HARP

Posted by kevin on February 18, 2016 under Foreclosure Blog | Be the First to Comment

The HARP program allows certain homeowners who are current on their mortgage loan but underwater,the ability to refinance at a low interest rate. The loan must have closed prior to May 31, 2009 and is owned or guaranteed by Fannie Mae or Freddie Mac. The LTV (loan to value) must be greater than 80%. Current means no 30 day + payments in the last six months and no more than 1 late payment in the last 12 months.

The program is scheduled to sunset on December 31, 2016. It is not expected, at this time, that the program will be extended.

The FHFA is advertising in selected states advising people to check their eligibility and go forward before the deadline.

FHFA estimates that there are 13,800 borrowers in NJ who are eligible for HARP refinancing and about 400,000 nationwide.

If you fit into the criteria listed above and want to reduce your interest rate, check with your lender or servicer to see if they participate in the program.

NJ- First in the Nation

Posted by kevin on under Foreclosure Blog | Be the First to Comment

Took a break for awhile. Spending lots of time doing modifications and checking into causes of action under Regulation X. Also, just wrapping up a Chapter 13 (5 payments to go). Saved the house, stripped the second mortgage, and got hefty sanctions against the servicer. Now, back to foreclosures.

I lived in NJ for my entire life with the exception of college and law school. So, I have been the recipient of all those barbs about New Jersey for a long time. Enough to give you a complex. So, a couple of months ago, when I saw in a local newspaper that NJ is #1 at something, it gets my attention. Only problem is that it said that NJ had the highest rate of foreclosure cases in the US. 1 out of 171 housing units is subject to a foreclosure filing. That is more than double the national average.

Looking more at the numbers, activity is up 27% over the prior year, but new foreclosures are actually down. That means that the vast majority of the cases are winding their way through the court system.

In the past three days, I have received calls from people who are at various stages of foreclosure. All need help. One just received a Notice of Intent to Foreclose. That is at the beginning of the process. Others are facing sheriff sale in less than 10 days. Those people are at the end of the process.

The facts are that the courts in NJ have trended in favor of lenders in foreclosure matters. The Feb 1 published decision in Curcio is just another indication that borrowers have an uphill battle. The trend is most pronounced at the end of the process. Once a default is entered, it is getting increasingly more difficult to convince a judge to set aside the default and allow the borrower to go forward with his or her case. Forget about situations where default judgment is entered. Your chances of overturning a default judgment or slim- less than 5%.

So, a little advice. If you are behind on your mortgage and get a Notice of Intent to Foreclose, get in to see an attorney. You may have a case that will resonate in the foreclosure court. Or you may have a situation where a Chapter 13 bankruptcy will work. A modification should always be considered, but if you follow the mod path without addressing the foreclosure, you are setting yourself up for a potential fall.

When you are dealing with an attorney, make sure that he or she is looking at an integrated approach which will utilize all your options to get a result that will work for you.