Are You Facing Foreclosure? Get ready to get more help!

Are You Facing Foreclosure? Get ready to get more help!

The Consumer Financial Protection Bureau (CFPB) has recently proposed additional set of measures to expand foreclosure protections for mortgage borrowers.

Currently the CFPB continues engaging in the outreach task along with consumer advocacy groups, industry representatives, and other stakeholders to develop additional provisions to protect consumers and make it easier for companies to comply with the rules. New proposals would give greater protections to mortgage borrowers.

Among these new proposals are a number of provisions to improve borrower/servicer communications and to clarify previous regulations, such as,

    • Protections for mortgage heirs
    • Servicers would be required to notify borrowers when their loss mitigation applications are complete and when their foreclosure protections kick in
    • The proposal offers full disclosure on “clarifications” from previous rules dealing with servicing rights transfers between firms.
    • Would require servicers to provide periodic loss mitigation information and other statements to borrowers in bankruptcy.
    • Servicing firms must also provide written early intervention notices to let those borrowers known about their loss mitigation options even after they’ve been told to stop contact.
    • Clarifying the meaning of “delinquency” for the purpose of its servicing rules. Delinquency begins on the day a borrower fails to make a periodic payment. If that payment is later made up, the bureau proposes that the date of delinquency should be pushed up creating room for servicers to consider a payment as “timely”.

A full summary of the proposal can be found at CFPB’s web site.

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Home sales show encouraging stats

Home sales show encouraging stats

Existing home sales, excluding distressed sales, are the most encouraging stats at the moment. These, according to Trulia and the National Association of Realtors, were 80 percent back to normal in August.

home-salesTrulia’s Bubble Watch also showed that prices were 3.4 percent undervalued in the third quarter, which is a marked improvement over the 13.5 percent undervaluation at the worst of the housing bust. That means prices are three-fourths of the way back to normal.

Delinquency and foreclosure rates also were much improved. According to Trulia and Black Knight, the national delinquency and foreclosure rate was 74 percent back to normal in August, the same as one quarter ago and up from 56 percent one year ago. The decline in defaults and foreclosures has helped stabilize the financial system and hard-hit neighborhoods.

Homeowners receiving BofA settlement may get a huge tax bill as well

The relief could be too good to be true!Tax Relief

As part of the record $16.65 billion settlement between Bank of America (BAC) and the U.S. Department of Justice, approximately $7 billion is designated to provide relief to consumers. However for the borrowers that reap the rewards from BofA, there could be something that severely dents the promised relief funds…a huge tax bill.

In a statement, the U.S. Department of Housing and Urban Development outlined how some of that money will be disseminated to the consumers.

“The $7 billion in consumer relief will focus on areas that were hardest hit during the housing crisis,” HUD said. “Consumer relief will take various forms including loan modification for distressed borrowers, including FHA-insured borrowers, and new loans to credit worthy borrowers struggling to get a loan in hardest hit areas, borrowers who lost homes to foreclosure or short sales, and moderate income first-time homebuyers.”