August 23, 2011

MGIC Hardship Defined

Filed under: Mortgage

From MGIC’s Internal Loss Mitigation Manual, June 2011 Edition we learn the following with regards to ‘hardship’.

MGIC requires that you determine borrower hardship for certain loan workout options.  We define ‘hardship’ as the borrowers’ long-term inability to maintain mortgage payments due to circumstances beyond their control.

To determine hardship, conduct a thorough review of the borrowers’ financial information.

Here are some examples of how MGIC defines hardship:

  • involuntary unemployment;
  • involuntary relocation;
  • divorce;
  • reduction in income used to sustain mortgage debt that was beyond the borrowers’ control;
  • serious illness, long-term incapacity or death of a co-borrower; AND
  • call to active military duty.

Deficiency Judgments Are Granted By Florida Courts

Filed under: Florida,Judgment,Mortgage

702.06 Deficiency decree; common-law suit to recover deficiency.—In all suits for the foreclosure of mortgages heretofore or hereafter executed the entry of a deficiency decree for any portion of a deficiency, should one exist, shall be within the sound judicial discretion of the court, but the complainant shall also have the right to sue at common law to recover such deficiency, provided no suit at law to recover such deficiency shall be maintained against the original mortgagor in cases where the mortgage is for the purchase price of the property involved and where the original mortgagee becomes the purchaser thereof at foreclosure sale and also is granted a deficiency decree against the original mortgagor.

Florida Deficiency Judgment

August 20, 2011

BofA Files Foreclosure On Lady Who Paid A Week Earlier Than Due Date

NEW PORT RICHEY – Seventy-year-old Sharon Bullington may lose her home because she paid her mortgage a week early.

That may not make much sense to the thousands of homeowners who are behind on their mortgages in Florida. But it seems it does to Bank of America, which has filed to foreclose on Bullington and her husband, James, 78, who is terminally ill.

“It’s like death to me,” Sharon Bullington said, her voice quivering on the phone Friday. “My husband is bedridden. It’s almost more than I can bear.”

The couple moved to Florida 15 years ago after James Bullington retired from General Motors in Flint, Mich., and moved into the 1,591-square-foot New Port Richey home, which is now valued at $133,464, though they owe about $177,000.

When James became ill, the couple encountered financial difficulties because of high medical bills. The couple asked Bank of America to modify the loan.

There was a catch. The couple would have to first officially default on their $1,400-a-month payment. The couple did that and entered into the modification plan, which reduced their payment to $916.

Sharon Bullington made the January payment on Dec. 23, and the bank accepted the money, according to court records.

The next month, she made the February payment over the phone. Weeks later, the money had not been withdrawn from her bank account. After Bullington asked the bank about it, a representative told her she had punched in the wrong routing number. In March, the bank kicked the couple out of the modification plan. (more…)

August 17, 2011

More Than 10,000 HAFA Short Sales Completed

Filed under: Florida,Short Sale

Servicers completed 10,438 short sales through the government’s Home Affordable Foreclosure Alternatives program since it launched in April 2010, according to the Treasury Department.

HAFA was designed to provide an incentive to servicers for completing short sales and deeds-in-lieu of foreclosure for loans that fail out of the larger Home Affordable Modification Program. Through June, servicers started 21,412 short sales and DILs, up 20% from the month before. A total of 10,754 were completed, up 25%.

JPMorgan Chase (JPM: 36.03 0.00%) is the programs leading performer, completing nearly 3,600 through the program, including nearly 1,000 in June alone.

Wells Fargo (WFC: 24.55 0.00%) was second, completing more than 3,100 since the program launched and roughly 700 in June.

Bank of America (BAC: 7.40 0.00%) completed 1,873 HAFA transactions, an increase of roughly 200 in the month.

Pam Marron, a senior loan officer with Gold Start Mortgage Financial Group in Tampa Bay, Fla., said more and more homeowners in negative equity view a short sale as their only way out. Many, she said, are defaulting because banks require them to do so in order to qualify for a short sale.

“The growing problem in Florida is the alarming increase in the number of short sale listings that are coming onto the market. These people are still employed but severely underwater and are having to short sale because they are not able to pay the vast difference owed between the mortgage amount and the value of these homes,” Marron said. “Banks are requiring homeowners to default in order to qualify for the short sale.” (more…)

August 14, 2011

Cosign Entwine

Filed under: Bad Credit,Credit Reports

I cosigned for my 21 year old to buy a car.  She was late on her july payment and I didn’t find out until the underwriter repulled my credit prior to closing on a refinance of my mortgage.This is the only negative mark on my credit and it reduced my score by 40 points.  I never received a notice from ford regarding the late status.  They didn’t even have my phone number or address.  Is it fair reporting practices to forgive a one time late paysment which is the first one in 12 months? What is my option??

Tenika (more…)

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