We the People vs the Banks on loan modification

There is a petition circulating and picking up steam in the online world designed to get the attention of lawmakers on Capitol Hill. It is simply titled, The Petition to the US Government from American Homeowners.

With hundreds of thousands of homeowners facing foreclosure and running into bureaucratic delays at the hands of less than sympathetic bank employees, constantly lost documents, trial modifications never mailed out, trial periods past but never made permanent and foreclosure sales in the midst of supposed loan modification review the cries for fairness & accountability are reaching a crescendo.

The HAMP system as it stands rewards banks for making a trial modification by advancing them nearly 1/3 of the monies available for the entire modification at the time homeowners enter the trial. Given the truth that entering the trial modification is such a small step in the process, along with the banks less than stellar performance on making these modifications permanent it appears that the compensation may be premature and out of line.

When a borrower enters the trial modification the servicer receives $1,000. Bank of America who has placed over 200,000 borrowers into trial modifications received has received over $200 million dollars for simply placing homeowners into "trial modifications" with no guarantee of ever getting a permanent modification. At one point the bank had rushed 180,000 trial modifications into the mail without having complete income documentation, leaving in doubt the ability to complete these modifications.

As of the latest Treasury report, Indymac / OneWest has entered 19,623 homeowners into the trial modification phase and accomplished an astounding ZERO completed modifications; yet this dismal effort has netted the investment group over 19 million in taxpayer dollars. Many borrowers, and consumer advocates complain that Indymac is making no effort to make these modifications permanent and in fact has invented new ways to deny modifications.

Many servicers mass mailed trial modifications to at risk borrowers to get their share of the free money offered for simply getting a borrower into the trial plan. They then seemingly pull out all the stops to halt the process and deny making the modifications permanent.

Indymac borrowers all across the country are searching for attorneys to bring class actions for the trial modifications that were sent out and denied before the 2nd payment was received by the bank. Even in these cases the servicer was paid $1,000 for entering the homeowner into the trial period and then promptly dumping them out of the plan.

I have spoken to homeowners who say the lender constantly get the financial income and expense numbers wrong and will not listen to reason or go over the numbers they use to deny the modification. Mitha, an embattled homeowner from Brooklyn, NY complains "the customer service reps blame the "negotiator" and will "never" put that person on the phone" she went on to say; "calls to Indymac employees result in well scripted answers that always end in favor of the bank".

The current system appears to be a mess and the trial period has created a new layer of bureaucracy in an already bogged down system. The financial benefit gained by servicers for simply putting a homeowner into the trial is great. The monies left to make the modification permanent pales in comparison.

Banks who made the original loans with little or no documentation and closed them sometimes in less than a week from application now routinely take 5,6 or 7 months to approve a loan modification. The irony doesn't go unnoticed.

To further complicate the situation lenders are outsourcing some of the work to 3^rd party providers who are even worse at processing the paperwork, and have little access to a borrowers account. Bank of America uses the HOPE team a 3^rd party that goes out of its way to make homeowners believe it is part of the bank. Until recently SunTrust used LoanCare this outsourcing caused so many delays and problems Suntrust recently pulled back all of its files from LoanCare. Some lenders are using Zenta, which has a myriad of addresses and if you send paperwork to the wrong address it is returned by Zenta employees as undeliverable.

The Petition to the US Government from American Homeowners seeks to address the many concerns of homeowners facing foreclosure.

Click Here to See The Petition

HAMP | HAMP Loan Modification Report Card

HAMP HAMP Loan Modification

A How To Guide

On March 4th, 2009 the Obama administration revealed its plan to help millions of distressed homeowners in danger of foreclosure. The program was proudly touted as the definitive way out of the current housing and mortgage crisis.

The year has ended and since April 2009

the program is responsible for 728,408 active modifications. 697,026 are in the trial period

and 31,382 have been made permanent.

Although there has been plenty of time for loan servicers and lenders to strengthen their efforts and start making a considerable difference in preventing home foreclosures, many servicers have repeatedly chosen to aggravate the crisis through noncompliance and excuses.

Prior to the introduction of HAMP, servicers' efforts to modify loans had picked up a considerable amount of steam. By March of 2009 loan servicers' efforts in private in house modifications were running at a pace of 120,000 per month. That means that if left to their own devices servicers and lenders had they continued at that pace would have completed modifications on more than 1.2 million loan modifications.

It is now harder than ever to get assistance from your lender due to the new heavy documentation and government bureaucracy created by HAMP. It is not however an impossible task. Even with its bureaucratic red tape many homeowners have been able to get payment reductions that helped them save their homes.

If you are looking for assistance with HAMP be sure to get up to speed and learn everything you can about the guidelines and requirements. Talk to your lender BEFORE submitting an application. With HAMP you only have one bite at the apple. You have to get it right on the first try.

