Home Affordable Modification Program Solution Center

Whether you are having problems registering online, require support for the servicer tools, or have general questions about the Home Affordable Modification program, we can assist.
Contact Information
Email
support [at] hmpadmin [dot] com

Phone
(866) 939 - 4469 Fax
(240) 699 - 3900 Hours of Operation: Monday through Friday, 9am - 9pm ET

Chris HAMP, Miscellaneous

I asked to become a member to better understand your rights. Here is the brief response I received;

We thank you for your interest in the UTA member only pages however, we cannot complete your request at this time.

Please do not reply to this email. If you have any further questions, please write to: #?#?#?#.

Best Regards,
United Trustees Association

Please note the location of where they told me I could ask questions!!!  LOL!!  I guess being a consumer advocate and standing for truth and transparency has its price.  Stay tuned…

Chris Miscellaneous, Trustee Info

Who is responsible to inform the buyer of mello roos/special assessment taxes prior to closing.? What legal recourse can be taken if non disclosure regarding these mello roos was not discovered until six months after closing through an impound shortage. As a result of this non disclosure I am facing default/foreclosure, although I continue to pay 100% $2438.00, of the maximum mortgage qualified at loan origination. What I cannot afford to pay is over three hundred dollars extra monthly for mello roos/special assessment taxes. If diisclosure was forth coming I would not have qualified for the purchase during loan origination. Is this something your orginazition assist with or only modifications?

Here is my answer to this borrower:

Disclosure on this subject is the responsibility of the seller via their Realtor and the Title company.  However, the loan officer should have gone over this with you.

Chris Bonds/Assessments/Mello-Roos, Miscellaneous

Preforeclosure Sale
Frequently Asked Questions

The Preforeclosure Sale (PFS) Program allows the mortgagor in default to sell his/her home and use the net sale proceeds to satisfy the mortgage debt even though these proceeds are less than the amount owed.

Question 1 : Can a mortgagee utilize the buyer’s appraisal to review the property that is accepted into the PFS or must the mortgagee acquire an independent one?

Answer: If the buyer has secured an FHA-insured appraisal, use of the buyer’s appraisal would be allowed.
Question 2: Mortgagee Letter 2008-43 incorporates guidelines for varying minimum net sales proceeds based on the length of time a property has been competitively marked for sale. Please advise the correct Tiered Net Proceeds Requirements and the length of time the ratio is valid.

Answer - The mortgagor(s) must be willing to make a commitment to actively market their property for a period of four (4) months.

For the first 30 days of marketing, mortgagees may only approve offers that will result in a minimum net sale proceeds of 88% of the “as-is” appraised Fair Market Value (FMV).
During the next 30 days of marketing, mortgagees may only approve offers that will result in minimum net sale proceeds of 86% of the “as-is” appraised FMV.
For the duration of the marketing period (60 days), mortgagees may only approve offers that will result in minimum net sale proceeds of 84% of the “as-is” appraised FMV.
Question 3: Mortgagor is deceased, his father has been making the payments, property was tenant-occupied for eight months, and now the father wants to know if he can acquire the property under the PFS Program?

Answer: Mortgagee Letter 2008-43, Paragraph I, bullets 1 and 5 state respectively:

Use of Real Estate Broker - ….”The broker/agent selected should have no conflict of interest with the mortgagor, the mortgagee, the appraiser or the purchaser associated with the PFS transaction. Any conflict of interest, appearance of a conflict, or self-dealing by any of the parties to the transaction is strictly prohibited. A broker/agent shall never be permitted to claim a sales commission on a PFS of his or her own property or that of an immediate family member (e.g., spouse, sibling, parent, or child).”

Arms-Length Transaction - “Mortgagors and mortgagees must adhere to ethical standards of conduct in their dealings with all parties involved in a Preforeclosure Sale transaction. The Preforeclosure must between two unrelated parties and be characterized by a selling price and other conditions that would prevail in a typical real estate sales transaction.”

Question 4: If a mortgagee is the holder of both the first and second mortgages can the mortgagee utilize the $1,500 that is available to pay towards the settlement of the second mortgage?

