Plain Talk about the Foreclosure Process Video

The Seattle University School of Law, in collaboration with City of Seattle, has produced an educational video that explains the non-judicial foreclosure process and shows why it is important for homeowners to seek help as soon as possible.

Here’s the video:


For more information about the foreclosure process and assistance in Washington state, visit www.homeownership.wa.gov.

Protecting Yourself from a Loan Modification Scam

The Washington State Department of Financial Institutions (DFI) has recently issued several consumer alerts regarding unlicensed companies advertising loan modification services to Washington residents.

Homeowners seeking a loan modification should always check the licensing status of companies with DFI before doing business with them.

Tips for Protecting Yourself from a Loan Modification Scam

• Work Only with Licensed Individuals and Companies
  Make sure you’re dealing with a licensed individual. Companies and individuals must be licensed under Washington’s Mortgage Broker Practices Act, or Consumer Loan Act, before offering to modifying your loan, or taking money from you. Verify a license with DFI at www.dfi.wa.gov or by calling 1.877.RING DFI (746-4334).
  
  Some companies claim they do not need to be licensed in Washington because they are licensed in another state. This is not true.
• Work Only with Licensed Attorneys
  Some companies also claim they don’t need a license because there is an attorney involved in the process. That alone is not an exemption from licensing. Attorneys from other states must be licensed to practice law in Washington if they are providing you with legal advice. Verify their law license with the Washington State Bar Association at www.wsba.org.  
• Read and Understand All Documents
  Be sure to carefully read and understand any documents you are asked to sign. Do not sign anything you do not understand.
• Refuse to Allow Direct Access to Checking Accounts or Credit Cards
  Protect your money and refuse to allow direct access to your accounts.
• Consider Your Options
  You can contact your lender yourself to seek a loan modification.
  
  Also, consider taking advantage of free homeownership counseling to see if you qualify for other types of mortgage assistance. Visit www.homeownership.wa.gov for more information.

Home Affordable Refinance Program Extended To 2015

The Federal Housing Finance Agency has announced that it has extended the Home Affordable Refinance Program (HARP) by two years to December 31, 2015. The program was set to expire December 31, 2013.

HARP is designed to allow borrowers who owe more than their home is worth the opportunity to refinance their mortgage. Extending the program will continue to provide borrowers opportunities to refinance, give clear guidance to lenders and reduce risk for Fannie Mae, Freddie Mac and taxpayers.

Independent Foreclosure Review Payments to Begin April 12

Payments to borrowers under the Independent Foreclosure Review program are scheduled to begin on April 12 following an agreement reached by the Office of the Comptroller of the Currency and the Federal Reserve Board with 13 mortgage servicers.

The agreement, which was reached earlier this year, provides $3.6 billion in cash payments to borrowers whose homes were in any stage of the foreclosure process in 2009 or 2010 and whose mortgages were serviced by one of the following companies, their affiliates, or subsidiaries: Aurora, Bank of America, Citibank, Goldman Sachs, HSBC, JPMorgan Chase, MetLife Bank, Morgan Stanley, PNC, Sovereign, SunTrust, U.S. Bank, and Wells Fargo.

The payments will range from $300 to $125,000. For borrowers whose mortgages were serviced by 11 of the 13 servicers--all servicers but Goldman Sachs and Morgan Stanley.

Checks will be sent in several waves beginning with 1.4 million checks on April 12. The final wave is expected in mid-July 2013. More than 90 percent of the total payments to borrowers at those 11 servicers are expected to have been sent by the end of April.

Beware of Companies Asking You to Pay for Government Mortgage Assistance

If you’re contacted by a company or individual who claims that, for a fee, they can help you receive government-sponsored homeownership relief – beware!

The fact is you don’t have to pay anything to get the benefits of these programs. 

To receive assistance from the nationwide mortgage servicing settlement, Independent Foreclosure Review Program, or the Making Home Affordable Program, you just need to qualify.

Protecting Yourself from a Loan Modification Scam

Today, DFI announced that we have filed 40 Statements of Charges against businesses preying on Washington homeowners facing foreclosure.

