According to the Government Accountability Office, the United States Treasury has received about $6.7 billion in dividend payments from its Troubled Assets Relief Program (TARP) investments to date. Barney Frank, the Democratic congressman from Massachusetts is proposing to use that money to prevent unemployed homeowners from losing their homes.

Jenifer McKim of the Boston Globe reported on July 9^th that Frank’s proposal came “just days after the Federal Reserve Bank of Boston released a study that showed lenders are reluctant to modify mortgages of most delinquent borrowers because they either are likely to again have trouble making payments, or conversely, can fix their problems without financial help.” Hell, I could have told you that without doing a “study”, but the bottom line is, what is being done now is not enough to prevent more and more people from having to foreclose. Especially as the unemployment rate continues to rise.

McKim wrote that Frank’s proposal is to “spend $2 billion to prevent foreclosure on borrowers who don’t qualify for other mortgage aid programs because they are unemployed.” She then adds that, “Frank’s proposal would also spend $1 billion to build and preserve affordable housing, $1.5 billion to redevelop foreclosed and abandoned homes, and $2 billion to protect tenants in apartment buildings whose owners can’t pay the mortgage.”

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Early last month, the Federal Housing Administration (FHA) laid out the details of a new policy that will tweak the First Time Home Buyer Credit guidelines, allowing first time home buyers to apply the $8000 federal tax credit toward the purchase costs of an FHA-insured home.

As reported  by Carrie Bay of DSNews.com, “The American Recovery and Reinvestment Act of 2009, enacted under President Obama, offers homebuyers a tax credit of up to $8000 for purchasing their first home before December 1, 2009, but the credit can only be accessed after filling an amended tax return with the IRS. However, the new FHA rules allow first-time homebuyers using FHA-backed financing to obtain a short term loan from state housing financing agencies and certain non-profits for 10 percent of the home’s price, up to the full amount of the tax credit.” So what exactly does that mean? Well, it means that as nice as it sounds to be able to use that tax credit towards a down payment, quite a few factors have to work out in your favor in order for you to take advantage of such an offer.

For one, you have to qualify for an FHA loan. (See guidelines at http://www.fha.com/important_facts.cfm) Second, you obviously have to be a first time homebuyer (although this may change soon; see previous blog). And finally, and much more difficult to come by depending on where you live, you need to have a state housing finance agencies or a non-profit group that will allow you to obtain a short term loan for this credit to go towards your down payment and/or closing costs. While there is a push by home builders and Realtors to urge more states to institute programs to provide down payments loans for the federal tax credits, so far, according to Bay, only Colorado, New Jersey, New Mexico, Florida, Ohio, and Pennsylvania have them. However, don’t take my word for it. Before you dismiss this as a possibility, ask your lender if this might be an option.

To answer a couple more questions and to help consumers better understand how this expanded First Time Home Buyer Tax Credit work and how to take advantage of it, the National Association of Home Builders has released the following “FAQ on Monetization:”

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This just in (well, maybe it was three days ago)! The San Diego County Fair, in Del Mar released a statement offering free admission to anyone who is unemployed (plus 1) on Monday, June 29^th.  ”We feel this Fair Stimulus Promotion would be a good way for people to come and enjoy everything the Fair has to offer,” said Fair General Manager Tim Fennell. “That evening’s grandstand show, Clint Black, is free with admission, other entertainment is free, and the exhibits are free. People can bring their lunch and store it at Guest Services. They can park for free at Horsepark and have an entire day at the Fair for no cost.”

The program, good only on Monday, June 29^th, requires showing an unemployment check at the Box Office and is good for two admissions. It’s a nice offer. Kind of awkward if you ask me to have to show an unemployment check at the ticket counter, but then again, I can’t think of a better way to show proof. So why not?

The San Diego County Fair is the largest annual event in San Diego County and the sixth largest fair in the United States, drawing more than 1.2 million visitors each year. The Fair will be open now through July 5, 2009. Gates open at 10 a.m. Saturday and Sunday; 11 a.m. weekdays. Gates close at 11 p.m. Friday and Saturday; 10 p.m. other nights. Admission is $13 for adults, $7 for ages 6-12 and 62 and older, and free for ages 5 and younger. For information, log onto the Fair web site at www.sdfair.com/fair.