Answer: Yes, Mortgagee Letter 2008-43, page 13, paragraph J, Contract Approval, states, “5. Up to $2,500 to be used for the discharge of junior liens if closing occurs within 90 days, Within 90 days, the first $1,000 represents the mortgagor’s consideration and the additional $1,500 represents FHA’s consideration for a total of $2,500. If settlement occurs after 90 days, the first $750 represents FHA’s consideration for a total of $2,250.”
Question 5 : Is it possible to do a PFS after the mortgagee has already completed a Partial Claim?

Answer: PFS may follow a Partial Claim if there is a new reason for default and the mortgagor lacks the financial ability to cure the present default. The Partial Claim amount must be added to the Unpaid Principal Balance and the Accrued Interest amount to correctly calculate total outstanding mortgage indebtedness.

Question 6: Can a buyer utilize Nehemiah-type financing programs in conjunction with the purchase of a house that has been approved to participate in the PFS Program?

Answer: No, Nehemiah mortgages are disallowed when the buyer is obtaining FHA financing to purchase a house that is participating in the PFS Program.
Question 7: What kind of hardships does a mortgagor has to have experienced in order to qualify for the PFS Program?

Answer: Mortgagee Letter 2000-05, Paragraph B. Cause of Default, page 4, states “HUD does not have a “hardship” test. Mortgagees may offer FHA relief options to mortgagors who have experienced a verifiable loss of income or increase in living expenses to the point where the mortgage payments are no longer sustainable.”
Question 8: Is it the responsibility of the mortgagee to acquire marketable title?

Answer: Mortgagee Letter 2008-43, Paragraph G. Condition of Title, Page 9, states in part, “All properties sold under the PFS Program must have marketable title.”

Chris HUD-FHA, Miscellaneous

Department of Defense

Private Sale
Eligible applicants may be compensated for the difference between 95% of the appraised fair market value of the property prior to the announcement date, and the appraised value of the property at the time of sale, or the sales price, whichever is greater. Closing costs are reimbursed for private sales.

Government Purchase
The Government might purchase your property at 75% of your purchase price, or mortgage payoff. If this occurs, the government will sell the home to the buyer you and your realtor located and pay the realtor fees.

NOTE: It is a DOD policy to insure that HAP funding remain available to assist the maximum number of applicants as opposed to using the funds for administratve costs associated with maintenance and resale of a large housing inventory.

Foreclosure Assistance
If foreclosure proceedings have commenced, an applicant may elect to receive foreclosure benefits or private sale benefits. Foreclosure benefits may be paid directly to the applicant to reimburse for foreclosure costs paid by the applicant, or paid to third parties on the applicant’s behalf.

NOTE: Eligible HAP applicants who work at overseas installations announced for closure or realignment may receive only private sale benefits. Government purchase benefits are not available at overseas installations.

How HAP assists you
HAP provides assistance in four ways. For eligible applicants, the Government may:

1.Reimburse you for part of your loss from selling your home.
2.Assist you, if you don’t have funds from the sale of your home to pay-off your mortgage.
3.Purchase your home by paying off the mortgage.
4.Help, if you default on your mortgage.

Chris Military, Miscellaneous

Servicemembers Civil Relief Act (SCRA)

