Help for Bank of America Customers

As of August 2010 over 2 million homes are listed as foreclosed which shows there is still a great need for mortgage companies to work with homeowners to help them stay in their homes. Bank of America has decided to delay foreclosing on homes in 23 states while the company determines if they rushed too soon to foreclosure on some homes.

The states affected are: Connecticut, Delaware, Florida, Hawaii, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Nebraska, New Jersey, New Mexico, New York, North Dakota, Ohio, Oklahoma, Pennsylvania, South Carolina, South Dakota, Vermont and Wisconsin.

In some cases employees signed foreclosure documents without verifying the information. GMAC and JPMorgan Chase have also made the same mistake. This issue may lead to lawsuits due to homeowners contesting foreclosures that may not be valid. Pressure is being added to mortgage industry professionals by state attorney generals who are working hard to enforce foreclosure laws.

In some states, mortgage lenders can foreclose quickly on delinquent homeowners. Freddie Mac and Fannie Mae and Freddie Mac stated that they are informing mortgage companies to follow proper procedures.

It is uncertain how this decision will affect homeowners. If you are a Bank of America mortgage customer call the company at the 800 number provided on your mortgage statement to get information about your foreclosure or pending foreclosure.

In the future, go with your gut if you feel you have not been treated fairly by your mortgage company or you feel that proper procedures have not been followed. You can also contact HUD or a certified housing counselor to get a second opinion on any housing paperwork or issues that you are concerned about or have questions about. You can also file a complaint against your mortgage company with the Federal Trade Commission, Better Business Bureau or your state attorney general's office. If you have a FHA mortgage loan you can file a complaint with HUD.

Fannie Mae Still Asking for Help

The latest request from Fannie Mae is for an additional $15 billion from the government because of losses in the third quarter which it claims is due to homeowners falling behind on their mortgage payments and the ever increasing unemployment rate. The default rate increased to 4.7% and is even higher in Florida and Nevada, with over 11% of the mortgage loans in default.

"There is significant uncertainty regarding the future of our business, including whether we will continue to exist, and we expect this uncertainty to continue," Fannie Mae said.

Fannie Mae and Freddie Mac guarantee approximately 31 million mortgage loans or about half of the mortgages in the U.S.

Fannie Mae lowered the requirements for borrowers prior to the recession by offering high risk loans which are now defaulting including homeowners with good credit.
This is the fourth request by Fannie Mae for government aid which now totals $60 billion in aid so far.

Fannie Mae stated that it would allow some homeowners who are facing foreclosure to rent their homes for a year to help reduce the number of homeowners losing their homes.

This new program is called the "Deed for Lease" program and will allow homeowners to transfer their deed title to Fannie Mae by signing a one-year lease which includes potential month-to-month extensions after the one year period.