Articles Tagged With: FHA Foreclosure

August 25, 2011

FHA Loans: What Does It Mean To Be Listed in CAIVRS?

Any type of home loan includes a credit check, including FHA insured mortgages. But FHA loans include an extra requirement when it comes to credit–the borrower is not eligible for an FHA mortgage if he or she is delinquent on any type of federal debt. An FHA approved lender is required to check to insure the borrower is not delinquent on any debt owed to the government; that check is done using a system called CAIVRS, which stands for Credit Alert Interactive Voice Response System. This system provides a list of all people currently in default on an FHA insured mortgage, those who have had a government-backed home loan foreclosed on in the last 36 months, and those who are delinquent on a debt owed to the government. According to | more...

August 23, 2011

FHA Loan Modifications: When Does a Trial Payment Plan Fail?

By Joe Wallace

In a recent blog post we discussed FHA loan foreclosure avoidance options, and what happens when a lender agrees to work with the borrower to do a trial loan modification. In some circumstances a borrower is required to complete a trial payment plan successfully before a more long-term loan modification program can begin. According to the FHA, “A trial payment plan is an important tool for confirming a mortgagor

August 18, 2011

FHA Loans and Foreclosure Avoidance: The Trial Payment Plan

By Joe Wallace

The FHA has released FHA Mortgagee Letter 2011-28, which outlines “circumstances under which mortgagors must successfully complete a trial payment plan prior to the mortgagee executing a loan modification or partial claim action under the Federal Housing Administration

July 11, 2011

More Information on the FHA Loss Mitigation Program for Unemployed Borrowers

By Joe Wallace

The FHA offers help for those in trouble on their FHA mortgages in the form of the Loss Mitigation Program. The FHA recently sent out additional guidance aimed to specifically help homeowners who struggle to pay on their FHA loans during period of unemployment. The FHA’s “Unemployment Special Forbearance” was temporarily amended and clarified to further help prevent unemployed homeowners from going into default and foreclosure. “In Mortgagee Letter 2000-05, FHA provided mortgagees with additional guidance concerning the Loss Mitigation Program that all mortgagees must follow, when applicable, to reduce FHA insurance losses in those circumstances, as determined by the mortgagee, where delinquent mortgagors might be able to find an alternative to foreclosure.” Previous changes to the program as described in past FHA Mortgagee Letters permitted FHA lenders to “offer | more...

July 8, 2011

FHA Loans: Extended Mortgage Relief For Unemployed Homeowners

By Joe Wallace

An FHA press release, HUDNo. 11-139, has announced changes to FHA loan rules which require lenders to extend the loan forbearance period for unemployed FHA borrowers under the Special Forbearance Program. The new forbearance period for that program is now 12 months, a significant change from the previous requirement. The FHA press release says the Obama administration “also intends to require servicers participating in the Making Home Affordable Program (MHA) to extend the minimum forbearance period to 12 months wherever possible under regulator and investor guidelines.” According to the FHA, “The changes to FHA

June 22, 2011

FHA Announces Help For Montana, Vermont Storm Victims

By Joe Wallace

2011 has been a bad year for storms and floods. In the past several months, Illinois, Minnesota, Missouri and many other states have been hit with tornadoes and flooding. Some areas get minor damage, while others are declared Presidential disaster areas. Recently the President also had to make a disaster declaration for parts of Montana and Vermont as storms and flooding there forced people from their homes. HUD Secretary Shaun Donovan has also made some announcements of his own, stating that HUD will rush federal disaster assistance to these areas to support home owners and low-income renters there. FHA borrowers affected by these storms should know help is on the way. According to recent press releases from HUD, Secretary Donovan says,

June 9, 2011

FHA Loans and Housing Counselor Services

By Joe Wallace

One of the most important things a new house hunter should know about FHA home loans is that they don’t have to work through the complex process of applying for a loan, finding a home, or closing the deal on their own. The FHA knows the position first-time home buyers are in and offers plenty of advice and assistance. Did you know the FHA makes referrals to agency-approved counselors? According to the FHA official site, you can get advice on buying a home, credit, the cost of buying versus renting and much more. You can even ask for a counselor referral for foreclosure avoidance issues and refinancing topics. The Department of Housing and Urban Development sponsors housing counseling agencies all over the United States so that counseling can be provided | more...

May 31, 2011

What Disaster Relief is Available For FHA Borrowers?

By Joe Wallace

Recent headlines all across America have told of floods, tornadoes and other natural disasters, all of which affect FHA borrowers, their homes and their mortgages. When an area is declared a major disaster area by the President of the United States, FHA borrowers should know there are programs that can help them in the wake of the disaster, provide help and forbearance on FHA loans, and even temporarily stop foreclosure proceedings. FHA officials urge borrowers to contact the FHA and the lender as soon as possible in the wake of a disaster as there are many steps that need to be taken in order to get help, advice and work on repairing a home damaged in the disaster area. But even before those calls are made, the FHA has begun | more...

March 11, 2011

FHA Advice: Don’t Pay For Foreclosure Avoidance Counseling

By Joe Wallace

There are many ads on television by private companies offering debt counseling services. But when it comes specifically to foreclosure avoidance, did you know you do not have to pay for counseling services? According to the FHA official site, “Foreclosure prevention counseling services are provided free of charge by nonprofit housing counseling agencies working in partnership with the Federal Government. These agencies are funded, in part, by HUD and NeighborWorks

February 1, 2011

FHA Extends Anti-Flipping Waiver

By Joe Wallace

In a move designed to help stabilize the U.S. housing market, the FHA has announced an extension of it's anti-flipping waiver, which temporarily allows the FHA to insure loans for properties owned by the seller for 90 days or less, through the end of 2011.