Heh, Look – It’s Lootie The Bankster!

If you’re wondering why loan mods appear to be intentionally blown off, why banksters advise people to intentionally miss payments to get a mod and then don’t deliver one, foreclosing instead, you only need to look right here:

3.12 Realization on defaulted mortgage loans CitiMortgage will use its best efforts, consistent with its customary servicing procedures, to foreclose upon or otherwise comparably convert the ownership of properties securing any mortgage loans that continue in default and as to which no satisfactory arrangements can be made for collection of delinquent payments pursuant to section 3.2. Consistent with the foregoing, CitiMortgage will use reasonable efforts to realize upon defaulted mortgage loans in a manner that will maximize the receipt of principal and interest by the certificate holders, taking into account, among other things, the timing of foreclosure proceedings.

If a deficiency action is available against the mortgagor or any other person, CitiMortgage may proceed for the deficiency. CitiMortgage may retain 25% of the net proceeds received from a mortgagor pursuant to a deficiency action as compensation for proceeding with the deficiency action.

Got that?

Citibank’s PSA – the Pooling and Servicing Agreement – the document that specifies what they will do as a servicer if you default on your mortgage says that they will maximize the the amount of money they can get from you.

In fact it requires that they maximize the amount of money they can get from you.

It gets better.

The Servicer – that is, Citi – gets to keep 25% of anything they get from a deficiency action.

That’s a hell of a lot of money.

If you were wondering why HAMP is not helping, it’s because the contracts the banks have with the mortgage security holders say that they must act in a way that screws you out of the maximum amount of money possible if you default, and even better, if you default, they foreclose and then are able to come after you in a deficiency action, they get to keep 25% of the money.

Yeah.

Guess what: I’ll bet my last nickel that Geithner knew this full well when they put together the fraudulent program called “HAMP”, and that the very design of it – requiring you to default first before you could get help – was put in that program specifically to enable these clauses to be exercised.

Yet another example of the banks robbing you.

H/t Reggie Middleton’s BoomBustBlog

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I sure could use some…