KEY POINTS ABOUT THE PRINCIPAL REDUCTION MODIFICATION
Seriously delinquent, underwater borrowers must meet the following eligibility criteria:
•
Are owner-occupants.
•
Are at least 90 days delinquent as of March 1, 2016.
• Have an unpaid principal balance of $250,000 or less.
•
Have a mark-to-market loan to-value ratio of more than 115% after capitalization.
Builds on the Enterprises’ existing Streamlined Modification programs.
Eligible population expected to be approximately 33,000 borrowers. Final crisis-era modification program to give seriously delinquent, underwater borrowers a last opportunity to avoid foreclosure while also addressing negative equity remaining from the financial crisis.
(emphasis mine)
I love how the directive infers that these borrowers’ “negative equity” remains today due to the “financial crisis.”
Ummm, no, it didn’t. Many in this group are still “upside down” today because they took large amounts of cash out of their properties on one or more occasions, plain and simple. This is a “PC” way of blaming a scamming homeowner’s problems on “the system.”
However, the group I’m referring to currently owe a helluva a lot more than $250K on their homes and are not currently delinquent (as least not of public record) but have been in the past but either their lender(s) did not actually conduct a trustee’s sale after their NOS was filed and ended up filing a recission OR only a NOD was filed and never acted upon, both due to the homeowner(s) getting accepted into a (trial or trial/perm) HAMP mod program.
So, in short, I doubt this new program will be able to help my scamming “neighbors” …. or even very many CA homeowners at all.
Sorry for taking over your thread, spd. Carry on …
