New Chance for Homeowners
Foreclosure Review Program

Foreclosure Review Process Has Started
Did you receive a letter from your bank asking you if you would like your foreclosure case to be reviewed? If not, and you were in any step of a foreclosure during 2009 or 2010 you will receive one soon. It doesn’t matter if your house was already sold; you are entitled to a review if you believe that there was a mistake in your case.

Because many banks and servicers were foreclosing on houses without a careful study of the documents (“robo signer scandal”) the government order them to create the “Foreclosure Review Program”.

Some of the most common mistakes are:

• Doing a temporary loan modification and anyways, being foreclose on
• Loan Modification denied even though you sent all the documents on time
• Foreclosed on even thought you qualified ( and applied) for a loan modification
• Foreclosed on because of lost paperwork, missing documentation or excessive processing fees that made impossible to pay the mortgage

If you believe that an error was made in your foreclosure case, you have until April 30,2012 to ask for a review. Banks and servicers must send a letter to all homeowners affected to tell them about this program. The program is free for homeowners. Paid by the banks
If an error is found the homeowner will be financially compensated. There are not numbers about how much that compensation will be.

There are 14 banks that are participating in this program are:

• America’s Servicing Co.
• Aurora Loan Services
• Bank of America
• Beneficial
• Chase
• Citibank
• CitiFinancial
• CitiMortgage
• Countrywide
• EMC
• EverBank/EverHome Mortgage Company
• GMAC Mortgage
• HFC
• HSBC
• IndyMac Mortgage Services
• MetLife Bank
• National City Mortgage
• PNC Mortgage
• Sovereign Bank
• SunTrust Mortgage
• U.S. Bank
• Wachovia Mortgage
• Washington Mutual (WaMu)
• Wells Fargo Bank, N.A.

If you believe that there was something wrong in your foreclosure you need to receive a letter with a form. You can also call to request a form to ask for a review by calling at 1-888-952-9105. The review is FREE.

If you have question about the program you can go directly to http://independentforeclosurereview.com to see how the program works.
Don’t forget to sign up for our mail list and get inform of any important news about mortgages that my affect your house. You just need to fill out the form on the right and confirm that you want to join the mailing list.

New Changes to the HARP Program -
Refinance your home even if you are underwater

Today president Obama will announce changes to the HARP program ( Home Affordable Modification Program). The new changes will incentivize homeowners to refinance their old mortgage into new ones taking advantage of the actual very low interest rates.

Before you could refinance your house if you were 125% under water ( mortgage was higher than the market value of the house by 25%). Now there are not restrictions. The bank will get incentives to refinance mortgages for homeowners which house's market value have drop a lot.

The real question here is " do you want to do that? " Is it advantageous for us, homeowners to refinance a house that is underwater? Do we have other options?
The answer is Yes to all of them. If you plan to live in your house for a long time it may be advantageous for you to do the refinance. But if you need to wait for too many years ( like 10 or more) for the value of your house to be where it was when you bought it, I don't think is a good idea.

We have other options. There is always the option of just letting the bank foreclose on the house. A short sale is an excellent option and will protect your credit. We all need to explore the options we have and choose the one that is better for us.

You can read in this website information about some options ( we will be writing about the others soon) and also visit other official sites ( like hopenow.org) for more information. And if you fill out the form on the right we will show you the closest non-profit agencies close to you.

If you want us to analyze your situation and let you know what options you have please fill out the form on the right ( check the box)

Government Order All Foreclosures To Be Reviewed

On Tuesday the Office of the Comptroller of the Currency (OCC) reported that it found that Fannie Mae and Freddie Mac knew about the abuses in the foreclosures processes before they were made public in 2010 ( like robo signers and decisions made without legal reviews).

On Sept 19 the regulators had ordered the creation of an independent office to review ANY foreclosure made between 2009 and 2010. It is estimated that 4.5 million homeowners can apply for an appeal.

What does this compensation for foreclosed homeowners mean?

• If you were in some state of foreclosure during 2009 or 2010 you can asked for your case to be review. It doesn’t matter if your house has already been sold.
• If during your foreclosure process any mistake was made you could be compensated by the mortgage holder.
• If you are still in foreclosure your case will be review from the beginning and corrections will be made

What kind of mistakes were made during the foreclosure proceedings?

• Homeowners were moved to foreclosure at the same time that he/she was making partial payments or doing a loan modification (this will include almost everyone, since many banks required the homeowner to be behind in payments in order to receive a loan mod)
• Homeowners that provide all documentation to qualify for a loan modification and were denied (you must have proof that you mail or send them all required docs)
• If the law firm that was representing the bank handler didn’t do a complete legal review of your file ( those robosigners )
• If the bank miscalculated your mortgage payments or applied fees or penalties that were unacceptable and made you default in your payment (Ex: If they placed expensive insurance or any other escrow fees that make the payment so high you couldn’t afford it)

Will I get my foreclosed home back?

• No, you are not going to get your house back. If they find error in the foreclosure proceedings the most likely outcome is the payment of compensation to the homeowner.
How much will you received?
They will calculate the compensation in a case by case basis. Also if they find mistakes in your case and you receive compensation you agree to surrender any future legal claim.

When should you apply for a review of your foreclosure case?

We don’t know yet. They announced the compensation plan in September but they don’t have anything ready yet. It is believe that the cutoff date for homeowners will be the end of march or april 2012.

How can you apply for a foreclosure review?

The OCC will make a public campaign so in the future you probably hear about it on TV or on the radio. Also if you are eligible you may receive a letter by mail ( if they have your current address) .
They also are going to create a website and toll free number.
Right now they have not created the site but when they do, we will post the address and phone number here. Please put our site StopFreclosure.com ( please notice the misspelling) in your bookmark. You should also register in our mailing list ( filling out the form on the right) if you want to be notified. You can always visit the website of the Inspector General and get the information there ( The website address is http://www.occ.treas.gov ).