Section 303 - Mortgages and trust deeds

(a) MORTGAGE AS SECURITY- This section applies only to an obligation on real or personal property owned by a servicemember that–
(1) originated before the period of the servicemember’s military service and for which the servicemember is still obligated; and
(2) is secured by a mortgage, trust deed, or other security in the nature of a mortgage.
(b) STAY OF PROCEEDINGS AND ADJUSTMENT OF OBLIGATION- In an action filed during, or within 90 days after, a servicemember’s period of military service to enforce an obligation described in subsection (a), the court may after a hearing and on its own motion and shall upon application by a servicemember when the servicemember’s ability to comply with the obligation is materially affected by military service–
(1) stay the proceedings for a period of time as justice and equity require, or
(2) adjust the obligation to preserve the interests of all parties.
(c) SALE OR FORECLOSURE- A sale, foreclosure, or seizure of property for a breach of an obligation described in subsection (a) shall not be valid if made during, or within 90 days after, the period of the servicemember’s military service except–
(1) upon a court order granted before such sale, foreclosure, or seizure with a return made and approved by the court; or
(2) if made pursuant to an agreement as provided in section 107.
(d) PENALTIES-
(1) MISDEMEANOR- A person who knowingly makes or causes to be made a sale, foreclosure, or seizure of property that is prohibited by subsection (c), or who knowingly attempts to do so, shall be fined as provided in title 18, United States Code, or imprisoned for not more than one year, or both.
(2) PRESERVATION OF OTHER REMEDIES- The remedies and rights provided under this section are in addition to and do not preclude any remedy for wrongful conversion otherwise available under law to the person claiming relief under this section, including consequential and punitive damages.
Guide Note: The 90 day period mentioned above in sections (b) and (c) have been temporarily extended to 9 months by section 2203 of the Housing and Economic Recovery Act of 2008. This temporary extension expires on December 31, 2010, when the original 90 day period will re-take effect.

Chris Military, Miscellaneous

The Role of the Trustee

The real property trustee performs a little understood but crucial role in the real estate industry. In order to understand this role, a distinction must be drawn between the historic use of mortgages in real estate lending and the more modern use of deeds of trust. Many states now secure real estate loans almost exclusively with deeds of trust, to the exclusion of mortgages.

Whereas a mortgage consists of a two-party arrangement between the lender and the borrower, the deed of trust involves three parties. The borrower, or the “trustor”, conveys a technical form of title to the “trustee” for the benefit of the lender, also known as the “beneficiary”. In simple terms, the obligation of the trustee is to reconvey title to the borrower when the loan is paid off, or to commence foreclosure on behalf of the lender in the event of default.

The trustee thus helps clear title to real property in the event of lien satisfaction, and helps lenders protect their security in the unfortunate circumstances of nonpayment. While California law permits lenders to seek foreclosure in court, normally trustees act under a power of sale granted in the deed of trust to foreclose nonjudicially. This helps keep costs down, to the benefit of all parties.

Chris Miscellaneous, Trustee Info

…They’re involved. Know who they are.

Ordinances and Mandates Throughout California That Restrict
Trustees’ Sales Proliferate

A series of new aggressive tactics have greeted UTA members this summer from a variety of cities in California.

Los Angeles

Los Angeles’ new ordinance 181185 (LA Municipal Code Section 164.00 et seq.), passed by the Los Angeles City Council on June 24th and effective July 8th, requires Trustees pay an annual registration fee of $155 with the Los Angeles Housing Department and inspect properties before recording a Notice of Default with a civil penalty of $250 per day for non-compliance. Fines for vacant structures can be $1,000 per day up to $100,000.

The ordinance is a purported attempt to address neighborhood blight and applies to all residential properties. The L.A. Ordinance does not appear to distinguish between 1-4 unit residential properties, large apartment building or mixed use properties.

The issue of local distressed property ordinances has been thoroughly covered in past UTA annual conferences and in the UTA Quarterly Newsletter. While the L.A. Ordinance to some extent adopts the ill-conceived language in many other local distressed property ordinances, it appears to add elements that go beyond anything seen to date. Phil Adleson, corporate counsel for the UTA as well as for the California Mortgage Association has observed that, while he is not speaking on behalf of UTA or CMA: “The L.A. ordinance is fraught with ambiguity and is likely unconstitutionally uncertain. Other elements of the statute may be preempted by state law. Among other things, the L.A. Ordinance confuses a number of definitions including confusing “assignment of rents” with an assignment of the “deed of trust”. The ordinance shows a complete lack of understanding of the role and responsibilities of the trustee and beneficiary under deeds of trust. Many of the provisions of the ordinance are internally inconsistent. Most significantly, the L.A. Ordinance fails to recognize that a lender (and certainly a trustee) under a deed of trust have no obligation to maintain or protect the security even though the deed of trust may permit them to take actions to protect the security. Under state law, a lender can walk away from the secured property at any time up until it acquires the property at a foreclosure sale. This is particularly true of junior lienholders who, in this economy, may have little or no equity to protect. Since the state legislature has failed to act, it may be time for trustees and lenders to stand up for their rights. The L.A. Ordinance goes too far and I believe it is time for trustees and lenders to take action in court to stop this nonsense.”

