Here is an article written by Carrie Teegardin on Metro Atlanta/State News on Friday August 7 2009.
The article goes on to describe how thousands of desperate homeowners across the country have turned to for-profit companies that promise to stop foreclosures and gain loan modifications. It then goes on to describe how the majority of these companies are scam artists that do very little but take the homeowners money and produce no results. It briefly describes how they con everyone, how many consumers seek help because they find it difficult to work out resolutions directly with their mortgage companies and then it proceeds to describe how one can get the same service from non profit companies without the burden of large fees. The article quotes: “There is no reason somebody should pay for this service,” said Michelle Jones, senior vice president of counseling for Consumer Credit Counseling Service of Greater Atlanta. CCCS is a HUD-approved housing counselor and one of the largest credit counseling agencies in the nation.
Although a lot of this is true I am going to point out a few things.
First of all homeowners should be proactive in dealing with their situation. A year or two ago when the for-profit Loan Modification industry took off, the homeowner did not have as much information about the process as we do now. Therefore it was a lot easier to fall victim to this process. As of August 8, 2009, there are countless cases of fraud and consumer deception on the loan modification arena. All one has to do is google loan modification fraud or scam and you will get tons of articles and information, so HOMEOWNER BE AWARE.
Secondly the reason why banks are not too willing to modify your loan is because they are not allowed to do so. In case you are not aware of this the banks are only servicers of the loan. That means they only collect the payment, they do not own the note. The note is owned by countless investors around the globe that bought a piece of your note after the original lender that gave you the loan, securitized it by using your social security, credit history and signature and sold it in the open market. By the way, how the lenders did that is in proper as well. So how can they modify something they do not own? That is the reason in most cases they will lower the rate temporarily, add on the payments you missed, late charges and processing fees and put it on the balance of your loan. After the initial period of adjustment the rate goes back to where it was, either periodically or all at once. Now-days lenders want you to pay an upfront amount and then an inflated payment for 3 to 6 months, to show good faith as they call it, and then they will evaluate your loan again to see if it qualifies for a modification. You must also show all your financials and be able to verify them. Most folks do not qualify because their financials are a lot lower than when they took the loan out. That is the reason why they are in this situation to begin with. Does that make sense?
Thirdly, have you ever asked who pays the non-profit organizations to help you? Are they doing it for free? And if they are, you know the old saying: “YOU GET NOTHING FOR NOTHING”. Do you really expect them to do a great job for you when they have no vested interest in you getting a better deal? I am here to tell you that the non-profits are set up by BIG BANK to create the illusion that BIG GOV is here to help you. They want you to try and do a modification to take away your focus from the big picture of the fraud they have created over the years. Yes I did say fraud. It’s a smoke and mirrors game. BIG BANK has always owned Washington and they can do what ever they like. Just like BIG TOBACCO has set up tons of non- profit organizations and promote messages that smoking is hazardous to your health. However it is still legal to smoke although it is proven that cigarettes are the number one reason for causing cancer. It is legal because BIG TOBACCO owns part of Washington as well and huge profits are at stake regardless if it is beneficial to the consumer or not. So you really think the non-profits will have your best interests at heart or the banks?