Banks Agree to Pay Compensation to Foreclosed Homeowners

If you lost your home due to a foreclosure or made a loan modification between January 2009 and December 2010 you may be eligible for compensation from your bank.
Last year it was discovered that some banks were foreclosing homes without the proper legal procedures.  The most famous case:  the use of “robo-signers” or employees that signed hundreds of foreclosure orders a day without reading the related mortgage documents. Many homeowners that could have save their home from foreclosure, lost them.
Now banks are required to “look back” to those mortgages and find out if the federal and state laws were follow and if there were errors in the foreclosure proceedings ( ex:  payments were being made, there were errors,  misrepresentations, etc).  The banks are also required to let borrowers that lost their home or were financially affected ( penalties, etc) required to ask for remediation.
Under the pact the banks have agreed to :

• Identify and compensate homeowners ( borrowers) that suffered financial harm due to the bank error(s)
• Modify the mortgage servicing process to make sure that it is fair and orderly.
• From now on, the banks can NOT have a homeowner making a loan modification AND in foreclosure at the same time ( which was the regular practice)
• Make easy for homeowners in foreclosure or loan modification to contact the lender by establishing  a single direct line ( We will be publishing those contact phone numbers as soon as they are created)

The bank and services that agreed to the plan are:

BANK	Direct Phone Number	Hours
JP Morgan Chase	Chase Homeownership Center 866-550-5705	EASTERN TIME Monday - Thursday: 8am - 12am Friday: 8am - 10pm Saturday: 8am - 5pm
Bank of America	Mortgage Help Line 1-800-846-2222	CENTRAL TIME M - F, 6 a.m. to 10 p.m. Sat., 7 a.m. to 6 p.m. Sun., 1 p.m. to 6 p.m.
Wells Fargo	1-800-678-7986	CENTRAL TIME M - F, 6 a.m. to 10 p.m. Sat., 7 a.m. to 6 p.m. Sun., 1 p.m. to 6 p.m.
Citigroup	Office of Homeownership Preservation Phone: 1-866-915-9417 Fax: 1-866-963-0651 Email: mortgagehelp@citi.com	CENTRAL TIME Monday - Thursday 8am-8pm Friday - 8am-5pm
HSBC Bank	Payment Assistance Line 1-800-338-6441
MetLife Bank	1-888-638-6964	EASTERN TIME Monday through Friday from 8 a.m. to 11 p.m. Saturday from 8 a.m. to 5 p.m.
Ally Financial GMAC Mortgage	1-800-627-0128
PNC Bank	1-800-822-5626
SunTrust	SunTrust Mortgage Loss Mitigation Counselors 1-800-443-1032 Option 3	EASTERN TIME Monday - Friday 8:00 a.m. - 10:00 p.m.
US Bancorp	800-365-8544
Aurora Bank Aurora Loan Services	Home Retention Group 800-550-0509	EASTERN TIME Monday - Thursday, 8:00am to 11:00pm Friday, 8:00am to 9:00 pm Saturday, 8:00am to 4:00pm
EverBank	Homeowner Solutions Group 1-800-669-7724
OneWest Bank	1-877-908-4357
	Sovereign Bank's Loss Mitigation Team 1-888-656-8101

.

MORE HELP FOR STRUGGLING HOMEOWNERS
Enhance Obama Plan

The government of President Obama in its ongoing goal of helping Americans has announced some adjustments to the existing foreclosure assistance programs. The new enhancements will help homeowners in risk of foreclosure or already in foreclosure procedures. The new adjustments will be applied to the Home for Homeowners Program created by president George Bush and to the HAMP ( Home Affordable Modification) created on March of last year.

The program cost will be share by the banks and the government. The government will use $50 billion dollars from the Financial Rescue Plan ( TARP) .

This is how the new adjustment work :

* Underwater Homeowners: those whose mortgages is more than what their house is worth. They will be able to refinance into a new FHA backed loan IF their lender cut part of the principal.

* Unemployed Homeowners: their new mortgage payment will be 31% of their income max for 3 to 6 months. This will give the homeowner a break while is finding a new job. When they find a job they will qualify for a Loan Modification.

The White House said that they expect to help million of homeowners but that with all help there will be between 10 to 12 million foreclosures over the next three years. "... because many people got into homes that they simply cannot afford"

If you believe that you can qualify for the government program you can request a FREE no obligation qualification for a Loan Modification. If you fill out the form a professional loan modification will contact you to answer your questions and let you know if you can be helped. Or you can fill out the form on the right and find the closest government approved agency and contact them. The agencies are free. You can always join our mail list and receive important information about programs that may benefit you. Fill out the (short) form on the right.

Obama Loan Modification Program - Additional Funding For
Unemployed Borrowers, Underwater Borrowers, and Second Liens

Last february 19, president Obama announce $1.5 billion dollars to fund those families hit the hardest by the housing crisis. The government consider you are a homeowner in this situation if the home value in your state has fallen more than 20% from the peak of the housing bubble.

This means that if you live in any of the qualifying states your chances to get a Home Affordable Modification ( how the obama loan modification are called) will increased.

This funding will be alocated in mortgage modifications that target specifically:

1. Homeowners who are unemployed
2. Homeowners that are upside down or underwater: when you owe more than what the house is you were going to sell it. This is specially important because this homeowners are finding particulary hard to get a loan modification or sale their homes.
3. Second Liens: many homeowners has found a huge problem trying to get a loan modification due to their second mortgages , line of credit or any other liens. Now this funds will be used to pay incentives to the lenders that hold those liends and reducing the obstacles to the modification or refinance of the main mortgage.

The plan is not live right now, the State and local Housing Finance Agencies (HFAs) need to submit a program design to be approved by the federal government.

