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Posts Tagged ‘foreclosure’

homeowners hoping to buy again after a foreclosure or short sale

After a foreclosure or a short sale, some people might never want to bother with another home purchase. On the other hand, lenders are hearing from more and more former homeowners who can’t wait for the next opportunity to buy.

After a short sale you will have to wait two to three years to buy again. However, FHA has a loan product that requires no wait time if the homeowner had a short sale but didn’t miss any payments.

Click here for more information on the no-wait time loan (see page 4), http://www.hud.gov/offices/adm/hudclips/letters/mortgagee/files/09-52ml.pdf

The wait time for a foreclosure is three to seven years. Conventional loans require a four-year wait time if the circumstances were job loss or illness. Otherwise it’s a seven-year wait time. FHA loans require a three-year wait period. The next surge of home buyers will be these former homeowners who will be able to qualify again.

read more @http://www.kvoa.com/news/former-homeowners-hoping-to-buy-again-after-a-foreclosure-or-short-sale/

As always,

Shawn

http://www.diyloanmodkit.com/

Man sues Countrywide for wrongful foreclosure

CHARLESTON–A Cross Lanes man is suing Countrywide Home Loans, Bac Home Loans Servicing and Federal National Mortgage Association after he claims the companies participated in predatory lending and loan servicer abuse that resulted in the wrongful foreclosure of his home.

Bradford Corder purchased a home in September 2002 for $185,000, according to a complaint filed April 13 in Kanawha Circuit Court.

Following a divorce, Corder submitted loan modification information to the defendants in January 2010 and was informed on March 11 that he had been approved, according to the suit.

Corder claims he spoke with the defendants on March 16 and was told foreclosure on his home was postponed until the loan modification package was provided to the defendants, but on March 17 the defendants proceeded with the foreclosure anyway.

As a result, Corder has suffered economic loss, property loss, considerable stress, worry and fear, according to the suit.

Corder is seeking actual damages and appropriate civil penalties.

read more @ http://www.wvrecord.com/news/226652-cross-lanes-man-sues-countrywide-others-for-wrongful-foreclosure

Shawn

http://www.diyloanmodkit.com/

Lenders must prove who owns a mortgage and mediate before foreclosure.

This is a follow up to the blog that I posted yesterday and is a positive step towards all foreclosure cases going to mediation before a foreclosure is final.

Miami Herald -TALLAHASSEE, Fla. — Lenders will be required to pick up the tab for investigating and verifying ownership and then try mediation before foreclosing Florida home mortgages under new rules approved Thursday by the Florida Supreme Court.

The rules are designed to help Florida’s judicial system better cope with a flood of foreclosures. They follow a December administrative order by Chief Justice Peggy telling local judges to adopt a uniform mediation program.
Florida has the nation’s fourth-highest foreclosure rate. Almost 400,000 cases were filed in Florida’s courts last year.
The rules and corresponding legal forms were proposed by a pair of Florida Bar panels.

“They found that many cases were being filed by plaintiffs that didn’t’ own the mortgages anymore,” said Miami lawyer Mark Romance, who chairs the Civil Procedures Rules Committee. Romance said other cases were being filed against people who no longer owned the homes.”I don’t think there was any ill will or intent to harm someone,” Romance said.

The investigate-and-verify rule should help prevent those kinds of errors and give judges greater authority to sanction lenders who do make false allegations, the justices wrote.

As always,
Shawn

http://www.diyloanmodkit.com

Calls for More Class Action Lawsuits to Prevent Foreclosures

Washington, DC – October 20, 2009 – (RealEstateRama) — Congresswoman Maxine Waters (CA-35), Chairwoman of the Financial Services Subcommittee on Housing and Community Opportunity, recognizing the impact foreclosures are having on the country, called on the attorneys general from the nation’s 50 states to bring suit against lenders in order to force more loan modifications.“We need aggressive action to force lenders to modify the predatory loans that they made. State attorneys general and civil rights groups are taking the lead in preventing foreclosures by filing lawsuits against the originators of these predatory loans, and I commend them for their action,” Chairwoman Waters said.

Last year, Congress passed the Housing and Economic Recovery Act of 2008, which created Hope for Homeowners—a mortgage principal reduction program—and the Neighborhood Stabilization Program, which addresses abandoned and foreclosed properties. Earlier this year, Congress passed the Helping Families Save Their Homes Act of 2009, which included provisions to facilitate more loan modifications. In March, President Obama established the Making Home Affordable program, which provides monetary incentives for mortgage servicers that modify loans.

“Despite all of our efforts in Congress, foreclosure rates are still increasing and show no signs of slowing down,” Chairwoman Waters said. “Struggling homeowners need permanent loan modifications to prevent foreclosure. While the Making Home Affordable program has produced 500,000 trial modifications, very few permanent modifications have been provided.” Making Home Affordable, which is a voluntary program, allows for a trial modification period of 5 months, during which the homeowner must make timely payments; however, modifications do not always become permanent.

Servicers participating in Making Home Affordable have been slow to modify the eligible loans in their loan portfolios. For example, according to the most recent data from the Treasury Department, Bank of America has only modified 11 percent of its eligible loans. Wells Fargo and JP Morgan Chase have modified 20 percent and 27 percent of their eligible loans, respectively. “This is unacceptable,” Chairwoman Waters said.

Read more at: http://california.realestaterama.com/2009/10/20/congresswoman-maxine-waters-calls-for-more-class-action-lawsuits-to-prevent-foreclosures-ID0492.html

As always

Shawn
http://www.diyloanmodkit.com/

Foreclosure doesn’t automatically mean eviction

Even if you’ve lost your home in foreclosure, there is one key thing you need to know: You have time to work things out. For starters, you don’t have to move right away. And if you work out a payment arrangement with your lender, there’s still a chance you can stay in your home.

Jamele Hage, director of the Wayne County foreclosure-prevention program, said that under the new state law that took effect in July, lenders need to specify in their notices that there is a redemption period. Michigan real estate law allows 6 months to pay what is owed and remain in the home. Even if the homeowner doesn’t pay, he or she can stay in the home for 6 months without paying the mortgage. This allows time for the homeowner to save up to move.
Here are some other key things you need to know if you’re facing foreclosure, according to the Wayne County foreclosure-prevention program.

• Missed three mortgage payments: The third month that you fail to pay your mortgage, you probably will receive a letter known as the demand letter or notice of acceleration. This demands the total you owe within 30 days. Try to work something out with your lender. A new state law allows an additional 90 days to work with your lender.

• Sheriff’s sale: If your mortgage company has not received payment, a sheriff’s sale will be scheduled and that becomes the date of foreclosure. You will be notified by mail of the date and it will be advertised for four weeks in a legal newspaper. In the sheriff’s sale, your home is sold to the highest bidder or the title goes to your lender. You do not have to move out of your home at this time.

• Redemption period: This usually lasts 6 months after the sheriff’s sale. If the home is on more than 3 acres, the redemption period is 1 year.

• Eviction period: If you have not left the home after the redemption period ends, the new owner starts eviction proceedings. An eviction hearing is held within two weeks, followed by a 10-day grace period for you to leave.

Read more at: http://www.freep.com/article/20091018/BUSINESS04/910180335/1017/Business/Foreclosure-doesn-t-automatically-mean-eviction

Shawn
http://www.diyloanmodkit.com/