Articles Tagged With: Foreclosure Avoidance

September 7, 2011

Time Running Out On EHLP Assistance For Borrowers

Qualified FHA borrowers and those with conventional home loans in trouble on their mortgages have a limited amount of time left to apply for assistance from the Emergency Homeowner’s Loan Program or EHLP, which was reopened in 27 states and Puerto Rico. EHLP is designed to help homeowners in these 27 states who have “experienced a reduction in income and are at risk of foreclosure due to involuntary unemployment or underemployment, due to economic conditions or a medical condition.

September 5, 2011

HUD Announces $10 Million Dollar Initiative To Fight Mortgage Scams

By Joe Wallace

In recent months there have been many headlines about con artists targeting FHA and conventional borrowers in trouble on their home loans. A recent press release from the Department of Housing and Urban Development announced a new program to fight scammers. HUD has pledged more than $10 million in housing counseling grants for HUD-approved agencies. “The funding announced today is specifically earmarked to provide counseling assistance relating to mortgage modification, avoiding potential mortgage scams, and assisting victims of scams,” according to Department of Housing and Urban Development Secretary Shaun Donovan. “It is crucial that we support these agencies in helping struggling families do whatever is possible to avoid foreclosure without being victimized by so called mortgage ‘rescue’ companies.” The grand money will be awarded to 139 local housing counseling agencies | more...

August 26, 2011

FHA Borrowers Beware: Fraudsters Targeting Homeowners In Trouble

By Joe Wallace

FHA and conventional borrowers in California and elsewhere have been targeted by alleged scam artists claiming to help borrowers avoid foreclosure by adding their names to lawsuits (for a fee) against financial institutions. According to an August 19, 2011 L.A. Times article by E. Scott Reckard, the California Attorney General is pursuing actions against a group of Southern California lawyers and their associates for such activities. The action stems from situations where homeowners were allegedly tricked into paying up to $10 thousand each to be included as plaintiffs in lawsuits. According to legal paperwork filed in Los Angeles County Superior Court, “Consumers are led to believe that joining these lawsuits will stay foreclosures, reduce their loan balances, entitle them to monetary benefits and potentially get them their homes free and | 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 19, 2011

FHA Trial Payment Plans: Part Two

By Joe Wallace

In another blog post we discussed the FHA foreclosure avoidance trial payment plan, which FHA.gov describes as “an important tool for confirming a mortgagor

August 11, 2011

FHA Housing Counseling

By Joe Wallace

It’s easy to get overwhelmed by the details, facts and figures connected to buying a new home. If you’re new to the FHA home loan application process, there are plenty of unique requirements for FHA home loans not found in conventional mortgages–the protections offered to the buyer and lender alike require some additional learning as you go through the process for the first time. That’s why the FHA offers help to mortgage loan applicants in the form of HUD-sponsored housing counseling. There are a variety of agencies across the U.S. offering HUD-sponsored counseling services on buying a new home, credit issues related to applying for an FHA mortgage, even foreclosure avoidance and FHA reverse mortgage loan information. Some housing counseling services are free, while others come as low-cost packages. FHA | 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

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