None of the companies or individuals charged with offering these so-called mortgage rescue services are licensed with DFI, a requirement that provides essential consumer protections. In addition, none of the attorneys charged are licensed with the Washington State Bar Association (WSBA) to practice law in the state.

Forensic Mortgage Audit Scams: What You Need to Know

Fraudulent foreclosure “rescue” professionals use half-truths and outright lies to sell services that promise relief to homeowners in distress. 

According to the Federal Trade Commission (FTC), the nation’s consumer protection agency, the latest foreclosure rescue scam to exploit financially strapped homeowners are forensic mortgage loan audits.

In exchange for an upfront fee of several hundred dollars, so-called forensic loan auditors, mortgage loan auditors, or foreclosure prevention auditors backed by forensic attorneys offer to review your mortgage loan documents to determine whether your lender complied with state and federal mortgage lending laws. The “auditors” say you can use the audit report to avoid foreclosure, accelerate the loan modification process, reduce your loan principal, or even cancel your loan.

New Making Home Affordable Website for Spanish-Speaking Homeowners

The Making Home Affordable website has been redesigned to add more information and resources for Spanish-speaking homeowners. The site is available at www.MakingHomeAffordable.gov/spanish.

About Making Home Affordable
The Making Home Affordable Program is the Obama Administration's comprehensive plan to stabilize the U.S. housing market by helping homeowners get mortgage relief and avoid foreclosure. To meet the various needs of homeowners across the country, Making Home Affordable programs offer a range of solutions that may be able to help homeowners take action before it's too late.

New Improvements to Mortgage Modification Program Will Help Military Homeowners

This post comes from the Consumer Financial Protection Bureau:

Our military families make many sacrifices for our nation, and not just when a servicemember goes into combat. Military families also face challenges when a servicemember receives orders for a Permanent Change of Station (PCS) move to another base, and the family has to decide whether to go along or live apart. 

Unfortunately, for many military families, this challenge has become more difficult in the wake of the housing market downturn. This is because like other Americans, many military homeowners are currently underwater on their mortgage. Because their home’s value has decreased since they purchased it, these servicemembers may not be able to sell their home at a price that will pay off their mortgage, and they may not be able to rent out their home at a price that will cover their monthly mortgage payments. These military homeowners also may get a lower housing allowance at their new duty station, and may face additional loss of income while their spouse looks for a new job. Suddenly, military homeowners who have been faithfully paying their mortgage on time face a real risk of falling behind.

Video: Washington Foreclosure Mediation Program

The Northwest Justice Project has created a video explaining the Washington Foreclosure Mediation program. Check it out and share with others!

Infographic: Trouble Making Mortgage Payment? What to do

Check out our new infographic about what Washington residents should do if they have trouble making their monthly mortgage payment.

Please share!

Help for military homeowners (Holy Petraeus blog)

This was originally posted on the Consumer Financial Protection Bureau's blog

When I was at Fort Drum, NY last week I heard from a military spouse who said her family has been separated for four years – partly because of deployments but also because they can’t sell their house. At the same meeting an officer told me that he is underwater on a home he bought at a previous assignment. He wondered if there were any options for him that wouldn’t ruin his credit or require a large sum of money he didn’t have.

I’ve had conversations like these repeatedly in my travels to military communities across the country during the past year. The housing crisis has had a devastating impact on military homeowners, and their unique challenges have made it difficult for them to get help. So I’m glad to see that important protections for military homeowners were included in the recent settlement between the Federal government, 49 state Attorneys General, and five of the largest mortgage loan servicers: Bank of America, JP Morgan Chase, Citigroup, Wells Fargo, and Ally Financial.

Fannie Mae, Freddie Mac now permit up to 12 months forbearance to some unemployed borrowers

Fannie Mae and Freddie Mac recently announced that they are giving mortgage servicers expanded authority to provide six months of forbearance to unemployed borrowers without their prior approval and up to an additional six months with prior approval.

This means unemployed borrowers may be eligible for up to 12 months of forbearance.

Freddie Mac's forbearance options are being expanded at the direction of the Federal Housing Finance Agency and will take effect on February 1, 2012.

Some Homeowners Eligible for Foreclosure Review

Mortgage servicers have begun offering case reviews to borrowers whose primary residents was part of a foreclosure action between January 1, 2009 and December 31, 2010.

