Archive for May, 2009
HUD Mortgagee Letter 2009-15 REINSTATED!!
Let the whiplash continue! You’ll recall that HUD Mortgagee Letter 2009-15 was issued earlier this month and then repealed. It’s now been reinstated. The policy allows the home buyer to use the $8,000 tax credit as collateral for a loan used for closing costs, pre-paids, and down payment. To secure repayment of the amount advanced, the buyer would [...]
June Charity Luncheon for Habitat For Humanity
We will be having our June charity luncheon on Wednesday, June 3 from noon until you all get enough to eat. Our sponsored charity will be Habitat for Humanity. Pete and I have worked with Habitat home buyers for several years. We’ve seen first hand what great work this charity does. Please bring a donation of whatever you can afford. [...]
Today, SC Supreme Court Issues New Order Regarding Foreclosure Cases Subject to Modification
The South Carolina Supreme Court issued an order today rescinding its May 4 Order, which stayed foreclosures where the mortgage was a Fannie Mae or Freddie Mac mortgage, or otherwise subject to modification under the HAMP (Home Affordable Modification Program). The Court’s order, reproduced below, establishes procedures for dealing with those foreclosure cases. For new filings [...]
Mirror, Mirror on the Wall…
When negotiating contracts, be mindful of the “mirror image rule.” The rule can be found in the Restatement (2nd ) of Contracts, §59, which provides: “A reply to an offer which purports to accept it but is conditional on the offeror’s assent to terms additional to or different from those offered is not an acceptance [...]
HUD Mortgagee Letter 2009-15 REPEALED
I recently posted HUD’s mortgagee letter 2009-15. The letter was dated May 11, 2009. It stated that the $8,000 first-time home buyer credit (that’s, of course, not just for first-time home buyers) could be used as collateral allowing the buyer to borrow against the tax credit for the down payment. HUD has taken the letter off its [...]
Home Affordable Modification Program (HAMP) Outline
Below I have reproduced an outline done by my colleague, O. Max Gardner, on the Home Affordable Modification Program. As usual, Max has done a great job at distilling important information. I hope you find it useful. The HAMP and HARP Programs O. Max Gardner III PO Box 1000 Shelby NC 28150 maxgardner@maxgardner.com www.maxgardnerlaw.com [...]
Selling a House in Bankruptcy (Part Two: Ch. 13)
I recently discussed selling a home in Chapter 7. To review, I explained that when a case is filed, all the debtor’s legal and equitable interests become property of the bankruptcy estate. I also discussed how the home might be exempt property (that is, protected from the reach of creditors), and how the trustee had 30 [...]
South Carolina Supreme Court Stays Foreclosures
Yesterday, the South Carolina Supreme Court granted a motion filed by the Federal National Mortgage Association (“Fannie Mae”) requesting that the Court enjoin “all judicial officials in South Carolina conducting foreclosure sales on May 4 (or the next judicial sales date) from dismissing all eligible one to four unit owner occupied properties securing Fannie Mae portfolio mortgage [...]
Mortgage Modification Programs (Useful Program Links)
Here’s a link to the National Consumer Law Center website which lists current loan modification programs. NCLC is a top notch group, and I subscribe to their publications. The website, in turn, has links to all program websites. http://www.consumerlaw.org/issues/financial_distress/loan_modification.shtml –Russ DeMott
Mortgage Modification Article from The Nation (“More Mortgage Madness”)
This article is fascinating and explains why mortgage modification is so difficult. It also illustrates the need for the Bankruptcy Code to provide for “cram down” of mortgages to the value of the home. As counsel for Ocwen states, modification is actually good for lenders. Far less costly than foreclosure. But the system is engineered for [...]
