“We must eliminate the two-track system in which banks proceed with foreclosures while evaluating borrowers for a loan modification. Homeowners should be properly evaluated for a loan modification before a foreclosure is initiated and that evaluation should be completed before any foreclosure fees are incurred. Servicers must not be allowed to profit from improper fees and unnecessary foreclosure initiation”.
A November 2010 survey by the National Association of Consumer Advocates (NACA) and the National Consumer Law Center (NCLC) demonstrates that mortgage servicers often initiate foreclosure proceedings improperly, either while a homeowner is awaiting a loan modification or due to improper fees or payment processing.
Foreclosure Initiation During the Loan Modification Process Is Still a Substantial Problem
- Almost 99% of consumer attorneys from 34 states represent homeowners placed in foreclosure while awaiting a loan modification.
- Over 15% of those respondents represent over 100 households suffering from this situation.
- Over 65% of the survey respondents stated that they represent more than 10 households who had been placed in foreclosure while awaiting a loan modification.
- Over 47% of the survey respondents stated that they represent more than 20 households who had been placed in foreclosure while awaiting a loan modification.
- In total, survey respondents reported representing over 2,500 homeowners placed in foreclosure while awaiting a loan modification.
The survey results demonstrate these practices are widespread.
- Over half of respondents represent homeowners who were placed into foreclosure due to misapplication of payments.
- Over half of respondents represent homeowners who were placed into foreclosure due to improper fees (e.g. late fees, broker-price opinions, inspection fees, attorney’s fees and other fees).
- Over half of respondents represent homeowners who were placed into foreclosure due to force-placed insurance.
- In total, survey respondents reported representing over 1,200 homeowners who had been placed into foreclosure due to misapplication of payments, improper fees, or force-placed insurance.
- Over 87% of the respondents represent homeowners who had been placed in foreclosure because the servicer did not properly accept the homeowner’s payments.
- Almost 90% of the respondents represent homeowners where a mortgage servicer initiated foreclosure proceedings while the homeowner was making payments as previously agreed upon.
- In total, survey respondents reported representing over 1,800 homeowners who had been placed into foreclosure despite making payments as agreed.
Full report below…
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4closureFraud.org
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Servicers Continue to Wrongfully Initiate Foreclosures
This is biggest hypocrisy perpetrated by the banks, they act like if they are helping you or trying to help you while in reality they are ready to start foreclosure proceedings or to foreclose in your home while they make you believe that they are helping you. The truth is, the Banksters want to foreclose and they creating ways to do it while making the most money at the same time. The helping from banks is just for show!
This is biggest hypocrisy perpetrated by the banks, they act like if they are helping you or trying to help you while in reality they are ready to start foreclosure proceedings or to foreclose in your home while they make you believe that they are helping you. The truth is, the Banksters want to foreclose and they creating ways to do it while making the most money at the same time The helping of banks is just for show!
The pretender lenders didn’t find a loophole, they made one up and have been jumping thru it like their butts were on fire!
Just another scam in the pretender lenders arsenal of weapons used against the people they claim to be trying so hard to help.
Liars and criminals everyone of them all!
I believe that Federal Rules for HAMP/HAFA REQUIRE modification, workout, et al be completed prior to being referred for foreclosure. So, IMO, foreclosure filings prior to determination are invalid. This ‘dual track’ process by servicers appears to not attempt to coordinate at all, filing foreclosure when ready, using HAMP/HAFA to buy time to do so, and using ‘Trial Mods’ to fund the process by Servicers. All by design/fraud.