It has been a busy week for developments related to the ongoing foreclosure crisis.
On May 17th, American Banker broke the news (“Wells, Citi Halt Most Foreclosure Sales as OCC Ratchets Up Scrutiny”) that Wells Fargo and Citigroup were halting foreclosures in some states after receiving new guidance from their regulator, the Office of the Comptroller of the Currency. (read the guidance here). According to the article, JP Morgan Chase had suspended foreclosures, but has re-started them.
While this “pause” is temporary, it does raise questions from housing advocates and homeowners who have suggested that banks and servicers are still failing to comply with new regulations around mortgage loan servicing, and dual tracking (processing a foreclosure and modification at the same time) abuses.
For example, the California Reinvestment Coalition’s latest survey (they’ve done nine since the foreclosure crisis started) of housing counselors in California found that homeowners and housing counselors are still dealing with multiple contacts at the bank, instead of the “Single Point of Contact” (SPOC) that is mandated by the recently enacted Homeowner Bill of Rights: “Over 70% of responding counselors reported that SPOC’s were “never,” “rarely,” or only “sometimes,” accessible, consistent or knowledgeable.” Read the full survey here: “Chasm Between Words and Deeds IX: Bank Violations Hurt Hardest Hit Communities”
Homeowners here in San Jose and Sunnyvale, California who contact ForeclosureHelp for our free housing counseling services (the program is paid for through a HUD Community Development Block Grant and through funding from the city of Sunnyvale) have reported similar issues with their Single Points of Contact and not receiving return phone calls from them.
As HousingWire reported earlier this month, (“California Homeowner Bill of Rights blocks BofA foreclosure”), the protection against dual-tracking under the CA Homeowner Bill of Rights was recently used for a California homeowner who obtained an injunction against Bank of America foreclosing on his home. His attorney told HousingWire that he estimates the expenses for Bank of America for this case could easily hit $60,000.
Joseph Smith, who is the National Monitor for the AG Settlement, is expected to release a report shortly that will detail if and how well the banks are meeting the requirements they agreed to under the national AG settlement. Meanwhile, the Attorney General for the state of New York, Eric Schneiderman, has announced that he is revising his complaint against Wells Fargo and Bank of America for their alleged 339 servicing violations under the AG settlement. From American Banker: “ N.Y. AG Revising Foreclosure Settlement Complaint Against B of A, Wells”
The common sense protections included in California’s Homeowner Bill of Rights appear popular in Minnesota, with the Minnesota Star Tribune reporting that a bill with similar protections has just passed their House of Representatives and has already passed the Minnesota Senate: “House passes Homeowners Bill of Rights”
We’ll close on a positive note from Freddie Mac, which announced that its new Streamlined Modification program is immediately available for homeowners who are facing foreclosure and whose loan is owned by Freddie Mac. Through this program, servicers will send modification offers to borrowers who are at least 90 days late, but no more than 720 days late, and whose loan is at least 12 months old. The borrower will have to make three on time payments during a trial period, and then they will be offered a modification. Servicers can reduce the monthly mortgage payment by lowering the interest rate, extending the loan to 40 years, and also through forbearing principal (not the same as a principal reduction- this is more like a balloon payment ). For more information, read their press release: “Freddie Mac Announces Immediate Availability of Streamlined Modification for Delinquent Borrowers”
- Wells Fargo Forecloses On Homeowner Who Made Payments Too Early (consumerist.com)
- Elderly Man Allegedly Dies in Court Fighting Wells Fargo ‘Wrongful’ Foreclosure (alternet.org)
- Bill would require mediation before foreclosure (charlotteobserver.com)
Foreclosure Help is a coalition program funded by the city of San Jose through a HUD Community Development Block Grant and the city of Sunnyvale, and we can directly assist homeowners and tenants in San Jose and Sunnyvale who are facing foreclosure. However, we are unable to assist homeowners/former homeowners in other cities and states. If you need housing counseling, we suggest using the interactive map on HUD’s website.
