Loan Modification Programs Broken. Crippled by Lax Oversight and Bank Control

by Kiel and Olga Pierce, ProPublica With millions of homeowners still struggling to stay in their homes, the Obama administration’s $75 billion foreclosure prevention program has been weakened, perhaps fatally, by lax oversight and a posture of cooperation–rather than enforcement–with the nation’s biggest banks. Those banks, Bank of America, Wells Fargo, JPMorgan Chase, and Citibank, … Read more

My Husband and I Bought a Condo in Los Angeles in 2007 with 100% Financing. (Oh, No!) – Beatrice

Beatrice “Dear Steve, My Husband and I bought a Condo in Los Angeles in March 2007. Terms were 80/20 loans each interest only for first 10 years. We did not put any money down. The value of our Condo has dropped more than 100k (per comparables mainly of short sales in the same building(yes, there … Read more

Tips for Getting Loan Modifications for FREE

by Srinivas Rao, ProPublica ProPublica asked a simple question of more than 700 homeowners dealing with the administration’s mortgage modification program: Knowing what you know now, what tips would you give someone who’s struggling with a mortgage payment?Their advice: Get help, stay organized, and don’t give up. In total, 718 homeowners, all of whom applied … Read more

Mortgage Loan Modification Problems. Delayed then Denied, Often Mistakenly

Loan Mod Profiles: Delayed then Denied, Often Mistakenly by Karen Weise ProPublica, Today, 10:09 a.m. Download the audio. Listen to David Moe talk about trying to get a loan mod. Retired pastor David Moe describes the process of trying to get a loan modification — only to be denied after more than a year — … Read more

New York Jumps Ahead With Law Making Mortgage Companies Accountable on Loan Mods

by Paul Kiel ProPublica, 48 minutes ago New York regulators have crafted new laws to give the state authority to punish mortgage servicers — something the Treasury Department, in administering its struggling mortgage modification program, has so far failed to do. The new rules set clear standards for how servicers must handle homeowners seeking a … Read more

Loan Modification Program Still Limping Along

New data released Monday by the Treasury Department shows continued delays and disappointment faced by homeowners in the administration’s mortgage modification program. 190,000 homeowners remain stuck in trial mods that have lasted over six months, still waiting to hear whether they’ll receive a permanent modification. Most of those homeowners will likely be dropped from the … Read more

Loan Mods With Chase Going Nowhere Fast

The new data the Treasury Department released show a number of problems with the mortgage modification program. But JPMorgan Chase leads the pack when it comes to those stuck in loan mod limbo. JPMorgan Chase, the data show, has the most homeowners waiting more than six months for a final answer on whether they’ll get … Read more

Trail Loan Modifications Trash Credit Report and Credit Score

Carolyn Said of the San Francisco Chronicle wrote an excellent article “Loan modifications often damage credit scores” that covers the reality of the damage that occurs to credit from a loan modification. Here are some excerpts. You should read the full article for more information “Struggling homeowners who get a loan modification to reduce their … Read more

Foreclosure and Loan Modification Consultants Get Jail Time

In a clear “warning shot” to unscrupulous loan-modification consultants, California Attorney General Edmund G. Brown Jr. today announced that two women have each been sentenced to one year in jail and ordered to repay dozens of homeowners who were charged thousands of dollars in up-front fees for non-existent foreclosure-relief services. Marianne Curtis, 69, of Costa … Read more

Loan Modification Scams, “There should be a special place in hell for people who prey on people who are down to their last dollar”

The Providence Journal had a great article on mortgage loan modification scams. Here is an excerpt. “Richard Godfrey, executive director of Rhode Island Housing, said that Rhode Island, which has been experiencing “800 foreclosures a month, virtually for two years, unabated,” has been fertile ground for loan-modification scam operators. Typically, scam artists charge up-front fees, … Read more

How Can I Qualify for a Loan Modification Program if the Home is Not in My Name? – April

“Dear Steve, My credit score was too low so my mom decided to help me with my first condo. She took a loan under her name since I could not qualify, but I had been making the mortgage payments ever since. Our names are both on the property title but the loan is only under … Read more

Ohio AG Goes after Barclays Capital Real Estate, HomeEq Services for Unfair Loan Modifications

The Ohio Attorney general has gone after Barclays Capital Real Estate operating under HomeEQ Servicing for several issues but one of them was an attempt to get Ohio consumers seeking loan modifications to sign agreements that included provisions for the borrower to: Waive all defenses, claims or offsets with respect to the unpaid principal balance … Read more

I Was Thinking About Bankruptcy. Would This Have An Effect On My Loan Modification? – Tim

“Dear Steve, I have worked in auto sales for the last ten years and things have really gone down hill over the last few years. I was just let go at the begging of Feb. and have been collecting unemployment. I’m two payments behind on my mortgage and have a huge amount of credit card … Read more

Bank of America is Dragging Their Feet on My Loan Modification and Citibank is Suing Me. – Angela

“Dear Steve, I have been trying to work out a loan modification with my lender Bank of America for several months now. Bank of America granted me a 3 month forbearance to allow me to repair my home from Hurricane Ike damages. During that time, they asked me if I wanted to attempt a loan … Read more

Loan Modifications. More PR Than ER. 57% of Monthly Payments in Modified Loans Are the Same or Higher.

According to a recent study of loans that were modified by lenders, only 29% of loan modifications made at the end of last year actually reduced borrowers’ payments by more than 10 percent. Now this is a good news, bad news story. The good news is that some loans did receive some needed modifications. The … Read more