Some people say it is human nature, but I believe that it is only a small portion of humans whose nature is to take advantage of other people. It is most unfortunate, and often times mind boggling, but no matter what situation you find yourself in, there will always be someone trying to weasel you out of something. When the real estate market went into the gutter, the swindling scum adapted like a virus and found new ways to take advantage of people in desperate and/or unfamiliar situations. And so, my fellow honest, good natured humans, please take note of the following and make sure you know a thing or two about a thing or two before some shmuck tries to make you pay him/her for their “services”.

Loan Modification Scammers

When the government and banks decided it would be helpful to attempt to modify home mortgages to reduce the frightening increase in foreclosures, it was almost overnight that “Loan Modifying Specialists” came into our lives. . “Loan Modifying Specialist” is just a stupid way of saying they’re loan modifying broker, but nonetheless, they can be very helpful. Banks have been so overwhelmed with people applying for loan modifications, that they are brutally slow in the process and the specialists can help speed things up by gathering all the information that the banks would need and can first determine if you qualify for a loan mod, and if so, can help push it through the bank’s system.

But there have been “Loan Modifying Specialists” who have charged fees upfront for people to see if they do or do not qualify for and then, like Billy Joe and Bobby Sue, take the money and run. As a result of such instances occurring, the Department of Real Estate issued a Consumer Alert that states, “You must be very careful if you are asked to pay for any of these services in advance, whether in cash, check or by charging your credit card. First, California Civil Code Section 2945, which regulates “foreclosure consultants”, forbid anyone who falls under the definition of a “foreclosure consultant”, as well as a real estate licensee, from collecting any advance fees for these types of services if a Notice of Default has been recorded against your property.” There are exceptions to this advance payment warning though. Lawyers are exempt as well as brokers who have been approved by the DRE to charge advance fees.

To be certain, check out the DRE’s list of acceptable companies that are charging some sort of payment in advance as well as companies that have been accused of and/or have refrain orders against them:

Advance Fee Agreement Listing

Desist and Refrain Orders and/or Accusations for Loan Modification Activities

Fake Rentals

This scam was attempted recently with a property that my boss, Carlos Aguilar had listed. It was a bank owned property that Carlos was in charge of marketing and selling. As a part of all residential real estate marketing, the property is listed on the Multiple Listing Service (MLS), which allows other agents to view the property. A feature of the MLS provides all agents with access to the lock box code for that property so that they can show the property to a client without the listing agent needing to be present. In other words, the listing agent keeps a key to the property in a combination lock box on the property and if someone has access to the MLS, they also have access to the keys in the lock box.

In this particular instance, an agent who had access to the MLS put an add in Craigslist saying that they had a property for rent. The property, however, was not for rent. It was the bank owned property that was being listed by Team Aguilar. But this person decided that since they had access to the lock box, they could show the property as if they were the rental agent and perhaps get someone to put down a security deposit before they were gone and never heard from again. Thankfully, we were alerted to this scam by a responsible agent who saw that the listing was also listed on Craigslist as a rental and the authorities were notified.

How is this scam avoidable? It can be difficult to detect. If you are responding to a rental ad on Craigslist, before you sign a lease or put down a security deposit, check with a local and respectable real estate agent. Have them check the MLS and make sure the property is not for sale. Or you can check with a local title company and look at the ownership history.

Former Landlord Still Thinks Rent is Due

Like I’ve said before, if you are a renter and the property that you are living in has been foreclosed on, your landlord has no right to ask for your rent. After all, they no longer own that property; the bank does. I have heard tons of stories about how tenants are verbally attacked by their former landlords demanding that they pay their rent, when in actuality, the landlord no longer owns the property. It can be a rough situation, especially if in the past the tenants had a good relationship with the landlord. But despite how much they yell, beg, or plead, saying that the bank is wrong, the tenant does not owe a dime. Just make sure that the property has definitely gone into foreclosure before you hold up on making the payments.

By Andrew Brentan

As summer approaches…well hell, Memorial Day Weekend was this past weekend so……Now that summer is here, we San Diego residents find ourselves in a formidable “Level 2″ drought alert condition. For residents this means that there will be rate hikes on excess water use, limits on outdoor watering, and mandates to promptly repair leaks. But this drought brings to light an ever-increasing problem and the need for a new era of water restrictions and social responsibility.

