President Obama Introduces New “HOMEOWNER BILL OF RIGHTS”
One of the biggest issues facing Homeowner’s that have attempted to do a loan modification, short sale, or any other foreclosure prevention program is the lack of standard procedures from one lender to another. It has been our experience at New Team Realty that each lender varies not only their timelines in approving a loan modification or short sale, but also in their internal communication and tracking system of the process itself. In addition, this uphill battle becomes even more rigorous when you have a 1st lien holder and 2nd lien holder. In these instances, there not only may be lack of communication and tracking of the loan within each lender’s internal system, there also may be an even bigger communication gap and agreement between each lender.
For example: A 1st lien holder in a short sale might say they only will allow $6000 as a payoff to a the 2nd lien holder. However, the 2nd lien holder wants, say $10,000 as payoff. Neither lender wants to budge on the amount they will offer/accept. This makes the negotiations sticky, and it takes an Experienced Professional to negotiate with both lenders and convince them both to play nice with each other.
Obama’s Homeowner Bill of Rights would assist these negotiation efforts by requiring servicers and investors to implement standards that minimize conflicts of interest and facilitate communication between multiple investors and junior lien holders, so that loss mitigation efforts are not hindered.
Other highlights of the New Homeowner Bill of Rights would prevent lenders from enacting foreclosure actions against a homeowner without documented efforts to reach out to the homeowner by offering foreclosure alternatives, and/or a homeowner’s lack of interest in foreclosure alternatives, or failure to successfully complete foreclosure prevention program such as loan modification or short sale. The New Bill also will establish protections for homeowners against wrongful foreclosure.
If you are interested in learning more about this New Homeowner Bill of Rights, or you want more information on foreclosure prevention options, click here to schedule a consultation with Rebecca to see how we can help you.
Rebecca Austin discusses ” Common Loan Modification Questions “ the Law Office of Michael Groves
Radio Show: Home Help Radio with Rebecca on KPRZ
Date: 12-03-11