If you want to read the exact press release please from the White House about extra money to help the states with more problems with their housing click here

Government Loan Modification Program - 2009 Results
1 in 4 Homeowners Got Principal Forbearance
Median Savings: $500 a Month

The results for 2009 are out. The Home Affordable Modification Program (HAMP) also known as the Obama Mortgage Plan or Government Foreclosure Program is delivering results. There are still problems: the number of homeowners that are being benefited are low, in fact there are only 112,521 completed or Permanent Loan Modification under the program, but almost 800,000 more are in the "trial period".

The best part of the results is the amount of monthly savings that homeowners are getting: $516.14 a month!!!. That is really helping homeowners that were struggling with their mortgage payments. If you or a friend is thinking in getting a loan modification the time is now. It has been a rough couple of months for everybody but the banks have more trained people, the hud-agencies also are getting better at counseling and helping fill out forms. Also the government has cracked down on scammers that were taking advantage of people. The loan modification agencias that are working now are better and are going through more rigorous inspections. Remeber that you can do your own obama loan modification (click here for instructions), you can ask for help from one of the FREE government approved agencies ( fill out the form on the right to see the ones close to your home) and/or request a FREE consultation with a private loan modification agency that will let you know if you qualify and what your options are (we get a referal fee if you talk to them)

Guide to Do Your Own Loan Modification
( Obama Plan - HAMP)

We have receive many request from people that want to know in few words how to apply for a Loan Modification under the Obama Mortgage Plan ( Formal Name: Home Affordable Modification).

Based on the guides given by the Making Home Affordable Site ( The official government site) we have created this easy to follow guide. You will find the forms, instructions and addresses where to send the documents to apply for your loan modification here.

Remember that if you want to pre-qualify yourself for an Obama Loan Modification you find the instructions here. If you want to contact one free - HUD approved counselor you can also do that here ( filling out the form on the right) and if you want to get qualified by a private agency you can also do it here (Disclosure: we will get a fee for the referral). If you want to be included in our mailing list fill out the short form on the right to receive an invitation.

Click here to read the Complete Guide to Apply for an Obama Loan Modification.

Do You Know What Your Mortgage Payment With an Obama Loan Modification Will Be?
And How To Get It

If you need to get your Loan Modified and when the lender ask you "How Much You Want to Pay?" you answer: " The Lowest Amount Possible!", well you have a problem. Before asking for any loan mod you need to have a number. That number will be your negotiation tool. It doesn’t matter if the number is extremely low compare with your actual mortgage payment. If you don’t have an affordable amount you will be bullied into a payment that could be too high for your income and put you in a similar situation ( facing foreclosure) in the future. If you know what you can get, you can ask for that. You will be a savy homeowner and your chances of getting what you need will multiply. Don't let anyone cheat you of your money or your house. Know what you want and get it.

I have written in plain English instructions so you can calculate your own Affordable Mortgage Payment. With that number you can go to a lender or your loan modification agency and ask for the obama loan modification program. You will get it or at least something closer. The Obama Mortgage Plan have rules about how much savings you are entitle to. Know how much and ask for it. It’s your right. Click here to go to the page and learn to calculate your Affordable Mortgage Payment

By the way, don't forget to put us in your bookmarks and remember that you can always look for the list of the Hud Agencies close to yuor house that provide free help for homeowners. And if you want we can refered you to a private loan modification agency ( we get a referal fee). Read here how to find out how much should be your affordable mortgage payment under the Obama Loan Modification Program

WHERE TO FIND FREE HELP
And What Yo Can Do About It

If you are a homeowner that is having problems paying your mortgage or is already in foreclosure you know how hard is to find help that really put your interest above everything else.

* If you go to the lender directly, they want to make sure they get their money from you. They will try to fit you in the program where you pay the most money every month and where they lose the least. Many lenders consider " a fair mortgage payment" one that takes more than 50% of your income. The consequence of this very selfish approach is an extremely high number of homeowners that default AGAIN after they have been given a Loan Modification by their lender.

* If you go to a lawyer, they will usually cost you a lot of more money than a regular agency. They will check if you qualify for a Loan Modification and will try to extend the time you can stay in your home ( rent free) during the foreclosure process and sometimes they can get a better deal than the one the bank is giving you. The common problem when dealing with lawyers is the lack of communication. They will assign your case to an assistant and are more interested in make money from you than saving your home.

* If you go to a private agency, you need to be careful. Some are very good and inexpensive compared to a lawyer but others are just scam artist that take your money and don't do anything for you. They just one to sell you a Loan Modification even if you don't qualify for one. At the end you lost your money and your home.
If you hire a private agency ALWAYS:
- Check if there is a complaint against them in the Better Business Bureau
- Never give money in advance
- Always pay with credit card. If they don't accept credit card, look for someone else. If you don't have a credit card you can buy a "pre-paid credit card" (Wal-Mart sells them) . You will have the protection of Visa, AMEX or Master Card in case something happen.
- Ask for references, when they created the company. Stick with agencies that have been in the business for more than 2 years.

* You can always go to a FREE - Non Profit Agency. They are the ones that the HUD and HOPE NOW Alliance endorse. You can get a list of the ones close to your home by filling the form on the right.
They will assign you a housing counselor to work in your case. They will analyze your situation and tell you what your options are. If you qualify for a Loan Modification under the Obama Program they will let you know. If you don't they will also tell you, so you don't invest money, time and energy in a losing battle.

WHY ONLY 9% OF ELEGIBLE HOMEOWNERS ARE GETTING OBAMA LOAN MODIFICATIONS?
And What Yo Can Do About It

Hundreds of homeowners that had their hopes to save their homes on the Obama Mortgage Plan ( Home Affordable Modification) are ending up in foreclosure. Many are just not qualified but many more just couldn't get through their lenders and missed their opportunity to avoid forclosure.