The loan modification process was created by the banks to help themselves, by keeping homeowners in the houses because it is more expensive to foreclose on them. However when the banks created financial products, (loans) that were never intended to be paid off, toxic as Countrywide’s CEO called them, they expected them to fail and even took insurance out on these loans on when they would fail. The loan modification process made no sense any more. They make more money when the loans default and foreclose on the homes. I will go as far as to say that loan modifications are improper as well. Have you ever seen a loan modification proposal? The banks are asking you to basically give up all your rights while they maintain theirs. Some of these proposals are preposterous. I don’t even know how people sign them. Maybe it’s the fact that they banks basically lead them to believe that they have no other options. Either sign this modification or foreclose on the house. Later, when the homeowner defaults on the modification, which 55% of loan modifications fail within 6 months, the bank can stand in front of the judge and claim that the homeowner signed this modification. I think NOT. Do you think the homeowner might have been in distress? Signing this because he or she thinks they have no other choice? Do you think the homeowner may not have done so if he or she knew that they have other options and further more if they knew that the bank is guilty of fraudulent activity? If they knew that they have rights and there are laws like HOEPA and TILA to protect them, which the banks have totally failed to uphold. If they knew that the process in which the loan was given to them was improper and the way the loan was securitized was improper, the way the loan has been transferred from one investor to another was improper and finally if foreclosure notice has been given to the homeowner, that too may have been improper. I believe in the intelligence of the consumer and given all the facts they can make the right choice. The consumer maybe naïve but the banks have committed fraud.
I am not an attorney nor do I claim to be one and not all mortgage loans fall under the anti predatory lending situation. You should seek legal advise but make sure you ask multiple attorneys for their advise as a lot of attorneys do not specialize in foreclosure or predatory lending law. You should seek advise from an attorney that does specialize in this type of law and ask him or her if they do or have a company that does their forensic mortgage analysis, expert testimonies, consumer investigation and all their legal support services. After all the attorney needs to know all the details of the loan, the process in which it was given, and if since the homeowner defaulted the bank followed proper procedures as well if they have the right to stand and produce the note among other things. The attorney needs to have a plan of action before going in front of judge to fight for the homeowners’ rights.
Since I live in New Jersey here are links to NEW JERSEY’S BANKING & INSURANCE WEB SITE:
Warning Regarding Mortgage Loan Modification Activity
Predatory Lending - What Consumers Should Know
For all other states all you have to do is google the Department Of Banking And Insurance and you will be able to get the same information.
I believe knowledge is power and armed with it, homeowners can keep the banks from stealing the most important asset that they have, their home.
Here is the link to the complete article written by Carrie Teegardin on Metro Atlanta/State News:
http://www.ajc.com/news/companies-promise-foreclosure-111175.html
The article goes on to describe how thousands of desperate homeowners across the country have turned to for-profit companies that promise to stop foreclosures and gain loan modifications. It then goes on to describe how the majority of these companies are scam artists that do very little but take the homeowners money and produce no results. It briefly describes how they con everyone, how many consumers seek help because they find it difficult to work out resolutions directly with their mortgage companies and then it proceeds to describe how one can get the same service from non profit companies without the burden of large fees. The article quotes: “There is no reason somebody should pay for this service,” said Michelle Jones, senior vice president of counseling for Consumer Credit Counseling Service of Greater Atlanta. CCCS is a HUD-approved housing counselor and one of the largest credit counseling agencies in the nation.
Although a lot of this is true I am going to point out a few things.
First of all homeowners should be proactive in dealing with their situation. A year or two ago when the for-profit Loan Modification industry took off, the homeowner did not have as much information about the process as we do now. Therefore it was a lot easier to fall victim to this process. As of August 8, 2009, there are countless cases of fraud and consumer deception on the loan modification arena. All one has to do is google loan modification fraud or scam and you will get tons of articles and information, so HOMEOWNER BE AWARE.
Secondly the reason why banks are not too willing to modify your loan is because they are not allowed to do so. In case you are not aware of this the banks are only servicers of the loan. That means they only collect the payment, they do not own the note. The note is owned by countless investors around the globe that bought a piece of your note after the original lender that gave you the loan, securitized it by using your social security, credit history and signature and sold it in the open market. By the way, how the lenders did that is in proper as well. So how can they modify something they do not own? That is the reason in most cases they will lower the rate temporarily, add on the payments you missed, late charges and processing fees and put it on the balance of your loan. After the initial period of adjustment the rate goes back to where it was, either periodically or all at once. Now-days lenders want you to pay an upfront amount and then an inflated payment for 3 to 6 months, to show good faith as they call it, and then they will evaluate your loan again to see if it qualifies for a modification. You must also show all your financials and be able to verify them. Most folks do not qualify because their financials are a lot lower than when they took the loan out. That is the reason why they are in this situation to begin with. Does that make sense?
