HAMP Failure is not an option but Washington needs to HEAR

Foreclosure rescue schemes a costly trap for homeowners - KansasCity.com

Foreclosure rescue schemes a costly trap for homeowners - KansasCity.com:

"The GAO, the investigative arm of Congress, began its review after thousands of complaints from Americans who felt they were duped by what the GAO, the Federal Trade Commission and various state attorneys general call “foreclosure rescue schemes.”

The most common rescue schemes are perpetrated by so-called loan modification companies that require hundreds, if not thousands, of dollars in upfront fees. In Missouri, Kansas and many other states, that’s illegal, according to attorney general offices in Topeka and Jefferson City.

In exchange for the fees, the companies promise to serve as intermediaries between desperate homeowners and their mortgage companies.

If you’re behind on your mortgage or you can’t make the payments because of job losses or cutbacks in your wages, the best approach is to try working something out with your lender on your own.

Government and nonprofit agencies can help for free. The federal government last year issued specific guidelines that force lenders to ease the financial burden on people going through tough times.

Of course, not everyone knows where to go for help. (Go to www.ftc.gov or call 1-888-995-HOPE for a start.) Scammers count on that and have been taking advantage of folks in danger of losing their homes."

read entire story by clicking link above

NOTE: Please check with a lawyer if you have not received default notice. OFTEN starting a modification will TRIGGER a faster foreclosure process. Get your ducks in a row first if possible. Make sure to have any modification offer looked over by a lawyer that "GETS IT" about mortgage fraud. You do not want to sign away your rights. Not all lawyers are equal you need one that is specialist in the field of mortgage fraud. In Phoenix we have several that "get it".

CHANNEL 12: LOCAL #AZ LAWYER interviewed Foreclosure Defense and Mortgage Fruad

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Doug Rhodes, a local attorney who focuses on mortgage fraud and foreclosure defense, will be on the 10 o'clock News on Channel 12 tonight and tomorrow night. Tonight, he he will be discussing strategy if you decide to go it alone. Below is the interview he did yesterday August 30, 2010 on fighting foreclosure with a lawyer. Please read on for email contact information. If you need an examination report of loan and/or foreclosure documentation email: nlss.audits@gmail.com or contact me alrady40@yahoo.com GREAT interview DOUG!!!!

This information was sent to me by my favorite auditor. I added the video clip. If you need his services email nlss.audits@gmail.com or contact me. (commercial note: i do benefit)

FHA LAUNCHES SHORT REFI OPPORTUNITY FOR UNDERWATER HOMEOWNERS

HUDNo.10-173/U.S. Department of Housing and Urban Development (HUD): "The FHA Short Refinance option is targeted to help people who owe more on their mortgage than their home is worth - or 'underwater' - because their local markets saw large declines in home values. Originally announced in March, these changes and other programs that have been put in place will help the Administration meet its goal of stabilizing housing markets by offering a second chance to up to 3 to 4 million struggling homeowners through the end of 2012.

'We're throwing a life line out to those families who are current on their mortgage and are experiencing financial hardships because property values in their community have declined,' said FHA Commissioner David H. Stevens. 'This is another tool to help overcome the negative equity problem facing many responsible homeowners who are looking to refinance into a safer, more secure mortgage product.'

Today, FHA published a mortgagee letter to provide guidance to lenders on how to implement this new enhancement. Participation in FHA's refinance program is voluntary and requires the consent of all lien holders. To be eligible for a new loan, the homeowner must owe more on their mortgage than their home is worth and be current on their existing mortgage. The homeowner must qualify for the new loan under standard FHA underwriting requirements and have a cre------">>>>>>>> READ MORE

Foreclosure, Short Sales, Strategic Walkaway: It all hurts everyone!

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Today, Neil Garfield had GREAT post that is confirming what I have been pondered for months. Housing modification loans MUST start reflecting drops to fair market value(FMV).

In my never to be humble opinion, ALL Loans should be immediately adjusted to reflect FMV without making any mortgagee jump though loopholes to make right the payment structure. Call me radical but I go further than most - I don't think one single person in America should have take hours to fill out new paperwork, submit - get rejected, play games and wait a year for a modification. Just fix the paperwork at the bank and assign new value, payment etc. Let homeowner sign it if they like or go to the table to negotiate. Lower everyone's payments fast for every single homeowner in America! A girl can dream!

