August 8, 2016
There are many reasons why you might need to take steps to learn who owns your mortgage loan. When you apply for a home loan at the lender of your choice, that financial institution “owns” your loan. But things can change-a financial institution could be purchased by a larger company, the loan itself may be sold off to another financial institution, etc. When you need to apply for FHA refinancing, an FHA reverse mortgage, or other type of loan that requires your existing mortgage data, you may need to look up who currently owns your mortgage loan. This is especially true for those looking for loan modification help through a government program such as the Obama mortgage, Making Home Affordable, or other programs. Some foreclosure avoidance programs are only for | more...
April 28, 2015
On Friday, April 24 2015, the FHA and HUD issued a press release detailing “significant changes” to the Distressed Asset Stabilization Program or DASP. According to HUDNo 15-048, “In an effort to better serve homeowners looking to avoid foreclosure, loan servicers will now be required to delay foreclosure for a year and to evaluate all borrowers for the Home Affordable Modification Program (HAMP) or a similar loss mitigation program.” “HUD is making additional improvements to the Neighborhood Stabilization Outcome (NSO) sales portion of DASP which are aimed at increasing non-profit participation. Updates include giving non-profits a first look at vacant properties, allowing purchasers to re-sell notes to non-profits, and offering a non-profit only pool.” That is a major alteration from the old standard, which permitted lenders to foreclose on a | more...
November 29, 2012
Recently, the FHA issued a press release announcing changes to its loss mitigation and foreclosure avoidance policies. We’ve reported on some of those changes in previous blog posts; we haven’t yet covered the FHA’s revised loss mitigation options and changes to those policies. According to HUDNo.12-22, in the section titled “Updated Loss Mitigation Priority Order Requirements” you’ll find the following new policy information on how the FHA handles its loss mitigation options–described in order of priority. According to the FHA, “After evaluating a delinquent mortgagor for Informal and Formal Forbearance Plans, FHA
November 27, 2012
In a recent Mortgagee Letter (ML2012-22), the FHA and HUD describe a variety of changes to FHA Loss Mititgation options. “Loss Mitigation” basically refers to foreclosure avoidance programs for borrowers in trouble on their FHA mortgages. The FHA Mortgagee Letter opens by stating, “No later than 90 days after issuance of this Mortgagee Letter, (November 16, 2012) mortgagees must begin to assess mortgagors in default under FHA
November 21, 2012
The FHA has announced important changes to its Loss Mitigation Home Retention options, intended as stated in FHA Mortgagee Letter 2012-22, to “reduce the number of full claims against the FHA Mutual Mortgage Insurance Fund by assisting a greater number of qualified, distressed mortgagors in retaining their homes.” The new rules, posted on November 16, have specific requirements for the lender. “No later than 90 days after issuance of this Mortgagee Letter, mortgagees must begin to assess mortgagors in default under FHA
January 26, 2011
With home foreclosures still in the news even several years after the housing crisis of 2008, we've written a fair amount on topics related to foreclosure on FHA home loans. Default and foreclosure are often preventable if the buyer takes action early; in some cases a simple bit of additional information is the only thing a borrower needs to take action that can save the home. Missing one FHA mortgage loan payment isn't good, but it is not the end of the world if the buyer contacts the loan officer and the FHA to discuss next steps. But what happens when the buyer misses the a second payment? The FHA says when the second payment in a row is missed, the bank will definitely reach out to the homeowner, but | more...
January 25, 2011
When FHA borrowers get into financial trouble, the best thing to do is to get in touch with the FHA and the lender immediately to start damage control. This helps avoid the borrower going into default or foreclosure on the FHA loan. Some borrowers mistakenly think that they are in foreclosure territory after missing one or two payments--but many more wrongly believe they have much more time even after missing two or more payments before the foreclosure proceedings start. The truth is that the foreclosure often varies depending on the state and the lender. How much time does a borrower have before going into default and foreclosure in general?
January 24, 2011
The FHA has many programs to help home buyers find and purchase a home. But FHA help doesn't end there--the government has a vested interest in helping people keep their homes even in times of financial difficulty. When borrowers get into trouble with their FHA mortgage loans, the first line of defense is to address money problems as early as possible. That's why the FHA offers their toll-free number (1-800-569-4287) to put home owners in touch with a housing counselor.
January 4, 2011
When borrowers get into trouble on their FHA mortgages, the FHA encourages them to act quickly in order to save their homes. But some borrowers don't act fast enough and fail to qualify for some government home loan modification or refinancing programs. Other borrowers aren't qualified for certain programs even when they do act. In cases where a borrower has tried loan refinancing, modification or other home owner bailout programs there may be an alternative to foreclosure in the form of something known as the short sale.
December 28, 2010
As with many government programs, the rules and requirements for FHA home loans change often. Some alterations come as part of new legislation designed to close loopholes that could threaten the fairness of the FHA mortgage loan process, others come as a way to update or modernize existing FHA loan programs. Because of such changes, the FHA loan program some potential borrowers explored a year or more ago, but didn't act on at the time, may have changed in the interim.