July 8, 2011

FHA Providing Unemployed Homeowners Extra Time to Get Back on Their Feet

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If you’re unemployed and having trouble making payments on your FHA-insured mortgage, more help is on the way!  The Federal Housing Administration (FHA) already requires its lenders to go the extra mile in helping un- or underemployed borrowers who are at least three months behind in their mortgage.  Now, FHA is providing additional breathing room for unemployed homeowners by requiring FHA-approved lenders to extend special forbearance from four to 12 months.

This means certain unemployed borrowers with FHA-insured mortgages may have up to a full year to find work and get back on their financial feet.  These special forbearance agreements between lenders and borrowers make it possible to delay any foreclosure action to allow you a chance to catch up missed payments in an agreed-upon timeframe.  At the end of the forbearance period, the lender will review your financial situation again to determine what option might fit your circumstances like a loan modification or repayment plan. The extended forbearance period begins August 1st with another 60 days for lenders to implement.

But what if you don’t have an FHA-insured mortgage?  The Obama Administration also intends to require lenders participating in the Making Home Affordable Program (MHA) to extend the minimum forbearance period to 12 months wherever possible under regulator and investor guidelines.

Read HUD news release and for more information on FHA’s efforts to help borrowers in default, see the HUD website.

8 Responses to FHA Providing Unemployed Homeowners Extra Time to Get Back on Their Feet

  1. Pingback: HUD and the FHA are look to help some troubled homeowners – – Yellow House Appraisals and Valuation ServicesGrand Rapids Appraisers, FHA Approved Real Estate Appraisal Services

  2. Pingback: HUD and the FHA are looking to help some troubled homeowners – – Yellow House Appraisals and Valuation ServicesGrand Rapids Appraisers, FHA Approved Real Estate Appraisal Services

  3. Where is the help for families that had a FHA Insured Mortgage but were never given a chance to show proof to the fraud, steps, run-arounds use to deprive them of value..their home? And why is it allowed by HUD to let the Mortgage Co. Bid higher at a sheriff sale, place other party as owner the owner(sale date) so they can give it to HUD who pays them from funds families pay and sells home at a less price to party who already was said to be owner on Shefiff sale at a less price?

  4. I sure hope the extra relief program will be QUICKLY extended to Fannie Mae/Freddie Mac loans, too. Our home is now scheduled to be SOLD in a FORECLOSURE SALE on 7/19/11 – about a week from now!

    Our lender offered us a HAMP loan in 2009. We went through the trial period to their satisfaction, went through Underwriting in Dec. 2009 and were APPROVED. We were sent to mod documents which we returned in January 2010 as instructed. The lender told us it would take “30 to 45” days to be processed.

    We continued making our new (reduced) payments through July 2010. After having to leave work on Family/Medical Leave Act (FMLA) and having no income, we applied for local assitance with our county. They requested a current mortgage statement, which we did not have. We called our mortgage company and requested one and (again) inquired why our account had not been updated. After telling them why we needed the current mortgage statement, they sent us one af ew days later, along with (separate letter) notification we had been “denied approval” of our HAMP modification because we “failed the NPV (Net Present Value)” test.

    After several phone calls in which the lender admitted they had screwed up “hundreds” of the HAMP modifications, we were offered an “in-house” modification. We supplied all the documents to their representative and were “approved” for a conventional modification that was only about $30/month more than the HAMP. We gave our verbal approval, so they sent us new modification documents to sign with only a few days in which to do so. They had added $12,000 to the principal balance over what the HAMP modification would have been. We had no time to argue, so we signed it, sending the required December 2010 payment in advance on 10/25/10. Same story – “It will take 30 to 45 days to process this”. Came the end of December, we started calling the rep, leaving messages as to why had we not received any confirmation nor could we get online access to correct information. We finally spoke after I wrote a threatening email on 1/6/2011. He said for us not to worry; that it’s just taking a little more time because of the volume of loans they were modifying. He instructed us to just send in the required payment and agreed to send us a copy of the executed modification document just as soon as it was available (i.e. prior to awaiting a local agent to record it at our county court). He claimed it was still in the “final check” stage in their QC Department as of 1/4/11.

    So, we sent in the January payment with much reservations after reading 44 PAGES of similar horror stories on the excellent website – – with regard to our specific lender!!!

