FORECLOSURE » Prevent Foreclosures

The HomePath program offered through Fannie Mae is providing attractive incentives to prospective home buyers looking to save money on a home purchase. As a part of the program, Fannie Mae is selling foreclosed homes with low down payments and other incentives that could make buying a home easier for the person on a budget.

HomePath Program Basics

Distressed mortgage borrowers have been looking for ways to get their mortgages back on track for years. While some opportunities for loan modifications and other foreclosure assistance have been offered since the housing crisis impacted the economy in 2008, there are still millions of homeowners in in danger of losing their homes.

Recently, the U.S. Department of Housing and Urban Development (HUD) announced it is signing delinquent homeowners up for a mortgage relief program that could help them stay afloat. The program is currently in the pre-screening phase and is looking for borrowers to jump on board fast.

The Federal Housing Administration (FHA) recently announced it will allow some unemployed homeowners to remain in their homes without making mortgage payments for an entire year. Homeowners who are in this predicament and qualify under specific terms will be eligible to miss payments without threat of foreclosure starting on August 1.

Grace Period Only for Qualifying Homeowners

Bank of America NA and its subsidiary BAC Home Loans Servicing LP are being sued due to alleged breach of contract in mortgage loan modifications. Two borrowers involved in the loan modifications are being named as plaintiffs in the proposed class-action lawsuit, according to The Associated Press.

Loan Modifications Gone Wrong

Two counties in Michigan say the state’s public schools lost tens of millions of dollars because Fannie Mae and Freddie Mac failed to pay the state’s property-transfer tax. Because the government-backed mortgage giants own thousands of homes in the state, they are responsible for paying taxes that fund the school systems.

Counties Say Lenders Owe Back Taxes, Lenders Say They’re Exempt

The Obama administration said on Thursday that the nation’s largest mortgage loan servicers need “substantial improvement” in working with a government foreclosure prevention program. According to the administration, big banks have done a poor job of modifying distressed home loans at a time when borrowers need the help the most.

Big Banks Audited by Government

There are an unusually large number of homes on the market due to foreclosure. However, some of those foreclosed homes are actually HUD homes, meaning they were purchased with a HUD loan–one that was insured by HUD FHA.

If you’re looking to buy a foreclosed HUD home, you’re in for a process that’s different from the standard home foreclosure purchase. Here is what you need to know HUD foreclosures.

Fannie Mae issued new standards for mortgage servicers regarding the management of delinquent loans, foreclosure time frames and default prevention. The rules, released on Monday, fell under the Federal Housing Finance Agency’s Servicing Alignment Initiative and are meant to improve homeowner communications and modifications surrounding the processes following a delinquency.

Servicers to Follow New Rules Following a Delinquency

A retired Florida attempted foreclosure on a Bank of America office by pulling a moving truck up to the bank’s building and threatening to take furniture and other items. Purposefully creating a scene at a strip mall in Naples, the couple hoped to acquire money owed to them after the banking giant wrongfully attempted to foreclose on their home.

Bank of America’s False Foreclosure

While the sale of homes in some stage of foreclosure declined in the first three months of the year, they accounted for 28 percent of all home sales. According to RealtyTrac Inc., this is a share nearly six times higher than it would be in a healthy housing market.

Foreclosure Sales Hit Highest Share of Overall Sales in a Year