Shortly UTA will be considering what if any action it can bring or join in to address the problems presented by the new L.A. Ordinance. Actions taken will likely depend on member input and support.
Read the Los Angeles Ordinance now

Bakersfield

After initially placing restrictions on crying sales by City Hall to the South Side of the City Hall building, the City of Bakersfield, as of June 25th, has increased their aggressive stance and has now “denied the request by companies wanting to hold trustee sale auctions on County property.” The city has informed UTA members that “these auctions are no longer compatible with the current use of City Hall South.”

Kern County’s General Services Division reaffirmed this decision.

Read letter from City of Bakersfield
Read a letter from the Kern County Administrative Office

Corona

The city of Corona has disallowed sales at the Corona Historic Civic Center on Sixth Street. Effective June 14th, the city allows auction sales in front of 847 W. Sixth Street, which is 150 feet from the previous location, with a 45-day grace period.

Read letter from City of Corona

Placentia

The city of Placentia has “requested” that trustees no longer hold auctions at the Placentia Civic Center but have offered the courtyard in front of Kraemer Park on North Bradford Avenue as an alternate location.

Read letter from City of Placentia

Desert Hot Springs

The city of Desert Hot Springs has passed a series of Ordinances that require trustees to inspect property upon default prior to recording an NOD. If the property is found vacant, the trustee must register the property. If the property is occupied, but in default, the trustee must provide monthly inspections. The City imposed an annual registration fee on trustees.

Read the Desert Hot Springs Ordinance

Read all of the City Ordinances

Headquarters
2030 Main Street, Suite 1300, Irvine, CA 92614
www.unitedtrustees.com | Tel: 949.260.9020 | Send us an email

Chris Miscellaneous, Trustee Info

Well, I wasn’t there, so I can’t tell you how the United Trustee Association was able to convince your representitives here in California that forcing the lender to actually sit with you or your HUD Approved Counselor and negotiate in good faith a modification or short sale was going to be too complicated, but they did.

If you’re losing your home due to your lack of ability to get your lender to respond to your good faith efforts to comply with their request, in order to consider your modification attempt, then be sure and contact your local State representitive and ask them if they voted against this Bill and why.

Here is the press release from the UTA:

California Mandatory Mediation Bill Dead This Year

By a vote of 38-31, the California Assembly defeated AB 1639. That bill would have provided borrowers the right to request a mandatory mediation program prior to foreclosure, similar to legislation enacted in Nevada. The bill would have prohibited taking any action with respect to power of sale until a “Mediated Mortgage Workout” program was adopted.

Mike Belote, UTA’s California Lobbyist, had testified against the bill in hearings held before the Assembly in March. His testimony focused on the difficulties in implementing and executing such a program in California.

With the legislative session coming to a close on August 31, the bill appears to be dead, but vigilance is necessary to make sure that the concept is not included in another bill prior to adjournment.

Chris Miscellaneous

David Sunlin
SVP & Operations Executive for Short Sales and Real Estate Management

Bank of America

David Sunlin is Senior Vice President and Operations Executive for Short Sales and Real Estate Management for Bank of America. In this capacity, he is responsible for real estate operations for Bank of America’s default loan servicing operation, including management and disposition of REO, property valuation and short sales. Mr. Sunlin has been with Bank of America since 1997 and during that time has held various management positions in the areas of default management, compliance, and technology development.

Most recently, he has been instrumental in formulating Bank of America’s strategy as it relates to disposition of short sales and supporting the bank’s efforts in support of the federal government’s Home Affordable Foreclosure Alternative program. Sunlin continues to explore and development new programs and alternative markets to assist homeowners and investors in an ever changing housing market. Based in Plano, Texas, Sunlin manages operations in Arizona, California, Florida, and North Carolina. Sunlin is a graduate of Texas A&M University with a B.S. in Economics.

Chris Miscellaneous