Links-Docs

February 2nd, 2012 Leave a comment Go to comments

#A

Attorney Generals’ Proposed Settlement

#B

Bad Faith Acts

Banks are trying to prevent their clients from utilizing the services of modification companies and modification attorneys. This is a bad faith act on their part. Read what Martin Andelman has to say about this on page 16 of the May edition of The Niche Report.

And that’s not all. Wells Fargo was cutting off mortgage modification companies from taking credit cards in payment for their services and putting them on a negative list which is circulated to other banks.

Bailout Tally Report

Bank of America

Bank of America modification.
See an example of a Bank of America mod.

#C

Cram Downs

Call or write your representative: Give bankruptcy judges the power to write down (cram down) mortgage balances. December 10, 2009.

Congress is debating whether to allow judges to cram down mortgages, meaning to reduce the balance owing to the value of the property. Read this report by Martin Andelman. December 8, 2009.

#G

Glossary A glossary of mortgage terms and teminology.

Guidelines
New guidelines effective June 1, 2010
, clarify many modification issues.

First, lenders may but are not required to reduce principal balances in a modification down to 115% of the principal balance owing.

Second, lenders may not foreclose on a borrower who is in the process of modification until after the borrower is declined and other options have been considered.

Third, a borrower in bankruptcy may proceed with a modification.

Fourth, unemployed borrowers can have up to six months of reduced payments will seeking new employment.

There are many other points these guidelines clarify. Read them here or here.

Read Supplemental Directive 10-02 here, which prohibits foreclosure during the 30-day period following a modification turn down and requires that borrowers in bankruptcy be considered for modification.

Read the Making Home Affordable Handbook, version 3.0, issued December 10, 2010.

Read the Dodd-Frank Supplemental Directive, February 17, 2011.

Read all HUD letters here.

#H

HAMP – Making Home Affordable

A federal district court judge in Southern California says that HAMP is enforceable and not just voluntary and that borrowers are third-party beneficiaries of the contract between HUD and the lenders.

#I
Independent Foreclosure Review

#L

Lender Lookup

You can look up your lender and find out if it has signed up with the Feds and is cooperating with the Making Home Affordable program.

You can look up your property and find out if your loan is owned by Fannie Mae.

You can look up your property and find out if your loan is owned by Freddie Mac.

Lost Note Defense

A New York judge expunged a borrower’s mortgage debt when the loan servicer could not prove who owned it.

#M
Mortgagee Letters

#P

Principal Reductions

FDIC Chair Says Banks That Have Loss-Sharing Agreements With FDIC Should Lower Principal Balances As Part of Modification. December 9, 2009.

 


#R

There are complications in buying a bank owned REO property or a short sale property.

#S

Strategic Default

Brent T. White – Underwater and Not Walking Away: Shame, Fear and the Social Management of the Housing Crisis



More Links:

Housing Fix’s Challenge: Making Modified Loans Attractive, Wall Street Journal, 2-18-9

Distressed Homeowners Get New Options in Plan, Wall Street Journal, 2-18-9

The Compliance Examination Handbook used by bank examiners

The long list of disclosures which lenders must give borrowers.

California law, California Civil Code 2923.6, sets a policy that a lender must accept a modification proposed by a borrower if the lender would make more money or lose less money under the modification proposed than the lender would lose if the lender foreclosed. Washington does not have such a law at this time, but Washington often models its laws after California’s. Also the California statute has persuasive precendent. It is not clear just how binding this statute will turn out to be when it is tested in court.

Lenders which are subject to the Home Affordable Program guidelines are subject to a similar requirement:

An NPV Test will be required on each loan that is in Imminent Default or is at least 60 days delinquent under the MBA delinquency calculation. This NPV test will compare the net present value (NPV) of cash flows expected from a modification to the net present value of cash flows expected in the absence of modification. If the NPV of the modification scenario is greater, the NPV result is deemed positive, and the servicer must modify the loan (absent fraud, etc.) However, an “NPV positive” result is not necessary to qualify a loan for a Home Affordable Modification and the associated lender/investor, servicer, and borrower payments.