In 2001, California passed a bill that, according to Hoa Quach the political writer for the San Diego News Network, that “forces developers to show that the Urban Water Management Plan, which is completed in five-year cycles for a 20-year outlook, shows a sufficient amount of water is available for the proposed project.” Much more effective, in my opinion, is the part of the bill that “requires projects over 500 units to create an alternative water supply.” Hoa Quach interviewed Tom Sudberry or Sudberry Properties whose company is developing a 4780 unit multi-use development called Quarry Falls near Qualcomm Stadium. That development, per the requirement of 2001’s senate bill, will have its own water treatment plant. According to Tom Sudberry, “We’ll be able to create about 250,000 gallons of water a day, enough water to irrigate all of the landscaping of the entire project.” In addition, sub-meters will be installed for each unit allowing the tenant to keep tabs on their own water use.

It’s good to see some real solutions being put into action on new developments. But a big step to improving our city’s water conservation would be to require sub-meters to be placed in all new developments. However, according to Marco Sessa, Sudberry VP, “regardless of new buildings having sub-meters or not, older homes use more water than new buildings as older homes may, sometimes have leaks that use a vast [amount] of our H20. One wonders whether more effort should be placed into retro-fitting some of the older homes.” Well Marco, brings up a good point. But in my opinion, more effort should first be put forth towards permanently expanding water restrictions not just to developers, but to everyone, just as they have done now that we’re at a Level 2 Drought Alert. I couldn’t believe how much my condo complex watered the lawns every day until the alert came into action. I like a green lawn as much as the next guy, but no one needs to water their lawn twice a day EVERY DAY!

So, in the spirit of our Level 2 times, I am providing a list, courtesy of Better Homes And Gardens, of things you can do to help reduce the amount of water you use, and to help Southern California face our water shortage head on:

Check all pipes, hoses, and faucets in the house for leaks. According to the American Water Works Association, a dripping tap can waste 5,000 gallons of water in a year.

Check toiliets for leaks. put a little food coloring in the tank. If it appears in the bowl without flushing, it’s leaking and  can waste up to 4,000 gallons of water in a year.

Take shorter showers as they use two or three “buckets” of water every minute; limit baths as they use two-and-a-half times as much water on average as a shower.

Turn on your dishwasher or washing machine only when it’s full. A dishwasher uses only about 9-12 gallons of water while hand-washing dishes can use up to 20 gallons.

Don’t run the tap when brushing your teeth; use a cup of water to rinse.

Use a trigger hose when washing the car.

Use a broom to clean your driveway, not your hose.

Install water-saving shower heads and low flow faucets.

Consider buying a rain barrel to capture water for shrubs and lawns.

Cover the swimming pool on hot days and at nights as pools can lose up to 50 gallons of  water in a single day through evaporation.

Don’t use your toilet as a disposal unit by flushing a used tissue or other garbage. A single flush can use as much as seven-to-ten gallons of water depending on your resevoir.

Keep a container of drinking water in the fridge. Running the tap to cool water can waste up to three gallons per minute.

By Andrew Brentan

It was the final day that I was following Cory McGilvery, REO Field Agent Extraordinaire, on his daily rounds to bank owned properties. We were on our way to a property to meet our boss, Carlos Aguilar, a locksmith, and the sheriff’s department to evict a tenant.

The tenant lived at a property Cory and I had visited the prior week. The property actually had two separate living spaces: The main house in the front, and attached to the garage in the back, was a loft type 1 bedroom, 1 bath, 1 story apartment. The owners had their home foreclosed on, cooperated in a cash for keys exchange, and vacated the premises in a reasonable time-frame. When the property came under the ownership of the bank and Cory was sent to inspect the property, he noticed that someone still seemed to be living in the separate living space attached to the garage. So, as part of his duties, he left a note on the door alerting the tenant that the owners had foreclosed and he had 60 days (it is now 90 days) to vacate the property. Week after week Cory came to check on the place and could tell by looking at the gas and electric meter that someone was definitely still living there, but no one was ever home, nor did anyone ever respond to the notices that he continued to leave on the door.

So when Cory and I went to inspect this property one last time before the 60 days were up we weren’t surprised when no one answered the door. We left another notice and on our way back to the car were caught by surprise by a man on his cell phone in the driveway who asked if he could help us with something. The man claimed to be on the phone with the tenant and as Cory explained who he was and why he had been coming by leaving notices for the past 8 weeks, the man kept asking his friend on the phone if he was hearing all of that. Cory told him to tell his friend to call him as soon as he can because he has to be out by next week. And we left.

