ModifyLoan.net » mortgage modification

Many say their servicers are not responsive — losing paperwork

admin — Fri, 24 Jul 2009 19:32:07 +0000

CNN – Borrowers and housing counselors, however, have been complaining about the program since it began.

This is the common reoccurring theme that our law firm has experienced since early 2007 when we first started performing loan modification for our clients. If this was easy then we wouldn’t have so many foreclosures and everyone would be getting the help they deserve.

But you and I know that simply is not true.

Mortgage servicers do not have the manpower to handle the volume of delinquent borrowers and thousands of homeowners are simply getting lost in the mayhem. For some of you, hiring an experienced loan modification attorney that can cut through the red tape can be crucial and may make the difference in saving your home.

Maybe the reason you need a lawyer is because you have multiple properties, complex financial situations, do not have the time to do this on your own or have been turned down by your lender. If you want to save your home, walk away or simply be legally protected during the foreclosure process, then you need a lawyer.

If you are someone like in this CNN article below and you are not getting help from lender, please give us a call at (888) 756-2652.

From CNN:

Borrowers and housing counselors, however, have been complaining about the program since it began. Many say their servicers are not responsive — losing paperwork, not returning calls and never making decisions on applications. Some charge that servicers are violating the rules, such as denying modifications to those who are still current with payments.

Slow Start to U.S. Plan for Modifying Mortgages

admin — Thu, 14 May 2009 19:55:01 +0000

The NY Times says Washington is off to a slow start:

So far, two months after the program went into effect, about 55,000 homeowners have been extended loan modification offers, according to a senior administration official. At the same time, foreclosures continue apace. RealtyTrac reported Wednesday that foreclosure filings reached 342,000 last month, up 32 percent from April 2008. Moody’s has estimated that more than 2.1 million homeowners will lose their homes this year.

Because of the size and complexity of the modification program, the administration has only recently assembled most of the pieces. In late April, officials fleshed out their plan to modify or forgive second mortgages — one of the big stumbling blocks in modifying primary mortgages — and provided more details on the Hope for Homeowners program, for borrowers who owe more than their homes are worth. Congress is close to acting on legislation to protect mortgage servicers from potential lawsuits from investors, while also expanding the Federal Housing Administration’s ability to modify loans.

Obama Administration’s Housing Fix

admin — Thu, 14 May 2009 19:52:49 +0000

Treasury Secretary Tim Geithner announces new steps by the Obama Administration aimed at helping troubled homeowners, reports CNBC’s Diana Olick; with Tanya Acker, attorney/Democratic strategist.

Fed Casts Doubt on Govt Mod Push

admin — Wed, 13 May 2009 18:23:37 +0000

The new Federal Reserve paper challenges this conventional wisdom and argues that servicers are not missing sensible opportunities to avoid foreclosure by reducing payments or principal.

The first piece of evidence supporting their claim is that in their sample, among comparable mortgages, loan modifications appear to be equally common among loans held “in portfolio” and loans that are securitized. When banks hold loans in portfolio then property rights reside squarely with the bank and there can be no contracting difficulties. If bondholder suits were really restricting the modification of securitized loans, then there should be fewer modifications of such loans, but the rate of modification is roughly the same.

Senate Passes Loan Modification Bill

admin — Fri, 08 May 2009 16:02:24 +0000

The US Senate on Wednesday passed legislation that seeks to prop up the housing market by giving mortgage servicers freedom to modify problem home loans without fear of investor lawsuits.

The bill also revamps the Hope for Homeowners programme aimed at helping borrowers remortgage and raises the Federal Deposit Insurance Corporation’s coverage on individual bank accounts and its ability to borrow from the Treasury. It also strengthens the terms of the Troubled Asset Relief Program.

The House of Representatives has already passed its version of the legislation and the Senate tried to tailor its bill, which passed 91-5, so the two could be easily reconciled. The legislation protects servicers from lawsuits filed by mortgage bond investors when they modify loans under government anti-foreclosure initiatives.

2nd loan modifications and the OBAMA PLAN

Nathan Fransen Esq. — Wed, 29 Apr 2009 13:42:55 +0000

Well today the news broke about President Obama ‘s new new stimulus plan, or as they put it his “expansion” to the foreclosure prevention program. Previously the President and all the supporting cast lined up to explain how with $75 billion, the housing crisis could be solved. Lenders would modify loans in mass and borrowers would finally get the relief they need. Fast-forward a couple months and now we are seeing lenders continuing their reluctance with a few bright spot exceptions.

The “expansion” deals with second mortgages. The lenders prompted by the first go round had a valid point. “Why should we modify our loan, when the 2nd gets to sit back and collect their full payment, often at a higher interest rate.” This argument won favor with Washington, and now the President is doing the following:

·         For 2nds that are principal and interest loans, the interest rate will be 1%
·         For 2nds that are interest only, the interest rate will be 2%
·         2nd lenders that extinguish their lien entirely will get 3 cents on the dollar if the borrower is more than 6 months delinquent and 4-12 cents for borrowers that are less delinquent
·         The Government will pay the servicers $500 for each loan modification and $250/yr for three years if the borrower stays current
·         The Government will pay the homeowner $250/yr for five years to pay down their first mortgage

The servicers that participate in this program must modify the loan if and when the first modifies. They expect it will take about a month to implement the program. Overall this definitely has the makings of a plan that will help homeowners, but the question is how many homeowners?

