Truth in Foreclosure

Fast Track Workouts Available Now

If you're more than 3 months behind on your payments and have a mortgage owned by Freedie Mac or Fannie Mae, you may qualify for the newest federal initiative to help homeowners. Under the Streamlined Modification Program, mortgage and escrow payments can be cut to 38 percent or less of an eligible borrower's gross monthly income by one or more of the following steps as necessary...

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State Attornies General Play Bad Cop

The mortgage industry would like to have everyone believe they are doing all they can to help homeowners in dire straights. Even with an improved Hope Now initiave, though, the Attornies General (AG) of many states do not agree. Iowa attorney general Tom Miller explained in an interview that he believes a systemic approach is necessary to aid homeowners. He said most of the industry's biggest mortgage servicers are setting up meetings or discussions with a state foreclosure prevention working group, of which he is one of the leaders. While most are considering a systemic approach, he said there are some holdouts that remain focused on taking a case-by-case approach to loan workouts and are reluctant to embrace a streamlined modification program. "That's not acceptable. That's not going to work as an answer or a policy," Mr. Miller said.

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New Foreclosure Prevention Effort To Be Announced

One day before House Financial Services Chairman Barney Frank (D-Mass) holds a hearing to see whether mortgage lenders and servicers are playing nice, the industry will announce later today a new plan to accelerate the modification of distressed mortgages and keep more people out of foreclosure, according to an industry official. It's unknown how lenders will actually implement these changes or what it means for lending guidelines, but we continue to make progress. Although for many it's too slow!

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