Driving away, I asked Cory what the chances were that the man’s friend would actually call. Cory laughed and said, “I bet you a $100 that that WAS the tenant. Never believe anything anyone tells you…especially when you’re there to evict them.” Good point, I thought, and why would he call? Afterall, he’s been living rent free for three months. In theory, he’s supposed to be paying the bank his rent, but that never happens.

As we waited for the sheriff’s department to arrive, we saw the tenant in the back frantically throwing away his stuff and packing. Afterall, he knew we were coming (the sheriff’s department is responsible for posting a notice at least 24 hours in advance, stating that the courts have approved an eviction and then lists the date and time that they will be returning to proceed with the eviction). Sure enough the guy rushing to get his stuff cleaned out was the same person on his phone claiming to be the tenant’s friend the week before.

Upon their arrival, we followed the officers to the back and they presented the man with his eviction papers. He assured them that he would just need a few more minutes to finish, even though the place was still a complete mess. As the locksmith geared up his drill bit to change the locks on the place, an officer took a call on his radio, and minutes later, he alerted the man being evicted that there was a warrant out for his arrest. As it turns out, it’s easier to get away with not paying your rent then it is to get away with not paying you traffic tickets. So, what did you do today? It was great! First I got evicted and then escorted to jail in handcuffs for outstanding speeding ticket! Wooohoo! What a day!

Well there you have it folks. Life as an REO Field Agent isn’t the most glamorous work, but it can open up one’s eyes to some things that you might not see every day. And it will certainly make you appreciate your stable living situation a whole lot more. And so, while Cory doesn’t wake up every morning thrilled to go do his property inspections, he leaves his house, camera in hand, knowing that today he might see something completely strange and unexpected. And that makes his job something he’s more than willing to do for now.

By Andrew Brentan

In response to a comment left on “The Life and Times of An REO Field Agent: Part 1“, I have concluded that it is important for me to delve into the Asset Manager/Listing Agent relationship that takes place when selling bank owned properties (You see? We’re here for our readers   ).To better understand the life and times of an REO field agent, we must take a look into how real estate agents handle the initial property assignments, and then how they market those properties in accordance with the bank and asset manager’s guidelines.

As I covered in the previous blog, the banks who own the properties hire asset management companies to do just that: manage the enormous of amount of “troubled” assets or homes that they now own due to foreclosure. The asset managers are responsible for hiring real estate agents to prepare and sell the property. The following are typical of the procedures required of the real estate agents by the asset managers:

PRE MARKETING PROCEDURES:

Agent Approval: First, the agent must obviously get approved by the asset manager. This entails an application package that includes all tax information, insurance, licenses, etc..

New Assignment: When the asset manager receives a new property from the bank, they send notice to the agent asking to accept or reject the listing.

Reporting Occupancy: If accepted, the agent must report back on the number of units, the occupancy status, and a personal inspection of the property within 24 hours. A checklist of damages must be completed within two days. Finding REO’s that are occupied by renters and not the original owner can make it more difficult. Many renters are surprised to find out that their landlord was in foreclosure.

Evictions: Like I covered in the last blog, the agent must visit the property at least once a week to check on the status of occupancy until the eviction is complete.

Cash for Keys: The Agent is responsible for offering cash for keys to the occupants. Cory said he’s seen offers ranging from a couple thousand dollars to tens of thousands of dollars.

Initial Valuations: The listing agent must provide a Broker Price Opinion on the property which serves notice to the asset manager that the property is secured and ready to be marketed. This also provides the asset managers and the banks with their first glimpse of what the property should be listed for.

Now, in regards to the comment on the last blog, “Are there rules that govern how these homes are marketed or do they sometimes get sold by a Realtor to his investor without ever getting to market?”

The “rules” of how a property is to be marketed are outlined clearly in the listing agreement between the bank and the agent (and issued by the asset manager). The agreement includes a requirement to submit the MLS sheet, the marketing description, and photos to be placed on the MLS for asset manager approval.