Banking Department Takes Action Against Mortgage Modification Companies

admin — Thu, 23 Apr 2009 22:37:07 +0000

Companies ordered to stop unlicensed activity in Pennsylvania
HARRISBURG, Pa., April 22 /PRNewswire-USNewswire/ — The Department of Banking recently ordered four out-of-state mortgage modification companies to stop engaging in unlicensed activity in Pennsylvania.
The department issued cease and desist orders against Consumer Loan Modification of Arizona and U.S. Settlement Services of Florida on April 10 and Federal Loan Modification Law Center LLC of California on April 14. All three companies advertise on their Web sites to refinance mortgage loans in Pennsylvania when they are not licensed to do so. The companies must comply with the orders or file appeals by the end of April.
The department also entered into a consent agreement and order with Nationwide Foreclosure Prevention Center, LLC of New Jersey and its owner, Robert P. Valentin, to stop doing business in Pennsylvania. The company was fined $2,000. Valentin is prohibited from engaging in the mortgage business in Pennsylvania for five years and must refund fees that he collected from Pennsylvania consumers within 90 days. The department also cited Valentin for unlicensed activity in 2008 under the name Justice Mortgage.
The Department of Banking reminds homeowners that they can receive free help from a certified housing counseling agency by contacting the Pennsylvania Housing Finance Agency at 1-800-822-1174 or www.phfa.org. Homeowners can also speak directly with their loan servicer to discuss options to avoid foreclosure.
EDITOR’S NOTE: Copies of the enforcement actions for Consumer Loan Modification, U.S. Settlement Services, Federal Loan Modification Law Center LLC and Robert P. Valentin and Nationwide Foreclosure Prevention Center, LLC are available at www.banking.state.pa.us.
The mission of the Department of Banking is to protect the public from financial abuse, promote financial education, ensure the safety and soundness of depository institutions and foster a strong economy for all Pennsylvanians. The Department reminds parents that children should know the difference between wants and needs. Kids may “want” many things, but “need” far less.
CONTACT: Ed Novak, (717) 783-4721

SOURCE Pennsylvania Department of Banking

Ocwen begins loan modifications under Treasury plan

admin — Tue, 14 Apr 2009 18:25:55 +0000

Ocwen Financial Corp., a servicer of subprime mortgages, is among the first mortgage servicers to begin modifying loans under the U.S. Department of the Treasury’s Home Affordable Modification Program.

The program, unveiled last month, allows at-risk borrowers to reduce their monthly mortgage payments in an effort to keep them from losing their homes. It creates a $75 billion loan modification program that would allow “responsible homeowners” to refinance to interest rates as low as 2 percent.

“We were well positioned for a vigorous launch of this new government program. Since the outset of the mortgage crisis, we have increased key staffing by over 65 percent,” Ocwen Chairman William C. Erbey said in a news release. “Our modification processes required very little tweaking to comply with program guidelines.”

For a loan modification, lenders would have to reduce the mortgage payments to no more than 38 percent of the borrower’s income. The Treasury Department would share the cost for lenders to cut that debt-to-income ratio to 31 percent.

Loans could be extended to up to 40 years.

Modifying loans may not stem foreclosures: Boston Fed

admin — Mon, 13 Apr 2009 23:10:02 +0000

NEW YORK (Reuters) – Unemployment is a bigger reason for missed mortgage payments than high interest rates, according to a study from the Boston Federal Reserve that raises questions about President Barack Obama’s plan to stem foreclosures by modifying loans.

Borrowers are more likely to default on their payments because they have lost their jobs or because the price of their homes has plummeted than because of tough terms on their mortgages, the study found.

Loan modifications are not necessarily a better deal for investors either, wrote Boston Fed economists Christopher Foote and Paul Willen, Atlanta Fed economist Kristopher Gerardi and Lorenz Goette, a professor at the University of Geneva.

Their research found that policies that directly help homeowners overcome setbacks such as losing their jobs may be more effective in combating foreclosures.

JPMorgan Uses Unique Strategy To Reach Troubled Borrowers

admin — Mon, 13 Apr 2009 23:04:02 +0000

JPMorgan Chase & Co. (JPM), trying to show its gentle side to troubled homeowners, is offering them rare face-to-face counseling from trained advisors in 24 “homeownership” centers around the country.

The initiative is partly to counter the allegation that lenders give short shrift to such borrowers. At a recent congressional hearing, banks were criticized for funneling struggling homeowners to call centers, where service was poor and waits were long.

JPMorgan also hopes the strategy will help get around one of the biggest obstacles to loan modifications: distressed borrowers’ reluctance to contact their lender in the first place.

“It’s a visible and understandable sign to consumers that we want to talk to you about your mortgage if you are struggling,” Thomas Kelly, a JPMorgan spokesman, said.

JPMorgan is alone among major mortgage servicers to open such walk-in centers, though many have boosted staff to assist borrowers over the phone. Its 24 centers have been opened in areas hard-hit by the housing bust, including nine in California and five in Florida. Others are in the New York City area as well as Phoenix, Denver, Atlanta, Chicago, Detroit Las Vegas, Philadelphia and Washington, D.C.