The Making Home Affordable Plan ( HAMP) that the president obama launched 5 months ago is very ambitions. the budget is for 75 billions and a big percentage of that money is going to go to financial institutions in the form of incentives. In exchange those financials institutions need to give loan modification to homeowners that are facing foreclosure. Mortgage refinance is the other option.

Only 235,000 loans have been modified. That is about 9% of those eligible homeowners nationwide. The problem is mainly the lack of interest from loan servicer to help homeowners in their process of loan modification.

The companies that service the mortgages are those that send homeowners the mortgage bills and then send the money to the lenders. They make money from processing fees, late fees, penalty fees, etc.

They make more money when a homeowner is facing foreclosure than when the home owner gets a loan modification. And homeowners need to deal with those services in order to get the loan modification.

The government wants more Obama Loan Modifications granted but it's no forcing lenders to hired more people to help homeowners, to create a system that can speed up the approval processes and to train their staff in the program. In fact some homeowners that requested a loan modification and "are in the process" get denied for silly mistakes like forgetting to sign a page, missing a document ,etc.

What Can You, a Homeowner Do to Get a Loan Modification under the Obama Program?

1. You need to contact your servicer and find out if they are working with the Making Home Affordable Program ( Obama Foreclosure Plan). We have a list of servicers and their phone number.
2. Find out if you qualify for a Loan Modification under the program or if you can qualify for a Affordable Mortgage Refinance
3. Apply for a loan modification: you can ask the servicers what documents you need, fill them out and send your application.
You can always look for external help. If you fill out the form in the right we will give you a list of the HUD government agencies that will provide you free help and are close to your home.
If you check the box and select the long form we will refer you to a private agency that will let you know if you are qualified and help you with your loan modification. The qualification is free.

OBAMA MORTGAGE PLAN EXPANDED
More Upside-Down Homeowners Qualify

Now homeowners that owe up to 125% of what the house is worth will qualify for the Home Affordable Modification Program ( HAMP) commonly called Obama Mortgage Plan.
Homes prices have declined an average of 27% since the peak of the housing boon in mid 2006. In some areas like Florida, California and Nevada the drop has been even higher. Just in Phoenix ( AZ ) houses are 46% lower than in 2006.

The government understands that homeowners that have seen their equity vanish has less chances to refinance or get a regular loan modification. Also with the original Obama Foreclosure Plan, only homeowners that were up to 5% under water could qualify.
With the new expansion of the Obama Plan, those homeowners that are owe up to 25% more than their house is worth and whose mortgage is owned or guaranteed by Fannie Mae and Freddie Mac will now be allowed to refinance those loans according to the terms of the Home Affordable Refinance program established earlier this year. This new change is add to the previus one that start covering second mortgages.

Cities like Vegas, where 67% of the mortgages are upside down will benefit greatly with the expansion of the plan. If you were told you could not refinance your home because you didn’t have enough equity in you house, check again. Now you may qualify for a refinance or a loan modification under the Obama Plan and you may save your house from foreclosure and/or save thousands of dollars in extra interest…

What They Want You to Know About You
Obama Foreclosure Plan

Just homeowners that are going through real hardship will qualify for the Obama Home Affordable Modification Program ( HAMP). Homeowners who are expending a big percentage of their income in housing expenses, homeowners that due to other circunstances ( high credit card debt, reduction of income, etc) cannot afford their mortgage payments, etc. If you are thinking in applying to the program you need to be ready to show many documents and support your case. The information that they will require when are qualifying you for the Obama Foreclosure Plan is:

* Information about your income (before taxes)
* Your income tax returns. Some lenders will want to see the most recent. Others will ask for up to 3 years
* Information about your savings and other assets
* Information about your mortgage. A mortgage statement is enough
* Information about lines of credit and other loans that you have against your home.
* Account balances and minimum monthly payments due on all of your credit cards.
* Account balances and monthly payments on all your other debts such as student loans and car loans.
* Hardship Affidavit for the Obama Mortgage Plan ( click here to see what they are asking you ). In the affidavit you need to describe why your income has reduce or what your expenses increased. In other words, why you are not paying the mortgage.

Also remeber that if your debt is too high you will be required to get counseling for your debt. They will make sure that you get a lower debt to income percentage ( usually getting a debt consolidation or settlement).

If you want to be proactive and get a quote for debt consolidation click here.

 

States are complementing the Obama Modification Program
California: Longer Foreclosure Process
Florida: Negotiations in Court

Due to the wave in foreclosure homes some states are taking matter into their own hands. They are going further than the Home Affordable Modification Program created by President Barak Obama.

In Florida the courts are "requiring" that the lenders try to negotiate with the homeowners a settlement before they can foreclosure the home. Success rate 71% of homeowners avoid foreclosure getting a Loan Modification ( Read more about Stop Foreclosure in Florida here)

In California , the state government implemented the California Foreclosure Prevention Act. The act has modified the foreclosure process making it 90 days longer. The extension is a tool that the government is using to press the lenders to negotiate a Loan Modification with the homeowners in risk of foreclosure or already in the process. ( Read More about Stop Foreclosure in California here)

The new California law, like the Obama plan, let servicers determine whether a foreclosure or a loan modification is more cost-effective and they can pick the cheaper option

90 Days of Plan Obama ( Loan Modifications)
270,000 Foreclosures Stopped in April

The Home Affordable Modification Program that the government of President Obama Launch on March 4 has been implemented for 3 months (90 days) and we are starting to see the results.

