Virginia Ruling Holds that Mortgage Lenders Must Hold
Face-to-Face Meetings Before Foreclosure in FHA/HUD Loans
A borrower is generally not eligible for a new FHA-insured mortgage if, during the previous three years his/her previous principal residence or other real property was foreclosed, or he/she gave a deed-in-lieu of foreclosure.
Exception: The lender may grant an exception to the three-year requirement if the foreclosure was the result of documented extenuating circumstances that were beyond the control of the borrower, such as a serious illness or death of a wage earner, and the borrower has re-established good credit since the foreclosure.
Recent changes to the HARP Program
removed the maximum percentage amount that a property can have an underwater
mortgage. Prior to December 1, 2011, the maximum amount that a property could
be underwater was 125% of the loan balance.
This means that if a property is valued at $100,000, the maximum that the
mortgage being refinanced would be $125,000 or 125% of $100,000. This would
also be referred to as 125% LTV or loan-to-value.
HarpMortgageLender.com is a comprehensive online resource for underwater
homeowners who are looking for non-biased information about their options to
stay and refinance or consider a short sale.
foreclosure rescue scams overview
The Mortgage
Forgiveness Debt Relief Act generally exempts you from being taxed on up to
$2 million of mortgage forgiveness on your primary residence through the end of
2012 as long as its due to a decline in the value of your or your financial
situation. That means you’ll want to avoid turning it into a vacation or rental
property first or waiting until after the act is scheduled to expire at the end
of the year.
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