Malik W. Ahmad

Archive for June, 2009|Monthly archive page

New Nevada Legislature Mediation Program Can Stop Foreclosure: Good News

In Loan Modification on 06/25/2009 at 4:20 pm

About the Nevada Foreclosure Mediation ProgramCREATING THE PROGRAM

Assembly Bill 149 was passed by the Nevada Legislature during the 2009 session and signed by Governor Jim Gibbons. Its purpose is to address the foreclosure crisis head-on and to help keep Nevada families in their homes.

This law establishes a Foreclosure Mediation Program for owner-occupied residential properties that are subject to foreclosure notices – formally known as a Notice of Default and Election to Sell – filed on or after July 1, 2009. To qualify for the mediation program, a property must be a homeowner’s primary residence and located in Nevada.

WHAT YOU NEED TO KNOW ABOUT FORECLOSURE MEDIATION?

Mediation is an alternative method to help parties resolve disputes by agreement with the help of trained mediators. Mediating a foreclosure action has its advantages. It is fast, inexpensive, and offers a flexibility that more formal processes do not.

Home foreclosures impact both the homeowner and the lender. Homeowners do not want to lose their homes and mortgage lenders do not want to be in the real estate business.

This article is published with the courtsey of the Supreme Court of Nevada.

Both sides may benefit through foreclosure mediations.

WHY SHOULD YOU MEDIATE?
You can play a major role, with the help of a trained mediator, in deciding the outcome of your individual dilemma. Mediation is a give-and-take process in which the parties work to reach a mutually acceptable resolution to a mutual problem. Resolutions reached through foreclosure mediations are compromises that offer advantages to lenders as well as homeowners.

If you have the ability to meet the other party half way, everyone may benefit.
 Can you, as a homeowner, make your mortgage payments if your home loan is modified?
 Can you, as a lender in today’s real estate market, modify a loan to the extent that the homeowner can perform?
If the answers are YES, the Foreclosure Mediation Program may be able to save another Nevada home.

WORKING FOR A RESOLUTION

Sometimes the parties will not be able to reach an agreement, even with the help of a trained mediator, and the home will be lost to foreclosure. That is a reality in today’s economy.

But by working together to explore the various options, the hope is that a homeowner can avoid foreclosure and continue living in the home they purchased. If the mediation is successful, the homeowner may also avoid the stigma of foreclosure that can affect a person’s ability to obtain credit for years to come.

However, if a homeowner does not have the financial ability to make mortgage payments, even if the loan is modified, foreclosure may ultimately result.

MEDIATION IS QUICK AND EFFICIENT

Proposed Supreme Court rules limit mediations to four hours and require that mediations be conducted within 90 days of a foreclosure notice being filed.

Those same rules also require that all decision makers be present for the mediations. That means, if an agreement is reached, it can be finalized quickly.

MEDIATION IS COST EFFECTIVE

Other than the filing fee paid by the lender, the cost of mediation is $400, shared equally by the homeowner and the lender. Each party must pay their $200 portion prior to the mediation.

A lawyer is not required to be present with you in the mediation process, but each side is welcome to have an attorney represent them.

AT THE CONCLUSION OF THE MEDIATION…

Within 10 days of the mediation, the mediator will prepare the necessary Statement of Agreement or Non-agreement and serve it on the parties. The original will be filed with the Foreclosure Mediation Program Administrator and the mediation will be closed. If there is an agreement, the parties will execute the appropriate documents. If there is no agreement, the parties will be free to pursue other legal remedies.

Interesting Article from Reno Gazette

In Loan Modification on 06/22/2009 at 1:16 am

http://www.rgj.com/article/20090620/NEWS/90620031/1321

Good News for Nevada Homeowners

In Loan Modification on 06/22/2009 at 12:54 am

Good News For Nevada Homeowners
Passing of AB 149
AN ACT relating to real property; revising provisions governing foreclosures on property; providing for mediation under certain circumstances; providing for the imposition of a fee for mediation; and providing other matters properly relating thereto.

Existing law sets forth procedures governing foreclosures on real property upon default. A trustee under a deed of trust has the power to sell the property to which the deed of trust applies, subject to certain restrictions. (NRS 107.080, 107.085)

LET US HAVE A CLOSER LOOK
Program facts

What’s the foreclosure mediation program?
The program, which was created when Assembly Bill 149 became law, allows homeowners who get a notice of default to go into mediation with their lender in front of a court-appointed mediator. Both parties are required to negotiate in good faith toward a potential resolution, which might include a loan modification. The law was created after looking at similar programs in such states as Colorado, Connecticut, Florida, Massachusetts, Michigan and Pennsylvania.

When does it go into effect?
July 1. Forms and finalized rules will be available by then on the Nevada Supreme Court’s Web site at http://www.nevadajudiciary.us. The court is seeking public comment to help finalize the program’s rules. The first hearing was held in Carson City on Tuesday, and the second hearing will be held in Las Vegas in Friday. The second hearing will be broadcast live on the Supreme Court Web site.