Thirdly, have you ever asked who pays the non-profit organizations to help you? Are they doing it for free? And if they are, you know the old saying: “YOU GET NOTHING FOR NOTHING”. Do you really expect them to do a great job for you when they have no vested interest in you getting a better deal? I am here to tell you that the non-profits are set up by BIG BANK to create the illusion that BIG GOV is here to help you. They want you to try and do a modification to take away your focus from the big picture of the fraud they have created over the years. Yes I did say fraud. It’s a smoke and mirrors game. BIG BANK has always owned Washington and they can do what ever they like. Just like BIG TOBACCO has set up tons of non- profit organizations and promote messages that smoking is hazardous to your health. However it is still legal to smoke although it is proven that cigarettes are the number one reason for causing cancer. It is legal because BIG TOBACCO owns part of Washington as well and huge profits are at stake regardless if it is beneficial to the consumer or not. So you really think the non-profits will have your best interests at heart or the banks?
The loan modification process was created by the banks to help themselves, by keeping homeowners in the houses because it is more expensive to foreclose on them. However when the banks created financial products, (loans) that were never intended to be paid off, toxic as Countrywide’s CEO called them, they expected them to fail and even took insurance out on these loans on when they would fail. The loan modification process made no sense any more. They make more money when the loans default and foreclose on the homes. I will go as far as to say that loan modifications are improper as well. Have you ever seen a loan modification proposal? The banks are asking you to basically give up all your rights while they maintain theirs. Some of these proposals are preposterous. I don’t even know how people sign them. Maybe it’s the fact that they banks basically lead them to believe that they have no other options. Either sign this modification or foreclose on the house. Later, when the homeowner defaults on the modification, which 55% of loan modifications fail within 6 months, the bank can stand in front of the judge and claim that the homeowner signed this modification. I think NOT. Do you think the homeowner might have been in distress? Signing this because he or she thinks they have no other choice? Do you think the homeowner may not have done so if he or she knew that they have other options and further more if they knew that the bank is guilty of fraudulent activity? If they knew that they have rights and there are laws like HOEPA and TILA to protect them, which the banks have totally failed to uphold. If they knew that the process in which the loan was given to them was improper and the way the loan was securitized was improper, the way the loan has been transferred from one investor to another was improper and finally if foreclosure notice has been given to the homeowner, that too may have been improper. I believe in the intelligence of the consumer and given all the facts they can make the right choice. The consumer maybe naïve but the banks have committed fraud.
I am not an attorney nor do I claim to be one and not all mortgage loans fall under the anti predatory lending situation. You should seek legal advise but make sure you ask multiple attorneys for their advise as a lot of attorneys do not specialize in foreclosure or predatory lending law. You should seek advise from an attorney that does specialize in this type of law and ask him or her if they do or have a company that does their forensic mortgage analysis, expert testimonies, consumer investigation and all their legal support services. After all the attorney needs to know all the details of the loan, the process in which it was given, and if since the homeowner defaulted the bank followed proper procedures as well if they have the right to stand and produce the note among other things. The attorney needs to have a plan of action before going in front of judge to fight for the homeowners’ rights.
Since I live in New Jersey here are links to NEW JERSEY’S BANKING & INSURANCE WEB SITE:
Warning Regarding Mortgage Loan Modification Activity
Predatory Lending - What Consumers Should Know
For all other states all you have to do is google the Department Of Banking And Insurance and you will be able to get the same information.
I believe knowledge is power and armed with it, homeowners can keep the banks from stealing the most important asset that they have, their home.
Here is the link to the complete article written by Carrie Teegardin on Metro Atlanta/State News:
http://www.ajc.com/news/companies-promise-foreclosure-111175.html
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