percent or more.

Foreclosure starts reduced 5 percent month over month to approximately 51,000 in July from 54,000 in June. Additionally, foreclosure sales were reportedly about 25,000 in July from 29,000 in June. This was a decrease of 12 percent month over month. Likewise, foreclosure sales were approximately 25,000 in July 2016. This is compared to 28,000 in July 2015 which was a decrease of 9 percent.

While delinquencies continue to decline to “pre-crisis” levels and the data trends certainly suggest the market is recovering, there remains a portion of the population who still need assistance. These regions include: Florida, Georgia, New Jersey and California.

Click here to read more on this story.

Choosing the right attorney can make the difference between whether or not you can keep your home. A well-qualified Miami foreclosure defense attorney will not only help you keep your home, but they will be able to negotiate a loan that has payments you can afford. Miami foreclosure defense attorney Timothy Kingcade has helped many facing foreclosure alleviate their stress by letting them stay in their homes for at least another year, allowing them to re-organize their lives. If you have any questions on the topic of foreclosure please feel free to contact me at (305) 285-9100. You can also find useful consumer information on the Kingcade & Garcia website at www.miamibankruptcy.com.

FHA’s New Guidelines Help Struggling Homeowners Remain in their Homes

August 31, 2016 Posted by kingcade

New procedures put in place by the Federal Housing Administration (FHA) will help strengthen the process mortgage services currently use and help struggling families stay in their homes and avoid foreclosure.

The updated procedures will streamline the process servicers use to engage borrowers, specifically when evaluating them for the FHA-Home Affordable Modification Program (FHA-HAMP) These changes will reduce the number of steps that a servicer and borrower must take to resolve a delinquency and enter into a loss mitigation home retention product.  In addition, FHA is removing certain obstacles that will allow servicers greater flexibility for evaluating an unemployed borrower for a special forbearance agreement.

Here is what homeowners need to know about the new provisions. Specifically, the FHA will:

  • Require servicers to convert successful 3-month trial modifications into permanent modifications within 60 days instead of the average four-to-six months;
  • Allow borrowers with three missed mortgage payments to qualify for a partial claim to bring their payments current versus the previous requirement for a minimum of four missed payments;
  • End the traditional stand-alone Loan Modification option so struggling borrowers can access the FHA-HAMP option, to receive payment relief quicker;
  • Eliminate the required 12-month term for FHA’s special forbearance option.  This will allow servicers to offer this option to more unemployed households.

Choosing the right attorney can make the difference between whether or not you can keep your home. A well-qualified Miami foreclosure defense attorney will not only help you keep your home, but they will be able to negotiate a loan that has payments you can afford. Miami foreclosure defense attorney Timothy Kingcade has helped many facing foreclosure alleviate their stress by letting them stay in their homes for at least another year, allowing them to re-organize their lives. If you have any questions on the topic of foreclosure please feel free to contact me at (305) 285-9100. You can also find useful consumer information on the Kingcade & Garcia website at www.miamibankruptcy.com.

Related Resources:

www.fhfa.gov

https://rismedia.com/2016/08/28/fha-streamlines-process-to-help-delinquent-homeowners-stay-in-homes/