Who qualifies?
Homeowners who receive a notice of default on July 1 and thereafter will receive a mediation form along with their notice. Homeowners will then have 30 days to request mediation. Homes must be owner-occupied and not be investment properties. Homeowners who already have surrendered their homes to the lender or have started bankruptcy proceedings will not be eligible. Homeowners who received a notice of default before July 1 will only be eligible if their lender provides consent.

How much will it cost?
Lenders and borrowers are required to pay $200 each to pay for mediation costs. Non-native speakers will have to provide their own translator.

Where do I get more information?
For more information — including requesting a mediation or volunteering as a mediator — contact the program administrator’s office at 775-687-9816 or e-mail foreclose@nvcourts.nv.gov

What Additional Changes With Respect to Trustee’s Power of Sale has been made?The good news is that the law has been changed effective July 1, 2009. But it only applies to primary home owners and does not apply to rental properties. Nevada Legislature has placed additional restrictions on home foreclosure. Now a person who holds the title of record can request mediation for loan modification.

Who can provide mediation?It can be an attorney, a senior judge, hearing master or other designee. Some 345 attorneys had signed up for mediation. They shall be paid an hourly rate of $85.00 dollars.

What happens after mediation?
Section 1 of this bill establishes additional restrictions on the trustee’s power of sale with respect to owner-occupied housing by providing a grantor of a deed of trust or the person who holds the title of record with the right to request mediation under which he may receive a loan modification. Once mediation is requested, no further action may be taken to exercise the power of sale until the completion of the mediation. Each mediation must be conducted by a senior justice, judge, hearing master or other designee pursuant to rules adopted by the Nevada Supreme Court, and a fee of not more than $85 per hour may be charged and collected for the mediation.

How a deficiency can be made good under the new Laws?Section 2 of this bill also restricts the trustee’s power of sale with respect to owner-occupied housing by revising the period in which a deficiency in performance or payment under the trust agreement may be made good before the trustee may exercise that power.

Has Service of Notice been changed as well?
Section 3 of this bill restricts the trustee’s power of sale with respect to owner-occupied housing by revising the manner in which service of notice that a person is in danger of losing his home must be made.

Whether Nevada Supreme Court Adopt Rules for Voluntary Mediation?
In addition, section 4 of this bill authorizes the Nevada Supreme Court to adopt rules providing for voluntary mediation with respect to a homeowner who is not in default but is at risk of default.

Other Salient Features of the Bill
Section 1. Chapter 107 of NRS is hereby amended by adding thereto a new section to read as follows:
1. In addition to the requirements of NRS 107.085, the exercise of the power of sale pursuant to NRS 107.080 with respect to any trust agreement which concerns owner-occupied housing is subject to the provisions of this section.
2. The trustee shall not exercise a power of sale pursuant to NRS 107.080 unless the trustee:
(a) Includes with the notice of default and election to sell which is mailed to the grantor or the person who holds the title of record as required by subsection 3 of NRS 107.080:
(1) Contact information which the grantor or the person who holds the title of record may use to reach a person with authority to negotiate a loan modification on behalf of the beneficiary of the deed of trust;

(2) Contact information for at least one local housing counseling agency approved by the United States Department of Housing and Urban Development; and

(3) A form upon which the grantor or the person who holds the title of record may indicate his election to enter into mediation or to waive mediation and one envelope addressed to the trustee and one envelope addressed to the Mediation Administrator, which the grantor or the person who holds the title of record may use to comply with the provisions of subsection 3;

(b) Serves a copy of the notice upon the Mediation Administrator; and
(c) Causes to be recorded in the office of the recorder of the county in which the trust property, or some part thereof, is situated:
(1) The certificate provided to the trustee by the Mediation Administrator pursuant to subsection 3 or 6 which provides that no mediation is required in the matter; or (2) The certificate provided to the trustee by the Mediation Administrator pursuant to subsection 7 which provides that mediation has been completed in the matter.

3. The grantor or the person who holds the title of record shall, not later than 30 days after service of the notice upon him in the manner required by NRS 107.080, complete the form required by subparagraph (3) of paragraph (a) of subsection 2 and return the form to the trustee by certified mail, return receipt requested. If the grantor or the person who holds the title of record indicates on the form his election to enter into mediation, the trustee shall notify the beneficiary of the deed of trust and every other person with an interest as defined in NRS 107.090, by certified mail, return receipt requested, of the election of the grantor or the person who holds the title of record to enter into mediation and file the form with the Mediation Administrator, who shall assign the matter to a senior justice, judge, hearing master or other designee and schedule the matter for mediation. No further action may be taken to exercise the power of sale until the completion of the mediation. If the grantor or the person who holds the title of record indicates on the form his election to waive mediation or fails to return the form to the trustee as required by this subsection, the trustee shall execute an affidavit attesting to that fact under penalty of perjury and serve a copy of the affidavit, together with the waiver of mediation by the grantor or the person who holds the title of record, or proof of service on the grantor or the person who holds the title of record of the notice required by subsection 2 of this section and subsection 3 of NRS 107.080, upon the Mediation Administrator. Upon receipt of the affidavit and the waiver or proof of service, the Mediation Administrator shall provide to the trustee a certificate which provides that no mediation is required in the matter.

