Home Loans and Support

Delaware Gov. Jack Markell and Attorney General Beau Biden Make Funds to Aid Delaware Homeowners

(Source: Attorney General Beau Biden) – Delaware Gov. Jack Markell and Attorney General Beau Biden announced a plan today that will use the funds the state is receiving from the National Mortgage Foreclosure Settlement to help Delawareans who have been hurt by the housing crisis.

Overall, Biden’s office secured $45 million for Delaware in the settlement –$11.7 million paid directly to the state and $35 million provided by banks to current and former homeowners to reduce principal mortgage loans, pay off second mortgage loans and waive deficiencies in short sales and fund refinancing to underwater homeowners who are current on their mortgages, as well as payments to individual Delaware homeowners who have been foreclosed upon.

The $11.7 million proposal has the approval of the legislature’s Joint Finance Committee and includes the $10.7 million paid to the Department of Justice and $1 million paid to the State Banking Commissioner’s office in the settlement. The settlement was the result of an18-month investigation by state Attorneys General into widespread mortgage servicing fraud by five of the nation’s largest banks.

“Foreclosures hurt more than just the families that lose their homes, they affect entire neighborhoods and the economy,” Markell said. “This proposal will help keep people in their homes.”

“The recovery of the housing market is the best way to keep the economy moving forward, but it won’t happen without help for homeowners facing foreclosure,” Biden said. “A foreclosure not only ruins the financial life of the borrower, but also causes neighboring home values to plummet, and leaves communities with vacant properties that are magnets for crime. We’re putting the funds my office secured to work helping Delawareans avoid foreclosure, strengthening our housing market and revitalizing our economy.”

Specifically, the Governor’s and Attorney General’s plan will allocate:

• $4 million to the Delaware Emergency Mortgage Assistance Program to assist homeowners in reworking their financial arrangements with banks. DEMAP will work with stakeholders to leverage this funding with the $35 million in assistance to Delaware homeowners that the five participating banks are providing as part of the national settlement.

• $3.5 million to fund housing counselors and outreach and education programs for homeowners. This funding will support the hiring or retention of housing counselors for a period of two to three years and ensure counseling capacity is available to help 6,000 homeowners. These funds are in addition to the existing counselors that are supported by federal, state, and private funding sources.

This funding would also allow the state to assemble an outreach plan to raise the awareness of homeowners in distress of the programs and resources available to them, including community events, public service announcements, foreclosure-preventions forums, media advertising and the development of written materials for homeowners.

• $2.75 million to the Attorney General’s office for continuing financial fraud investigation and enforcement initiatives.

• $888,923 in grants to support legal representation for borrowers facing foreclosure. The grants will go the Community Legal Aid Society, Delaware Volunteer Legal Services and the Legal Services Corporation to ensure banks are dealing fairly with borrowers. Homeowners are more likely to avoid foreclosure when they are represented by an attorney.

• $500,000 to Delaware’s new Mortgage Mediation Program, which was enacted into law after being proposed by Biden last year to ensure that borrowers can have a meaningful face-to-face conversation with a lender about alternatives to foreclosure.

Delaware has experienced 26,000 foreclosures in the past five years, and the number of homes sold at sheriff’s sales increased 35percent from 2010 to 2011. Nationally, there have been more than 10 million foreclosures in the past five years.

The entire National Mortgage Foreclosure Settlement totals $25 billion and includes significant money that will come in the form of loan modifications and other borrower relief offered by the participating banks to homeowners. For more information, homeowners can visit http://nationalmortgagesettlement.com/

CONTACT JASON MILLER
PUBLIC INFORMATION OFFICER
PHONE (302) 577-8949
CELL (302) 893-8939
Jason.Miller (at) state.de (dot) us
JOSEPH R. BIDEN, III
ATTORNEY GENERAL

Source: Attorney General Beau Biden


About Alex Ferreras

LoanSafe.org is America's #1 consumer mortgage forum with over 32,000 members. Get the latest news, information and tips from an online community you can trust.

Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>

TESTIMONIALS

"Hello Moe, I just wanted to tell you, your website has saved my life (literally), I stumbled on your site in the middle of losing my home, I was able to network with people going through the same thing as I am. I didn't feel alone anymore, I have tried to give back and counsel those that haven't walked in my shoes yet. We hear so much about what is wrong with America, I just wanted you to know, you are whats "right" with America."

Nina Mitchell
Loansafe & MoeSeo Inc. © 2014 | LoanSafe.org is not a bank, lender, mortgage broker, law firm or affiliated with the US Government. Privacy Policy