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A.B 1639 A Smart Foreclosure Plan that Needs to be Implemented Besides the Big Banks Opposition
A.B 1639 A Smart Foreclosure Plan that Needs to be Implemented Besides the Big Banks Opposition
Amid opposition from Big Banks. The proposal would allow homebuyers who have been served a notice of mortgage default to enlist the help of a state monitor to negotiate before filing for foreclosure.
Santa Rosa,
CA,
United States of America
(prbd.net)
04/06/2010
"Amid opposition from Big Banks. The proposal would allow homebuyers who have been served a notice of mortgage default to enlist the help of a state monitor to negotiate before filing for foreclosure."
AB 1639, as amended, Mortgage Workout Program. Existing law requires that, upon a breach of the obligation of a mortgage or transfer of an interest in property, the trustee, mortgagee, or beneficiary record a notice of default in the office of the county recorder where the mortgaged or trust property is situated and mail the notice of default to the mortgagor or trustor, among other acts required prior to exercising a power of sale in a nonjudicial foreclosure proceeding. This bill would establish , contingent upon receipt of federal funding for all costs, and only until January 1, 2014, the Mortgage Workout Program. ( http://www.fhasubmissions.com ) The program would be a process whereby borrowers and lenders would engage in conciliation sessions for purposes of developing a loan modification plan. These provisions would apply, except as specified, if the loan originated prior to January 1, 2009, the loan is the 1st mortgage or deed of trust secured by the property, the property is occupied by the borrower as the borrower's principal residence, and the unpaid principal balance is not more than $729,750. The program would require that specified information regarding the MProgram be included with the notice of default sent to a borrower, as defined, on a loan secured by residential real property of one- to 4-family dwelling units that is the primary residence of the borrower, as specified. The bill would require that this additional notice be recorded in the office of the county recorder. By expanding the duties of county recorders, the bill would impose a state-mandated local program.
http://www.youtube.com/watch?v=UVfBab0t-7w
The bill would provide for an administrator of the program who would be appointed by the Governor and confirmed by the Senate. The program would require a borrower who elects to participate in the program to complete a specified form and return the form to the administrator of the program not later than 30 calendar days after receiving the notice of default. The program would require the borrower to submit other information to the administrator within 15 days of requesting to participate in the program, including tax returns, income verification, a specified deposit of funds , and a letter describing the borrower's financial hardship, as specified. The program would require a borrower who elects to participate in the program to deposit with the administrator 50% of the current mortgage payment each month during participation in the Program. The bill would also prohibit a mortgagee, trustee, beneficiary, or authorized agent from reporting negative credit information to a credit reporting agency about a borrower who has completed the Program and accepted a mortgage loan modification. The bill would impose various administrative fees, and a specified minimum deposit, payable by the mortgagee, trustee, beneficiary, or authorized agent, or by the borrower, as specified, who participates in the Program.
The bill would also provide that the timelines set forth in the provision governing the exercise of the power of sale, as specified, would be suspended until the completion of the program, as specified.
The bill would require the administrator of the program, among other duties, to implement rules and standards for selecting qualified neutral conciliation officers and to develop standards for forms and reports required to implement the program. The bill would also require the administrator, upon receipt of a borrower's form whereby he or she elects to participate in the program, to nominate an individual to serve as a neutral conciliation officer from a list of qualified neutral conciliation officers in the county in which the property is located. The bill would establish the compensation for a neutral conciliation officer who provides his or her services to the program and require a neutral conciliation officer to use reasonable efforts to ensure that each Program is completed within 60 calendar days of the neutral conciliation officer's nomination . The bill would require the neutral conciliation officer to prepare a final report, as specified.
The bill would also require, only until January 1, 2015, the administrator to report quarterly to the Legislature regarding the Program, as specified. The bill would also require each mortgagee, trustee, beneficiary, or authorized agent participating in the program to post specified data about its loans on its Internet Web site. These provisions would become operative only upon the issuance of a notice from the administrator to the Governor and specified other legislative leaders, and the posting of the notice on an Internet Web site, declaring that the administrator has the capacity to make the program available to any borrower in every county who desires to participate.
For more information visit our website http://www.fhasubmissions.com or call Jeffrey Martino Young toll free at 1-877-870-2676
More information can be found online at http://www.fhasubmissions.com
Press Contact:
Jeffrey Martino Young
Essex Mortgage Bank
1585 Terrace Way, Suite 158
Santa Rosa, CA 95404
1-877-870-2676
jyoung@essexmortgage.com
http://www.fhasubmissions.com
About
I'm Jeffrey Martino Young and I'm dedicated to providing you the highest level of service and care. With hundreds of loan programs available, I can find the best one for you at the lowest rate possible!
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