Fannie Mae announced this week that it will begin monitoring all delinquent loans in its portfolios and backed-securities to guarantee that servicers comply with foreclosure time frames. Fannie Mae currently monitors the progress of the foreclosure process by reviewing delinquent loans at the first of the month. If Fannie Mae believes there is a delay in completing the foreclosure process, and the servicer is unable to provide a reasonable explanation for the delay, Fannie Mae may require the servicer to pay a compensatory fee. This fee will not only reimburse Fannie Mae for damages but emphasizes the importance of foreclosing on delinquent loans in a timely manner.
Fannie Mae also announced an update to the allowable foreclosure time frames for Nevada to 150 days. Foreclosure time frames account for the time starting from when the case is referred to the attorney or trustee for action to the completion of the trustee’s sale. These allowable time frames represent the time typically required for routine, uncontested foreclosure proceedings where mediation is not required.
Joshua D. Carlson, Esq.
When facing the decision whether or not to file for 
According to a new report from the State Foreclosure Prevention Working Group, a group of state attorney generals and bank supervisors across the country, loan modifications made in 2009 are forty to fifty percent less likely to be delinquent six months after modification than loans modified at the same time in 2008. Additionally, the report states that loan modifications which include a principal reduction have a lower rate of re-default. While the report recommends principal reductions due to the improved long-term success of the loan modification, principal reductions have been rare to this point. According to the report, only one in five modifications reduces principal. Moreover, the report shows that seventy percent of loan modifications actually increase the amount of principal owed due to the addition of penalties, fees, and late payments. The Home Affordable Modification Program (HAMP) provides for principal reductions as an alternative to its waterfall modification. However, due to the fact that government sponsored entity (GSE) loans are not eligible for principal reductions and reductions are optional, it is unlikely the principal reduction alternative to HAMP will have much impact.
The months and days leading up to a 
The instant bankruptcy is filed, for either 
Starting September 7, 2010, the Federal Housing Administration (FHA) will offer a new refinance program to qualifying underwater homeowners. To be able to participate in the program you must be current on your home loan, your credit score must be 500 or above, and the home must constitute your primary residence. Further, all lien holders related to the property must agree to the refinance and agree to write off at least ten percent (10%) of the unpaid principal balance. As most borrowers know, lenders are loathed to write off any of the principal regardless of the possible incentives. The program does, however, offer more incentives beyond new FHA-insured mortgages. The program contemplates certain incentives for any second lien holders to provide a full or partial extinguishment of the lien. HUD says interested homeowners should contact their lenders to determine if they are eligible and whether or not their lender agrees to write down a portion of the unpaid principal. Keep in mind that the present loan must be a non-FHA loan.
Before convening on its August break, the House of Representatives passed the Real Estate Jobs and Investment Act of 2010. The bill advances the real estate industry’s goal of increasing foreign investment in Real Estate Investment Trusts (REIT). The Bill doubles foreign investors’ allowable ownership interest in a REIT to 10%. Anything over that percent ownership is then subject to the Foreign Investment in Real Property Tax Act (FIRPTA). Congress hopes that increasing the allowable foreign ownership interest will stimulate the US commercial real estate sector with minimal fiscal impact.