• There were 270,000 stopped foreclosure in April according to the Hope Now Alliance.
• 127,000 homeowners completed Mortgage or Loan Modification
• 143,000 completed a repayment plan

Under the new Obama Plan Home Affordable Modification HAMP homeowners are in a trial period of 3 months before the loan modification is consider completed. The number Loan Modifications in the following months will increased substantially. We have passed the first 90 days needed to complete a Loan Modifications. Under the new Obama Plan homeowners in risk or already facing foreclosure have 2 options to keep their home:

1.Obama Affordable Loan Modification:

A modification occurs any time any term of the original loan contract is permanently altered. This can involve a reduction in the interest rate, forgiveness of a portion of principal or extension of the maturity . If may be easier to qualify to an Obama Loan Modification than to a regular Loan Modification if you are upside down , have bad credit or lots of debt.

2. Obama Affordable Refinance:

Homeowners that have equity in their homes and are current with the payments may be elegible for a Refinance. A refinance occurs when a NEW mortgage is issue. The new mortgage will be backed by the FHA.

Homeowners are invited to Reach Out for help and stop foreclosure

On April 8 the government also launch an aggressive campaign to encourage homeowners to keep their homes and prevent foreclosure. The campaign is called "Reach Out" and it target mainly homeowners that are more than 3 months behind in their mortgage payment.

Wisconsin, New Jersey, Texas, South Carolina and Florida are some of the states were the campaign will be implemented initially. The government want homeowners to look from help from legitimate housing counselors.

The government is directing homeowners mostly to non-profit organization that don't charge a fee for their services. Homeowners, however, shouldn't let a small fee stop their efforts to stop foreclosure and save their homes. The government campaign has mailed [only] 900 letters from but will be sending more.

We at StopFreclosure.com can provide you with a list of the non-profit agencies that are HUD-Certified and close to your home ( fill out the short form on the rigth). Please keep in mind that those agencies are overwhelmed and for some homeowners , specially those that are already late, waiting is not an option. We want to suggest you to get a FREE consultation from a PRIVATE AGENCY. Fill out the long form on the right and a professional Loan Modification officer will contact you and explore your options to stop foreclosure and have access to an affordable Loan Modification or Refinance.

President Obama Expands His Mortgage Plan
Second Mortgages Will Be Cover

One of the features of the Obama Mortgage Plan or Home Affordability Program was that it just covered the first mortgage or lien.

The original plan offers homeowners in risk or already facing foreclosure the options of “Affordable Refinance” for those current on their payments and with some equity in their home or “Affordable Loan Modification” for those homeowners that are late on their payment and/or upside down ( owe more than the house is worth).

With the Obama Plan the homeowner will receive an “affordable mortgage payment”. The goal is that the homeowner spend 31% of the gross income in housing (mortgage payments, escrows, HOA, etc)

The program that started on March 4 is already working but some problems have arisen: it is hard to lower the total housing expenses to 31% when there is a second lien that the
lenders don’t want to negotiate, lower or modify. And 50% of the homeowners is risk of foreclosure have second liens.

To solve this problem the government has created the Parallel Second Lien Program. Under this modified Obama Foreclosure Program , when a Home Affordable Loan Modification is initiated ( on the first mortgage ) the lender that owes the second mortgage will automatically lower the payments according to some set of rules that the government has established. If the lender doesn’t want to lower the payment they have the option of accepting a lump sum as a payment ( to continue reading about the new changes in the Obama Mortgage Affordability Program please click here)

President Obama is looking also for the integration of the Hope for Homeowners Program into the Home Affordability Program. This will be wonderful news for homeowners that owe more than what the house is worth. (to continue reading about the changes in the home for homeowners program please click here)

 

Obama Stimulus Package
One Month and Showing Results

It has been one full month since the start of the "Home Affordability Program " or Obama Bailout for Homeowners. Now we know how the program works and if it us as homeowners will benefit from it or not.

The program has shown to be very successful. Unless the other programs that ex-president Bush created ( Hope for Homeowners, FHA Secure, etc) lenders are embracing this program. The plan is also good for homeowners because it is easier to qualify. We have posted here the official Questions and Answers of the Obama Mortgage Plan for you to read

The fact that the government is requiring lenders to work with the Obama Plan and also giving them "cash incentives" is a sign that better times are coming and that a big number of homeowners ( according to the government 40%) will save their homes from foreclosure.

You will benefit from the Obama Stimulus Plan if you get one of the following 2 options

1. Refinancing
2. Loan Modification

1. Refinancing Option:

A regular “Mortgage Refinance “requires that the homeowners have 20% of equity in their home and good credit. If that's you don't miss the opportunity and do it. You will take advantage of the lowest interest rates in history: as low as 4.5%.
If you refinance a $200k mortgage and lower the interest from 6.5% to 4.5% you will be saving $251 a month!!

Under the Obama Mortgage Plan you can refinance even if you don't have the 20% equity. You need to be current on your payments, have good credit and have a mortgage guaranteed by Fannie Mae or Freddie Mac. If you believe you qualify you Refinance with a Government Backed Secure FHA Loan and get the best rate and lowest mortgage payment possible.

2. Loan Modification Option:

This is the option for the rest of us; who are struggling to make the mortgage payment. This is the option that Obama hopes will benefit million of homeowners.

What the Loan Modification Option gives you is a mortgage payment that including principal, interest, taxes, insurance and homeowner's association dues, if applicable is affordable for you. The government thinks that 31% is affordable.

There are differences between a “regular loan modification” and an “Obama Modification”. The qualifications are different, the process is different and the evaluation process is also different. You can read here a small summary of the whole Obama loan modification process.

We would like to announce that HopeNowMortgages is moving to StopFreclosure.com ( There is a misspelling. It is stop freclosure ( without the first o in foreclosure) - Please put www.StopFreclosure.com in your bookmarks

9 Million Homes will be Saved
Obama Mortgage Relief - Stop Foreclosure Plan

The Government of President Barack Obama has unveiled a new Homeowner Affordability and Stability Plan. The plan is one tool more that the government has to stop the wave of foreclosures that has engorged millions of homeowners. This program also is strengthening the Hope Now Programs that are in use today. The government will publish the guidelines for the new programs on March.

