Mortgage Modification Law – Bankruptcy Law

Quoting from Martin Andelman:

In the next 2-3 years, it is estimated that there will be an additional 14 million foreclosures in this country.  That will make the total roughly 20 million homes lost in this catastrophic recession.

But it won’t stop there. Foreclosures breed foreclosures.  And 20 million foreclosures just means that millions more homeowners will find themselves seriously underwater… owing quite a bit more than their house is worth… and they’ll walk away… just like 18% are doing now.  And that will mean even more foreclosures after that.  And that will mean everyone’s property values continue to fall, which will bring even more foreclosures.

Both President Bush and President Obama have tried to put plans in place to stop the flood of foreclosures… BOTH HAVE FAILED.  Why?  Isn’t it obvious?

The banks cannot be trusted to act in anyone’s interest but their own.  The government has given them hundreds of billions of dollars, after they bankrupted themselves.  And yet, they act as if it’s business as usual.

This year alone, the major banks in this country are paying out $91 BILLION in BONUSES to their executives!

The only answer is to allow judges to modify mortgages for homeowners in bankruptcy court.  Here are a few facts that will show you why this is so important:

1. President Obama’s Making Home Affordable program was designed to work with “a carrot and a stick”.  The “carrot” is the money banks receive when they modify a loan, and the “stick” was supposed to be allowing judges to modify the loans.  Without the “stick,” the plan cannot work.

2. Banks don’t modify their behavior for the same reason I wouldn’t modify my driving habits if there weren’t Highway Patrol officers out there to give me a ticket or take me to jail if I drive 100 miles per hour.  No stick.

3. Allowing judges to modify mortgages in bankruptcy court WILL NOT increase borrowing costs in the future, which is what the banking lobby is saying and wants you to believe.  The amendment only allows judges to modify mortgages that are already in existence when the bill is signed.  It will have NO EFFECT on borrowing in the future whatsoever.  NONE.

4. If we allow judges to modify mortgages on primary residences, chances are they’ll never get the chance… because the banks will modify them… like they’re supposed to.

5. Judges can already modify every other type of loan in bankruptcy court, just not mortgages on primary residences.  Allowing them to do so will help stop the foreclosure crisis that is hurting every homeowner in America… AND IT WON’T COST THE TAXPAYERS A DIME!

Our economy cannot begin to recover until we stabilize the housing market.  We’ve tried letting the banks decide… and look where we are today.

The only people opposed to this amendment are the bankers and financial service companies.  We can’t turn our country over to them, can we?

Click the button below NOW, 24/7.  There is literally NO TIME TO SPARE… You don’t even need to know your representative’s name.  All you need to know is your own name, address, phone and zip code.  The letter is already written for you.  Just enter your information and click the button to send.  It’s that simple and takes less than a minute.  OR YOU CAN CALL 877.354.4958 DURING REGULAR BUSINESS HOURS.

Send your representative an e-mail. It is easy. Click here.

JUST MINUTES AGO…

House Rules Committee agreed to allow the bankruptcy modification amendment THAT WOULD ALLOW JUDGES TO MODIFY MORTGAGES to be considered on the House floor as an amendment to the broader financial services reform bill AS EARLY AS THIS AFTERNOON!!

THIS AMENDMENT IS BEING FIERCELY OPPOSED by the BANKS AND FINANCIAL SERVICES communities and we NEED to get people CALLING in IMMEDIATELY.

PLEASE TAKE TIME NOW TO contact your friends, family and business associates… stop whatever your staff is doing to give them time to call in. Put it on your Facebook pages, on your LinkedIn pages, Twitter it… re-tweet it!  PLEASE DO IT RIGHT NOW!