The reviews, announced by federal regulators on November 1, 2011, are required under a settlement reached between the nation's largest mortgage servicers and the regulators.

Under the settlement, 14 large mortgage servicers were required to correct deficiencies in their servicing and foreclosure processes and to engage independent firms to conduct a multi-faceted independent review of foreclosure actions that occurred in 2009 and 2010.

Independent consultants are charged with evaluating whether borrowers suffered financial injury through errors, misrepresentations, or other deficiencies in foreclosure practices and determining appropriate remediation for those customers.  Where a borrower suffered financial injury as a result of such practices, the consent orders require remediation to be provided.

HUD Accepting Additional Emergency Homeowners’ Loan Program Applications

The U.S. Department of Housing and Urban Development and NeighborWorks® America reopened the application process for the Emergency Homeowners’ Loan Program (EHLP).

The program will assist Washington homeowners who have experienced a reduction in income and are at risk of foreclosure due to involuntary unemployment or underemployment, due to economic conditions or a medical condition.

Why It Is Important to Check Licenses of Loan Modification Service Providers

Today DFI issued an alert regarding Lenroc Services not being properly licensed to provide loan modification services in Washington. See alert at: http://dfi.wa.gov/consumers/alerts/lenroc-services.htm.

DFI received a complaint from a Washington consumer relating to a transaction entered into with a business claiming to be a mortgage broker, Lenroc Services, and an individual claiming to be a loan originator, Cornell Wallace. The consumer alleged that he paid this business and this individual to modify the loan on his mortgage. The loan modification service was not provided, the fee was not refunded, and the consumer’s inquiries were ignored.

In addition, Lenroc Services and Cornell Wallace are not licensed by DFI.

Landmark Program Designed To Help Struggling Washington Homeowners Launches Friday

Guest blog from Rogers Weed, Director, Department of Commerce

Friday marks the launch of a landmark program for Washington homeowners facing foreclosure. Thanks to bipartisan work this session, Washington is the third state with a non-judicial foreclosure process to introduce a program designed to help homeowners and their lenders reach a resolution.

The new Foreclosure Mediation Program allows homeowners to meet with decision makers from their lender and a neutral third party to discuss options to foreclosure.

To participate, contact a housing counselor at 1-877-894-HOME (4663). The housing counselor will work with you to help you understand your options and determine if you are eligible for mediation. Homeowners must be referred to mediation from a housing counselor or an attorney. You can also contact the statewide civil legal aid hotline for legal assistance and referrals at 1-800-606-4819.

Additional Breathing Room Coming For Some Unemployed Homeowners Facing Foreclosure

If you’re unemployed and having trouble making payments on your FHA-insured mortgage, more help is on the way from the Federal Government.

The Federal Housing Authority is providing additional breathing room for unemployed homeowners by requiring FHA-approved lenders to extend special forbearance from four to 12 months.

This means certain unemployed borrowers with FHA-insured mortgages may have up to a full year to find work and get back on their financial feet. These special forbearance agreements between lenders and borrowers make it possible to delay any foreclosure action to allow you a chance to catch up missed payments in an agreed-upon timeframe.

Struggling Washington Homeowners May Be Eligible for $50K Interest Free Loan through New Emergency Loan Program - Must Pre-Apply by July 22

Washington homeowners who are at risk of foreclosure may be eligible for an interest free loan of up to $50,000 through the new Emergency Homeowners’ Loan Program (EHLP). The deadline to apply is July 22, 2011. To apply visit http://www.findehlp.org/ or call toll free 855-346-3345.

The U.S. Department of Housing and Urban Development (HUD) in conjunction with NeighborWorks® America the program on June 20, 2011, to help homeowners who are at risk of foreclosure in 27 states across the country and Puerto Rico.

Information About The Washington Foreclosure Mediation Program

On April 14, 2011, Governor Chris Gregoire signed into law the Foreclosure Fairness Act of 2011. The legislation creates the Foreclosure Mediation Program.

State law now requires lenders to notify borrowers prior to foreclosure of the availability of foreclosure counseling and the potential for mediation.

Foreclosure counseling will help homeowners understand all of their options and determine the best course of action.