The new plan has 3 different approaches to stop or avoid foreclosures:

1. Refinancing for Responsible Homeowners
This will help homeowners that are current in their payment and have less than 20% of equity in their home

2. Mortgage Relief – Stop Foreclosure ( $75 Billion Plan)
a. Loan Modification that give mortgage payment of maximum 31% of income and incentives for borrowers, lenders and services.
b. Guides for Regular Loan Modifications
c. Required Participation by Financial Institutions that receive government money
d. Modification of Home Mortgages during bankruptcy
e. Strengthen of Hope for Homeowners , Streamline Modification Program other FHA and Hope Now programs
f. Support for local communities and displaced renters

3. Strengthening of Fannie Mae and Freddy Mac

In the new plan there are help for everybody. You can read more details about how it works, how you can benefit and basic qualifications by clicking here.

 

STREAMLINE MODIFICATION PROGRAM
PLAN THAT MODIFY LATE MORTGAGES

The Streamline Modification Program (SMP) will MODIFY mortgages for homeowners that are at least 3 months late in their mortgage payment. The new modified mortgage payment has to be 38% of the homeowner income or less. The new modify mortgage will be backed by the FHA
New Mortgage?: No, but now it will be FHA backed
New Amount: Same than before but different way of payment.
New Payment: 38% of income or less
Dates: Starts on December 15, 2008
The program is more complicated than this. Please read complete information going to our page Streamline Modification Progam or click here for more information

HOPE FOR HOMEOWNERS
NEW PLAN TO CHANGE OLD MORTGAGES FOR NEW FHA LOANS

The HOPE for Homeowners Program (H4H) will REFINANCE mortgages for borrowers who are having difficulty making their payments, but can afford a new loan insured by HUD's Federal Housing Administration (FHA).
Maximum Loan: $550,440
New Mortgage?: Yes, an FHA backed
New Amount: 90% of appraised value of the home
Difference between New Loan and Old Loan(s) : MUST be waived by lenders and liens holders
Dates: October 1, 2008 to September 2011
Thing to Know: The Borrower will SHARE future equity with the FHA
The program is more complicated than this you need to read more about the Hope for Hopeowner Program and check if you qualify here

If you refinance your home through the Hope for Homeowners Program you will not owe any payments, fees, penalties or other debt on your existing mortgage(s).

BAILOUT PLAN - ARE WE WINNERS OR LOSERS?

The congress has passed a bill that is known as Bailout Bill of Wall Street. The famous $700 billion dollars. But what it is? How it works? Is it really that bad? Is it really that necessary? How will it affect us?

Here it is what the bill is suppose to do:

Give up to $700 billion to Tresury Department to purchase trouble assest ( Mortgages ) that are weighing down the U.S. financial system. The money will be given in 3 installments, starting with an initial $250 billion (for the next $100 billions the President should ask and report to Congress. For the final $350 billion, the President must request the authority through a written report to Congress.)

The Treasury Department will decide from whom they will purchase the assests. They plan to buy the lowest priced ones first.

Impose restrictions on the salaries received by executives whose companies are selling some of their bad assets through the government's purchase program.

Require the Treasury to provide details of its purchases within two days of the transactions; various oversight boards would be created to monitor the operation of the program.

Give taxpayers ownership stakes in companies whose bad assets are purchased. After five years, if the government is facing a loss in the program, the president would be required to submit a plan recommending how the money can be recouped from financial companies.

Establish a program for banks to buy government insurance that would cover the principal and interest on certain troubled assets, rather than selling them outright. Premiums would vary depending on the assets' risk profile.

Temporarily (until 2009) raise the cap on federally insured deposits from $100,000 to $250,000.

We are not going to list here the other "pork" or additional tax relief that the congress approved and that don't have any relationship with the financial crisis.

Pros and Cons of the Bailout Bill:

Pros of the Bailout:

We have to do something. If the government dont act most of the banks and financial institutions will go down and wont be any money in the streets. We could not use our credit cards. If we want to buy a mattress, a car, a trip even medicine we will have to use cash.

Thousand of people will be unemployed. First the thousands that work in the banks that are going bankrupt and then the thousands from the business that will be affected.
The prices of the houses will keep going down. If you are like me you will see the value of your property go to levels lower that the one in 2001!!
Without jobs and losing their houses many people will go homeless

Also the Bailout "may" help homeowners that are having problems with their mortgages. Some Banks may decide to settle foreclosure cases faster ( renegotiate the mortgages ). The goverment continue its work with the Hope Now to help homeowners to prevent foreclosure. If you want to explore this option don't forget to fill out the form so we can put you in contact with an agency that is working with a program like this.

Cons of the Bailout: :

This bailout will benefit mostly rich investors ( with millions in the stock market) and wall street institutions.

They created this mess and they are the only ones being rescue. During the last 8 years they gave credit to everybody and that make the prices of the real estate elevate.
When people couldnt afford the overprice houses they created ARM or Sub-prime mortgages so they could loan the money and then they sold the risky mortgages to other people
Today the government will buy those risky mortgages so they dont lose more money. Everybody make bad decision (homeowners and banks ) but the government is coming to rescue just the banks.

The bailout bill will directly cost about $3,000 per person over 18 in the U.S. You can add that to the balance of your credit card.

The indirect costs which are even higher is the lost of equity and value of our homes, the lost of income of the people without jobs and the lost of value of the dollar ( which makes everything imported more expensive: gas, food, etc)

Now who are the losers and the winners from his bill?

* Biggest Winner: Wall Street, Banks and Financial Institutions.

Wall Street and Banks: they are the biggest winners because for them the new bill means survival.
Banks at risk (almost all oft them) will be able to sell the mortgages ( or securities which are a bunch of mortgages) to the government ( Treasury Department). They are selling these mortgages very cheap (cents on the dollar) and they will get some money that in turn they will lend to regular folks (like you and me) and to businesses.

