We are still seeing significant principal reductions for some of our very lucky clients, mostly from Bank of America and Ocwen.
An article by Drew Harwell in the Tampa Bay Times and the Orlando Sentinel and the Tampa Bay Times indicates that since March, more than 1,000 Florida homeowners have learned their principal balances were dropping by an average of $114,000. This is due to the National Mortgage Settlement of $25 billion. Five of the nation’s largest banks – Ally Financial, Bank of America, Citigroup, J.P. Morgan Chase and Wells Fargo.
I know to many this seems unfair. Those behind in their payments get huge windfalls, while those who have kept paying do not. Or someone with a different lender doesn’t qualify and no one has control over who buys their mortgages. Fannie and Freddie do not presently allow for any principal reductions.
It is what it is. For those clients whom we can help get them these types of principal reductions, they are able to keep their home and add one less foreclosed home to the list. Anything to reduce foreclosures should be a good thing. And for everyone else who is facing foreclosure with a lender who won’t budge, hang in there. Many of our clients did, most for several years, and are finally seeing the light.
I am also hearing the foreclosure plaintiff firms are very busy with new foreclosure cases. So for those of you who have recently been served or expect to be served, please see a competent foreclosure defense attorney asap. We have an HUD certified counselor on retainer to assist in all of our mortgage modification mediations. We have been making a big push for these until the end of the year and the first quarter of 2013 to try and take full advantage of the money these three big banks are required to give away per the national Attorney-General settlement.