Here is what you will definitely need to submit a complete file to your lender:

Last 4 paystubs for everyone in the house who earns money.If you don't have paystubs, you will need a cash letter from the wage earner defining what they take home monthly. (Yes your lender WILL accept this)(It's in their best interest).

• 2 years W2's for each wage earner in the home.


• 2 years tax returns


• 2 months bank statements - your lender will require ALL pages of your statements. If you don't have them, go to your bank and get a 2 month printout, make sure that someone in the branch stamps and signs the printout or your lender may not accept it


• If you are self employed you will need to provide a profit and loss statement that spans a minimum of 3 months, I recommend you do this for a 6 month period


• A well written concise ONE PAGE hardship letter


• An income and expense sheet that shows Monthly Numbers for Gross Income, Net Income and all household expenses

If you take the time to prepare and do it in a well organized manner you will improve your chances of getting a modification under HAMP greatly.

Get educated QUICKLY; learn everything you can about the HAMP guidelines and what your lender offers in the way of assistance. Plan your request for assistance and be organized and prepared BEFORE you submit anything to your lender.

Remember the disclaimer they read you when you call? It's the one where they tell you they are required by law to advise you they are attempting to collect a debt and anything you tell them will be used for that purpose. No matter how nice the representative sounds, they work for the lender and they are there to help collect your payments.

Homeowners looking to take advantage of HAMP should always make sure to Get Educated so they can Get Modified and Get On With Their Lives...

U.S. House rejects mortgage "cramdown" measure

U.S. House Rejects Mortgage "cramdown" Measure

WASHINGTON (Reuters) - In a win for the banking industry, the U.S. House of Representatives voted on Friday to reject a measure that would have allowed bankruptcy judges to change the terms of mortgages for distressed homeowners.

http://www.reuters.com/article/idUSTRE5BA3CN20091211

Yet again the powerful banking lobby with plenty of taxpayer cash available has defeated the interest of the taxpayer by lobbying hard ans fast against a bill that would allow bankruptcy judges the ability to use their discretion when discharging 2nd mortgage debt.

As long as politicians fear losing elections the will and best interest of the people will never prevail.

Our government has become the posession of the special interest. One only need look at the debate and progression of this issue as an indication of what happens when politicians have the ability to give money to their campaign contributors in the form of a bailout unabated by rules prohibiting the use of these same funds for campaign contributions.

I have spoken to many, many homeowners who have tried unsuccessfully to get assistance from the same Congressmen and Senators who have thrown this bone to their banking industry benefactors.

WHAT THEY HAVE DONE HERE IS A SHAME....

Write, email and/or call your politicians TODAY!!!

Find your congressperson here:
https://writerep.house.gov/writerep/welcome.shtml

Find your Senator here:
http://www.senate.gov/general/contact_information/senators_cfm.cfm

Come Tell Us Your Modification Horror Stories:
http://www.loanmodman.com

Indymac Class Action Needed?

As anyone who has tried to get assistance on their toxic predatory loan from Indymac knows, since the takeover by two former Goldman Sachs Blue Bloods the bank has been stonewalling and pulling out all the stops to prevent loan modifications.

While under the supervision of Sheila Baird and the FDIC the modification flow was impressive and the corporate philosophy was geared towards actually help the borrowers.


In January 2009, the FDIC sold off the mortgage portfolio to a company called IMB Management Holdings, LP. After the sale Indymac emerged as One West Bank.


The deal included the purchase of $16 Billion in mortgages for $13.9 billion. The Goldman Blue Bloods from Dunes Capital were also able to get some other sweeteners for their efforts $7 Billion in assorted securities and more than 30 banking branches.




This sale is probably one of the most destructive moves against homeowners suffering from the burden of trying to make payments on their predatory subprime loans since the beginning of the mortgage meltdown.

Any homeowners hoping to get help from the "tycoons" who bought this company are in serious trouble.


Now that the robber Barrons from Dunes Capital Dan Neidich and Steve Mnuchin are at the helm they have recruited Terry Laughlin, former Chairman and CEO of Merrill Lynch Bank who masterfully makes public statements loaded with qualifiers such as this one on August 11, 2009: "Going forward, One West will apply HAMP to all of the eligible loans that it owns as well as all eligible loans that it services for third parties".

He didn't tell you that have figured out how to internally tweak the numbers to reduce the number of "eligible" loans.



They have also taken a hard line on telling borrowers looking for assistance that their "investor" doesn't allow for modification.


I am reminded of the scene in the movie Wall Street when Gordon Gecco buys Bluestar Airlines and reveals his plan to crush the union and sell of the pieces. Welcome to a real life version of that story, starring the robber Barrons from Dunes Capital Dan Neidich and Steve Mnuchin.