    Came February – NOTHING – NO UPDATES ! So we didn’t send a payment. Come March – NOTHING – NO UPDATES!

    Then 3/17/11, they send us a letter entitled “Notice of Intent to Foreclose”, stating we hadn’t made our January payment (which we did) and giving us 30 days to pay 3 months payments. At that time, we had only missed 2 payments, so both the date and cure amounts were incorrect.

    We contacted their representative that handled our modification and got the same run-around we had gotten for the past 18 months. We have been afraid to pay them because of the horror stories others have suffered who paid everything they were supposed to and still lost their homes.

    It turns out our modification was recorded in our county on 3/21/11 – AFTER they had sent out the Notice of Intent!!! Furthermore, remember (above) my mentioning that our rep stated on 1/6/11 that he had found out our modification was still in final QC on 1/4/11? Well, it was signed off by their Executive VP and Notarized on 11/23/2010!!! Also, strangely, their Assistant VP and Notary’s signature/handwriting are remarkably similar. Talk about LIES, LIES, and more LIES.

    We’re now trying to hire an attorney who can block the foreclosure based on the HOST of illegal activites and incorrect notices given to us. We can only hope that it will work since I am now UNEMPLOYED and meet the criteria for this program . . . IF . . . it will be extended QUICKLY to the big private mortgage companies who’ve done Fannie Mae/Freddie Mac loans.

    Suggest if you’re in a similar pickle to go to Consumer Affairs.com and read up on your own mortgage company to see what antics they’ve been up to before you sink your remaining dollars (in our case, very, very limited dollars) into their pockets.

    and never receiving any proof the HAMP modification wasI requested

    • We applied for loan modification in April 2010 through NACA and have been given a run-around by Bank of America (BA) as of this writing.

      When we applied for loan modification, we were current with our payments. A month after we filed our application, we were denied because according to BA we were current with our payments. We tried to argue that the reason we are applying is because we are in imminent danger of falling behind due to substantial loss of income. I lost my job in Oct. 2009 and my wife’s salary had been slashed by 20% and we have used up all our savings at that time trying to stay current with our mortgage. Then on June 2010, we received our mortgage statement showing that we were already 3 mos behind and when we called BA for clarification, we were told that it is a standard procedure that when one applies for a loan modification, they automatically put all payments into a ‘suspense account’. Thinking that it will help our application for loan mod, we accepted their explanation and continued to make our payments on time until Sept. 2010. Their action put us in ‘bad light’ with other creditors- imposing higher interest rate and reducing our credit line. Inspite all these, we tried to endure by living a frugal life hoping that BA will approve our loan mod. Then in Sept. 30, 2010, we attended a NACA convention, queued for 40 hrs. only to be told that they cannot help us because we are behind in our payments. Take note that we have been punctually paying our mortgage up to this time but since they put us in a ‘suspense account’, it appeared that we were behind. Anyway, we were told that they will evaluate us if we can be considered for HAMP. Then in Oct. 9, 2010, we received a letter denying us of HAMP because according to them, we refused a previous offer on March 1, 2010. We tried to explain that this is impossible since we only started applying for a loan mod in April 2010 but to no avail. So I wrote a letter appealing for reinstatement since I was wrongfully denied. Then after several phone calls and through the intercession of HOPE representative, we received a letter informing us that they opened an escalated case which will be reviewed by a dedicated team. That was in Feb. 8, 2011 and nothing has been resolved until now. All that we’ve received so far are letters telling us that they need more time to review our case. I am now considering of getting a loan audit and filing a lawsuit instead.

  5. I am asking you, practically begging for you to come down here and see this property, I have done all I can on a local level with your people from HUD, and my congresswoman doing nothing even though she sent two of her reps and an aide to the property to check it out and take back with them hundreds of pictures that I provided and a physical tour they took themselves left them sick from the mold, mildew and disrepair of the property that has gone ignored to the point where it is beyond repair, yet HUD is paying the owner who lives in NEW York Hundreds of thousands of dollars to keep us in unhealthy, unsafe, and unfair housing. He is doing this with your consent and funding. Please look into the attached and see the reports from City of Sanford Code Enforcement and police reports about how much of the city’s drug and violent crimes like murder and shootings come from this property. I am sure that HUD does not condone or knowingly funds properties like this when it is brought to their attention. So for all that it is worth I thought that the public should know about what is going on here and how their taxes are being spent through HUD…so I created a Facebook page and twitter and YouTube all of which have video and pictures of the code violations, the HUD guideline violations by the owner and the unfair treatment by HUD toward the tenants of Seminole Gardens Apartments. We are under Project Based section 8 and have the right under Federal Law, just like Sanford Housing Authority to have that Project Based Section 8 changed into Tenant Based Section 8 and the resident moved out of this slum property made this way by a slum lord. I say that because this owner and management team has made this property into a slum. It was already deteriorating and instead of making it better the owner has made it worse because he is collecting HUD money and doing nothing. Crime is worse, there are more shootings here now, more drug sales and more people from all over the county coming here just to hang out and this is because the management won’t cut the grass, the property has so much accumulation of trash that they are fined for it. So many criminal know that the management doesn’t give a shit then this is the place to come and do their criminal business.

