The Consumer Financial Protection Bureau released new guidelines for mortgage servicers on Thursday that set out to help protect home owners who may be facing foreclosure.
CFPB Director Richard Cordraysays the new rules are aimed at trying to prevent “unnecessary foreclosures” as well as “ensure fair treatment for all borrowers and establish strong protections for those struggling to save their homes.”
Among the CFPB’s new guidelines:
- Mortgage servicers are prohibited from foreclosing on a home owner who is seeking loan modifications. Servicers will be unable to file a foreclosure notice until a home owner is at least 120 days behind on a mortgage payment.
- A foreclosure sale on the home will be prohibited until alternatives are considered. Servicers will be required to give home owners adequate time to accept an alternative to foreclosure before going ahead with a foreclosure sale. Servicers must respond to loan modification requests from home owners who apply for a loan modification at least 37 days prior to a foreclosure auction.
- When a home owner has missed two consecutive payments, servicers are required to send a written notice of foreclosure alternative examples to the home owner, such as deferred payments and loan modifications.
- Servicers must be easily accessible to the home owners for assistance.
- Servicers will be required to publish more clear mortgage statements, which includes mortgage payments broken down by principal, interest, fees, and escrow as well as includes the amount and due date of the next payment.
- Servicers must notify home owners early about any interest rate changes to their mortgage payments.
- Servicers will be required to credit a home owner’s account on the date a payment arrives.
The new rules take effect January 2014.
DO YOU OWE MORE THAN YOUR HOME IS WORTH?
ARE YOU FACING FORECLOSURE OR, WORSE, BANKRUPTCY?
DO YOU WANT TO SAVE YOUR CREDIT AND AVOID FORECLOSURE?
Before you give up and think that letting your property go into foreclosure, and/or file bankruptcy, are you only options, learn what possible consequences you may be faced with and why a Short Sale may be the right option for you. You CAN avoid foreclosure, save your failing credit, and sell your home. Lift the financial burden that is weighing you down and let us help you know your options.
DON'T WAIT TO GET THE HELP YOU NEED:
Many people have heard the term short sale, but don't necessarily know what it means, and think that it is going to cost them money they don't have to hire someone to negotiate with bank. That is not the case, when working with The Cascade Team we do not charge you any up front fees and will help you sell your home and negotiate with the bank on your behalf. Once we submit an offer to your lend, most times they decide that selling the property at a loss in a Short Sale is better than pursuing a more costly foreclosure and or bankruptcy.
WHAT IS A "SHORT SALE"?
In real estate, a short sale is a sale of a home or property in which the proceeds from the sale fall short of the balance owed on a loan secured by the property sold. In a short sale, the bank or mortgage lender agrees to take a reduced amount on a loan balance, due to an economic or financial hardship on the part of the mortgagor. Many times, it is a great solution to avoiding foreclosure and to get out from underneath a property that is creating a financial hardship to maintain. To get more information, contact our office and ask to speak with one of our Certified Distressed Property Experts (CDPE), or fill out the contact form at the bottom of this page. We would be happy to discuss the short sale process with you and help you determine your options.
Source: “New Rules Aim to Protect Home Owners From Foreclosure,” CNNMoney (Jan. 17, 2013)