Other Winners:

People or businesses that need to make loans ( for cars, furniture, credit cards, etc) and now will find available money

Treasure Secretary Henry Paulson and Fed Chairman Ben Bernanke: they have change Wall Street. Their name will be remember in the history books

Investors: this includes the millions of people with stocks in their retirement accounts. The new bill is preventing the markets to collapse and sending the value of stocks to the floor.

* Biggest Loser: Tax Payer

Tax payers: will have to pay for this bailout and we will see taxes increase and/or programs be cut. In the short term we will pay the price. In the long term if everything works fine we can even make some profits. If the plan doesnt work well.

Other Losers:

Top executives of financial institutions in problems. They will have some oversight in the salaries that they give themselves. We don't have to worry about them they have lots of savings thanks to the bonuses and huge salaries that until today they were getting. This apply just to the banks that will sell mortgages to the government .

Homeowners facing Foreclosure: sorry there is not any help for you here. This bill is target to help with the financial crisis no the housing crisis. But you have options in the last bill that the government created to help you avoid or stop foreclosure. To see what kind of help you can qualify for please click here.

Remember that if you want to see the list of agencies that will provide help in your city and state you just need to fill out the form on the top. We will also contact you with an Agency that is working with the plan LifeTime ( negotiate with the bank a new mortgage for a lower amount...) .

 

GOVERNMENT TAKE OVER OF FANNIE MAE AND FREDDY MAC
WHAT IT MEANS FOR US ?

Today the Government took over Fannie Mae and Freddy Mac. We have heard about it in all the channel news. But do you know what it really means for us?, Should we care?, Does this means that the Government of President Bush is doing something to help us? There is light at the end of the tunnel?  

Well, it depends in which situation you are: 
* You are buying a house:  GREAT! you will get a cheaper mortgage.  Now that the government is the backer of the institutions banks will give out cheaper mortgages.  You will need to have a substantial down payment and a good credit but the rates are going to be lower.

* You have your house in Foreclosure or facing foreclosure : this bailout doesn't mean anything for you.  The only people that are getting some relief are the "big investors" of Fannie Mae and Freddy Mac ( Big Banks, Chinese Government, etc)   You will need to check the Foreclosure Rescue Bill.   Please read my explanation of the bill ( click here ) and contact one of the community organizations that are helping.  Fill out the form on top to see the list of the organizations in your state.

* You want to Refinance your house:  if you have enough equity and good credit this take over is Good News for you.  Rates are going to be lower and more banks will offer programs for you. Please check the ads for companies that offer Refinance Services in this site if you are looking for a provider o contact us if you want a suggestion ( Disclaimer: I get paid a referal)

Please read a complete analysis of the take over here

NEW GOVERNMENT BILL - HOW IT WORKS - WHO CAN BENEFIT FROM IT ?
Foreclosure Rescue Bill ( The Housing and Economic Recovery Act )

I want to share with you what the bill is, what intents to do and more important if we can benefit from it.

The bill is intended to rescue some people facing or about to face foreclosure.
The idea is that the FHA will give them new loans so they dont have to go to Subprime lenders anymore.

But why get new loans? Many people in problems have those ARM Mortgages and they will adjust soon or have already adjusted and many homeowners cannot afford them. Also up to one third of the houses bought in the last five years are worth less than the mortgage they have.

How the loans work? First the note holder ( bank that gave you the mortgage) has to agree to reduce the amount owed on the house to 90% of the current appraised value. If they agree, the FHA will guarantee a new loan ( a 30 year fixed mainly).

Example:
In 2004 the Smith Family bought a Townhouse in Ft Lauderdale, Florida for $180,000 using a ARM Loan with a low 1 month introductory rate (1.64%) and 30 year term. The loan was to be recalculated (recast) every 5 years o when the principal is 125% of the original amount (mmm who understand this?).
For the first 36 months they were paying in average $783 a month. In the 4th year the loan was recalculated because now they owe $225,000 and the payment jumped to $2,419!!!
To make the matters worst, the house is now worth $140,000 ( price of comparable homes sold)

What the New Bill Proposes?
The Family Smith will get a New Loan backed by the FHA for up to $126,000 or 90% of the house value. The bank has to accept the new loan value. Also the smiths should be able to afford the new payment of $901 a month ( 30 year fixed and 7.5% aditional in fees, taxes and insurance). They also need to have a decent credit history.

Will the new plan work? As we can see its up to banks. In this case, if the bank accept, it will have lost up to $85,000. How about the family? Its not a bad deal for them and if they can afford the payments they can keep the home.

A normal refinance is not convenient for them and in this case I will suggest that they get legal help. They were subject to predatory lending and there are legal resources for them (click here for more info).

The legislation of the new bill is not as simple as it looked in the example in fact there are some points to be consider:

Borrowers who wish to refinance into cheaper FHA-backed loans will pay a fee of 3 percent of the loan amount at closing, either in cash or rolled into the mortgage
Borrowers will pay an additional insurance premium of 1.5 percent a year
Anyone who obtained a mortgage after Jan. 1 or whose mortgage payment is less than 31 percent of their gross monthly income won't qualify.
The maximum loan will be $550,440, according to the FHA
Participating homeowners must also share half of any future property appreciation with the FHA.
Borrowers currently behind in their payments will be eligible
Veterans are also helped by the new law, which lengthens the time a lender must wait to foreclose on a service member's house from three months to nine. Lenders to military personnel with adjustable-rate mortgages will have to wait an extra year to raise the minimum monthly payments.

How about the banks? Does it work for them? What incentive do they have to switch the loans?
The incentive lies in trading loans that are very likely to go to foreclosure for a smaller, more likely payoff.

