Sunday, August 14, 2011

Fannie Mae To Banksters: OK To Continue Screwing Over Homeowners With Controversial 'Dual-Tracking' Loan Modification Racket

The South Florida Sun Sentinel reports:
  • Many South Florida homeowners facing foreclosure may believe getting a preliminary loan modification offer from their lender will save them from losing their home. But, in fact, new rules approved by Fannie Mae allow lenders to continue foreclosure proceedings on those who haven't made a mortgage payment in more than 120 days.

  • Those homeowners are safe only when they go back to regularly paying their mortgage, which typically happens only after a permanent loan modification is in place.

  • In June, Fannie Mae, which backs many mortgages in South Florida and across the country, ordered lenders not to start foreclosures on homeowners who are less than 120 days behind. Instead, lenders must offer loan modifications or other solutions.

  • But that's not the case for those who are at least four months behind in their payments. Lenders can continue with the controversial "dual tracking" for them, so struggling owners can be paying in a trial modification program while going to court to fend off foreclosure.

For more, see Under new rules, loan modification won't protect you from foreclosure.

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