No EHLP Foreclosure Prevention Help for Floridians

In danger of foreclosure? You have until July 22 to apply for the federal government's Emergency Homeowners' Loan Program.

By Emily Glazer, WSJ

[Unfortunately, Florida is not included in the participating states, but Puerto Rico is included. Interesting!

EHLP will be available in the following states: Alaska, Arkansas, Colorado, Hawaii, Iowa, Kansas, Louisiana, Maine, Massachusetts, Minnesota, Missouri, Montana, Nebraska, New Hampshire, New Mexico, New York, North Dakota, Oklahoma, South Dakota, Texas, Utah, Vermont, Virginia, Washington, West Virginia, Wisconsin, and Wyoming. EHLP is also offered in Puerto Rico. ]

Eligible homeowners can qualify for an interest-free loan to pay a portion of their monthly mortgage for up to two years, or up to $50,000, whichever comes first. The money also can be used to pay missed mortgage payments and past-due charges including principal, interest, taxes, insurance and attorney's fees.

Requirements include household income no greater than $75,000 or 120% of the area median income. Homeowners also must be at least three months delinquent on mortgage payments and have received notification of their lender/servicer's intention to foreclose.

Loans will be given out to as many as 30,000 borrowers, with an average loan amount of about $35,000, according to the Department of Housing and Urban Development.

The program is available in 27 states, including Massachusetts, New York and Texas. In most states, you must apply through a participating credit-counseling agency, such as CredAbility or Money Management International. Connecticut, Delaware, Idaho, Maryland and Pennsylvania operate and administer the program directly.

Go to http://FindEHLP.org or call 855-346-3345 for more information.

Written by Emily Glazer, Wall Street Journal

http://online.wsj.com/article/SB10001424052702304569504576408220945889118.html?link=SM_spn_re_res

  

2 Major Banks Offer Cash Incentives to Homeowners to Short Sell

‘Secret’ short sale reward in Florida?

FORT LAUDERDALE, Fla. – June 29, 2011 – Two lending giants are reportedly offering homeowners who are behind on their mortgage a cash reward to agree to a short sale in Florida.

JPMorgan Chase & Co. and Wells Fargo & Co. aren’t releasing many details about the short-sale incentives, but defaulting homeowners in Florida have confirmed that they’ve received anywhere from $10,000 to $20,000 from the banks in order to agree to a short sale.

To help homeowners avoid foreclosure, banks have offered a “cash for keys” program, offering money in exchange for surrendering the home, but banks offering incentives for a short sale would be new, industry insiders say. Usually the perception is that banks agree to do a short-sale transaction as almost a favor for homeowners, experts note.

The banks won’t say why only some homeowners are being chosen to receive the cash incentives, nor its criteria for choosing who gets the reward, only saying it’s determined by “individual circumstances,” according to the Florida Sun-Sentinel.

The short-sale incentives are a way for the two banks to write off the bad loans as soon as possible and avoid the lengthy process of foreclosure, experts say.

Wells Fargo says it offers the cash incentives to homeowners in Florida and other states "where the foreclosure process is lengthening," spokesman Tom Goyda told the Florida Sun-Sentinel.

In the first three months of 2011, the average foreclosure in Florida took 619 days, according to RealtyTrac Inc.

Source: “Chase Borrowers Getting Cash to Complete Short Sales,” South Florida Sun-Sentinel (June 27, 2011)

© Copyright 2011 INFORMATION, INC. Bethesda, MD http://www.floridarealtors.org/NewsAndEvents/article.cfm?p=1&id=261702