As Neil indicated it is not a gift to address the fair market value in modification process. Strategic walkaways are not only a trend but many bankers I've talked to seem to see nothing wrong with it. The current situation is going to cause ALL HOME VALUES to drop, in my opinion. And increase walkaways and short sales and possibly more foreclosures as homeowners previously treading water are now drowned with the banks holding their heads underwater.

It concerns me that socially we "accept" strategic walkaways, shortsales , forced bankruptcies and yet do nothing to really address the homeowners that want to salvage their homes. Isn't it ironic that the banks are shortselling to about 1/4 of the value of the home when a homeowner is willing to pay off the home eventually?

Read Neil's blog (and excerpt follows) and get the impact of how LOWERING Principle amounts could help ALL of America. If you are in trouble or foresee trouble with your financial situation, then make sure to check out NACA or check out the mortgage-challenge group for help in fighting foreclosure.

Housing Market Slows as Buyers Get Picky

Posted on June 17, 2010 by Neil Garfield

Editor’s Note: Housing prices will continue to decline until median income starts to flatten out. All signs indicate that we are in for another 10%-20% drop as conventionally measured. Remember that housing prices do NOT take into consideration selling expenses and concessions at closing. All things considered, housing prices should be at least 8% under what is reported.

With that 8% reduction, more homes are underwater than what has been reported. In fact, more homes are underwater than what their owners think they are.

Given another 10%+ reduction, the number of homes underwater will increase substantially as many are considered “near” break-even but are actually substantially underwater. This in turn will increase resistance to selling as wellas current resistance to buying, knowing that th >>>>>KEEP READING

UPDATE HAFA, HAMP and changes to loan modifications

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In a previous posting I referred to video of phone call outlining HAMP qualifications at a bank. Today I had interview with home modification specialist and she was telling me how things have updated recently. She estimates that only 30% of the loans coming through their department are modified. Which she told me she doesn't think is a lot of modification and that much more is needed. I was telling her that I had heard the figure was much lower. Either way at least there are changes.

Here are a few:

All the major lenders are now accepting HAMP applications. Freddie, Fannie and Ginnie are among them.

You are no longer required to be 60 days late on mortgage payments to qualify. makinghomeaffordable.gov

The government is pumping money into this program and has tried to make it easier to get help. 36% get permanent modifications after trial period. HAMP looks to be more promising than just a few short months ago. One of the best changes is that it is targetting the hardest hit areas. What do you think of the new improved HAMP?

Foreclosure crisis may be easing: Do you think?

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Our motion to the court to vacate judgment fell on deaf ears. So on to bigger badder legal maneuvers.. OH JOY!

Meanwhile our media and government wants me to believe that things are getting better. If that is so why aren't the banks helping homeowners and riding out the wave to economic recovery? Below is intro to news report. I am not sure what to make of the numbers and have a friend in real estate checking things out. Make sure to click over and read the article in full. I find it hard to stomach that 20% help in modifications is in any way acceptable help for homeowners.

Foreclosure crisis may be easing

By Alan Zibel

Associated Press

Published: Wednesday, May 12, 2010 10:07 p.m. MDT

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WASHINGTON — Millions of Americans are still likely to lose their homes in the coming years, but the foreclosure crisis is finally showing signs of subsiding.

The number of households facing foreclosure in April fell 2 percent from a year ago, the first annual decline in five years, RealtyTrac Inc. said Thursday.

But the data aren't all sunny. While the number of new delinquencies is dropping, the number of borrowers losing their homes is still rising. Banks seized a record 92,000 homes last month.

And there are millions more potential foreclosures ahead. Nearly 7.4 million borrowers, or 12 percent of all households with >>>>KEEP READING

UPDATE to BANK INABILITY to answer a simple question

UPdate and please read the post before this to understand: I called the bank back, uneasy because of my inability to get information. First I was transferred to wrong department, the previous direct number was discontinued, one call was cut off and finally a transfer to the RIGHT part of loss mitigation customer service that could actually help me.

In talking the guy started out rude but as I explained he softened and said Maam the reason you didn't get the fax is that they requested the wrong payoff information. OH MY GOSH. are you KIDDING ME... and then he said the fatal words " I requested the right fax and it should be there in about 7 days" I to my shame folded and slightly raised voice, are you guys CRAZY??? The buyer has alrady waited one week.

Not only that they raised the estimate of pay off about 5K . Not sure what will happen so stay tuned as these are truly, "The days of our lives"!!!!!!