Two years late on mortgage? No problem with new program | Real Time

This might help some people in Lake Worth as they clear up the foreclosure process on their property. Some of these long-term foreclosures can turn into what are called "zombie homes." People who own the property walk away and the bank chooses not to complete the foreclosure process. The property reverts back to the former owner, who may or may not know they still own the property. Click title for link.

A letter to lenders sent Wednesday says they must reevaluate any borrower who was previously turned down for a modification because of 720-day cap.
The streamlined modification plan was developed because of consistent complaints from borrowers that banks repeatedly lose loan modification paperwork in a bureaucratic process that can take years to complete.
Although no paperwork is required to get the streamlined modification, Fannie Mae and Freddie Mac will try to screen out people who can still afford their mortgage but stop paying so they can qualify. According to a press release, the two mortgage backers have “proprietary screening measures,” which could include checking whether other bills are being paid on time or credit changes.