Fannie Mae recently unveiled www.KnowYourOptions.com, a website designed to target borrowers who “are struggling with [their] mortgage payment or facing foreclosure.” The website provides a host of “easy to find” information that is structured to give borrowers a sense of each one of their available options so they can either do their best to stay in their home or exit gracefully. Basically what Fannie has done is to gather all of their essential information from FannieMae.com and grouped it into one place.

Unfortunately, day in and day out, the comments from our readers continue to filter in about how the lines of communication between themselves and their mortgage professional have broken down. Too often, the only option a borrower thinks they have is the one their lender and/or servicer tells them about. We can’t say enough how important it is that borrowers, a) know all their options, b) are prepared before they speak with their mortgage professional and c) know how to speak to their mortgage professional.

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Bank of America recently opened up a “customer outreach center” in the Boston area to better serve struggling mortgage borrowers. While we know this news will only serve to help a finite group of borrowers, we think that the strategy BofA is incorporating to help these borrowers will be a successful one. Professionals from BofA’s home loan department will be meeting with borrowers one-on-one:

Homeownership retention specialists at the outreach center will meet with homeowners by appointment only in order to maximize the value of each session and assure that each borrower arrives prepared with required documentation, is met promptly and receives the full attention of a Bank of America associate.

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As Federal officials plead with the nation’s top banks to increase their participation in President Obama’s Making Home Affordable program, smaller and more localized efforts are reporting their own success.

The Rainy Day Foundation, “a non-profit organization whose mission is to assist individuals in maintaining homeownership,” has teamed up with participating lenders, real estate firms, and home builders to fund their Homeowner Education and Loan Protection (HELP) program. Rainy Day established HELP 19 months ago “to create and maintain responsible homeownership.”

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While it sounds improbable, some American homeowners are pleading with their lenders to ‘hurry up and foreclose already!’  Homeowners who have fallen months behind on their mortgage payments sit idle, ready to move on with their lives but are unable, just waiting for their lender to make the next move.

While this “financial limbo” has brought great reprieve to some delinquent borrowers who have benefited from the “rent-free” living, for others, the limbo is a time of added stress, emotional pain, and financial liability. But the limbo not only financially hampers borrowers and investors, it poses a threat to future recovery: Read the rest of this entry »

Countless programs, initiatives and strategies have been implemented to help quell the rampant rise in foreclosures. While nearly every one of those plans was designed to shorten the crisis, the end result of one law may preserve the high levels of foreclosures — extending the crisis.

Starting today, California has instituted a 90-day mortgage moratorium: Read the rest of this entry »

We last wrote about the Hope for Homeowners program (H4H) just over a month ago, when we noted that after five months, the $300 billion program had helped exactly one homeowner.

How has it done now that it’s been in action for six months? No progress:

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That’s just one piece of important advice being offered by the Office of the Comptroller of the Currency’s “Consumer Tips for Avoiding Mortgage Modification Scams and Foreclosure Rescue Scams.” The OCC’s latest consumer advisory, released this week, warned homeowners not to be fooled by professional-looking advertisements, commercials, face-to-face introductions, and especially fake Federal or governmental services.

For example, “Call 1-800- Fed-Loan,” may be a scam warns the OCC. “Some companies trick borrowers into believing that they are affiliated with or are approved by the government or tell you that you must pay them high fees to qualify for government loan modification programs.” Legitimate Federal programs will never require payment for their assistance.

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The numbers are in. During its first five months in operation, Hope for Homeowners (H4H) — a program slated to help 400,000 homeowners avoid foreclosure — has officially only helped one. Yes you read that correct, one:

“As it stands now, we’ve only gotten 752 applications,” said Federal Housing Authority spokesman Brian Sullivan. “And only insured one loan. Needless to say, the program isn’t working terribly well.”

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Within the last month we have written several stories that seemed to rile up our readers more than others. Below is a list of just some of our stories that generated several comments. Join the ongoing discussion and let us know your opinion:

“(Update1) Bernanke Responds to Santelli’s Statement”

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As part of their “5 Tips” series on avoiding foreclosure scams, the Federal Reserve Board issued some additional tips to help “consumers select a reputable counselor and avoid fraudulent foreclosure scams.”

Some of Fed’s latest tips include: Read the rest of this entry »