This month - Wells Fargo holding free loan modification decisions in Brooklyn, NY

January 25 & 26, 2011 - in Brooklyn - Wells Fargo represents that homeowners seeking loan modifications can meet with representatives and get immediate decisions.

Please call 1800-405-8067 for further information.

Homeowner Beats Bank of America In Small Claims Court

On January 4, 2011, the Huffington Post's Arthur Delany reported a homeowner who was successful in bringing Bank of America into California's Small Claim Court and being awarded $7,595 after the Bank denied him a loan modification.


Dave Graham, the homeowner told the Huff Post, "It was a good victory for me and I think for homeowners around the country."  This author agrees.

What is supposed to be a three month trial, the bank dragged on for 18 months - an all too common occurrence; at which point the Bank informed the homeowner that he did not qualify for a loan modification and the Bank demanded immediate payment of approximately $7,000 (the difference between the normal mortgage payment and the modified trial payments), or the Bank would foreclose on the property.


Graham was successful in bringing his case into the Small Claims Court.  The Bank states that they will appeal - something they can do in California.  Let's see what happens....

Fannie Mae - New Program for Forclosure Help - starts 8/1/2010

Fannie Mae Introduces HAFA Program - You can read the announcement here.


On Tuesday, June 1, Fannie Mae issued Servicing Guide Announcement SVC-2010-07, introducing Fannie Mae's Home Affordable Foreclosure Alternatives (HAFA) Program. It, like Treasury's Home Affordable Foreclosure Alternatives Program (as described in Supplemental Directive 09-09 Revised), is designed to mitigate the impact of foreclosures on borrowers who are eligible for a loan modification under the Home Affordable Modification Program (HAMP) but ultimately are unsuccessful in obtaining one.

Program Features:

The Fannie Mae Home Affordable Foreclosure Alternatives Program, which becomes effective August 1, 2010, simplifies and streamlines the use of short or "preforeclosure" sale and deed-in-lieu of foreclosure (DIL) options on HAMP-eligible loans by incorporating the following unique features:

• Complements HAMP by providing alternatives for borrowers who are HAMP eligible (including borrowers facing imminent default);

• Allows the borrower to receive pre-approved short sale terms prior to the property listing;

• Prohibits the servicer from requiring, as a condition of approving the short sale, a reduction in the real estate commission agreed upon in the listing agreement;

• Releases the successful HAFA borrower from future liability for the debt;

• Uses standard processes, documents, and timeframes;

• Provides financial incentives to borrowers, servicers and subordinate lienholders; and

• Utilizes verified borrower financial and hardship information collected in conjunction with HAMP, eliminating the need for additional eligibility analysis.

New Short Sale Guidelines

The federal government recently announced the short sale program guidelines for the Home Affordable Foreclosure Alternatives (HAFA) program which will go into effect on Monday, April 5, 2010. 

Bank of America Home Loans is implementing HAFA, the program designed to help those customers who were not eligible for the Home Affordable Modification Program (HAMP) or any other modification.  For more detailed information on the HAFA program, go to the National Association of Realtors site.

The HAFE program provides incentives for short sales and what are known as a deed-in-lieu of foreclosure on a loan eligible for modification under the HAMP program.

A list of servicers participating in the HAMP program - including HAFA - can be found at the Making Home Affordable website.  

CHASES' website regarding short sales can be accessed for further information.