Even if many reports are saying that the Las Vegas economy is recovering and that the Las Vegas real estate market is also on it’s way up, there are still a lot of homeowners who are having trouble with their homes. They are either still struggling with their mortgage or having a difficult time with loan modification.
One of the biggest issues faced by consumers who are undergoing the loan modification process is not knowing where they are in the process and often once a mistake has been made, they have to start all over again. This where the CFPB (Consumer Financial Protection Bureau) comes in.
CFPBs Proposals for Loan Modifications:
- New loan servicers, who took over the previous financial institutions handling the loan, must follow the same time frames or schedule of the former loan provider.
- The federal government proposed that if a borrower was able to fix a loan agreement with the previous financial institution, the new loan provider or servicer will have 30 days to evaluate the agreement.
- Federal government also said that if more information is needed by the new servicer, the property will still have foreclosure protections from the bank.
- Banks and servicers are required to inform borrowers immediately once their loan modification applications are completed.
- Also included in the proposal is multiple foreclosure protections for the life of the loan. The aim is to aid homeowners who fell behind due to personal loss (such as death of a family member, which hurt their ability to pay) or experienced financial distress.
- Banks are required to search family members, who might still be interested in the property threatened with foreclosure, and offer the same protection given to borrowers. This is applicable to divorced or separated couples, transfer of ownership from parent to child, or when the borrower dies and is a joint tenant of the property.
- Although the Dodd-Frank financial reform law of 2010 prevents financial institutions to proceed with foreclosure once borrowers have completed their request for a loan modification, that’s not always the case. The Federal Government wants to change this and make it difficult for financial institutions to execute this “dual-tracking” with their borrowers.
Believe it or not, there are still 3.8 million delinquent loans in the country as of September 2014, according to Black Knight Financial Services.
Are you one of the many homeowners still knee-deep in their homes? Reach out to us! Our team has experts in every aspect of the real estate market. We’ll be happy to help you and answer all your questions regarding your real estate concern. Contact us today!