ForeclosureHelp partners include the Housing Trust Silicon Valley (lead agency), the Fair Housing Law Project at the Law Foundation of Silicon Valley, SurePath Financial Solutions, Project Sentinel, Asian Inc, Neighborhood Housing Services of Silicon Valley, and the Santa Clara County Association of Realtors.
If you are a homeowner living in San Jose or Sunnyvale and are struggling with your mortgage, please contact ForeclosureHelpSCC, a program funded by the City of San Jose through a HUD Community Development Block Grant and the City of Sunnyvale at (408)-293-6000 or visit us: www.foreclosurehelpscc.org
Our housing counselors can help you evaluate your options, learn more about federal and state programs that may help you with your mortgage issues, and will help you create a plan forward.
Please note: All content included in the ForeclosureHelpSCC blog is provided for information only and should NOT be considered legal or tax advice. If you have any questions, please feel free to contact us on our hotline: (408)-293-6000, or visit our website: www.foreclosurehelpscc.org or send us an email: firstname.lastname@example.org.
Si usted es dueño de una casa en San José o en Sunnyvale y están luchando con su hipoteca, por favor póngase en contacto con ForeclosureHelpSCC, un programa financiado por la ciudad de San José y la ciudad de Sunnyvale, al (408) -293- 6000, o visite nuestro sitio: www.foreclosurehelpscc.org.Nuestros consejeros puede ayudarle a evaluar sus opciones, aprender más acerca de los programas federales y estatales que pueden ayudarle con sus problemas de hipoteca, y le ayudará a crear un plan para seguir.
Por favor, tenga en cuenta: Todos los contenidos incluidos en el blog ForeclosureHelpSCC se proporciona únicamente a título informativo y no debe ser considerada como consejo legal o fiscal. Si usted tiene alguna pregunta, por favor no dude en contactarnos a nuestra línea directa: (408) -293-6000, o visite nuestro sitio:www.foreclosurehelpscc.org o envíenos un correo electrónico: email@example.com.
Nếu bạn là một sinh hoạt chủ sở hữu nhà ở San Jose hoặc Sunnyvale và đang đấu tranh với nợ nhà, xin vui lòng liên ForeclosureHelpSCC, một chương trình được tài trợ bởi thành phố San Jose và thành phố của Sunnyvale ở (408) -293-6000 hoặc truy cập trang web của chúng tôi: www.foreclosurehelpscc.org.
Nhân viên tư vấn của chúng tôi đã được HUD chấp thuận có thể giúp bạn đánh giá các lựa chọn của bạn, tìm hiểu thêm về các chương trình của liên bang và tiểu bang có thể giúp bạn với các vấn đề thế chấp của bạn, và sẽ giúp bạn tạo ra một kế hoạch phía trước.Xin lưu ý: Tất cả các nội dung trên Blog ForeclosureHelpSCC được cung cấp thông tin duy nhất và không nên coi là hợp pháp hoặc tư vấn thuế. Nếu bạn có bất cứ câu hỏi , xin vui lòng liên hệ với chúng tôi qua đường dây nóng: (408) -293-6000, hoặc truy cập vào trang của chúng tôi: http://www.foreclosurehelpscc.org hoặc gửi email cho chúng tôi:firstname.lastname@example.org.
FAIR HOUSING AND ANTI-DISCRIMINATION POLICY
It is the policy of ForeclosureHelp not to discriminate against any person because of that person’s race, color, religious creed, sex (gender), sexual orientation, marital status, national origin, ancestry, familial status (households with children under the age of 18), source of income, disability, medical condition or age. Color or “ethnic group identification” means the possession of the racial, cultural or linguistic characteristics common to a racial, cultural or ethnic group, or the country or ethnic group from which a person or his or her forebears originated. As required by law, we agree to take the affirmative steps needed to further fair housing.
ForeclosureHelp will consider any and all requests for reasonable accommodation in the application of its rules, policies, practices, and services, and in the use of its physical structures, in accordance with the requirements of state and federal laws. You can ask ForeclosureHelp to consider any reasonable accommodation you may have. Please consult with the Program Manager (408-293-6000 or via email: email@example.com) to request this accommodation.