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.