Over the last few days we’ve had an influx of good comments come into the blog. I enlisted Keith Gumbinger, vice president of HSH.com and 25-year observer of the mortgage and real estate markets, to answer some of the recent questions we received.
1. The first question comes from Rick who commented on the post “Update 1: HARP receives one year extension—what’s the point?” Read the rest of this entry »
If your current mortgage is an option ARM, it’s possible that you may soon get a principal reduction or a lower interest rate…even if you don’t apply for a mortgage modification.
“Two of the nation’s biggest lenders, JPMorgan Chase and Bank of America, are quietly modifying loans for tens of thousands of borrowers who have not asked for help but whom the banks deem to be at special risk,” said the New York Times.
If you were unsuccessful at modifying your home loan, perhaps this will sound familiar: while you were making your trial payments, your servicer simultaneously began the foreclosure process.
A chance to remodify your loan mod
You’ve finally gone to contract on your home, and now you’re sorry you have. How can you get out of the contract?
Marcie Geffner has a new article on HSH.com that will help answer that question and more. Below is an excerpt from Marcie’s article, “Seller’s remorse? How to back out of a home sale contract,” but be sure to read it in its entirety:
I try to be as journalistic as possible on this blog. One of the ways I strive to do so is by presenting both sides of the story. We’ve read comments and published posts that call out the many frustrations borrowers have experience with Bank of America when trying to either modify or refinance their loans. Up to this point, not one comment on this blog or one news article that I’ve read sang the praises of the country’s largest lender. Like I said…until now.
One of our readers, “Steve,” recently shared a comment with us that said his BofA refi was “the best New Year’s present [he] ever had in [his] life.” Here’s Steve’s story: Read the rest of this entry »
Financial stress can be devastating. Studies have shown that financial stress is one of the main causes of divorce. But in today’s society, the past stresses we’ve seen caused by credit card debt seem to have been replaced with the stress brought on by foreclosures. The stress has grown so great for some that we’ve even read reports of borrower suicide.
But this week, a Baltimore woman dealt with her upcoming eviction in a way I haven’t yet seen or heard of: a hunger strike.
Blog.HSH.com reader Jessica wrote in and asked if her specific situation allowed her to qualify for the home affordable refinance program (HARP):
Hi,
I am getting mixed messages about eligibility for the HARP program. I own a property in CA but live in Co. My original loan is with Wells Fargo and a mortgage consultant said we didn’t qualify for HARP due to non-owner occupancy. However, the original loan was owner occupied and it looks as though on the Fannie Mae and the making home affordable websites that investment properties can qualify. Please advise
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.
Earlier this week the Home Affordable Modification Program (HAMP) received yet another black mark on its increasingly-poor record. Reports now say that more borrowers have dropped out of HAMP than have graduated to “permanent” successful loan mods. According to our friend Alan Zibel at the Associated Press (AP), 155,000 borrowers dropped out of HAMP in May alone; 436,000 borrowers have dropped out since the program began.
How many borrowers has HAMP help so far? Unfortunately, only 340,000. While the program will still be up and running for a few more years, if the numbers continue like this, this program will have failed to even come close to reaching the 3-4 million borrowers it set out to “save” from bad loans or foreclosure.
Update1: These changes to the HAMP program (see ‘original post’ below) begin today. Servicers can now only review a mod application after a borrower has provided all the required paperwork.
According to Making Home Affordable, here is the new protocol:
HSH.com's daily blog focuses on the latest developments in the mortgage and housing markets. Our mission is to relate how changes in mortgage rates and housing policy, as well as the latest financial news, impacts consumers, homebuyers and industry insiders alike. Our 30-plus years of experience in the mortgage industry gives us an edge as we break down the latest changes in an ever-changing market.
