Mortgage Loan Modification

Mortgage Loan Modification – What?

In Rialto, California, a Wells Fargo & Co. customer, Richard Cormier, made 8 mortgage payments on a trial mortgage loan modification and on Oct. 12 they told him his home was going to be auctioned at the end of the month. Why? Wells Fargo & Co. informed him that there was some paperwork not in his file. Can’t believe that?  Well, you’d better, because this happens all too often with mortgage loan modification paperwork.

Richard stated, “Every time I try to do something they ask, it’s never right”.

Mortgage Loan Modification – Hopeful News For Some?

A spokesperson from Wells Fargo, which is the largest mortgage lender in the U.S., said the mortgage loan modification will be approved.  The Hopeful News, if you want to call it that, is that as of June, according to Tom Goyda, a company spokesperson, Wells Fargo has started to designate one employee to take care of a mortgage loan modification from beginning to end. Goyda said this was implemented so that a homeowner “knows who they’re working with”.

Under HAMP guidelines, a final sale for a foreclosure is banned until 30 days after a homeowner has received rejection notification. The foreclosure sale can’t happen until servicers provide foreclosure attorneys with written certification that all mortgage loan modification efforts have been implemented.

Mortgage Loan Modification Nightmare

Bank of America’s Bauwens said in an e-mailed statement , “Our normal policy is to continue with the foreclosure process while we review a customer for a loan modification,” and also stated “If we have not finished our review, we will postpone the foreclosure sale automatically.”   However, wouldn’t you agree that the foreclosure process should be stopped when someone is applying for a mortgage loan modificaton?

It can take as long as nine months for many lenders to approve a mortgage loan modification, something that shouldn’t take more than 45 minutes, said Rick Rogers, who is an attorney in Bannockburn, Illinois, who represents homeowners.

“Lenders are overwhelmed,” was said in an interview with Nathalie Martin, a professor at the University of New Mexico School of Law. “A lender is duty-bound to hire enough people to be able to service their loans.”

I offer a Free – No Obligation Consultation And Preliminary Audit of your mortgage loan modification or other situation as a first step to getting you help to stop foreclosure.

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Mortgage Loan Modification – Are You On That Merry-Go-Round?Mortgage Loan Modification

Loan Modifications

Loan Modifications – I Wouldn’t Do It

As a result of loan modifications, there are a number of federal lawsuits filed in Boston accusing major lenders of breach of contract under the government’s Home Affordable Modification Program, where these banks agreed to participate as part of the bank bailout.

The lawsuits state the banks agreed under HAMP to give permanent mortgage loan modifications to borrowers that make all payments during the trial loan modifications process.

Shennan Alexandra Kavanagh, an attorney, stated that several of the plaintiffs have lost homes after their loan modifications payment went back to their original amount that they were unable to pay in the first place. She said she believes that tons of borrowers in Massachusetts alone could be covered by the suits if they are given class-action status.

Kavanagh said a lawsuit was consolidated this month, against Bank of America Corp., that had similar complaints in five other states regarding the loan modifications process.

In an email, Shirley Norton a Bank of America spokeswoman, said that B of A will continue to aggressively defend itself against the cases.

Needless to say, additional lawsuits have been filed against other lenders elsewhere in the country that have offered loan modifications.

Are Loan Modifications – Big Business?

In San Francisco, the Housing and Economic Rights Advocates legal services group sued Chase. The orginization accused Chase of profiting from collecting payments during long trial loan modifications that wound up in foreclosure.

“They’re participating in the crisis they had helped to foment by refusing to honor loan modifications they had already agreed to,” said attorney James C. Sturdevant.

A professor at Louisiana State University’s school of business, Joseph R. Mason, which has extensively written on the subprime lending fiasco, said he thinks the problems from loan modifications are a legacy of the federal government’s rush to stop the flow of foreclosures prior to having proper plans in place.

“These policymakers said, just go out and do this.. let us worry about the details,” he said. “These details are now what are coming to the fore in these modification cases.”

Loan Modifications – Process Error?

Laurie Maggiano, policy director at the Treasury Department’s Homeownership Preservation Office, said the lending institutions were encouraged to offer trial loan modifications based on interviews with homeowners about their incomes and expenses while they went through the paperwork to qualify for permanently reduced mortgage payments.

Maggiano said that the banks were under no obligation to grant permanent loan modifications until this June, which is when new regulations stopped loan servicers from offering the trials based on stated income.

Now incomes and other details are being completely verified prior to the trial periods, and borrowers are preapproved for permanent loan modifications as long as they make three trial period payments, she said.

