Foreclosure Avoidance: What are my rights?
CFPB mortgage rules provide federal protections to borrowers to help ensure homeowners are aware of foreclosure avoidance options and know how to go about applying for them... See below...12 rules in place to protect you from unlawful Foreclosure
1. By day 36th of your missed mortgage payment, the servicer (Bank or loan company that's collecting and managing your loan payments) must make a good faith effort to establish contact by phone or meeting in person.
2. If the borrower meets certain criteria the servicer by law has to inform the homeowner about loan modification or workout options available.
3. Before the borrower becomes 45 days delinquent, the servicer must send a written notice to the borrower or borrower's agent encouraging them to contact the servicer, providing the phone number and examples of loss mitigation options.
4. Any periodic mortgage statements the borrower received after being 45 days late must include; risk regarding delinquency, information on whether or not the servicer has started the foreclosure process, the phone number and website for HUD approved counseling agencies, and any information about any loss mitigation programs the borrower has already agreed to.
5. Mortgage servicers can not file a 1st notice for filing foreclosure, notice of sale or anything until the borrower is 121 days or more delinquent.
6. The servicer can not begin the foreclosure process if the borrower has turned in a complete package for mortgage assistance (loss mitigation application) No more dual tracking!!! Servicers are no longer allowed to be pursuing foreclosure at the same time borrowers are pursuing loss mitigation options.
Application for RMA (Request for Mortgage Assistance) Making Home Affordable
http://www.makinghomeaffordable.gov/get-started/request-modification/Documents/RMA_english_03.30.2012_static.pdf
7. New CFPB rules require servicers to assign personnel to help delinquent borrowers...
8. The person or persons the servicer assigns to assist the borrower must be able to; give accurate information about loss mitigation options, explain correctly what a borrower must do to apply for the workout options, tell the borrower the status of the loss mitigation application, and be able to quickly locate the written information the borrower has submitted in connection with a loss
mitigation package.
9. Servicers must be able to tell homeowners the circumstances under which the servicer may make a referral to foreclosure to ensure the borrower has sufficient time to file applications for foreclosure avoidance.
10. If the servicer receives a complete application for loss mitigation options 45 days or more before a scheduled foreclosure sale, the servicer must acknowledge receipt of the application and determine if the application is complete... If not complete the servicer must inform the borrower what additional information or documents are needed... If the servicer received a complete application 90 days or before the fc sale, they must give the borrower at least 14 days to accept or reject an offer of a loss mitigation option, the borrower may appeal the denial for any loan modification within 14 days of the decision....even if a complete application for loss mitigation options is received by a servicer at least 37 days before the scheduled foreclosure sale, it will be evaluated for loss mitigation options.
11. Servicers are required to evaluate the borrower for all foreclosure avoidance options that the borrower may qualify for if they turn in a complete application. If the application for mortgage assistance is denied, the servicer must provide specific reasons for the denial... IE: If a loan modification is denied because of an investor requirement, the servicer must explain the requirement to the borrower, and explain to them why they don't meet the criteria.
12. Under the new laws, borrowers are entitled to loss mitigation evaluations even if they applied before and were rejected before the new rules were put into place...
The CFPB accepts complaints about mortgages... They will forward your complaint
to the company and work to get you a response from them...
File a complaint about any loan product! Mortgage, Student Loan, Car loan etc.
http://www.consumerfinance.gov/complaint/
Contact the CFPB (855) 411-2372 (CFPB)
How to recognize scams claiming to save you from foreclosure:
1. Never pay anyone an advanced fee for claiming they can stop your foreclosure
2. Check with your local Realtors and HUD Approved Counseling Agencies for lists of scams and where to get real help
3rd party authorization: Any Realtor, Attorney or Housing Counselor will need written authorization from you to discuss your mortgage loan and assist you. Here is a sample form below, or you can ask your bank for one. If you don't want to give written authorization, you can make a 3 way call and give a one time authorization each time someone else will be speaking to your bank on your behalf.
http://files.consumerfinance.gov/f/201407_cfpb_model-third-party-authorization-form.pdf
