OTHER INFORMATION ON FORECLOSURES
November 20, Fannie Mae (and Freddie Mac) announced that in order to support the streamlined modification program announced on November 11, we have notified our loan servicing organizations and retained foreclosure attorneys that they should suspend foreclosure sales on occupied single-family properties, as well as the completion of evictions from occupied single-family properties, scheduled to occur from November 26, 2008 until January 9, 2009. For more information on this announcement, please see this press release: http://www.fanniemae.com/newsreleases/2008/4531.jhtml?p=Media&s=News+Releases
November 11th, the Federal Housing Finance Agency (FHFA) announced that Fannie Mae, Freddie Mac, HOPE Now and other industry partners would be implementing a streamlined modification program to assist borrowers in distress. This program is aimed at the highest risk borrower who has missed three payments or more, owns and occupies the primary residence, and has not filed for bankruptcy. The program creates a fast-track method for getting troubled borrowers into an affordable monthly payment through a mix of reducing the mortgage interest rate, extending the life of the loan or even deferring payments on part of the principal. Servicers have flexibility in the approach, but the objective is to create a more affordable payment for borrowers at risk of foreclosure. The program is scheduled to launch on December 15. For more information, see the FHFA News Release.
In Loan Mods, Process Isn’t Quite Progress By: Emily Flitter American Banker, 9/8/2008 — A year after lenders, servicers, and credit counselors came together at the behest of the Treasury Department to speed up loan modifications, there are ongoing doubts about how well the process works.
Candidates weigh in on stabilizing Fannie, Freddie September 6, 2008, comcast.net news
Good news: Hope Now has helped over 2 million at-risk borrowers stay in their homes. Loans are increasingly being modified (as opposed to just repayment plans) which shows lenders are more willing than ever to work with the borrower by lowering the interest rate, principal balance, or both. More good news, 20 community events held since March have seen a total estimated 11,500 homeowners in attendance. Bad news: Since November ’07, 1.6 million letters have gone out to borrowers who are 60 days or more delinquent on their mortgage. Even after all of Hope Now’s publicity efforts over the past year, more than 80% of these borrowers still had not called their lenders a month after receiving the letters. More bad news: economist in last paragraph saying “There are probably 10 million folks underwater, owing more on their mortgages than their homes are worth and that’s going to climb.” and, “…if you’re well underwater, you’re probably going to drown.”
Publication Showcases Foreclosure Prevention in Rural America Rural Voices, Magazine of the Housing Assistance Council, Spring 2008, Volume 13, Number 2
The Impact of the Mortgage Crisis on Children First Focus – May 2008
Consequences for ‘Walk-Away’ Borrowers Realtor Magazine Daily News, April 14, 2008