4. Each mediation required by this section must be conducted by a senior justice, judge, hearing master or other designee pursuant to the rules adopted pursuant to subsection.
The beneficiary of the deed of trust or his representative shall attend the mediation. The grantor or his representative shall attend the mediation if the grantor elected to enter into mediation, or the person who holds the title of record or his representative shall attend the mediation if the person who holds the title of record elected to enter into mediation. The beneficiary of the deed of trust shall bring to the mediation the original or a certified copy of the deed of trust, the mortgage note and each assignment of the deed of trust or mortgage note. If the beneficiary of the deed of trust is represented at the mediation by another person, that person must have authority to negotiate a loan modification on behalf of the beneficiary of the deed of trust or have access at all times during the mediation to a person with such authority.

5. If the beneficiary of the deed of trust or his representative fails to attend the mediation, fails to participate in the mediation in good faith or does not bring to the mediation each document required by subsection 4 or does not have the authority or access to a person with the authority required by subsection 4, the mediator shall prepare and submit to the Mediation Administrator a petition and recommendation concerning the imposition of sanctions against the beneficiary of the deed of trust or his representative. The court may issue an order imposing such sanctions against the beneficiary of the deed of trust or his representative as the court determines appropriate, including, without limitation, requiring a loan modification in the manner determined proper by the court.

6. If the grantor or the person who holds the title of record elected to enter into mediation and fails to attend the mediation, the Mediation Administrator shall provide to the trustee a certificate which states that no mediation is required in the matter.

7. If the mediator determines that the parties, while acting in good faith, are not able to agree to a loan modification, the mediator shall prepare and submit to the Mediation Administrator a recommendation that the matter be terminated. The Mediation Administrator shall provide to the trustee a certificate which provides that the mediation required by this section has been completed in the matter.

8. The Supreme Court shall adopt rules necessary to carry out the provisions of this section. The rules must, without limitation, include provisions:
(a) Designating an entity to serve as the Mediation
Administrator pursuant to this section. The entities that may be so designated include, without limitation, the Administrative Office of the Courts, the District Court of the county in which the property is situated or any other judicial entity.
(b) Ensuring that mediations occur in an orderly and timely manner.
(c) Requiring each party to a mediation to provide such information as the mediator determines necessary.
(d) Establishing procedures to protect the mediation process from abuse and to ensure that each party to the mediation acts in good faith.
(e) Establishing a total fee of not more than $400 that may be charged and collected by the Mediation Administrator for mediation services pursuant to this section and providing that the responsibility for payment of the fee must be shared equally by the parties to the mediation.
9. Except as otherwise provided in subsection 11, the provisions of this section do not apply if:
(a) The grantor or the person who holds the title of record has surrendered the property, as evidenced by a letter confirming the surrender or delivery of the keys to the property to the trustee, the beneficiary of the deed of trust or the mortgagee, or an authorized agent thereof; or
(b) A petition in bankruptcy has been filed with respect to the grantor or the person who holds the title of record under chapter 7, 11, 12 or 13 of Title 11 of the United States Code and the bankruptcy court has not entered an order closing or dismissing the case or granting relief from a stay of foreclosure.
10. A noncommercial lender is not excluded from the application of this section.
11. The Mediation Administrator and each mediator who acts pursuant to this section in good faith and without gross negligence is immune from civil liability for those acts.
12. As used in this section:
(a) “Mediation Administrator” means the entity so designated pursuant to subsection 8.
(b) “Noncommercial lender” means a lender which makes a loan secured by a deed of trust on owner-occupied housing and which is not a bank, financial institution or other entity regulated pursuant to title 55 or 56 of NRS.
(c) “Owner-occupied housing” means housing that is occupied by an owner as his primary residence. The term does not include any time share or other property regulated under chapter 119A of NRS.