Unfortunately, there are instances where a Realtor will weasel their way around and limit the marketing done on a property so that they can sell to their own client; Especially in California where dual agency is legal. This is why asset managers are responsible for keeping tabs on their agents, and banks on their asset managers. To a large extent, the agent must build up a trustworthy relationship with their asset managers because they will not hesitate to cease assigning tasks to the agent. To help ensure that the properties are being marketed and fully exposed to the public, agents are required to provide updated Broker Price Opinions which entail updated MLS listings. In addition, all offers submitted to the agent must be reported to the asset manager and they will respond to the offer within in one business day.

Lastly, regarding another part of the comment from last blog, “I drove by and looked at a bank owned home last week. My client wanted to make an offer but the Realtor said it had not been priced yet and we could not even get in the door.” As mentioned in the Pre-Marketing Procedures, there is a lot that goes into prepping the house for marketing, and often, a lot of the prepping entails providing all the information to the asset managers. Therefore, if that home hadn’t even been priced yet, that agent wouldn’t be able to submit offers to the asset manager.

Ohhhhhh, what a tangled web they weave. Asset management is quite the bureaucracy.

I’m happy to address any other questions for this blog topic or any others for that matter. As mentioned in the previous blog, stay tuned for the conclusion of The Life and Times of an REO Field Agent as we get a first hand glimpse at an eviction and the start of what turned out to be a super shitty day for that tenant.

By Andrew Brentan

So you’ve finally found that diamond in the rough! After seeing 50+ foreclosed upon, bank owned homes, you found the home that you want and you are getting a great deal. You couldn’t be happier, and the bank will finally have that damn thing off its books. It’s a win-win. But something you may not know about that home you are about to buy, is all of the work that went in to getting it ready for your real estate agent to bring you on by to check it out. And despite what others might tell you, the unsung hero who is largely responsible for all of that work is the elusive and rare breed of employee: The Field Agent.

We all know that the banks in this country are inundated with properties that they were forced to take over and now have to try and sell. And like I said, there is a lot of work that goes in to the selling of bank owned homes. So much work that asset management companies get involved as well as local real estate companies. I work for one of those local real estate companies and I have remained curious by this system of what seemed to me to be an excessive allocation of work. So, in order to better understand what exactly goes in to getting a bank owned home ready for you to buy, I spent three days over the past two weeks, shadowing Team Aguilar’s field agent, Cory McGilvery as he made his rounds from property to property to learn a thing or two about a thing or two.

I felt like a real journalist, pen and paper in hand, as I met Cory for lunch before we embarked on his Wednesday route to visit 16 properties in the southeast part of San Diego. “Before we leave”, I said, “can you please tell me what the hell a field agent actually does?” I’ve known Cory for a few years, and had never fully figured out what it was he was doing every day. “You’ll see today.” He said with a sly grin, “and it will blow your mind.” I imagined visiting some property that was home to packs of wild abandoned dogs, or crack-heads who were too drugged up to realize they were being evicted, or a crazy old woman who answered the door with a shotgun pointed at my head. Of course, he was being completely sarcastic, but I couldn’t help letting my imagination run for a brief moment.

The work required from the time a bank forecloses on a property to the time it is sold to a new buyer is almost entirely grunt work.  And at the heart of the grunt work, is the field agent. The first day driving with Cory and visiting bank owned properties, I came to the conclusion that the job of the field agent was not dissimilar to shoveling shit. It gets you outside, it’s repetative, and sometimes when you’re not expecting it, you get blown away by something that smells…well… like shit. We went into one property towards the end of my first day with Cory to do an initial inspection, and I was appalled by what we saw. There were piles of partially eaten food all over the place. KFC buckets, microwavable burritos, melted popsicles, opened cans of corn, dirty dishes stacked high in the sink, refried beans sprayed against the wall, flies were swarming, and all of this combined to create a super-hero odor that could leap tall buildings and bring a mere mortal such as myself to my knees.

Despite the obvious downsides, Cory likes this job for the most part; it gets him out of the office, driving around, and offers ample opportunities for taking pictures (Cory’s true love is photography, and he’s damn good too). Our first 4 stops consisted of Cory literally just walking in the home, making sure no one was squatting there and then leaving. “Until we sell them, they need to be checked once a week.” And has he ever run across someone actually squatting on a property? “A couple of times. Usually they’re not there when I come by but we can tell someone has been in there and we just change the locks on them. But a couple of times, I’ve walked in on some people who are quick to yell at me for trespassing (even though I have a key), claiming that they’ve been renting there for months when just a week ago, there was nothing in the house.”

