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| Wednesday, 12 November 2008 | |
Lender Foreclosure Forbearance ProgramsBank of AmericaBank of America's Countrywide division was the first to formalize a program to help homeowners with mortgages they can not afford. As such, it has the clearest program outlined at this time.If you are having trouble meeting your mortgage payments, Bank Of America currently offers the below options:
Website: Bank of America Foreclosure Assistance Phone: 1.800.846.2222 JPMorgan ChaseChase announced an expansion of its foreclosure avoidance and loan modification program in late October. The program extends existing foreclosure avoidance resources to WaMu and EMC mortgage holders while also expanding foreclosure relief efforts.Chase's expanded foreclosure relief program includes:
All chase loan modifications will end negative amortization and will be designed to be more affordable for homeowners in the long run as well as the short term. Loan modifications will be offered on a pre-qualified basis and will include allowing homeowners to modify pay-option ARMs, including 30-year, fixed-rate loans with affordable payments, principal deferral and interest-only payments for 10 years. Website: Chase Way Forward Program Chase's program covers Chase, WaMu and EMC owned loans. CitiCiti has been ahead of the curve with its foreclosure avoidance initiatives, preventing more than 370,000 foreclosures on homes with Citi mortgages since 2007. However, they announced further expanded and formalized foreclosure prevention initiatives in November of 2008.Under Citi's Homeowner Assistance Program, the bank will be targeting 500,000 Citi mortgage holders who are current on their mortgages but have been identified as at risk of becoming delinquent. Citi's efforts will focus on those areas of the country seeing the most economic distress - the Midwest - and real estate market turmoil - Florida, Nevada, California, etc. Citi will also offer a foreclosure moratorium on the following terms:
Citi mortgage modification: Similar to Bank of America, Citi will use a formula to try to adjust your monthly mortgage payment down to a set % of a homeowners gross income. This may be accomplished by a combination of interest rate reductions, loan term extension and/or loan principal reduction. Website: Citi's Office of Homeownership Preservation Fannie Mae / Freddie MacFannie Mae and Freddie Mac have announced a joint program in conjunction with the Treasury Department , HUD , FHA and the HOPE NOW Alliance to formalize and streamline their mortgage modification process. The new joint foreclosure forbearance program will help an estimated 60% of struggling homeowners avoid losing their homes.However, there are no detailed terms of the program to report at this time. The only real promise is that the new program will be more efficient, standardized and require less paperwork than the current loan modification programs implemented at the two mortgage giants. |