Changes in Notice Provisions of NRS
Sec. 2. NRS 107.080 is hereby amended to read as follows: 107.080 1. Except as otherwise provided in NRS 107.085, and section 1 of this act, if any transfer in trust of any estate in real property is made after March 29, 1927, to secure the performance of an obligation or the payment of any debt, a power of sale is hereby conferred upon the trustee to be exercised after a breach of the obligation for which the transfer is security.
2. The power of sale must not be exercised, however, until:
(a) [In] Except as otherwise provided in paragraph (b), in the case of any trust agreement coming into force:

(1) On or after July 1, 1949, and before July 1, 1957, the grantor, [or his successor in interest,] the person who holds the title of record, a beneficiary under a subordinate deed of trust or any other person who has a subordinate lien or encumbrance of record on the property [,] has , for a period of 15 days, computed as prescribed in subsection 3, failed to make good the deficiency in performance or payment; or (2) On or after July 1, 1957, the grantor, [or his successor in interest,] the person who holds the title of record, a beneficiary under a subordinate deed of trust or any other person who has a subordinate lien or encumbrance of record on the property [,] has , for a period of 35 days, computed as prescribed in subsection 3, failed to make good the deficiency in performance or payment;
(b) In the case of any trust agreement which concerns owner occupied housing as defined in section 1 of this act, the grantor, the person who holds the title of record, a beneficiary under a subordinate deed of trust or any other person who has a subordinate lien or encumbrance of record on the property has, for a period that commences in the manner and subject to the requirements described in subsection 3 and expires 5 days before the date of sale, failed to make good the deficiency in performance or payment;
(c) The beneficiary, the successor in interest of the beneficiary or the trustee first executes and causes to be recorded in the office of the recorder of the county wherein the trust property, or some part thereof, is situated a notice of the breach and of his election to sell or cause to be sold the property to satisfy the obligation; and [(c)] (d) Not less than 3 months have elapsed after the recording of the notice.
3. The 15- or 35-day period provided in paragraph (a) of subsection 2, or the period provided in paragraph (b) of subsection 2, commences on the first day following the day upon which the notice of default and election to sell is recorded in the office of the county recorder of the county in which the property is located and a copy of the notice of default and election to sell is mailed by registered or certified mail, return receipt requested and with postage prepaid to the grantor [, and] or to the person who holds the title of record on the date the notice of default and election
to sell is recorded, at [their respective addresses,] his address, if known, otherwise to the address of the trust property. The notice of default and election to sell must describe the deficiency in performance or payment and may contain a notice of intent to declare the entire unpaid balance due if acceleration is permitted by the obligation secured by the deed of trust, but acceleration must not occur if the deficiency in performance or payment is made good and any costs, fees and expenses incident to the preparation or recordation of the notice and incident to the making good of the deficiency in performance or payment are paid within the time specified in subsection 2.
4. The trustee, or other person authorized to make the sale under the terms of the trust deed or transfer in trust, shall, after expiration of the 3-month period following the recording of the notice of breach and election to sell, and before the making of the sale, give notice of the time and place thereof by recording the notice of sale and by:

(a) Providing the notice to each trustor and any other person entitled to notice pursuant to this section by personal service or by mailing the notice by registered or certified mail to the last known address of the trustor and any other person entitled to such notice pursuant to this section;
(b) Posting a similar notice particularly describing the property, for 20 days successively, in three public places of the township or city where the property is situated and where the property is to be sold; and
(c) Publishing a copy of the notice three times, once each week for 3 consecutive weeks, in a newspaper of general circulation in the county where the property is situated.
5. Every sale made under the provisions of this section and other sections of this chapter vests in the purchaser the title of the grantor and his successors in interest without equity or right of redemption. A sale made pursuant to this section may be declared void by any court of competent jurisdiction in the county where the sale took place if:
(a) The trustee or other person authorized to make the sale does not substantially comply with the provisions of this section [;] or any applicable provision of section 1 of this act;
(b) Except as otherwise provided in subsection 6, an action is commenced in the county where the sale took place within 90 days after the date of the sale; and
(c) A notice of lis pendens providing notice of the pendency of the action is recorded in the office of the county recorder of the county where the sale took place within 30 days after commencement of the action.
6. If proper notice is not provided pursuant to subsection 3 or paragraph (a) of subsection 4 to the grantor, to the person who holds the title of record on the date the notice of default and election to sell is recorded, to each trustor or to any other person entitled to such notice, the person who did not receive such proper notice may commence an action pursuant to subsection 5 within 120 days after the date on which the person received actual notice of the sale.
7. The sale of a lease of a dwelling unit of a cooperative housing corporation vests in the purchaser title to the shares in the corporation which accompany the lease.
Sec. 3. NRS 107.085 is hereby amended to read as follows:
107.085 1. With regard to a transfer in trust of an estate in real property to secure the performance of an obligation or the payment of a debt, the provisions of this section apply to the exercise of a power of sale pursuant to NRS 107.080 only if:
(a) The trust agreement becomes effective on or after October 1, 2003
(b) On] , and, on the date the trust agreement is made, the trust agreement is subject to the provisions of § 152 of the Home Ownership and Equity Protection Act of 1994, 15 U.S.C. §
1602(aa), and the regulations adopted by the Board of Governors of the Federal Reserve System pursuant thereto, including, without limitation, 12 C.F.R. § 226.32 [.] ; or (b) The trust agreement concerns owner-occupied housing as defined in section 1 of this act.
2. The trustee shall not exercise a power of sale pursuant to NRS 107.080 unless:
(a) In the manner required by subsection 3, not later than 60 days before the date of the sale, the trustee causes to be served upon the grantor or the person who holds the title of record a notice in the form described in subsection 3; and (b) If an action is filed in a court of competent jurisdiction claiming an unfair lending practice in connection with the trust agreement, the date of the sale is not less than 30 days after the date the most recent such action is filed.
3. The notice described in subsection 2 must be: (a) Served upon the grantor or the person who holds the title of record:
(1) Except as otherwise provided in subparagraph (2), by personal service or, if personal service cannot be timely effected, in such other manner as a court determines is reasonably calculated to
afford notice to the grantor [;] or the person who holds the title of record; or
(2) If the trust agreement concerns owner-occupied housing as defined in section 1 of this act:
(I) By personal service;
(II) If the grantor or the person who holds the title of record is absent from his place of residence or from his usual place of business, by leaving a copy with a person of suitable age
and discretion at either place and mailing a copy to the grantor or the person who holds the title of record at his place of residence or place of business; or
(III) If the place of residence or business cannot be ascertained, or a person of suitable age or discretion cannot be found there, by posting a copy in a conspicuous place on the trust property, delivering a copy to a person there residing if the person can be found and mailing a copy to the grantor or the person who holds the title of record at the place where the trust property is situated; and
(b) In substantially the following form, with the applicable telephone numbers and mailing addresses provided on the notice and a copy of the promissory note attached to the notice:

