The Modification and Foreclosure Scams Continue

Half million dollar house in Salinas, Californ...

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Rocket dockets, changing from a judicial foreclosure state to a non judicial state, denying a defense and lying to the public, that is what our government and our judicial system and the banksters are doing.

The story on modifications is not new.  Read a recent article in the Ft. Lauderdale Sun SentinelLoan modification rules meet with skepticism.

“We need help,” said Steve White, a Tampa homeowner who has been trying to get his loan modified since May. “I can’t get anyone on the phone, and when I do, 10 different people tell me 10 different things.”

The article makes a statement, “”a recent Treasury Department report showing nearly 300,000 homeowners could lose their modified mortgage agreement because paperwork wasn’t turned in or showed they no longer qualified.”  A statement that is untrue and misleading.

As you will see in other quotes in the article, people do send in the requested paperwork and it is always the same.  The bank tells them they never received it – even after people have sent it several times.  A SCAM!

The other statement made is that people were turned down because “they no longer qualify“.  First of all, if they no longer qualify, then they didn’t qualify to begin with so why, WHY play with peoples emotions and lives?  But the truth of the matter is that most people cannot qualify because they don’t have enough income, their house is upside down in value or they find themselves unemployed due to the economic crash caused by the banks who are foreclosing.  THIS IS JUST CRIMINAL!

The government’s program aims to keep more homeowners in their homes, but borrowers and housing counselors say the modification process is as cumbersome as ever. It can take months to get a response from the lender, they say, and lenders routinely misplace paperwork, don’t return calls and don’t explain rejections.

“The government’s program aims to keep more homeowners in their homes.” Sorry, what a crock!  The government uses none of its power to do so.  The programs, like HAMP are simply a joke, especially when the massive problem is taken into consideration.  The government is continuing to allow the transfer of wealth to the “elite” or the “banksters”.  After all, when it came time to bail out “our enemies” those foreclosing on us, the government threw billions/trillions of dollars at them OVERNIGHT.  It didn’t take months or weeks or even days.  It was done IMMEDIATELY!  Just think how all of this money, the 189 billion dollars GIVEN to AIG (another scam now being somewhat investigated but with no hope of criminal action I far) could have worked to help homeowners.

When the government or their Barron’s want help and money THEY GET IT.

“It can take months to get a response from the lender,…”.  It only took 24 to 48 houses for the banks to underwrite the original loan, why so long to in effect re underwrite it?  However, the short underwriting time was due to the fact that they really did not underwirte, they were just in a hurry to give yo the loan so that they could sell it and make huge amounts of money doing so.  I believe they also knew that they would be getting the properties back at some time and make even more huge amounts of money.  But in reality a week or even two weeks is ample time to underwrite a loan or a loan modificaiton.  You either fit the guidelines or you don’t after proper verification.

“…and lenders routinely misplace paperwork, don’t return calls and don’t explain rejections. The key word here is “routinely” misplace paperwork.  How does this happen “routinely”?  What happens to the paperwork and how secure is your private information?

“No one really knows why this happens at banks, whether it’s a book keeping error or it’s intentional to shake down borrowers,” said Shari Olefson, a real estate lawyer with Fowler, White and Boggs, noting that she consistently hears that lenders lose paperwork.

Of course it is intentional. It is not a scattered or isolated incident.  It happens consistently and across the board.

Additionally, not explaining rejections is a violation of the Fair Credit Reporting Act.  You must be given a reason for a credit denial “in writing”.  Applying for a loan modification is a new application for credit the should also follow these rules.  If  you have been denied a modification you should report the bank or most likely the servicing compnay to the FTC’s Consumer Protection Agency as well as to your state’s Attorney General.

What we need is a well managed and united effort by all of us against all of them.  Class action suits, letters to your Attorney General, to your Congressmen and Senators and to the Attorney General of the United States.

One woman has taken action and has started a class action law suit aganst Aurora Loan Services.  Her name is Joy Schmidt.  Her website is United We Stand, Aurora Will Fall. Click the underlined link especially if you are dealing with Aurora.

Others should unite as well.  Those of you dealing with Deutsche Bank, Home Loan Services, LaSalle Bank (now Bank of America), Bank of America, Chase Home Loans, Citi and all the others.  Use this site if you wish to let others know who you are having problems with.  From here, perhaps, you can all join forces.

Helping a homeowner stay in their home is what is needed.  This helps the economy, helps retain values and integrity of neighborhoods.  Fighting against the injustice of the justice system is our Constitutional right.  Having government work for us not against us is our Constitutional right.  Stopping the financial slaughter of Americans – an economic genocide, if you will – is our Constitutional right as well as our human right.

Here are some other quotes taken from the Sun Sentinel article:

Jeffery Feig, of Sarasota, sought a modification for five months and was approved last March. His payment was cut in half, but Bank of America called two months later to say it changed its mind. The only explanation was that he hadn’t sent necessary financial paperwork, something he disputes.

“They wouldn’t have approved me in the first place if they had not received all the paperwork,” Feig said. “Since then, I’ve sent the paperwork again, and my attorney has sent the paperwork. They always say they didn’t receive it.”

In Tampa, Jeff Kops said his lender, also Bank of America, sent him a loan modification packet offering a lower payment. He agreed, sent the paperwork back and started paying the lower amount. But a few months later, the bank said it could no longer honor the modification because of a problem with the notary on the paperwork.

Kops said the lender looked at the paperwork again and offered him a monthly payment that was $500 higher than the previous offer.
We cannot allow this to continue.  As I have always said and maintain, “Right is Right and Wrong is Wrong”.  Let us right the wrongs being perpetrated against us

. Roach tried to modify her loan with Well Fargo last year and said it was a “paperwork nightmare.” She said the bank always ended up misplacing paperwork, requesting more and then denying her requests.

Roach lost her job as a nutritionist and now makes less than half her former salary. Her home is now worth less than half what she paid in 2006. She said she’s depleted her savings and sold some of her belongings to pay mortgage payments.

“I was rejected twice, and I think it’s because I’m not behind on my mortgage,” she said. “I’m being penalized for trying to do the right thing. This is why so many people just walk away.”

Stay focused and stay determined.  “Together We Can Make A Difference”

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