They purchased Indymac for 40 cents on the dollar, now when they foreclose on a property if they can recover half of the loan amount, they will still make a 20% profit. This is why they are stonewalling, lying to customers and foreclosing on properties faster than bureaucrats waste money.


Immediately after taking over Indymac the corporate raiders at the top instituted a deceptive program where they offered up phony modifications to troubled homeowners.

They duped thousands of homeowners with this scam, the modification terms appeared to be fantastic and the distressed homeowner's believed that they had saved their homes. They signed the documents and sent along the required initial payment. Indymac then cashed the check, and promptly issued denial letters. What a great way to fill the coffers with cash immediately after buying the company.



These guys got a better education at Goldman Sachs than they offer at Harvard Business School.


Suffice it to say that the newly emerged One West Bank does not operate in good faith when borrowers ask for assistance. Instead they use every trick in the book to screw their customers so that the Robber Barrons can continue to Raid the Corporation.


If you are an Indymac customer search for one of the many class actions that are beginning to pop up against Indymac and join the class.
Come Tell Us Your Indymac Horror Stories

How Anyone Can Get A Loan Modification Approved

Hi Homeowners,

Recently I have noticed many posts on forums and blogs regarding loan modifications.

Alot of this information guides distressed borrowers to seek help from HOPE.

There are many organizations out there with the HOPE acronym in their titles. The most popular one is 995 HOPE.

Keep in mind that these organizations are only going to assess your finances and give you some advice. IF THEY think you qualify then they will contact your lender and try to help you get a modification.

I have seen many homeowners who were initially told by these well meaning individuals that they didn't qualify and should short sell their homes. Only to find out later that they indeed could get a loan modification.

Often I see suggestions that recommend an attorney, and if you are facing an imminent foreclosure that is probably the best advise.

A few things to know about modification:

The numbers you send to your bank have to make sense. Write them down on paper and do the math.

If you are not able to demonstrate an ability to make payments AFTER a reasonable modification (5 percent - 6 percent 30 year fixed) you will not get one approved.

Depending upon your lender, there are a number of ways they will work with you. I have personally negotiated with most of the lenders and servicing companies left in the market.

When you call your lender they will offer to send you a package to fill out. Don't be discouraged. If your lender said they were going to send a package, they will and it should take 3 - 5 business days to recieve it. If you haven't received it in a timely manner, follow up by telephone.

Most importantly you can begin to take control right now TODAY. Gather the following:

Last 4 paystubs for everyone in the house who earns money.If you don't have paystubs, you will need a cash letter from the wage earner defining what they take home monthly. (Yes your lender WILL accept this)(It's in their best interest).
2 years W2's for each wage earner in the home.
2 years tax returns
2 months bank statements - (PSST... If you have big bucks in the bank, your modification will not happen!) Your lender will require ALL pages of your statements. If you don't have them, go to your bank and get a 2 month printout, make sure that someone in the branch stamps and signs the printout or your lender may not accept it.

That should be the extent of documents you will need to provide to your lender. (unless you are self employed).

The above documents will be required to be submitted to your lender. Make copies of them now so you are prepared and ahead of the game.

YOU CAN DO THIS!!

Now gather ALL of your bills and make a COMPLETE list of ALL of your monthly expenses, food, transportation, tolls, gasoline, heating bills, electric bills, water bills, trash & sewer bills, car payments, all forms of insurance, child care, tuition, camps & clubs, school lunches, pet food, etc.

Absolutely every dollar you spend needs to be accounted for, lest you underestimate your living costs and negotiate a modification that won't work.

OK... Now your rolling!

Get your totals down on paper and do the math. You may very well be in the red CURRENTLY, but calculate what your new payment would be and do the math again using your new modified payment. If you're above water with the new number you are well on your way to a new life, with one less worry.

If you want more guidance I am here, and would be more than happy to help. I have negotiated MANY, MANY modifications with lenders and know the ropes.

I do not think the average person needs a professional to negotiate a modification, unless the time frame for foreclosure is closing in.

My experience with MOST attorneys is that they are aloof, unreachable, unresponsive and condescending. If you can find one with empathy God bless you, but you don't need a professional to get a modification from your lender.

Note to self and YOU:

If you are in danger of iminent foreclosure then you need an attorney right away.

Get Ready, Get Educated - Get Modified and Get on with your life...

GOOD LUCK!!

