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

New Loan Modification Government Regulations

Recently there have been warnings by many in the government and the media regardiing the services of loan modification companies.

I for one agree that the newest mortgage meltdown crisis has given way to a new group of would be predators. But I differ greatly on how to handle this problem.

It is my opinion that the Federal Government should enact legislation governing the operation of these companies with regards to their ethical and fiduciary responbsibilities, as well as the ability to collect fees.

Instead of restricting the operation of loan modification companies, I believe their work should be encouraged, regulated and monitored.

Due to the stalling and uncooperative nature of MOST lenders and servicers there is a tremendous need and many benefits to having these companies available in the market place today.

Consumers have always benefited from having as many choices as possible in the market when it comes to service providers and I don't believe that this industry should be any different.

Many loan modification companies are run ethically and employ highly experienced finance and real estate professionals with years of banking, loss mitigation and loan workout experience.

If the government is going to get involved in oversight of this new business model, it should do so with an eye towards opening up competition and protecting the consumer simultaneously.

The current RUSH to curtail the operation of such companies will hurt consumers in the long run.

For example the State of Washington DFI has put rules in place as follows: "The Department of Financial Institutions (DFI) has received a number of inquiries regarding the legality of providing this service in this state. While there is nothing inherently illegal about this business, those providing this service in the State of Washington must be licensed as loan originators, mortgage brokers, or consumer loan companies and be overseen by the Department of Financial Institutions."

In other words, you MUST use the services of the same guys who put you in the loan in the 1st place.

Didn't "The Department" have oversight responsibilities on this same group that should have prevented the mortgage meltdown in the 1st place?

Is it me? Or do you also want to climb the mountain and SCREAM - ARE YOU PEOPLE OUT OF YOUR MINDS?

I have a GREAT idea, why don't we have some hearings on the hill that matter. Call in some of the more prominant loan modification, loss mitigation, finance, and real estate experts and figure out how to craft meaningful legislation that will allow loan modification companies to help consumers under the law, with strict oversight.

IndyMac & Citi Blocking Loan Modifications

Real Questions from a distressed homeowner:

Ihave a loan with indy mac, , i also have a second with citi mortg.

Called indy mac in nov, sent paper work to me , it been over a month , i have called and usually on hold for a hour to hour and half. All i want to know if they recieved all my paper work.

Citi morg the same way they never return your calls. I am in such turmoil do not know what to do.

I found a web site for loan mod and i filled out form and they have come out of the wood work. Do i got to an attorney , should i go into default. It seems like everyone i talk to is so disappointed that we are not behind on our payments.

I just need help, it is a big hardship every month, i just wish someone could direct me to someone or someplace to get some real honest answers.

Do i go to a real estate attorney or to a bankruptcy att, any guidance you can give me would be greatly, greatly appreciated.

‘Liar Loans’ Earn Their Nickname

Michael Corkery writes:
The failure of Hope for Homeowners to prevent foreclosures is sparking a blame game in Washington. The Department of Housing and Urban Development, which runs the voluntary program, says Congress made it too restrictive and expensive for homeowners.

Congressional leaders say the program’s failure — only 357 people have signed up since Oct. 1 — shows that lenders aren’t willing to modify loans voluntarily and they need to be forced to do so.
But HUD officials say other problems are hampering the program’s success. In order to refinance through Hope for Homeowners, applicants must certify they did not supply false or misleading information on a previous loan application. The HUD program also requires homeowners to supply two years of financial records.

HUD officials believe that people who used “stated income” mortgages which required no documentation of income, are having a hard time qualifying for Hope for Homeowners because of incorrect information on their previous loans. It might not all be the borrowers fault. In many cases, mortgage brokers and lenders fudged loan applications.

Either way, it appears that stated income mortgages, which are known as “liar loans,” are earning their nickname.

Here’s a list of the government sponsored and voluntary lender foreclosure prevention programs and how they are faring so far.

Wall Street Journal Digital Network, December 31, 2008

People More Hesitant To Buy Foreclosed Homes

Kevin Kingsbury and Dawn Wotapka report:

Foreclosures have long been labeled a bargain hunter’s dream and reducing the swelling count is a key part of housing’s recovery. But a new Harris Interactive survey released Tuesday shows decreased enthusiasm for buying foreclosed properties amid concerns about aspects ranging from hidden costs to falling home values, delivering yet another blow to a crippled sector.

“What’s significant about our findings is that just as the market is being flooded with more foreclosures, homebuyers are more hesitant to buy them,” said Pete Flint, co-founder and chief executive of Trulia.com, a real-estate search engine that released the study with foreclosure tracker RealtyTrac.

The survey shows 47% of adults surveyed, saying in November they would consider purchasing a foreclosed home, down from 54% in April. Meanwhile, 80% now express concern about the negative aspects of buying a foreclosed home, up from 69%.

Buying a foreclosure can be a hassle-filled process. Real-estate agents estimate about half of foreclosed properties to be sold by mortgage companies nationwide have substantial damage, The Journal reported earlier this year.

With each foreclosure costing banks as much as $60,000 in standard expenses — from maintaining the property to paying brokers’ commissions — banks want to unload the homes quickly, with many selling below replacement construction costs.

Buyers’ hesitancy comes as the supply of foreclosures is surging. Barclays Capital recently estimated banks and loan investors owned 871,000 foreclosed homes as of Nov. 1, more than double year-earlier levels, and that inventory could peak around 1.4 million in mid-2010.
Earlier this month, RealtyTrac said that November foreclosure filings — default notices, auction sale notices and bank repossessions — were reported on 259,085 properties, a 7% decrease from the previous month, but a 28% jump from November 2007. The report also showed one in every 488 housing units received a filing in November, with the highest rate seen in Nevada, home to the Las Vegas bubble market.

Various public and private efforts have been undertaken in recent months to stem foreclosures, from increased loan modifications to moratoriums on removing borrowers from their homes. But many modifications are failing, and levels of foreclosed homes are expected to spike early next year as some moratoriums expire. (See Blog entry dated Thursday, December 25, 2008)

Wall Street Journal, Digital Network, December 16, 2008