Repubs Blast Obama’s Foreclosure Fix as ‘Spin Over Substance’

The two most vocal Republican critics of President Obama’s foreclosure prevention program told U.S. Treasury Secretary Timothy Geithner in a letter that its mortgage modification reports were overstating results, shifting its initially stated goal and applying “spin over substance.” Rep. Darrell Issa, R-California, ranking member of the Oversight and Government Reform Committee, and Rep. Jim Jordan, R-Ohio, ranking member of the Domestic Policy Subcommittee, wrote the letter to Geithner, dated March 16, 2010.

Foreclosures vs. Homebuilders: Guess Which Side is Ahead?

Builders of single-family homes feel they have yet to make strides against an overwhelming number of discounted foreclosure deals, weak buyer demand and tight credit standards to fund new projects. Add a nasty winter season and you have an anemic 15 for March in the Housing Market Index from National Association of Home Builders/Wells Fargo, representing a 2 point drop from the previous month.

Short Sale Plan: Borrowers Who Vacate Can Still Avoid Foreclosure

The Obama Administration’s new short sale alternative to mortgage modifications can also apply to borrowers who have vacated their properties for up to 90 days prior to the short sale agreement, according to a new clarification of guidelines by administrators. The added options of a short sale or deed -in-lieu (DIL) to the government’s foreclosure rescue campaign launches April 5 — known as the Home Affordable Foreclosure Alternatives, or HAFA. It is for homeowners who are unable to qualify for or have rejected government mortgage reductions, or have failed to complete a trial modification.

HAMP: Foreclosure Help Rate Nudges to 29% of Eligible

The government’s primary foreclosure rescue program has permanently reduced the mortgage payments of more than 170,000 borrowers through February, the U.S. Treasury reported today. But the percentage of those eligible homeowners who are either in the trial phase or approved for permanent status nudged just one point to 29 percent, compared to 28 percent in January and 25 percent in December.

Weather, Mortgage Redos Slow Foreclosure Filings in February

U.S. foreclosure filings declined by 2 percent in February at 308,524 properties compared to the previous month, and up 6 percent from a year ago – the smallest annual increase in four years, according to RealtyTrac’s latest monthly update. One in every 418 U.S. households received a foreclosure filing in February, including default notices, scheduled auctions and bank repossessions, reported the online foreclosure resource. “It still marked the 50th consecutive month of year-over-year increases in foreclosure activity,” said James J. Saccacio, chief executive officer of RealtyTrac.

Obama Short Sale Plan Avoids Foreclosure with Less Debt

A new initiative by the Obama Administration in its slow-moving and often-criticized foreclosure rescue effort will now offer a short-sale alternative that includes some principal forbearance and $1,500 in “relocation” assistance to borrowers. The plan kicking off April 5 — Home Affordable Foreclosure Alternatives, or HAFA – is for homeowners who have already qualified for the government’s primary foreclosure-prevention campaign, the $75 billion Home Affordable Modification Program, HAMP, and have failed to complete its reduced-mortgage payments trial.

HUD, Groups Debut Site to Fight Foreclosure Rescue Scams

Scams that prey on desperate homeowners seeking mortgage modifications are soaring and U.S. housing officials have partnered with a national coalition to launch PreventLoanScams.org. The website expects to hear from 50,000 homeowners affected by such foreclosure-rescue scams, according to the Loan Modification Scam Prevention Network, which developed the site.

HAMP Critics: What is the True Foreclosure Rescue Rate?

The question of the true success rate of the Obama Administration’s Home Affordable Modification Program is not being answered by the U.S. Treasury in its public reports, some lawmakers allege. And even housing market experts and watchdogs are saying the foreclosure prevention campaign amounts to a futile effort, with default rates as high as 70 percent projected for borrowers with modified mortgages. On Thursday, a report authored by two House Republicans was released that called HAMP a complete failure.

Fannie to Tap Into U.S. Treasury Again, This Time for $15.3B

Mortgage finance giant Fannie Mae, already majority-owned by the U.S. government through “conservatorship,” is requesting to tap into a U.S. Treasury credit facility for an additional $15.3 billion in its ongoing efforts to help “every borrower we can and to address rising foreclosures.” That would bring to a total of more than $128 billion sought by both Fannie Mae and Freddie Mac from the Treasury’s open-ended credit line.

Obama Mulls Foreclosure Ban, Forcing HAMP Review

Under growing pressure to improve its much-criticized mortgage relief efforts, the Obama Administration is considering a ban on all foreclosures – unless lenders have screened borrowers for inclusion in the government’s Home Affordable Modification Program, according to media reports. Bloomberg first reported the proposal based on a U.S. Treasury document. The plan “prohibits referral to foreclosure until borrower is evaluated and found ineligible for HAMP or reasonable contact efforts have failed.”

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