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Tuesday, March 4, 2014

SOME UNDERWATER HOMEOWNERS WILL BE HELPED SOON

Ocwen Financial Corporation committed to continuing its principal forgiveness modification program, putting into their program at least $2 billion over three years, according to HousingWire on March 3, 2014.  The servicer entered a consent judgment agreement with the U.S. District Court for the District of Columbia on Feb. 26.  The program includes underwater borrowers at imminent risk of default and is designed to be sustainable for homeowners while providing a net present value for mortgage loan investors that is superior to that of foreclosure.

On another front (Washington state), the legislature passed a law that allows homeowners who are delinquent in paying their property taxes to pay monthly or quarterly.  Prior to this change, we had to pay in one lump sum.  They've ignored my lobbying efforts to raise the exemption amount to $35,000 annually to $40,000.  If your income is over $35,000, even by a few hundred dollars, you have to pay the school levies which amount to about $1,500 a year for those whose homes are valued at $300,000.  The Washington Education Association is a very strong, powerful lobby and we have many teachers here with an average salary of $70,000 annually.

Washington will credit eligible property owners with out-of-pocket expenses for prescription drugs and for yard work expenses of almost $4,000. But who pays that much in yard work expenses on an income of $35,000 or less?

Please share with me the laws in other states that help underwater and delinquent homeowners.  Email me at jrapril@aol.com.