NOTICE
YOU ARE IN DANGER OF LOSING YOUR HOME!
Your home loan is being foreclosed. In not less than 60 days your home will be sold and you will be forced to move. For help, call:
Consumer Credit Counseling _______________
The Attorney General __________________
The Division of Financial Institutions ________________
Legal Services ______________________
Your Lender ___________________
Nevada Fair Housing Center ________________
4. This section does not prohibit a judicial foreclosure.
5. As used in this section, “unfair lending practice” means an unfair lending practice described in NRS 598D.010 to 598D.150, inclusive.
Sec. 3.5. NRS 107.095 is hereby amended to read as follows:
107.095 1. The notice of default required by NRS 107.080 must also be sent by registered or certified mail, return receipt requested and with postage prepaid, to each guarantor or surety of
the debt. If the address of the guarantor or surety is unknown, the notice must be sent to the address of the trust property. Failure to give the notice, except as otherwise provided in subsection 3, releases the guarantor or surety from his obligation to the beneficiary, but does not affect the validity of a sale conducted pursuant to NRS 107.080 [nor] or the obligation of any guarantor or surety to whom the notice was properly given.
2. Failure to give the notice of default required by NRS 107.090, except as otherwise provided in subsection 3, releases the obligation to the beneficiary of any person who has complied with
NRS 107.090 and who is or may otherwise be held liable for the debt or other obligation secured by the deed of trust, but such a failure does not affect the validity of a sale conducted pursuant to
NRS 107.080 [nor] or the obligation of any person to whom the notice was properly given pursuant to this section or to NRS 107.080 or 107.090.
3. A guarantor, surety or other obligor is not released pursuant to this section if:
(a) The required notice is given at least 15 days before the later of:
(1) The expiration of the 15- or 35-day period described in paragraph (a) of subsection 2 of NRS 107.080; [or]
(2) In the case of any trust agreement which concerns owner-occupied housing as defined in section 1 of this act, the expiration of the period described in paragraph (b) of subsection 2 of NRS 107.080; or (3) Any extension of [that] the applicable period by the beneficiary; or (b) The notice is rescinded before the sale is advertised.
Sec. 4. Chapter 2 of NRS is hereby amended by adding thereto a new section to read as follows:
The Supreme Court may adopt rules providing for voluntary mediation with respect to a homeowner who is not in default but is at risk of default.
Sec. 5. NRS 459.646 is hereby amended to read as follows:
459.646 1. A person who, without participating in the management of a parcel of real property, holds or is the beneficiary of evidence of title to the property primarily to protect a security
interest in the property is not a responsible party with respect to a release of a hazardous substance on the property if:
(a) The owner of the property is relieved from liability under NRS 459.610 to 459.658, inclusive, with respect to the release;
(b) The owner or holder of evidence of title did not cause the release; and
(c) The owner or holder of evidence of title does not participate actively in decisions concerning hazardous substances on the property.
2. A lender to a prospective purchaser who has filed an application to participate in the program pursuant to NRS 459.634 or a lender who forecloses his security interest in property pursuant
to NRS 40.430 to 40.450, inclusive, or 107.080 to 107.100,
inclusive, and section 1 of this act, and within a reasonable period after the foreclosure, not to exceed 2 years, sells, transfers or conveys the property to a prospective purchaser who has filed an application to participate in the program pursuant to NRS 459.634 is not a responsible party solely as a result of:
(a) Foreclosing a security interest in the property; or
(b) Making a loan to the prospective purchaser if the loan:
(1) Is to be used for acquiring property or removing or remediating hazardous substances on property; and
(2) Is secured by the property that is to be acquired or on which is located the hazardous substances that are to be removed or remediated.
Sec. 5.5. The amendatory provisions of this act governing trust agreements which concern owner-occupied housing, as defined in section 1 of this act, apply only with respect to such agreements for which a notice of default is recorded on or after July 1, 2009.
Sec. 5.7. Notwithstanding any provision of NRS 2.120 to the contrary and in recognition of the emergency situation confronting this State concerning mortgage foreclosures and the need to
implement the provisions of this act quickly, any rules adopted by the Supreme Court pursuant to subsection 8 of section 1 of this act take effect on the date specified by the Supreme Court in the order adopting the rules, which in no event may be less than 30 days after entry of the order.
Sec. 6. This act becomes effective on July 1, 2009.

