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President’s Corner Here is the latest from Attorney General Kamala Harris on principal reduction

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Diane Gallagher

Posted: Friday, March 2, 2012 1:36 pm

Here’s the latest update on the HARP 2 program from the California’s Attorney General Kamala D. Harris.

In a letter, Harris asked, “that the Federal Housing Finance Agency (FHFA) halt foreclosures until it has completed a thorough, transparent analysis of whether principle reduction is in the best interest of struggling homeowners.”  This request comes after last month’s settlement that required the nation’s five largest mortgage servicers to reduce principal reduction for certain borrowers.

In a separate letter, Harris also asked Edward DeMarco head of the Federal Housing Finance Agency to step down. DeMarco’s agency has overseen Fannie and Freddie since the two mortgage giants were place under government control in 2008.  Harris has also accused DeMarco of not doing enough for borrowers.

In a letter by Harris and signed by 116 members of Congress they asked “DeMarco to write down the principal on troubled mortgages, saying his opposition to principal reduction has prevented the housing market from recovering more quickly.” DeMarco argues that such reductions do not produce results that are worth the costs.

Last year, Harris sued Fannie and Freddie after they refused to answer subpoenas regarding their mortgage and foreclosure practices.  This case is still pending.

Many of you do not have the time to wait and see where you will be in the months to follow.  My suggestion is to contact a Realtor and start asking questions about selling your home.  Many of you have not made your mortgage payment for months and might have received a notice of default. You should act quickly before your bank issues you a foreclosure notice. The banks are pushing short sales over foreclosures. So do not hesitate calling a Realtor.

So with that in mind, try and be optimistic and let’s see where this takes us. I am hoping that this information is helpful to you as homeowners.

Have a great week! If you would like to reach me, please feel free to contact me at larpres2012@yahoo.com

Diane Gallagher is the President of the Lodi Association of Realtors.