January 18, 2019

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Articles Tagged With: Foreclosure Avoidance

FHA Loans Are Available During The Government Shutdown

HUD Announces Disaster Relief For Hurricane Michael Victims In Florida

The Department of Housing and Urban Development has announced disaster relief for victims of Hurricane Michael in Florida. According to a HUD press release, the government will “speed federal disaster assistance to the State of Florida and provide support to homeowners and low-income renters forced from their homes due to Hurricane Michael” following a presidential declaration of a major disaster area in several Florida counties including Bay, Franklin, Gulf, Taylor, and Wakulla. The declaration means those living in the affected areas are eligible for a 90-day moratorium on foreclosure on FHA mortgages. To get the benefit of this moratorium borrowers should call their loan officers and contact the FHA Resource Center at 1-800-304-9320. Never assume it is safe to simply stop making payments on an FHA mortgage after a natural | more...

 
FHA Loan Rules For Presidentially-Declared Major Disaster Areas

FHA Loan Rules For Presidentially-Declared Major Disaster Areas

In September of 2018, the FHA and HUD issued a reminder to lenders and FHA loan servicers regarding official policy for dealing with loans in presidentially-declared major disaster areas. A document labelled FHA INFO #18-40 states that for both forward loans and FHA reverse mortgage loans, certain guidance applies once the federal disaster area declaration has been made. The guidance begins with a definition of the disaster area declaration, explaining that it is made when “natural or other events are of such severity that it is beyond the combined capabilities of state and local governments to respond”. When this is invoked by the president, FHA loan guidance to participating lenders includes the following: FHA Loan Foreclosure Moratorium FHA loan rules include a 90-day moratorium on foreclosures following the declaration of | more...

 
Build Your Dream Home: FHA One-Time Close Construction Mortgages

FHA Foreclosure Relief For 2017 Disaster Victims

In late February 2018, the FHA announced additional foreclosure relief measures for victims in federally declared disaster areas in 2017. According to the FHA official site, the new measures are intended to be an expanded version of “mortgage relief to FHA-insured homeowners who live or work in areas impacted by Hurricanes Harvey, Irma and Maria as well as California wildfires and subsequent flooding and mudslides.” The FHA has ordered participating FHA lenders to offer “additional options to eligible disaster victims in Texas, Louisiana, Georgia, Florida, South Carolina, California, Puerto Rico and the U.S. Virgin Islands, allowing them to remain in their homes while reducing losses that would otherwise negatively impact FHA’s Mutual Mortgage Insurance Fund” according to the press release. At the heart of these new measures is something called | more...

 
FHA Loans And The 2019 Government Shutdown

HUD Announces New Foreclosure Prevention Guide

The Department of Housing and Urban Development has announced a new publication aimed at helping home owners avoid foreclosure and fraud. According to a press release on the HUD official site, the Homeowners Guide to Success is part of a “public-private partnership between federal agencies and industry partners. The guide provides homeowners with information on the critical first steps to take if they are at risk of missing a mortgage payment or facing foreclosure.” Foreclosure avoidance is an important issue, and with 2017’s natural disasters in Texas, Puerto Rico, Florida, and elsewhere, there is an emphasis not just on borrowers taking steps to keep their homes, but also to become more aware about the potential for fraud and scams aimed at those who struggle to keep up with mortgage payments. | more...

 
How FHA Loan Modification Works

How FHA Loan Modification Works

In our previous blog post, we discussed some of the basics of FHA foreclosure avoidance and loan modification. But how does FHA loan modification work? FHA HAMP, also known as the FHA Home Affordable Modification program is a way for home owners to avoid foreclosure through a permanent loan modification. But in order to become eligible for FHA HAMP, borrowers have to meet certain criteria as described on the FHA/HUD official site. Who is eligible to apply for FHA HAMP? “Mortgagors with FHA-insured mortgages that do not qualify for other loss mitigation programs and with adequate debt-to-income ratios. Homeowners must successfully complete a trial payment plan before becoming a full participant in the program.” The trial payment plan is the key to the success of the borrower’s involvement with HAMP. | more...

 
White House Announces Federal Disaster Assistance For Texas

FHA Announces Changes To Help Delinquent Borrowers Avoid Foreclosure

The FHA has issued a press release announcing changes to its loss mitigation program guidelines to help borrowers avoid foreclosure and remain in their homes in times of financial difficulty. According to HUDNo.16-127, “The Federal Housing Administration (FHA) today announced new procedures to strengthen the process mortgage servicers use to help struggling families avoid foreclosure and remain in their homes. FHA is streamlining its loss mitigation protocols that servicers must use when evaluating and deploying home retention options, foreclosure alternatives that allow delinquent borrowers to retain their home.” By way of background, the FHA official site (in Mortgagee Letter 2016-14) explains, “The evolution of FHAs loss mitigation guidance has also led to improved consumer engagement, the streamlining of FHAs Pre-Foreclosure Sale option, and a new loan modification by which Mortgagees | more...

 

FHA/HUD Alter FHA Loan Foreclosure Timeline Rules

There have been many changes to FHA/HUD foreclosure policy. The latest of those changes comes via FHA Mortgagee Letter 2016-04, which adjusts the foreclosure timeline to comply with federal regulations known as Regulation X. According to the mortgagee letter, a previous mortgagee letter (2015-21) has been superseded in its entirety by this new set of guidelines. The new mortgagee letter “…provides updated guidance relating to HUDs regulatory requirement for mortgagees to utilize a loss mitigation option or initiate foreclosure within six months of the date of default. Specifically, this Mortgagee Letter: –reiterates the existing eight automatic extensions available to mortgagees when they are unable to initiate foreclosure within the allotted timeframe; and –introduces two new automatic extensions to align with the Consumer Financial Protection Bureaus Regulation X.” Specifically, “The Consumer | more...

 
White House Announces Federal Disaster Assistance For Texas

HUD Charges Three Foreclosure Rescue Companies With Fraud, Discrimination

HUD is bringing charges against three California foreclosure relief/loan modification companies according to a press release issued on the HUD official site. According to HUDNo.16-002, the agency is bringing charges against, “…three Modesto, California, home loan modification companies and nine of their agents with violating the Fair Housing Act by targeting Hispanic homeowners” for their national origin. As mentioned in the press release, laws passed as part of the Fair Housing Act prohibit discrimination in housing transactions (to include rental properties, public housing, and mortgage loans” because of national origin. “Families struggling to stay in their homes need real help, not false promises that make a bad situation worse,” said Gustavo Velasquez, HUD Assistant Secretary for Fair Housing and Equal Opportunity, who was quoted in the press release. He adds, | more...

 
apply for an FHA loan

FHA Loans After A Deed-In-Lieu Of Foreclosure

A reader question came in recently asking about the possibility of getting an FHA home loan following a deed-in-lieu of foreclosure (DIL) action. “Is a deed-in-lieu derogatory on a credit report?” was one of the questions. The answer to that is that yes, a deed-in-lieu is considered a negative on your credit report. But FHA loans do offer some hope for borrowers who have since the deed-in-lieu established good credit once more. FHA loan rules in HUD 4000.1 cover the requirements in these circumstances for single-family “forward mortgages” after a deed-in-lieu of foreclosure, and those rules include mandatory waiting times or “seasoning periods” following the DIL. When can a borrower apply for a new FHA home loan after a deed-in-lieu? According to HUD 4000.1: “A Borrower is generally not eligible | more...

 
White House Announces Federal Disaster Assistance For Texas

FHA Loan Program Changes To Help Prevent Foreclosure

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...