Once the income and expense situation is in hand you will need to put together some other info:
Monthly Income & Expense Letter
Hardship Letter
Loan Modification Proposal

There a number of acceptable hardships and you should review them to see which ones apply to your situation.-
Adjustable Rate Mortgage Reset-
Payment Shock-
Death of Spouse of Co-borrower-
Damage to Property (natural disaster or unnatural)-
Divorce-
Failed Business-
Illness-
Job Relocation-
Loss of Job-
Incarceration-
Marital Separation-
Military Duty-
Medical Bills-
Reduced Income-

Your loan modification proposal should lay out concisely each piece of the modification you are requesting, ie; principal balance reduction, interest rate reduction, waiver of fees and penalties, payment deferment or forebearance, and other info.

I have sample proposals, and letters in my book and CD, and have laid this out in explicit detail so that the average person can understand it.
I am not hocking my book, just letting you know that there a number of them out there that can help lead you through the process.

If you are going to attempt this yourself you should get one. Costs for these runs from $40 for e-books up to $395 for kits sent to your home.
Always remember banks do not want to foreclose on your home. They take huge losses on foreclosed properties.

If you are behind on your mortgage, loan modification may be the perfect solution. Many a distressed homeowner have negotiated a loan modification and saved their family home from foreclosure.

You can too!

DAN HARRIS - ALL RIGHTS RESERVED 2008

Dan Harris owns and operates The Home Retention Group, Harris Capital Management and Mobil Settlement, LLC in New York and can provide detailed information on Title Insurance Issues, Mortgage related info, Loan Modification negotiation, New York real Estate and more.

He can be reached at LoanModBook.com , or CashDan.com or TheHomeRetentionGroup.com

Countrywide Admits to Public Relations Lies

In court, Countrywide says its ads are ‘puffery’

Defending lawsuit, mortgage company mocks loan modification assurances

In marketing, advertising and testimony before Congress, Countrywide Home Loans has said repeatedly that it is working hard to modify the mortgages of financially strapped borrowers caught up in the subprime meltdown. But in a New Hampshire court, attorneys for the lending giant are singing a different tune, describing such assurances as “mere commercial puffery.”

Saying the modification offers are “only Countrywide’s vague advertisements,” attorneys for the lender are asking the court to throw out a lawsuit alleging breach of good faith, fraud, negligence and misrepresentation, which was filed on behalf of a family that was refused a loan modification by the California-based company.

This is an unbelievable moment of honesty on the part of Countrywide. I have known for a long time that much of the "media hype" out there regarding what lenders are doing to help at risk borrowers was nothing more than an attempt to garner good favor through their public relations front men. The only way to fix this mess is with a moratorium on foreclosures that would extend for 12 - 18 months. Once that is in place lenders would have no choice but to modify bad loans to get income from these assets.

Stay tuned... More to come

Full article here: http://www.msnbc.msn.com/id/28645505/

Here Comes The Loan Modification Boom

The refinance boom is over and the real estate bubble has popped.


More than 30 million Americans' are upside down in their homes with negative equity.


Formerly hot markets in New York City, Arizona, Washington, D.C., California and Florida are now suffering without buyers or even prospects. Many previously booming markets are seeing double-digit declines in sales. In Florida the drop in home prices is staggering, and this has become ground zero for the real estate bust.


When prices fall, and they certainly have, that's a problem. Nationwide real estate property values have fallen. So properties that people bought at the peak of the market might be 75% of the value they paid, and unless they put at least a 25% down payment into the property, they're "upside down", and owe more than the property is currently worth. Being upside-down is not a big deal if you have a sustainable loan. You just hang on, and eventually things will go back to normal. You simply make payments until the balance goes down, values will go back to at least where they were, and all will be right with the world. When interest rates drop while you're upside down, you're in no position to take advantage of them. After all what lender is going to lend you money if your home is worth less than you owe?



The longest-running home loan refinance boom in the history of the mortgage industry has come to an abrupt end. The dramatic and sudden collapse of the mortgage refinance boom has sent shock waves throughout the mortgage and real estate segment of the Nations' economy. Loan officers are being laid off en mass. Lenders are rethinking their loan product offerings and credit criteria.
The prospects in the housing and mortgage markets for the immediate future are bleak. However, while the outlook for mortgage brokers is expected to decline over the next year or so, people involved in working out loans with loan modifications will definitely hear their phones ring more often.



Bring on the "Loan Modification Boom".
With little chance of refinancing, borrowers and lenders alike have to find a way to make corrections to the millions of bad loans that are on the books. It's the latest craze in the mortgage business. Basically, lenders are undoing everything they did. The mortgage crisis has borrowers and lenders alike trying to renegotiate new terms to correct the problems with these bad loans.



This time you don't need an appraisal, good credit, or equity. You simply need to have a situation in which your current mortgage is unmanageable. Whether it's a hardship that has you behind in payments, or a skyrocketing ARM adjustment that has you behind the 8 ball, all you need is a little bit of knowledge and some persistence and you too can jump onto the loan modification bandwagon.



DAN HARRIS - ALL RIGHTS RESERVED