I offer a Free – No Obligation Consultation And Preliminary Audit of your mortgage situation as a first step to getting you non-attorney help to stop foreclosure.

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Loan Modifications

Do They Really Help? Loan Modifications

Loan Modification – Can Be A Nightmare

Loan Modification

According to a recent posting on Bloomberg, Richard Neiman, the New York State superintendent of banks stated that mortgage companies make the loan modification problem worse because they actually lose paperwork. The California Reinvestment Coalition found in a survey they conducted of 40 counselors that represent around 14,000 homeowners, these counselors all said servicers had either ignored or even lost loan modification paperwork.

Regarding loan modification paperwork being lost, Joe Ridout, a spokesperson for ConsumerLoan Modification Action, an advocacy and education group based in San Francisco said, “It’s more common to hear that banks have lost paperwork than to hear that they received it and properly handled it”.

This sloppy and uncaring practice leaves HAMP participants open to the foreclosure nightmare, which has been further scrutinized by allegations of ‘robo- signing’.  ‘Robo-signing’ is a process which mortgage companies signed and submitted court documents to justify the seizures of homes without verifying these documents were properly compiled and accurate.

Loan Modification To Lower Mortgage Payments

A HAMP loan modification is designed to lower mortgage payments to 31 percent of a borrower’s monthly gross income. This loan modification process often ends up in a bigger mortgage as accrued interest and additional charges are added onto the balance. Some HAMP loan modifications even add balloon payments to the loan that are must be paid when a house is sold or the mortgage paid off.

Loan Modification Programs Performing – Really?

According to a phone interview the loan modification program, Andrea Risotto, a spokesperson for the Treasure said, “The program continues to perform well,” she also stated “The target of affordability that HAMP put in place – this idea of 31 percent debt to income — which was far more aggressive than what was done historically, is helping homeowners sustain the modification over time,” but this does not take into consideration the many people that report having been put into foreclosure as a result of this HAMP process, discussed in other articles on this site and other sites.

I offer a Free – No Obligation Consultation And Preliminary Audit-review of your loan modification/mortgage situation as a first step to getting you help to stop foreclosure.

Call (888) 819-6554 or fill out the Stop Foreclosure Help email form,

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Thinking About A Loan Modification – BE AWARE!

Mortgage Modifications Lead To Foreclosure

Mortgage Modifications Don’t Help

Mortgage modifications didn’t help three year old Anthony, who often tells his mom Jill G., of Mesquite, Texas before he goes to bed: “I wanna go to the other house.”

Jill, Anthony and their dog, Tiffy a black Lab-mix, moved approx 12 miles to a rental after their home in Garland was auctioned away in a foreclosure auction.  Jill tried, for close to a year, to get one of those mortgage modifications, only to have the rug pulled out because the approval was then rescinded.  Bank of America Corp. said Jill had missing documents  — papers that Jill said she sent.

Based on information from groups that help homeowners that have used mortgage modifications program, Jill’s ordeal has been repeated thousands of times.  According to them, innocent hardworking homeowners still get evicted while participating in mortgage modifications specifically created to avoid foreclosures. The Home Affordable Modification Program was the target of hearings recently held for “trial” mortgage modifications that permitted debts to pile up and paperwork to ‘go missing’, which resulted in the seizure of homes.

Regarding Mortgage Modifications

Regarding mortgage modifications, Julia Gordon, senior policy counsel at the Center for Responsible Lending, in her Oct. 27 Congressional testimony stated, “Many homeowners end up facing foreclosure solely on the basis of the arrears accumulated during a trial modification,” she also said, “One incomplete payment or one accounting mistake can land you on an apparently unstoppable conveyor belt to eviction.”

Mortgage ModificationsAround one-half of the 1.4 million temporary or “trial” mortgage modifications granted since the  inception in March 2009 of the program have been canceled, based on U.S. Treasury Department information. Less than 470,000 homeowners have gotten permanent mortgage modifications. A staggering figure is approx one in five of the canceled mortgage modifications is either in bankruptcy or foreclosure, according to a Treasury survey of the nation’s eighth biggest mortgage loan servicers, which handle billing, collections and foreclosures.

Shocking Info On Mortgage Modifications

Shockingly, even homeowners that do get approved for mortgage modifications and never miss a payment can still end up in foreclosure, the Office of the Special Inspector General for the Troubled Asset Relief Program, stated in an Oct. 26 report given to Congress. This report said, “They may face back payments, penalties and even late fees that suddenly become due on their ‘modified’ mortgages and that they are unable to pay, thus resulting in the very loss of their homes that HAMP is meant to prevent,”.

