June 9, 2011 by
Filed under Mortgage
Lenders and mortgage servicers, besieged in recent years by an unprecedented wave of foreclosures and delinquent mortgages, have faced criticism over the way they have treated borrowers who fall behind on payments. Many have complained they have had trouble cutting through red tape when attempting to get timely information on their loans or when they have asked for a loan modification.
And last fall, state and federal officials launched investigations into foreclosure procedures used by mortgage servicers and lenders after evidence surfaced that some banks pushed through hundreds of foreclosures a day without giving many borrowers a fair shot at keeping their homes.
Under the rules laid out by Fannie Mae, loan servicers must build a “strong customer-service relationship” with homeowners and determine why the borrowers have missed payments and educate them on foreclosure prevention options.
Insider Secrets To Making Real Money In Real Estate Regardless Of Your Credit, Finances Or Location!
If you have ever wanted to make a fortune in real estate, but you have no money, no credit and no experience, then here’s a 100% guaranteed way for you to do it in the shortest time possible. Read More: Visit Publisher Site
Servicers must contact homeowners orally and in writing within the first 120 days after a loan becomes delinquent and complete a loan modification or other option that keeps the borrower in the home.
Alternatively, the servicer can enter into an arrangement with the borrower to surrender the house without going through foreclosure. One example is a short sale, when the lender and owner agree to sell the property for less than what is owed on the mortgage.
Fannie Mae said the standards will increase the likelihood that servicers will contact homeowners early in the default process, one of the most important factors in preventing foreclosure. Should efforts to avoid foreclosure fail, servicers must adhere to a clear timeline that calls for the foreclosure process to begin once a loan has been delinquent for more than 120 days.
They also must spell out when a property in foreclosure will be sold.
Servicers will be eligible for incentives if they complete loan modifications or other arrangements early in the delinquency period, but will have to pay fees if they fail to follow Fannie Mae rules. Fannie Mae and its sibling, Freddie Mac, own or guarantee about half of all US mortgages.
Click here to view rest of article from original site
No comments:
Post a Comment