Loan Modifications

FHFA's new program to help underwater homeowners

Today the Federal Housing Finance Agency announced a new program designed to help even more underwater homeowners refinance their mortgages at today's low rates. The plan hopefully will allow homeowners to lower their monthly mortgage payments, thus freeing up money to be spent in the broader economy and help the US from slipping back into recession again.

Previous programs had been restricted to homeowners who were no more than 125% upside-down on their homes. The new FHFA program places no cap on how much the borrower owes, or how far underwater they are.  Only mortgages backed by Fannie Mae and Freddie Mac will be eligible. Need to know if your mortgage is owned or managed by Fannie/Freddie? Check here and then here. Then call us for a loan officer recommendation.

Helpful links -

Does Freddie Mac own your mortgage?

Does Fannie Mae own your mortgage?

New Bank of America loan modification program reduces principal

new logoBank of America announced today it will begin offering loan modifications under an Arizona foreclosure-prevention program funded by which is funded by $268 million from the Treasury Department's Hardest Hit Housing Program.

The program is run through the Arizona Housing Department. The state provides money to pay off up to $50,000 of a mortgage if the bank agrees to forgive an equal amount,

This week, BofA will begin mailing notices to Arizona homeowners who are eligible for the loan modifications, bank spokesman Rick Simon said. The bank is encouraging customers to wait for those notifications in their mailbox instead of contacting the bank to find out if they qualify.

Do You Qualify for Bank of America’s loan modification with principal reduction plan?

Based on reporting in other public news sources (links below), these are the qualifications for consideration for Bank of America’s new loan modification with principal reduction program.

  • Bank of America will send letter in the mail to borrowers who are at least 60 days' delinquent.
  • Borrowers must be able to show their income was cut through unemployment, underemployment, illness, death or divorce, but they must have some income.
  • Borrowers must owe at least 20% more than their home is worth.
  • Borrowers who took out a second mortgage that wasn't used to buy the home are not eligible.

Although most of the money in the Hardest Hit program is intended to encourage loan modifications, a second portion will cover up to $50,000 in mortgage payments for unemployed or underemployed residents.

this data was originally reported by the Arizona Republic

(interesting note: my business partner Chris Butterworth predicted 2 years ago that loan principal reductions were needed in the hardest hit foreclosure cities)

Want more information? Want help?

Are you interested in trying to sell your home as a short sale? Please contact us for more information.

Are you looking to buy a short sale home? Click here to search all Phoenix short sales.

FBI raids a Scottsdale mortgage modification firm

Seems as though the FBI raided the Scottsdale offices of Discount Mortgage Relief, a loan modification company. The Fibbies served search warrants on the company. As expected, "no comment" was the comment from the Phoenix office of the FBI and the AZ Attorney General's office. Discount Mortgage Relief continued operations on Friday morning, the day after the search warrants were served.

Original story from the Arizona Republic, with a hat tip to who found our old post on this (allegedly) scam company.