In addition to the foreclosure prevention provisions, the new law offers:

Tax Credit one-time tax credit of up to $7,500 for first- time homebuyers. It's not exactly free money, rather an interest-free, 15-year loan. The homeowner would repay 1/15th of the amount to the government each year, $500 if they qualify for the full $7,500
Increase of the maximum FHA mortgage amount on other new loans to $625,500 for homes in the nation's most expensive markets. The limit is tied to an area's median home price.
No single borrower with an adjusted gross income of more than $95,000 or married couple that makes more than $170,000 will be eligible

[For More Info, click here...]

IF YOU WANT TO JOIN OUR MAIL LIST (Receive Update Information and News about new programs or anything that can affect us in reference to the mortgage, foreclosure, house, etc. Please fill out the form on top).

Goverment Announced Plan Life Line
Pause Foreclosure for 30 days - Here how it works!

The Federal Goverment has convinced the biggest lenders in the country to designed a new plan to help homeowners with problems with their mortgages. The program is called Project Lifeline.

The program target ALL 90 days or more delinquent homeowners. Project Lifeline is encouraging homeowners to reach out to their mortgage servicer or counselor (fill out the form for the official list in your state) . The Project Life Line will pause the foreclosure process, where appropriate, through a single call

What you need to do to qualify for a mortgage modification?

Step 1 call your mortgage servicer.
Step 2 tell the servicer you have received the letter, you want to stay in your home and you are willing to seek counseling, if necessary.
Step 3 provide updated financial information so the servicer can explore an appropriate solution.
Step 4 if appropriate, any pending foreclosure may be paused for up to 30 days during this review process until a formal decision is made and, if possible, a plan is created.
o Step 5 If a workout plan is established and the homeowner follows the plan for three
consecutive months, their loan will be formally modified as they will have
demonstrated their ability to meet the requirements.
For more information please click here.

Check if you qualify for the Plan Life Line

There are several plans to help you with the mortgage. Do you qualify for one? Which One? Let's see

First you need to identify in which group or situation you are. The goverment has plans for everybody. You need to know to which you apply. In which group are you?

1. First Group : You have a "teaser" or introductory interest rate ( very low ) and you are NOT able to pay it. You will end up in Foreclosure

2. Second Group: You have a teaser rate that will adjust. When the rate resets and the monthly payments jump up you WILL be able to pay.

3. Third Group: You have a teaser rate and CAN refinance your house into another loan because you have enough equity. Your house is worth more than what you owe.

4 Fourth Group: You can afford the teaser rate, but CAN NOT afford a higher rate. You CAN NOT refinance because you owe more than the house is worth.

5. Fifth Group : you are already in foreclosure. You couldn't keep making the mortgage payment either because you bougth more house than you could afford, your teaser rate reset and it was too high, your financial situatio changed or any other reason.

PLANS ACCORDING TO THE GROUP

If you are part of the Second Group or Fourth Group you may qualify for the Freeze Rate Plan. Please keep making your payments on time and contact the goverment at the number 1-888-995- HOPE. If you have tried and were not able to talk to any one, we can refer you to one of the several non-profit and goverment approved agencies in your state. Please contact us filling out the form on the top of the page. You can always contact us by email at info@stopfreclosure.com

You need to apply to the freeze plan!!! For more information about the plan and to know the qualification requirements click here

Check to see if you qualify for the "Freeze Rate " Program

If you belong to the Third Group there is something for you too. The goverment created the FHASecure. This is a plan for homeowners with marginal credit who may have been late on a few house payments recently. Under FHASecure, some of these homeowners are eligible to refinance into FHA-insured, fixed-rate mortgages. If you are in this group please click in the link for more information. You can also contact us and we will refer you to a Mortgage Agency that we trust. They will offer you the lowest rate out there.

If you are in the First Group or Fifth Group there is finaly something for you. The goverment didn't have anything before because they considered that homeowners in this group were investors or people who bougth a house that they couldn't afford.
Now the goverment has created the "Plan Life Line" and it will help thousands of people like you that are being hit by the mortgage meltdown and other unforseen situations. There are requirements to qualify for this plan too.

Check if you qualify for the Plan Life Line

If you have a problem with your mortgages remember that the goverment and the banks have designed plans to help homeowners in your situation. You have a way out. It may not be the one you wish, but if you know what you have available you can decide what to do.

What Alternatives You Have?
It depens of your group. But in general they are:

1. Refinance your Mortgage: This is always an option for those who have enough equity in their house, a good credit score and a plan to stay in the house for some time.
This is the best time to buy a house or refinance your mortgage. The interest rates are very low and you can save thousands of dollars in interest. You know that you need to be careful and opt for fixed rates loans for 15, 30 o more years. If you pay just $50 more a month in a $100,000 mortgage you can cut the length of the mortgage 6 years!!!
We can put you in contact with one mortgage agency that we trust. We selected them because it was the cheapest we found and they have more than 20 years in business. Please fill out the form on top for more information.
You can also check our banners. Please compare at least 2 or 3 .
The average rates for mortgages in the last week for the whole the country are:

2. Moving your Mortgage into an FHASecure loan:
The goverment has created a program called the FHASecure that will allow homeowners that have a good credit history but can not afford their current monthly payments. To check if you qualify and know more about the plan please click here. This option is also available through some of our banners and the mortgage agency we recommend.

3. Freezing Your current interest rates for five years:
To check if you qualify please click here. If you do, you need to contact your mortgage company as soon as possible.

4. Apply to the Life Line Program:
They will pause your foreclosure for 30 days. During that time you and the bank can look for a loan that will allow you to keep the house and them to keep the loan. Everybody is losing, try to loose the least. click here to see if you qualify for the life line program

You need to act now. Don't wait until the rates go up or until you get deeper in problems. If you have additional questions please send us your email at info@stopfreclosure.com or fill out the form on top.

 

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