Feds Cracking on Fraud Loan Mod Agencies

In Loan Modification on 06/18/2009 at 3:02 pm

Federal government has made elaborate plans to squeeze their grip on fraud loan modification companies. Here is the report prepared by the Housing Committee.

http://www.ftc.gov/os/2009/05/P064814foreclosuretescue.pdf

http://www.ftc.gov/os/2009/05/P064814foreclosuretescue.pdf

http://www.ftc.gov/os/2009/05/P064814foreclosuretescue.pdf

How To Avoid Firms Who Prey on Homeowners?

In Loan Modification on 06/18/2009 at 2:53 pm

Good News About Your Credit Card Slashing

In Loan Modification on 06/18/2009 at 2:40 pm

Your credit card companies have been mercilessly raising your interest rate. They are some other version of the payday loan. In Las Vegas, practically in every shopping center, there is a pay day loan. Guess what there interest rate? It is never less than 400 to 500 %. Please folks stay away from payday loan. They are the modern version of cocaine and addiction. I had seen even well off people going there and taking these loans. They are easy to get and very difficult to pay. Here, is what I found in NY Times about credit card companies slashing their bills and making and offering deals to consumers. If you are smart enough you can try the same and ask credit card companies to cut your bill. The condition is that you have to pay it right away and trash your card afterwards.

How to find and send info to Servicers?

In Loan Modification on 06/09/2009 at 3:47 am

<strong>Mortgage Servicer Information Requirements
Before homeowners starts complaining, it is good idea to provide all the financial information to your servicer at one time and in one installments. Let us see what exactly is required by them:
1. 4506T: This is an IRS form which needed to be signed by homeowners and sent back to your servicers or lenders.
2. Last bank statements, most recent
3. Two pay checks most recent
4. IRS tax returns.
5. Financial information sheet of income and expenses.
6. Copy of any utility bill showing that you are the primary homeowners.
7. Hardship letter.
If you need help in answering questions, it is available free Also, one should be tactful in talking to them over the phone. Phone to customers service is okay, but try to find out the phone numbers for home retention, loss mitigation and loan modification folks. Customer service is nice but they needlessly keep you busy. Loan modification and loss mitigations are rude, stiff but can be helpful. My problem is that most of them are former or current bill collectors and have an attitude which is at times very unfriendly and impolite. Most of them have a standard stock answer sheet like it is:
-It is still under review.
-We will take 30 to 90 days to reply.
-You do not qualify, like they had instantly find out.
-Started asking about payment and payment plan.
The servicers all have Help desks, you can also call HOPE NOW at 1-888-995-4673, or you can contact a HUD counselor at http://www.hud.gov/offices/hsg/sfh/hcc/hccprof14.cfm.

Information Required by Servicer
American Home Mortgage Servicing Inc and
Option One Financial Questionnaire You Must Fill Out: https://ahmsi3.com/servicing/PDF_files/Financial_Analysis_for_Loss_Mitigation_Workout_Form.pdf
Required Documents:
*A letter detailing the circumstances surrounding your current financial situation (Hardship Letter)
*Copy of 2 most recent bank statements.
*Copy of 2 most recent pay-stubs
  **Note – If self-employed, 6 months of profit and loss statements
*Previous year’s Tax Return or W2
How and Where to Send Questionnaire and Other Information:
American Home Mortgage
Fax: 1-866-452-1837
General Information Provided by Servicer:

https://ahmsi3.com/servicing/BAT_solutions.asp 

Aurora Loan Services Financial Questionnaire You Must Fill Out: Available at https://www.myauroraloan.com/HRG/
Required Documents:
*A letter with a detailed explanation of your financial hardship.
*Two most recent paycheck stubs for each mortgagor (if self-employed, provide the year to date Profit and Loss Statement).
*Bank Statements. Please include the two (2) most recent bank statements for your checking, savings, mutual funds, 401k account, and other investment information.
*Statements of Disability/Unemployment, Retirement and/or Social Security benefits applied for or received. Please include copies of any and all check stubs.
*Federal Income Tax Returns (if self-employed, provide copies of the 2 most recent year’s tax returns including any applicable schedules)
How and Where to Send Questionnaire and Other Information:
Aurora Loan Services
P.O. Box 1706
Scottsbluff, NE 69363-1706
Attention: Home Retention Group
FaxNumber: 1-866-517-7976
General Information Provided by Servicer:

