Foreclosure Relief Efforts: Update [Housing Tracker]

Seeking Alpha's Housing Tracker is a collection of housing-related excerpts from various sources, grouped by topic. Feel free to post any interesting links on the subject in the comments section below.

Foreclosure Relief Data

Bank Of America Settles Lawsuit Over Bad Mortgages. “Illinois attorney general's office: Facing a lawsuit over deceptive mortgage practices, a Bank of America Corp. (BAC) subsidiary has agreed to modify tens of thousands of loans to keep people in 11 states from losing their homes. Borrowers stuck with Countrywide Financial mortgages that they can't afford could see their interest rates reduced or have the loan principal cut. Some might qualify for having to pay nothing but interest for a decade. Even people who can't afford to keep their homes with such changes will be able to get help moving to a new home.” (AP via Yahoo! Finance, Oct. 6) 

How Much Foreclosure Relief Will Homeowners Get From Bailout Plan? “A new federal loan workout program called Hope for Homeowners begins this month… for homeowners who bought their homes before 2008 and now have monthly payments exceeding 31% of their income. Under the program, banks would in many cases write down mortgages to 90% of a home's current value… The new 30-year fixed-rate loan would be insured by the Federal Housing Administration and could not exceed $550,440. An existing voluntary effort… called Hope Now is a joint effort by lenders, mortgage servicers and nonprofit housing groups to help troubled homeowners renegotiate their mortgages… defer or reschedule monthly payments or reduce their loan principal.” (LA Times, Oct. 6) 

NJ May Bill Mortgage Lenders $2,000 Per Foreclosure. “New Jersey legislators on Monday approved a measure to make mortgage lenders pay $2,000 before taking a homeowner into foreclosure. The measure, which is opposed by some banks, is believed to be the first of its kind. It joins a growing list of local and national efforts to stem a tide of home foreclosures... Foreclosure filings by New Jersey mortgage lenders rose 22% from a year ago to over 44,000 in the January-to-August period, while the number of completed foreclosures rose to 1,862 in Q2 from 1,117 in Q1.” (Reuters, Oct. 6)

How Countrywide-Bofa Mortgage Settlement Helps California Homeowners. “More than 120,000 struggling California homeowners could see their monthly mortgage payments lowered, after Bank of America Corp. agreed to provide $3.5 billion in loan and foreclosure relief to settle lawsuits it inherited with its takeover of Countrywide Financial Corp. (CFC).” (SF Gate, Oct. 6)

Mortgage Forgiven For Woman, 90, Who Shot Herself.Akron, Ohio: “Mortgage finance company Fannie Mae says it's forgiving the mortgage debt of a 90-year-old Ohio woman who shot herself in the chest as sheriff's deputies attempted to evict her… Fannie Mae announced later that day it's dismissing its foreclosure action, forgiving Addie Polk's mortgage and allowing her to return to the Akron home where she's lived since 1970. A Fannie Mae (FNM) spokesman says the incident “certainly made our radar screen.” (ABC15, Oct. 5)

                                                  

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Comments

[Countrywide...:]

So are we to believe that Countrywide only preyed on customers in those 11 states really folks lets wake up here and stop giving these vulture s a pass every time they get caught with their pants down Countrywides predatory lending was systemic and all Countrywide loans should be scrutinized

2008 Oct 15 04:24 PM

[SteelerMom:]

People need to start calling their lenders and stop being afraid.

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2008 Nov 19 11:26 PM