As we made our rounds around El Cajon, La Mesa, and Alpine, I finally got a grasp on how the whole process works. Here’s a rundown:

- Bank forecloses on a property
- Bank hires an asset management company to deal with it.
- Asset Management Company hires a local real estate company to sell the place.
- Local real estate company has a field agent who:

1. Visits the property once a week
2. Takes pictures of the home, and anything left behind. If there is over $300 of personal property left behind, the real estate company has to hold onto it, and publicly post the property in hopes the owners will come to claim them
3. If the owner is still living in the home, provide notice that they have 3 days to leave
4. If there is a renter, provide notice that they have 90 days to leave
5. Hires a company to clean the house
6. Provides and replenishes marketing materials and signs
7. Fields phone calls and inquiries from real estate agents regarding the property
8. Reports back to asset management company about each property each week

- The home gets sold, the local real estate company gets the commission, the asset management company gets a flat fee from the bank, and the bank gets the remaining funds from the sale.

Deal with all of that for 65 properties per week located all over San Diego and a few outside of San Diego, and you’ve got yourself a guy shoveling a ton of shit.

Stay tuned for the conclusion of The Life and Times of an REO Field Agent two part series when we meet with the Sherriff’s Department to give an eviction notice to a guy who took his free ride just a bit too far and pays the price.

Wooohooo! The first time home buyer tax credit has been passed. And what, you might ask, does that mean for you? Well, let’s go through some of the basic guidelines for what is required to qualify for this tax credit (from www.realtor.org):

Who Qualifies?

First-time home buyers who purchase homes between January 1, 2009 and December 1, 2009. To qualify as a “first-time home buyer” the purchaser or his/her spouse may not have owned a residence during the three years prior to the purchase.

Which Properties Are Eligible?

The 2009 First-Time Home Buyer Tax Credit may be applied to primary residences, including: single-family homes, condos, townhomes, and co-ops.

How Much Will the Credit Be?

The maximum allowable credit for home buyers is $8,000. Each home buyer’s tax credit is determined by two factors:The price of the home-the credit is equal to 10% of the purchase price of the home, up to $8,000.  The buyer’s income-single buyers with incomes up to $75,000 and married couples with incomes up to $150,000-may receive the maximum tax credit.

If the Buyer(s)’ Income Exceeds These Limits, Can He/She Still Get a Credit?

Yes, some buyers may still be eligible for the credit.
The credit decreases for buyers who earn between $75,000 and $95,000 for single buyers and between $150,000 and $170,000 for home buyers filing jointly. The amount of the tax credit decreases as his/her income approaches the maximum limit. Home buyers earning more than the maximum qualifying income-over $95,000 for singles and over $170,000 for couples are not eligible for the credit.

Will the Tax Credit Need to Be Repaid?

No. The buyer does not need to repay the tax credit, if he/she occupies the home for three years or more. However, if the property is sold during the three-year period, the credit will be recouped

It’s nice to see that the Obama Administration is addressing the problems of its original foreclosure prevention program and making it more effective. One of the big problems with the original plan to stabilize the housing market, is that it did not address home-equity loans and other second mortgages and according to Credit Suisse Group, about half of seriously delinquent borrowers have a second mortgage.

So what is the new plan proposing? According to Ruth Simon of the Wall Street Journal, “Under the revised plan, mortgage-servicing companies that participate in the loan-modification program for second liens must automatically modify the second mortgage when the first mortgage is reworked. The government will share in the cost of reducing the interest rate on second mortgages for five years. As an alternative, it will pay holders of second mortgages to extinguish that debt.”

In addition, the government is offering a friendly gesture for the cooperation of the mortgage servicers: “Mortgage servicing companies that modify second mortgages will receive an upfront payment of $500 and additional payments of $250 a year for up to three years for successful modifications of home-equity loans and other second mortgages. Borrowers who remain current on the modified loan would receive payments of $250 a year for up to five years that would be used to pay down the balance of their first mortgage.” So basically the second mortgages are to be dealt with almost the same as with first mortgages. Makes sense. Why no one thought to involve second mortgages in the original program is beyond me, but like I said, it’s nice to see that the Obama Administration was able to recognize where they went wrong and make corrections. And according to administration officials, they estimate that by addressing second mortgages could help as many as 1.5 million homeowners.

By Andrew Brentan