https://www.myauroraloan.com/HRG/

Bank of America Financial Questionnaire You Must Fill Out:

http://www.bankofamerica.com/loansandhomes/financial-difficulty/worksheet.pdf

Required Documents:**
*A letter detailing the circumstances surrounding your current financial situation (Hardship Letter)
*Copy of 2 most recent bank statements.
*Copy of 2 most recent pay-stubs
  **Note – If self-employed, 6 months of profit and loss statements
*Previous year’s Tax Return or W2
How and Where to Send Questionnaire and Other Information:
Bank of America
Homeownership Retention Department
Fax: 1-714-792-5227
General Information Provided by Servicer:

http://www.bankofamerica.com/loansandhomes/financial-difficulty/index.cfm?adlink=&statecheck=PA&cm_mmc=&cm_sp=&type=

**B of A is very vague about this, the list shown is my recommendation, you can’t go wrong providing more than they ask for.
Chase, WaMu and EMC Note: Chase is vague about its requirements and does not provide a way to transmit documents to them. This is probably because they have established home ownership centers which they want borrowers to visit. They provide a telephone number rather than a fax number. Nonetheless, the more information you bring to a center, the more smoothly the process will go.
Financial Questionnaire You Must Fill Out:
Not publicly available. I am told that borrowers accessing their accounts on-line can download the questionnaire.
Required Documents:
Wage-earners must provide two (2) current pay stubs
Self-employed individuals must provide 4 months of the most recent bank statements and most recent tax return.*
An audited or reviewed YTD income statement is required for corporations and LLCs.
A Hardship Letter – A letter outlining the events that have made it difficult for you to continue your monthly payments.
How and Where to Send Questionnaire and Other Information:
Call:: 1-866-550-5705
General Information Provided by Servicer:

https://www.chase.com/chf/mortgage/hrm_home

Citi Note: Citi has a short questionnaire at their site. Unless you answer “Yes” to the question of whether or not you are behind in your payment, you won’t be referred to “Hardship Assistance”, which is their code words for a loan modification.
Financial Questionnaire You Must Fill Out:

https://www.citimortgage.com/Servicing/workableSolution.do

Required Documents:
*2 recent consecutive pay stubs (or profit and loss statement), or
*2 consecutive months of bank statements, or
*2 consecutive tax returns, and
*A Hardship Letter – A letter outlining the events that have made it difficult for you to continue your monthly payments.
How and Where to Send Questionnaire and Other Information:
CitiMortgage, Inc.
Fax: 1 301 696 4473
General Information Provided by Servicer:

http://www.citimortgage.com/homeassist/

Countrywide Bank of America Note: Countrywide is one of few servicers that mentions participation in the ARM Fast Track Solution program for borrowers with sub-prime or option ARMs, who are exposed to rate and payment increases.
Financial Questionnaire: Countrywide does not provide one on-line, the one below is from Bank of America which now owns Countrywide.

http://www.bankofamerica.com/loansandhomes/financial-difficulty/worksheet.pdf

Required Documents:
*Reason for default or hardship letter signed by all parties
*Two (2) months complete, most recent bank statements
*Two (2) months most recent pay stubs and/or proof of other income
*If self-employed, Profit and Loss statement for at least the most recent three (3) months, & most recently filed tax return
How and Where to Send Questionnaire and Other Information:
Call at 1-800-669-6607 to ask for fax number
General Information Provided by Servicer:

http://my.countrywide.com/media/FinancialAssistance.html

GMAC, Homecomings Financial Questionnaire You Must Fill Out:

http://www.gmacmortgage.com/pdfs/Financial_Analysis.pdf

Required Documents:
None, everything is included in the questionnaire
How and Where to Send Questionnaire and Other Information:
Fax to: 1.866.709.4744
General Information Provided by Servicer:

http://www.gmacmortgage.com/Resource_Center/homeowner_help/homeowner_help.html

 
HSBC Financial Questionnaire You Must Fill Out: Note: You must identify yourself as an HSBC borrower to get access to the form.