IT’S SUPER EASY TO DO:

Phone toll free at: 877.354.4958

Put in your zip code

When you reach the receptionist:

1. State your name
2. Say that you are a constituent
3. Ask the Representative to vote FOR the Conyers-Turner-Lofgren amendment (#201) to the Financial Services Reform bill.
4. This amendment will cost taxpayers NOTHING and will save millions of homes from foreclosure.  IT MUST BE CONSIDERED…

IF THE LINE IS CLOSED, BECAUSE CLOSES AT 6:00 PM…

Email your Senators (24/7) using the link below, which will lead you to a sample email that you can edit and personalize.  YOU DON’T EVEN NEED TO KNOW YOUR REP’S NAME… CLICK AND GO!

Email Your Congressional Representative Now

James Robert Deal Mortgage Modification

Philip got behind on his mortgage because his employer cut his hours. He and his wife work for the same nursery and earn only minimum wage.

Philip’s loan was fixed for two years at 7.5%. After that it was adjustable with a rate based on the 6-month LIBOR plus a margin of 5.5 points. Although the 6-month LIBOR is currently down below .5%, it has been as high as 7.0% in 2000. The loan had a cap of 13.5%, and the rate could go that high had it not been modified. That is why I say that having an adjustable rate mortgage is itself a hardship, and that is because although it may not be killing you now, it will kill you in the future.

 Take a look at the modification agreement between US Bank and Philip.

James Robert Deal Mortgage Modification

Tim Geitnner has written the attached letter to the 25 servicers who are participating in HAMP – Home Afffordable Mortgage Program - such as CitiMortgage and Wells Fargo Bank. These servicers receive incentives for doing modifications designed under the Obama Administration’s Making Homes Affordable (MHA) program.
The letter comes after a mid-June cap adjustment on the Treasury’s TARP fund investments to servicers based on actual participation in the modification program. The Treasury reduced the total amount that CitiMortgage can receive and distribute to borrowers for modifications by more than $991m to a total $1.08bn, as a reflection of actual funds usage. Wells Fargo’s total incentive payment amount received more than $462m in reductions to a revised cap of $2.41bn.

The letter illustrates that the government is pressuring lenders to streamline the process. This is encouraging news for those who need modifications.

James Robert Deal Mortgage Modification

Please report to me by e-mail and/or fax any communications you have received from your lenders. When you talk with your lenders, ask for names, phone numbers, fax numbers, e-mail addresses.

If your lender sends you forms to fill out, fill them out and send them to me. Let me review them and send them in on your behalf. If you have already filled out any forms and sent them to your lender, send me copies.

Important: If you have received a Notice of Default or Notice of Trustee Sale, fax, scan, or mail these too me immediately. And call me at 425-771-1110.

If you are behind on your loan, I want you to tell me how much and how many months you are behind.

If you are behind on your loan, I want to know how much you are able to pay on your loan or loans and when you can start paying that amount.

Each month please send me your latest pay stubs, latest bank statements.

If you have not already sent them, then send me your last tax return and W-2s. Lenders sometimes ask to see tax returns, so let’s get them in here so I can provide them immediately when requested.

If you want me to advise you on credit card debt modification, send me copies of all your credit card statements. Yes, credit card debt can be modified too.

James Robert Deal Mortgage Modification

The Obama administration and the banks are badmouthing “third-party modification companies.”The banks will do everything they can to convince you that you do not need representation. They will send forms directly to you without sending courtesy copies to your attorney or your modification company. They may send final settlement proposals directly to you and pretend your attorney or your modification company does not exist. Some lenders bad-mouth “third-party modification companies” in their music-on-hold recordings. Chase says it offers mortgage modification for free and to beware of any company that charges advance fees.

Their purpose is to get you to undermine your relationship with your lawyer or your modification company so they can negotiate directly with you. They know they can cut a better deal dealing directly with you than through your attorney.

Continue reading “Right To Attorney Representation – Mortgage Company Interference” »

James Robert Deal Mortgage Modification

Mortgage Modification Attorney

I practice law in Lynnwood Washington. My law practice is devoted almost exclusively to mortgage workouts. I am also a commercial mortgage broker.

People have a lot of questions about how mortgage modification works, so I have posted this website to try to give the reader as much information as possible.

James Robert Deal Mortgage Modification