    I am writing to you because I am a tenant in Seminole Gardens Apartments and I will get right to the point. Myself and many other residents are more than concerned about the management of this property. We are being forced by them to live in very unsafe and very unhealthy conditions. The management is getting funds from HUD via taxpayers and the government and they are not making basic maintenance repairs, let alone major repairs. There are elderly and disabled people living here who have no working ovens, stoves, fridgerators, mold and mildew growing inside, outside and in the walls. Leaking apartments, fire hazards…..all of these things and much, much more all because the management is misappropriating funds in every kind of way.

    If you have seen the news in the last few days then you have seen the shooting that took place in broad daylight while children played just feet away from it. This all happened because the management allowed it too and caused it. They could have assured that our elderly and disabled are protected and children not in the line of fire, by simply taking care of keeping the people involved off the property. The management is never on property to address the issues of maintenance and safety. The grass on property is so high it is causing a bug infestation of ants and roaches and other things like snakes and frogs. When I bring it to their attention they simply threaten with fines and eviction.

    This property has been in dilapidated conditions for years and this too can be proven through the Code Enforcement department of the City of Sanford. I called them about stair railings and landing that pose a danger to the children on property as they are so rusted that they won’t hold the stairs together. In short I am going to email you everyday and the local and national news, facebook and twitter this property with pictures and that is the hundreds of pictures I have and the hundreds that the code enforcement have and are available to the public and let everyone know that I am contacting HUD, our congress woman Corrine Brown, and keep the social media world alert and aware of HUD money going to a property that is a slum by a slum lord who lives in NEW York, but has a management Company here in Florida who is also pocketing government money, not making repairs, not cutting the lawn, they have fired a maintenance crew of 5 and have just one old man on staff who has many health problems and cannot make the necessary repairs so it is causing these already deteriorating buildings to fall apart even faster.

    Also I have to mention this…that because of the lack of concern from the owner and management for this property, it is drawing the attention of many criminal, thus this property is such a source for drug and violent crime that it is responsible for 30% or more of the total crime in the City of Sanford. Katisha Bruner, the office Manager is aware of this and the owner is aware of this, but he is an absent landlord who lives in New York and just collects HUD checks, but is not taking care of this property. My solution and I have asked Mrs. Corrine Brown and the media for help to do the same thing for us that she did for the tenants of Sanford Housing Authority. We are just like them, by that I mean our public housing project receives the same kind of project based section 8 that they received and it was turned into tenant based section 8 so that the residents could chose to move into fair, clean, healthy, and safe housing according to HUD and Section 8 guidelines. I am simply asking for the same thing because we are also in the same situation, except worse because this is Sanford last public housing and much of the crime is now concentrated into this one area and instead of management coming in and making things better, they have lost control and this property has become worse than it ever has been. Closing it down and allowing the tenants to leave would actually make things better for the city of Sanford as the NEW MAYOR has vowed to change the image of this city and I am trying to work with him and get him to also see the police reports and the reports and pictures from the city’s code enforcement. So please see if you can look into this and help us.

    Martin Vanburen Tenant of Seminole Gardens Apt.# 107 Phone (321) 363-3277

  6. What kind of help is available for those of us who have exhausted all of our unemployment, have not missed a payment yet, but it looms very near on the horizon. Why do we have to miss payments and destroy what has been excellent credit up to this point? Once the credit tanks, you can forget finding a job as employers do credit checks. Why can’t we qualify for the program if we can show that we are some of the long term unemployed. Talk about falling through the cracks.

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