https://www.hsbcmortgageservices.com/hardship_assistance_frm

Required Documents:
*Most recent full 30 day bank statement
Most recent pay stub (including unemployment, compensation disability, SSI etc)
*Proof that you are receiving alimony or child support
*If self employed, business bank statements along with Profit and Loss Statement
*Copy of Lease Agreement if you are renting the property
*If property is listed for sale, copy of listing agreement
How and Where to Send Questionnaire and Other Information:
Fax: 1-866-392-9693
Attention: Hardship Department
General Information Provided by Servicer:

https://www.hsbcmortgageservices.com/hardship_assistance

IndyMac Financial Questionnaire You Must Fill Out: Indy Mac does not provide access to its questionnaire until it establishes that you are eligible for a modification. To start that process, go to http://www.imb.com/singlecontent.aspx?id=1874 You will have to input your loan number and social security number.
Required Documents: After you log in, you will be asked first for a hardship statement, and then for income documentation., which you fax to them for approval to proceed. After approval, you go back and fill out the financial questionnaire.
How and Where to Send Questionnaire and Other Information:
Fax: 1.866.435.7643
General Information Provided by Servicer:

https://www.imb.com/singlecontent.aspx?id=1372

Litton Financial Questionnaire You Must Fill Out: Note: You must identify yourself as a Litton borrower to get access to the form.

https://www.littonloan.com/index.asp

Required Documents:
*Completed and signed hardship affidavit
*Copies of your two most recent pay stubs
*Copy of your most recently filed federal tax return
*Completed and signed IRS Form 4506-T
*Copy of a recent personal bank statement
*Copy of a recent utility bill (e.g., electric bill, gas bill, water bill, phone bill, etc.)
*Copy of your most recent quarterly profit and loss statement (if self-employed)
*Award letter stating your Social Security, disability, or pension earnings (if applicable)
How and Where to Send Questionnaire and Other Information:
Fax: 1-713-793-4923
General Information Provided by Servicer:

https://www.littonloan.com/faq_stabilityplan.asp

Ocwen Financial Questionnaire:

http://www.ocwencustomers.com/csc_apply_mortg_assistance.cfm?findif=1

Required Documents:
Integrated with Financial Questionnaire
How and Where to Send Questionnaire and Other Information:
Fax: 1-407-737-6174
General Information Provided by Servicer:

http://www.ocwencustomers.com/csc_mortg_assist_process.cfm?findif=1

Saxon
 Financial Questionnaire You Must Fill Out: Saxon Financial Statement
Required Documents:
*Current proof of Income for all co-borrowers (e.g. pay stubs)
*Current bank statements
*Last W-2 for each co-borrower
*Last Federal Tax Return (if self-employed)
*Hardship Letter of why you fell behind and what you would like to do to bring your account current
How and Where to Send Questionnaire and Other Information:
Fax: 1-888-240-1885
General Information Provided by Servicer:

https://www.saxononline.com/WorkoutOptions/Default.aspx

Wachovia Note: Wachovia does not provide a financial questionnaire, it is focused entirely on eligibility for modifications under the Making Home Affordable program. The documents requested below are in connection with that program. Wachovia now belongs to Wells Fargo and may be phasing out its servicing operations.
Required Documents:
*Monthly gross household income, include pay stubs and other income documentation.
*Most recent income tax return.
*Details concerning any second mortgage on the house.
*Payments on each credit card on which you carry a balance.
*Payments on an y other loans, such as student loans and car loans.
How and Where to Send Questionnaire and Other Information:
None given, only telephone numbers at Call us today.
General Information Provided by Servicer:

https://www.wachovia.com/foundation/v/index.jsp?vgnextoid=98ec824c26abf110VgnVCM200000627d6fa2RCRD

 
Wells Fargo / America’s Servicing Company Financial Questionnaire You Must Fill Out: https://www.wellsfargo.com/mortgage/account/requestpaymenthelp
Required Documents:
*A brief explanation of your hardship (Later in the process, we’ll ask you to put your explanation into a short letter)
*A detailed list of all your expenses, loans, and bills
*Proof of all household income (including your most recent pay stub, tax return or profit and loss statement)
How and Where to Send Questionnaire and Other Information:
Call: 800-678-7986. No fax number given.
General Information Provided by Servicer:

https://www.wellsfargo.com/mortgage/account/paymenthelp

 
SunTrust Mortgage Financial Questionnaire You Must Fill Out:

https://www.myloancare.com/SunTrust/HomeRetentionRequest.aspx

Required Documents:
Not specified, expect the usual.
How and Where to Send Questionnaire and Other Information:
Want questionnaire returned by email.
General Information Provided by Servicer:

http://www.suntrustmortgage.com/loanofficer.asp?hopenow

National City/PNC Financial Questionnaire You Must Fill Out:

http://www.nationalcitymortgage.com/Libraries/Important_Documents/Financial_Assistance_Application.sflb.ashx

Required Documents:
*Letter describing your current situation and how you would like it resolved.
*If your home is listed for sale, a copy of the listing agreement is needed
*Copy of your most recent pay stub from each income source, or other income verification.
*A financial statement form documenting all assets and liabilities (debts) plus monthly income and expenses.
.How and Where to Send Questionnaire and Other Information:
Fax: 937- 910-4009
General Information Provided by Servicer:

http://www.nationalcitymortgage.com/MyMortgage/Account_Center/Having_Trouble_Making_Payments.aspx

 

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