I offer a Free – No Obligation Consultation And Preliminary Audit of your mortgage modifications / situation as a first step to getting you help to stop foreclosure.

Call (888) 819-6554 or fill out the Stop Foreclosure Help email form,

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Mortgage Modifications Has Lead To Foreclosure – Don’t Let This Happen To You!

Loan Modification

Loan Modification – Does It Really Work?

Recently in a hearing, called by the bipartisan Congressional Oversight Panel, which was given the responsibility of monitoring the government’s foreclosure bailout programs, the panel members pounded the Treasury Department for the shortcomings in its mortgage loan modification process.  This hearing came only days after a report issued from the inspector general showed the agency’s efforts didn’t have clear benchmarks and fell horribly short of its original goals.

Despite early expectations that the Home Affordable Modification Program would assist millions of troubled Americans rework their loans and keep their homes, the loan modification program thus far has resulted in fewer than 500,000 permanent loan modifications. While this is significant, it pales when compared with the more than 7 million homes facing foreclosure.

Loan Modification Program – Falling Painfully Short Of Expectations

Panel member Richard Neiman, superintendent of banks for the state of New York, stated the loan modification program has “fallen far short of our hopes.” J. Mark McWatters, another panel member, an attorney and accountant, said the administration had “failed to provide meaningful relief to distressed homeowners” and that its original projections had generated false hopes and expectations in that the loan modification program would help far more homeowners.Loan Modification

Phyllis Caldwell, head of the Treasury Department’s homeownership preservation office, took up for the Obama administration efforts, saying that the impact of its foreclosure mitigation programs should not be judged by the number of permanent loan modifications alone.

Loan Modification – Trial Program

She said a trial loan modification – which consists of three months of reduced mortgage payments – have given families desperately needed time and space, even if they don’t become permanent. She also said the Treasury Department is changing and expanding the loan modification programs in hopes of reaching more troubled homeowners.

Maybe you’ve tried a loan modification and it hasn’t helped. I offer a Free – No Obligation Consultation And Preliminary Audit of your mortgage situation as a first step to getting you help to stop foreclosure. Call (888) 819-6554 or fill out the Stop Foreclosure Help email form,

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Loan Modification – is it worth the trouble?

Loan Modification Failures Get Help

Loan Modification – Is It Worth Trying?

A year and half ago, the government launched a loan modification program to help homeowners. The federal government’s loan modification program is unfortunately not helping as many homeowneloan modificationrs facing foreclosure as hoped for.

Of the Phoenix area borrowers that hoped to lower their monthly payments through the Home Affordable Mortgage Program in April, over half, left the program by the end of July and they didn’t have their payments permanently lowered through the loan modification program.

Loan Modification – Good News

Good news is that some of these borrowers actually did receive help from other programs that were available; however, in my opinion, not nearly enough have been helped and way too many have lost and are still losing their homes.

Loan Modification – Bad News

Bad news is that far too many other homeowners were denied a permanent loan modification after making several months of “trial” payments and have lost their homes to foreclosure.

Some housing advocates have said that too many homeowners were strung along with a trial loan modification through the federal government’s program, known as HAMP, when the lender knew a foreclosure was not going to be avoided.

Lenders defend the trial loan modification, by saying they didn’t know all of the rules for the new federal program, so they placed a lot of homeowners in a  temporary loan modification to help them avoid inevitable foreclosure. I guess it  could be true they did not know the rules, but I doubt it, it’s their job to know the rules.

Now, it is quite possible a number of homeowners just didn’t meet the program’s complex and burdensome requirements, even though they had been approved for a trial loan modification.

Loan Modification – It’s Not Possible To Know -Yet

It’s impossible to know why so many homeowners were and still are being denied a permanent loan modification because lenders simply won’t comment on specific cases, and the Treasury Department hasn’t released a list of borrowers who had their trial loan modification canceled.
Don’t let this happen to you. I offer a Free – No Obligation Consultation And Audit of your mortgage situation.

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Loan modification – Do or DON’T?

Loan Modification Gone BAD! Ends in Foreclosure Filing

Loan Modification – Alright Things Are Going Great

According to reports, to Feliciano Mendez’ delight, Bank of America sent him a letter stating that his loan modification was approved.  Of course, he began making payments, as this was most certainly a great relief to he and his family.  Like many other hard working Americans, he ran into financial hard times because of a decline in his trucking business.

Feliciano stated that he begged the bank to work with him. Bank of America sent him a loan modification that looked good, so he signed it and sent it back to them.

Loan Modification Docs Again?

