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Nov 03

Politicians Still Looking for Foreclosure Solutions

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Politicians Still Looking for Foreclosure Solutions

So far foreclosure hearings are still being canceled in large amounts in Florida as elsewhere, as banks are forced to review thousands of foreclosures for bad paperwork. This has resulted in select cases being thrown out, but mostly has cast many struggling borrowers deeper into limbo as it becomes harder and harder to know what the lenders (and the people investigating them) are going to do next.

Foreclosure Investigation & November Elections

Ten of of the twelve leading state attorney generals that are leading perhaps the most important aspect of the investigation into foreclosure practices are up for re-election this week. Currently a majority of state attorney generals are Democrats, but this is likely to shift after the election, and the GOP has been noticeably more indifferent to the growing foreclosure fraud crisis than Democrats.

However, two of the most outspoken AG’s regarding the investigation are fairing the best in the polls. Tom Miller, the Democratic AG of Iowa is in charge of the probe and is polling well ahead of his competitor, while Richard Cordray (D) of Ohio has been polling in the lead since the investigation was announced, releasing statements such as the following: “It is not acceptable for a party who believes they submitted false court documents to merely replace those documents. Wells Fargo and any other banks are not simply allowed a ‘do-over…The banks are committing fraud on the court, essentially perjury, and then saying ‘Whoops! You caught me! Here’s some different evidence and use that instead,’…I know a lot of judges Bondi & Gelberare not going to take kindly to that.”

Bill McCollum, the Florida AG who opened an investigation into Florida’s infamous foreclosure mills as well as joining the foreclosure fraud investigation, will not be returning and the contest over who will replace him is close. Republican candidate Pam Bondi has said virtually nothing about foreclosures while Democratic candidate Dan Gelber has advocated for a foreclosure freeze and a thorough investigation.

New Florida Programs Introduced

One of the latest programs created by the Obama administration has begun in Southwest Florida. The Hardest-Hit Fund pilot program opened in Lee County on October 25th and so far has received applications from hundreds of home owners. The program is meant to help unemployed homeowners pay their mortgages. The program is expected to go statewide in early 2011.

The HHF has two programs, the first is the Unemployment Mortgage Assistance Program which provides up to 18 months of mortgage payments on the borrower’s behalf. The second is the Mortgage Loan Reinstatement Payment Program, which will be used to be bring delinquent owners current and get them back on track.

“Since the website opened, we have received applications at a steady pace,” said Steve Auger, executive director of Florida Housing. “HHF Advisors in Lee County already have made initial contact with most of these applicants to determine their eligibility for this assistance. The information captured by the Advisors is an important part of our ongoing communication with the large banks and loan servicers regarding how they can participate with us to help eligible homeowners.”

Lee County is second only to the South Florida area in foreclosures. In the third quarter of 2010, South Florida led the nation with the highest number of foreclosure filings among large metropolitan areas with around 59,064 homes entering into foreclosure, a significant increase from last year.

Currently, lenders do not offer most Floridians these offers regarding unemployed borrowers, and if foreclosure is imminent, the recently created Florida mandatory mediation program may be the best option. Click here to find out more about mediation, and follow the links below to see if Amerihope Alliance can help you save your home!

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