I landlord, my aunt, is trying to sell her property with the help of a loss mitigation company. They finally found an end buyer but they will be using FHA financing. They have an option contract on the property but apparently they have a 90 day seasoning issue in order to have their loss mitigation fee paid out. Will they need get filed under land trust then close in 90 days or will a separate form to option contract suffice?

Alex (more…)

My husband died 6 years ago and I have used every resource to stay in our home since it didn’t sell. I’m about $1,000.00 short every month now. I’m looking at foreclosure. I just refinanced in Dec 2009 and have a FHA mortgage.  Will I be responsible for the difference of what the house eventually sells for and the balance on the mortgage?

Madison (more…)

Forget everything you knew about FHA short sales.  There’s a new Mortgagee Letter describing the FHA pre-foreclosure sale (a/k/a short sale) guidelines which states:

“This ML supersedes in its entirety ML 1994-45, “HUD’s Nationwide Pre-Foreclosure Sale (PFS) Procedure”.  It also supersedes the section (pages 29-35) of ML 2000-05, “Loss Mitigation Program-Comprehensive Clarification of Policy and Notice of Procedural Changes” that describes Pre-Foreclosure Sale requirements.”

FHA Pre-Foreclosure Sale Procedures

I have a condo right now and i want to short sale it. While the condo is for sale can i apply for an FHA loan even if i have the other loan. THe loan on my condo is not an FHA loan.

Vicente (more…)

I do not want to short sell.  Most folks want to stay in their homes I know I do, and let inflation bail them out.  Am I dreaming?  Is it possible to get a loan mod, and then another loan mod?

Does the Hope Now program have a lot of promise? Is the following statement true about the Hope program?

The bank reduces your principal to 90% of what the house is worth today. The FHA guarantees a loan in this amount. You in turn must share any equity appreciation with HUD.

Tammy (more…)

I purchased a condo just under 2 years ago.  I simply love the condo and amenities, but I may need to leave the state for work (finance/ banking).  The loan is an FHA with Citibank. 

Do I have any hope of avoiding a foreclosure and 1099 coming from FHA if I do need to move?

Thanks for the time and assistance,
Ryan (more…)

Hi Paul,
 
Good day. I have a 20-80 mortgage. My home’s current value is 330,000. My total loan amount is 515T.

I am current on my payment despite my financial situation.

Im currently on disability . I have been on disability since Dec. 07. Because of that, paying my mortgage is a challenge and my resources have been  running dry. 

I called hope now  and they assisted in forwarding my financial worksheet to the bank.

Yesterday, Oct 28, i called Wells Fargo to follow up. I was told that my request for modification was denied. They said I have the option of a short sale or a deed in leiu…

Im not sure if Hope for Homeowners have been applied in the review of my docs. Is it in place now? It seem like it is a hoping against hope thing with the bank. 

Grace (more…)

Paul, my firm purchases distressed mortgages at a discount from various financial institutions. We have a number of borrowers that would qualify for the Hope for Homeowners program and we are willing to reduce the upb on our loans to the appropriate amount so that the borrower can refinance. So far we have not found a lender that offers the program. Any ideas?

Ron (more…)

The Hope for Homeowners program is a “workout” servicing tool. Flagstar views this program as a last resort only to be considered when borrowers can prove they are in financial distress. We will be using this tool for Flagstar-serviced loans that we determine are in need of workout assistance. We will not be originating loans that are not serviced by Flagstar. There is not a published product description for this program. The final determination as to whether this program is the best option for the borrower will be made at our sole discretion. If you have customers with loans being serviced by Flagstar that have become financially distressed, please instruct them to contact our Loss Mitigation department at (800) 968-7700 to discuss their options. For more information and details of this program, please reference the Hope for Homeowners Page on the HUD Web site. 

Source – NAMB.org

I need to know if I would qualify for any type of mortgage reduction with the new government programs.

Due to a divorce I had to take out a second mortgage at 8.5% and it is amortized for 30 yrs but due and payable in 10.  I have been paying on it for 2 years and am not late but can not keep this up. 

My house was appraised too high and my income is way low so more than 3/4 of my pay goes to these 2 mortgages.  The first mortgage is affordable and I would like to keep it as it is 5.5% interest. 

Is there any help for me on the second loan?

Thanks for your help!

Cheryl (more…)