A humorous and fairly accurate slide show about how we got into this subprime mess

In too many cases, lenders are not cooperating with mortgage modification. This is another reason why borrowers need representation.

Banks are foreclosing, evicting the owners, and then walking away from the property.

Feds to Offer Easier Aid, Incentives for Modifications and Short Sales, October 13, 2009

How solvent is your state’s unemployment insurance fund?The FED paid off  holders of AIG’s credit default swap obligations at 100% of face value, when any knucklehead could have gotten a big discount. AIG was insolvent.

IndyMac, bought up for 20 cents on the dollar by One West Bank is one of the more incompetent banks out there when it comes to modifications.

The extent of the bank bailout is enormous.

Foreclosures are up in Washington state.

More lawyers are getting involvd in doing loan modifications.

Banks are engaging in sleazy modification behavior.

Banks are getting billions, but homeowners are still in trouble.

Banks do not really want to do modifications. Banks do not want you to hire an attorney.

Fannie Mae is foreclosing and then renting the property to some former owners.

Commercial loans are coming due; property values have dropped.

Are Loan Modification Programs Working?

http://nomiprins.squarespace.com/storage/bailouttallyoct2010.pdf
  1. Wayne
    October 29th, 2009 at 13:06 | #1

    I’d llike info about modification of my mortgage. I have a co-signer on the loan. Does this affect modification? I am current on loan with Ocwen but my loan and home association fee is over 50% of take home pay.

    Thanks

    Ps what are your fees

  2. December 3rd, 2009 at 12:17 | #2

    Having a “co-signer” on your loan should not prevent you from obtaining a modification if you otherwise qualify. Ocwen has signed onto the Making Home Affordable program. Your payment, including principal, interest, taxes, insurance, and home owner association dues, should be modifiable. Your payment for PITI and HOA should be no more than 31% of gross income, not take-home pay. Most “co-signers” are really co-owners. Does this co-signer have income? Probably your income and the income of the “co-signer” would be added together and then multiplied by 31% to determine what your total payment should be. If your “co-signer” has moved out and has not contributed to payments, it might be possible to have the “co-signer” income not counted as part of total income. Modification is sometimes very easy and sometimes very complex. My fee is 1.0% of your loan balance or $3,500, whichever is less. I accept credit cards in payment. Feel free to call.

  3. Keith
    February 8th, 2011 at 21:57 | #3

    My father and I co-signed a loan together on a home. My girlfriend used to live with me and she supplied half of the income for the mortgage. Now she is moved out and I am left with the whole mortgage. I want to apply for HAMP but I am concerned my income is too little to be considered for HAMP alone. Would they use my father’s income in the HAMP process even though he does not live there? Also, how much do you charge to get me through the whole process?

  4. jamesrobertdeal
    February 8th, 2011 at 22:36 | #4

    Because your father is on the loan, you should be able to use his income, even though he does not live with you. Under the new FTC regulations, I can help you only if you are in Washington, the only exception being that I can work for borrowers in other states if they have a sponsoring attorney. You can probably find an attorney in your home state who has modification experience. My typical fee is $3,500 paid at the beginning of the process or over the first two or three months. We accept credit cards, but we add 3.0%. We then charge a bonus upon completion, around 3.0% of what we save you during the firsts five years of your modified loan. Some clients save $50,000 to $100,000 just over the first five years, not counting what they save over the life of the loan. Feel free to call us at 425-771-1110.

  5. Reza Alaie
    February 14th, 2011 at 12:03 | #5

    I was interviewed by your Rep. (Mr. Kevin Foster) on Jan. 20 2011.
    He asked me to fax him some documents.
    the fax. # he gave me is;
    866-649-9743
    But this is a phon number to SUNTRUST Bank.
    He gave also gave mne a phone number that I am unable to talk to anyone.
    please email me (rezaralaie@aol.com), a good fax # for LBPS. Loan Modification Department.
    .

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