Visionary Home Builders of California

• HOPE for Homeowners Program (H4H)

The HOPE for Homeowners (H4H) program, authorized by the Economic and Housing Recovery Act of 2008, was announced on October 1st by HUD Secretary Preston.  The H4H program is a new program intended to help borrowers at risk of default and foreclosure refinance into more affordable loans. The H4H program will allow borrowers who are having difficulty making their payments, to refinance their current mortgage into a new loan insured by HUDʼs Federal Housing Administration (FHA).

Distressed homeowners have four options to pursue participation in the HOPE for Homeowners program:

1. Homeowners may contact their existing lender and / or a new lender to discuss how to qualify and their eligibility for this program.

a. According to HUD the main requirements to participate are:

i. Have sufficient income to make payments on a H4H loans

ii. The property to be refinance must be the homeowners only and primary residence

iii. All other restrictions or requirements are left to the discretion of participating lender

2.   Servicers working with troubled homeowners may determine that the best solution for avoiding foreclosure is to refinance the homeowner into a HOPE for Homeowners loan.

3.       Originating lenders who are looking for ways to refinance potential customers out from under their high-cost loans and/or who are willing to work with servicers to assist distressed homeowners.

4.       Counselors who are working with troubled homeowners and their lenders to reach a mutually agreeable solution for avoiding foreclosure.

Source:  http://portal.hud.gov/portal/page?_pageid=73,7601299&_dad=portal&_schema=PORTAL

• Bank of America/Countrywide to Alter Mortgages in $8.4 Billion plan

Bank of America and a number of U.S. states including California reached an $8.4 billion accord under which the banking giant will modify troubled mortgages and enable nearly 400,000 Countrywide Financial Corp. clients to keep their homes.

the program’s goal, Bank of America said in a statement, is to enable borrowers who financed their homes with subprime loans or pay-option adjustable-rate mortgages to hang on to those homes. The plan will reduce interest and principal on the mortgages by $8.4 billion, the Charlotte, N.C., banking giant said.

· The program applies to mortgages serviced by Countrywide and originated before Dec. 31, 2007

· The target borrowers are those who occupy their homes as their principal residences and “who are seriously delinquent or are likely to become seriously delinquent as a result of loan features, such as rate resets or payment recasts,”

· By Dec. 1, Countrywide staff will begin contacting eligible customers. B of A said it would not begin or advance a foreclosure sale for a borrower who is likely to qualify for the program until Countrywide decides whether the borrower is indeed eligible.

v How Will BofA ensure the mortgage workouts keep people in their homes?

o One method, the bank said, is to ensure that first-year payments of principal, interest, taxes and insurance will equal 34% of the borrower’s income

v The bank said it would modify loans via a number of methods including:

o Refinancing through the FHA Hope for Homeowners program (H4H)

o Automatically reduce interest rates

o Reduce the principle on pay-option adjustable rate mortgages to restore equity

o Also, include $150 million to assist customers who are already in foreclosure or in serious risk

o Include $70 million to help customers who have lost their home to make transitions to other living arrangements.

o BofA stated it will provide these services for free and will waive pre-payment penalties to subprime and option ARM’s

Source: http://au.us.biz.yahoo.com/rb/081006/business_us_bankofamerica_settlement.html?.v=3

• Bank of America/Countrywide Settlement with CA Attorney General

A legal settlement between Countrywide’s parent company Bank of America and California Attorney General Jerry Brown was announced on Monday October 6, 2008. As part of the settlement Countrywide has agreed to cut $3.5 billion in loan obligations to save at least 125,000 homes from foreclosure in California. This is a part of the larger agreement that B of A made with other states mentioned in the previous article. A recent article published by the Modesto Bee (10/7/2008) has indicated that lawsuits filed against Countrywide for alleged deception, steering, and pressure tactics directed mainly at minorities was instrumental in raising awareness and helping finalize this agreement.

As part of the agreement Bank of America has also agreed to the following:

o Freeze and cut interest rates

o Suspend foreclosures

o Waive late fees for live-in homeowners

Aid some of those who have lost their homes

Source: http://www.modbee.com/

Homeownership Education and Cal-HFA

As of October 7, 2008, CalHFA will require that all CalHFA borrowers complete Homebuyer Education Counseling to obtain CalHFA’s financing.  CalHFA will accept a homebuyer counseling certificate of completion issued by either:

1) HUD approved counseling centers,

2) Fannie Mae or Freddie Mac approved counseling agencies,

3) Mortgage insurance companies, or

4) Countrywide Homebuyer Counseling.

Source:  http://www.calhfa.ca.gov/homebuyer/information/borrower-requirements.htm

• Homeownership Education and Foreclosure:

A recent study put together by the Mortgage Bankers Association has indicated that homeowners who have participated in homeownership education programs through Neighbor Works organizations have a foreclosure start rate that is 20 times less severe than that for subprime borrowers

source: http://www.mortgagebankers.org/NewsandMedia

• Foreclosure Prevention Resource:

With the support of a grant from the California Bar Foundation and assistance from the State Bar of California, Office of Legal Services, Access and Fairness staff, the Public Interest Clearinghouse and the State Bar are pleased to announce the new ForeclosureInfoCA.org website.

This Site Includes:

· Lists agencies and organizations providing mortgage foreclosure assistance to consumers.

· Links with www.probono.net/ca and lists the attorney volunteer opportunities available at legal services programs, HUD counseling agencies, local bars and LRS’s interested in using volunteer attorneys to address mortgage foreclosure issues on behalf of home owners and renters.

· Provides consumer education on mortgages, loans and the foreclosure process