Distressed Homeowner? Freddie Mac Offers a Complete Guide to Foreclosures and Alternatives

uujjujuAs part of a new website launched this week, Freddie Mac is now offering distressed homeowners a complete guide to foreclosure and prevention, from assessing your situation to what to do when your home has been foreclosed on.

MyHome by Freddie Mac” is an option on Freddie Mac’s site offering homeowners various options under the “Foreclosure and Alternatives” tab that guide a borrower on who to contact for help, as well as non-foreclosure solutions that include both home retention and home forfeiture options.

Freddie Mac initiates their discussion with a brief overview on the importance of getting an understanding of your financial situation and determining what a borrower can and cannot pay for in their home upkeep. If a borrower cannot pay for these things, continues to incur major expenses that keep them from paying the mortgage, Freddie Mac recommends reaching out to the lender as soon as possible.

Borrowers are warned to watch for the warning signs of foreclosure and to seek help if they look familiar. If a borrower needs guidance on avoiding foreclosure, Freddie Mac lists several options to contact for help: the lender, housing counselors, Freddie Mac borrower help centers, and house finance agencies. The key is to seek assistance before it becomes a permanent problem.

Some home retention solutions discussed for eligible borrowers are forbearance, reinstatements, repayment plans, and modifications, including the government’s Home Affordable Modification Program (HAMP). Non-foreclosure solutions in which the home is forfeited include short sales or deeds-in-lieu of foreclosure. There are several resources provided on the site to assist the borrower in understanding the options and how to properly prepare your financial documentation before meeting with the lender.

For situations where foreclosure cannot be avoided, Freddie Mac gives the borrower a list of what to expect after foreclosure that includes how it affects the borrower’s credit, how to rebuild credit, finding a home after foreclosure, and re-entering the housing market.

Additional options provided to homeowners who have already lost their home to foreclosure include: finding out who purchased the home after the foreclosure to increase options available. In some situations, if Freddie Mac acquired the home, options may include renting the home back while it’s being marketed for sale, receiving “cash for keys,” or purchasing the home back.

Khani & Auerbach is a law firm with experienced real estate attorneys and we are here to help.

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CFPB Fails to Comply with Congressional Review Act Moving TRID date to Oct. 3rd

CourthouseIn a statement made June 17th, the Consumer Financial Protection Bureau (CFPB) announced a proposal to delay implementation of the TILA-RESPA Integrated Disclosures (TRID) rule until Oct. 1st. The CFPB’s original implementation date of Aug. 1st had been been pushed to Oct. 1st, as they claim an “administrative error” caused the delay of Know Before You Owe rule. On June 24, 2015, the Bureau announced in a new Press Release, the selection of Saturday, October 3, 2015, rather than October 1, 2015, as the proposed implementation date. 

Under the Congressional Review Act, the CFPB failed to timely notify Congress, which requires agencies to submit the rule to Congress and the Government Accountability Office 60 days before the effective date. The agency’s submission should include (1) a copy of the rule; (2) a concise general statement relating to the rule, including whether it is a major rule; and (3) the proposed effective date of the rule.

According to CFPB Director Richard Cordray, the bureau “made this decision to correct an administrative error that we just discovered in meeting the requirements under federal law, which would have delayed the effective date of the rule by two weeks. We further believe that the additional time included in the proposed effective date would better accommodate the interests of the many consumers and providers whose families will be busy with the transition to the new school year at that time.”

At Khani & Auerbach, we were already well on our way to being prepared to implement these new procedures into our real estate practice, however, the CFPB’s decision to delay the deadline for their implementation is great news for everyone. The consumers, the vendors and the industry in general are all not exactly “ready” and there are aspects of TRID that simply made no sense, further confusing the consumer. This push to Oct. 3rdst was definitely something we expected and comes as no surprise. The CFPB listened to the industry and its concern for consumers.

With that said, Khani & Auerbach highly recommends that you initiate your real estate transactions before the implementation date expected for October 1st.

Call the attorneys at Khani & Auerbach (954) 921-1517 if you have any questions about this or any real estate matters.