Nov 28

Obama’s Administration plans new efforts on foreclosures. Great more money down the toilet.

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The Obama administration, battling a foreclosure crisis that shows no signs of relenting, will step up pressure on mortgage companies to do more to help people remain in their homes, officials said Saturday.

The administration will announce its expanded program on Monday, Treasury spokeswoman Meg Reilly said.

“We are taking additional steps to enhance servicer transparency and accountability,” Reilly said. She said the goal was to increase the rate that troubled home loans were converted into new loans with lower monthly payments.

Industry officials said the new effort would include increased pressure on mortgage companies to accelerate loan modifications by highlighting firms that are lagging in that area.

The Treasury is also expected to announce that it will wait until the loan modifications are permanent before paying cash incentives to mortgage companies that lower loan payments.

Under the $75 billion Treasury program, companies that agree to lower payments for troubled borrowers collect $1,000 initially from the government for each loan, followed by $1,000 annually for up to three years.

The government support, which is provided from the $700 billion financial bailout program, is aimed at providing cash incentives for mortgage providers to accept smaller mortgage payments rather than foreclosing on homes.

The program has come under heavy criticism for failing to do enough to attack a tidal wave of foreclosures. Analysts said the foreclosure crisis is likely to persist well into next year as high unemployment pushes more people out of their homes.

Rising foreclosures depress home prices and threaten the sustainability of the fledgling economic recovery.

A report last week from the Mortgage Bankers Association found that 14 percent of homeowners with mortgages were either behind on payments or in foreclosure at the end of September, a record level for the ninth straight quarter.

The Congressional Oversight Panel, a committee that monitors spending under Treasury’s bailout program, concluded in a report last month that foreclosures are now threatening families who took out conventional, fixed-rate mortgages and put down payments of 10 to 20 percent on homes that would have been within their means in a normal market.

Treasury’s program, known as the Home Affordable Modification Program, “is targeted at the housing crisis as it existed six months ago, rather than as it exists right now,” the report said.

Scott Talbott, senior vice president of government affairs for the Financial Services Roundtable, said the industry supported many of the changes Treasury was proposing.

But he said the foreclosure problem, which began with heavy defaults on subprime mortgages, was expanding to more traditional types of mortgages because of unemployment which has now hit a 26-year high of 10.2 percent.

“The subprime problem has regrettably morphed into an unemployment problem,” Talbott said. He said there was no government program to help the unemployed who are in danger of losing their homes but “many private lenders are modifying loans for the unemployed on their own.”

Treasury’s Reilly said the expanded program would, among other steps, make more aid available to struggling borrowers and expand the number of organizations providing help.


Associated Press writer Jim Kuhnhenn contributed to this report.

Copyright 2009 AP News

Oct 13

NACA is holding workshops this Oct 16th – 20th in SF at the Cow Palace

NACA?s Save the Dream has been an incredible success with over 180,000 participants and many thousands having their mortgage restructured with interest rates permanently reduced to as low as 2%. NACA has legally binding agreements with all the major lenders/servicers to achieve this. All of NACA?s services are FREE.

San Francisco Oct 16th – 20th Cow Palace


NACAs Home Save Program is nationally recognized as the most effective solution for homeowners with an unaffordable mortgage providing such solutions nationwide as the largest such organization. The NACA solution is to restructure the existing mortgage by permanently reducing the interest rate to achieve an affordable mortgage payment. A mortgage restructure is not a refinance that requires eligibility for a new loan (i.e. high credit scores, high property values, etc). Since a restructure reduces either or both the interest rate and/or mortgage principal on the existing first mortgage, there are no mortgage criteria eligibility restrictions. If the homeowner is unemployed NACA provides a forbearance with a minimum payment until that have steady income to have their mortgage restructured. The only homeowners not eligible are investors who own other properties. The sole exception to this requirement is when a homeowner who lives in the home they want to restructure and the occupants of a second property are immediate relatives and they can document that they are such relatives and they live in the property.

NACA has legally binding agreements with all the major lenders/servicers covering over 90% of homeowners to achieve to a restructure or forbearance and is advocating against others. All of NACA?s services are Free. NACA also provides for free a forensic audit to determine any violations in obtaining your current mortgage. Click here to access this program (need Mortgage Documents (current mortgage) ? HUD1/Settlement Statement & Note (if not sure bring all documents from the closing)

NACA has developed a streamlined process to best assist you including working with a dedicated NACA counselor. You need to complete the Homeowner Submission, attend a NACA Workshop and meet with your Mortgage Consultant. If you have an auction date NACA will work to suspend it to provide an opportunity to assist you. . If you are beginning the process take the first step by attending a workshop now.