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Hud to expand sale of troubled mortgages

Discussion in 'Stop Foreclosure and Tell Us Your Story' started by Cat Damiano, Jun 13, 2012.

  1. Cat Damiano

    Cat Damiano Mortgage Wars

    CHICAGO – Thousands of borrowers severely delinquent on loans insured by the Federal Housing Administration (FHA) will have help from a new servicer to explore affordable mortgage solutions or achieve a favorable resolution under an enhanced government note sale program announced today. In a press conference held at the 2012 Clinton Global Initiative America Meeting, U.S. Housing and Urban Development (HUD) Secretary Shaun Donovan and Acting FHA Commissioner Carol Galante launched the Distressed Asset Stabilization Program, an expansion of an FHA pilot program that allows private investors to purchase pools of mortgages headed for foreclosure and charges them with helping to bring the loan out of default.
    “While our housing market has momentum we haven’t seen since before the crisis, there are still thousands of FHA borrowers who are severely delinquent today – who have exhausted their options and could lose their homes in a matter of months,†said HUD Secretary Shaun Donovan. “With this program, we will increase by as much as ten times the number of loans available for purchase while making it easier for borrowers to avoid foreclosure. Finding ways to bring these loans out of default not only helps the borrower, but helps the entire neighborhood avoid the disinvestment and decline in value that accompanies a distressed property.â€
    The FHA note sales program began as a pilot in 2010 and has resulted in the purchase of more than 2,100 single family loans to date. A servicer can place a loan into the loan pool if the following criteria are met:

    • The borrower is at least six months delinquent on their mortgage;
    • The servicer has exhausted all steps in the FHA loss mitigation process;
    • The servicer has initiated foreclosure proceedings; and
    • The borrower is not in bankruptcy.


    Read More Here;

    HUDNo.12-096
  2. thetiger

    thetiger LoanSafe Member

    Are there any updates on this?
  3. Cat Damiano

    Cat Damiano Mortgage Wars

    HI thetiger,


    There most likely will not be more information available outside of the pilot program until September;

    http://portal.hud.gov/hudportal/documents/huddoc?id=FHANSEDonepgt-60712.pdf
  4. thetiger

    thetiger LoanSafe Member

    Thanks Cat!

    Any post on recent successful FHA- Modifications with BOA?
  5. Cat Damiano

    Cat Damiano Mortgage Wars

    If you go to the google search bar at the top right of the forum, you can search for that specifically and see.

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