Sometime later, Bank of America sent him a second loan modification document. It looked just the same to him and he says his loan officer assured him that it was simply a duplicate loan modification and therefore, he didn’t need to sign it if he had already signed the first loan modification.

loan modificationWell for the next nine months, Feliciano Mendez paid the loan modification amount with a money order, as the bank had directed.

Loan Modification Ends in Foreclosure Anyway – What??

He then called in May, asking whether he could start paying the loan modification with personal checks instead the money orders he was sending. Mendez says that the bank informed him it had decided to foreclose on his home and had already posted a sale date of June 10.

Needless to say Mendez said he and his wife were shocked when he was found out about the bank’s decision.  Actually his wife took it harder then he did.

Even today, he said, his wife loses sleep, can’t concentrate on work and sometimes can’t bring herself to answer the front door because she is so distraught over the possibility of losing her home.

Mendez successfully filed a lawsuit, which temporarily blocked the foreclosure. But lawyers for Bank of America  are trying to dismiss the case.

Mendez’ attorney, Brian Andrews, said Bank of America blames the foreclosure on Mendez [what else is new!] They say that it was his failure to sign the second agreement for loan modification. However, Andrews says that before filing suit, he called four (4)  Bank of America employees and they all confirmed Mendez’s account – that he had been told not to sign the second set of loan modification documents since he had already signed the first set.  Andrews stated that they say it’s all a ‘mistake’ on the part of the bank.

Are you thinking about doing a loan modification?  Well, please think again and watch you back.  Do your best to not let this happen to you.  Instead of, or along with, a loan modification, you may have other avenues.  I provide a Free No Obligation review of homeowner’s loan documents to help you with other options and lots more.

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Are you thinking about doing a loan modification?

Don’t Qualify For A Loan Modification?

Unfortunately, last month more delinquent homeowners learned they didn’t qualify for President Obama’s foreclosure program.

New concerns regarding the U.S. housing market’s health and vibrancy have rightfully renewed interest in the success of President Obama’s foreclosure prevention programs. It has been wondered that an increase in foreclosures, combined with the current drop in housing sales, could once again send home prices plummeting.  Raphael Bostic, according to, stated that the marketplace is still fragile.

Unfortunately, 91,118 people in trial modifications were canceled in June, which brings the total to 520,814, only about ten to twelve percent (10% – 12%), a drop in the bucket, of the near 5 million homes in foreclosure since the program first started early 2009.

More than 60% of those who dropped out last month had been in trials for at least half a year.

Homeowners that don’t submit the proper paperwork, don’t meet the qualifications or make the necessary payments are kicked out. It is my understanding that from now on the loan Servicers before entering the homeowner in the program will collect needed documents and review the homeowners’ eligibility.

Once the homeowner trials are canceled, less than half of homeowners do get an alternate modification, and many times from their loan Servicer.

There are only 364,077 homeowners that remain in the trial phase, and approx 38,728 of that figure are homeowners that entered the program in June.

You don’t necessarily have to be one of the thousands that have lost their home to foreclosure.  I have helped many homeowners stay in their homes and avoid foreclosure, and I may be able to help you too.

I offer a Free – No Obligation Consultation And Preliminary Audit of your mortgage situation.

Call (888) 819-6554 or fill out the Stop Foreclosure Help email form,

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Loan Modifications Don’t Work

According to two Republican Congressmen, President Barack Obama’s plan to help homeowners avoid foreclosure is a failure.

According to a resource, Rep. Jim Jordan, R-Ohio and Rep. Darrell Issa, R-Calif communicated to Treasury Secretary Timothy Geitner a letter, which was sent not too long ago, telling him to “end immediately” the Home Affordable Modification Program known as HAMP.

Since Pres. Obama announced the program in Mesa in February 2009, [over 1 year ago] only 340,000 homeowners have had their mortgage loans permanently modified through the program.

President Obama said 3 million to 4 million homeowners would be helped by the program.

Did you know that even homeowners who are granted long-term modifications often still end up in foreclosure?  “Why”, you ask? Well, because in many cases the payments are still simply too high for them to afford.

People have said we are simply in a death spiral, but in lots of cases it doesn’t have to be that way.  I offer a free audit of your mortgage documents and may be able to help you avoid foreclosure long-term.  Just give me a call to discuss your particular circumstance, I will be happy to see if I can help you just like I have helped other homeowners fight foreclosure.

I offer a Free – No Obligation Consultation And Preliminary Audit of your mortgage situation.

Call (888) 819-6554 or fill out the Stop Foreclosure Help email form,

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