Look, it is this simple.
All those trial payments you make go into suspense accounts.
During the time you are making the payments, late fees are adding up, you are being reported late to the credit agencies and the amounts reduced in your payments are adding up as well.
For example, you had an original payment of $2,000 and your new loan mod payment was $1,400.
First, lets say you have been making your trial payments of $1,400 a month for ten months.
During that time, you are accruing a monthly $100 late fee since you aren’t making your normal payments.
On the 11th month you are told you do not qualify for whatever reason and now you are told you need to come up with $6,000 to become current, which is exactly the reduced amount times ten, $600 times 10 = $6,000.
On top of that, your mortgage servicer has reported you delinquent for those 10 months even if you were current before entering the “modification”.
Now they go to foreclose and you know what the real kicker is?
You get an amounts due and owing from a robo-signer and it says you owe $24,500 for non-payment and fees for the past ten months, delinquent $21,000, attorneys fees $1,500, title search $300, service $300, bpo, $300, etc…
But you say how is that?
Well lets do the math.
You had a payment of $2,000 due every month and you did not pay it.
Then you accrued $100 a month in late fees.
Add all the “foreclosure fees” on top of that and there you go.
But what about the $14,000 I gave in trial payments over the last 10 months…
Yea, exactly, what about those payments…
Gone into the servicer abyss…
Amid mortgage mess, owners blindsided
Washington Post Staff Writer
Saturday, October 30, 2010; 12:53 AM
After Valarie Stovall fell behind on the mortgage on her home near Hagerstown, her lender agreed in April to slash her monthly payment by $300, and she immediately started paying the reduced amount
That’s why, Stovall said, she thought nothing of the yellow flier she ripped off her screen door as she returned from the grocery store one afternoon last July.
“Then I read it and went ‘Oh my God,'” she said. “It was a notice of eviction.”
Across the country, struggling homeowners are increasingly tripped up by mortgage lenders that press ahead with foreclosures regardless of any effort they make to provide borrowers with relief on unaffordable mortgages.
Amid the worst housing crisis since the Great Depression, mortgage companies have established a dual-track approach toward troubled homeowners, negotiating with them over loan modifications while trying to seize their homes.
Top government officials have been urging lenders to redouble their efforts at modifying burdensome loans and have barred lenders from foreclosing on homeowners who are seeking to rework their mortgages under a federal program. Mortgage companies, however, have continued to pursue this two-track strategy, with a widening toll especially on those homeowners who have been trying to resolve their mortgage difficulties before they snowball, according to federal and state officials and consumer advocates.
During the last month, several major lenders have temporarily halted thousands of foreclosure cases amid reports that fraudulent court documents and improper procedures have been used to evict people from their homes. But disarray within the mortgage industry goes much further. And the foreclosure pause has done little to address the common industry practice of taking homes from people who’d been led to believe they could save them.
“It’s still happening everywhere,” said Arizona Attorney General Terry Goddard, who has tried to bar the dual-track process in his state, one of the hardest hit by the foreclosure crisis. “It’s one of the largest complaints I get. . . . The lenders need to make a choice. What do they want: a foreclosure or a loan modification?”
In Centreville, Woodrow Roberts III said he enrolled last October in a loan modification program with Bank of America. At the time, he was still current on his $3,000-a-month payments but wanted some relief until he could find a second job. The bank agreed to trim the monthly payment by $600 for a three-month trial period and consider Roberts for a permanent modification, he recalled.
After three months, he said, he heard nothing from the bank. “I called in every week to see the status of my loan,” Roberts said. “After a year of phone calls and no real information, I received a letter in the mail.” It said he had been rejected for a modification and that he owed more than $8,800 – the total he’d thought his payments had been reduced over the course of the year plus fees. If he didn’t pay, the letter warned, his home would be sold at a foreclosure auction Nov. 12.
“If I knew this type of program could risk everything, I would have never entered into this program,” Roberts said. He explained he can’t afford to pay the sum demanded all at once and hasn’t been allowed to spread it out over time.
In response to a reporter’s question about the case, Bank of America spokeswoman Jumana Bauwens said Roberts was turned down for a permanent loan modification under the federal program because his income was too high to qualify. But she said the bank is now reviewing whether he is eligible for alternative relief.
Catch the rest here…
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This piece has gotten a lot of interest and could help many in other areas of the country. The story needs to keep going out to help people who have been wrongfully foreclosed on. Please contact me at 831-234-3136. Thanks, Ron Ward
http://www.santacruzsentinel.com/rss/ci_16745511?source=rss Click on Article
Google KION NEWS at 6 Central Coast Aptos Man Sues Wells Fargo
THE OBAMA ADMINISTRATION NEEDS TO STOP COVERING UP FOR THE CROOKED BANKSTERS AND WALLSTREET,CORPORATE AMERICA. HE NEEDS TO PUT A MORATORIUM ON ALL FORECLOSURES NATIONWIDE INDEFINITELY UNTIL THIS CRISIS CAN BE MADE RIGHT. OTHERWISE THIS IS GOING TO BECOME AN ANARCHY WITH PEOPLE TAKING MATTERS OF DEFENDING THEIR PROPERTY RIGHTS INTO THEIR OWN HANDS. WHERE DOES OBAMA EXPECT THAT 1 in 5 HOMEOWNERS GO AFTER THEY ARE FRAUDCLOSED ON??? INTO A FRAUDCLOSED ON APARTMENT BUILDING??? A FRAUDCLOSED ON RENTAL HO– USE, OR OUR FRAUDCLOSED ON RELATIVES HOME???? DOES HE INTEND TO THROW MILLIONS OF CHILDREN INTO TENT CITIES FOR THE WINTER???? HE WILL TRULY HAVE BLOOD ON HIS HANDS THEN. HE NEEDS TO PUT A STOP TO THE BANKSTER CROOKS NOW AND HAVE THEM PULL SOME OF THEIR GOLD BOULLION OUT OF THEIR SAFES AND PAY BACK THEIR OWN DEBT. THE BANKSTER CROOKS NEED TO BE STOPPED NOW!!!!!!
Mark my words!
The next big business will be in being a straw man. This can be turned around to go our way for a change.
The straw man (company) will buy your house at the foreclosure auction and then sell it back to you for what he bought it for plus a fee, like $20,000.00.
Sound high?
Not if he bought your house at the foreclosure sale for 1/3 or less of the mortage you are now paying.
No credit check as that would be checked out before you got in trouble or delibertly were foreclosed on.
SEE YOU TUBE VIDEOS UNDER FINANCIAL CRISIS 2010
When are we going to learn?
For the last 3 years the banksters are taking our homes with the naughtiest tactics and misleading the public, the government, the judges, and everyone in the chain. The real truth of the whole ordeal is that they are hiding the real reasons why they can not offer a loan modification on many instances, because they don’t have the paperwork. For them to get away with Taxes and other liabilities, they destroyed the notes and deed of trust. They did not record or transfer the note or the deed of trust in time to avoid paying taxes. According to the rules of the Trust, they supposed to transfer the secured instrument within 90 days. After this time, the whole process was null and voided.
As we learn later, the banks had to be registered with a Broker and have a SEC license to be able to sell the bonds through Securitization. This is where the SEC, Security Exchange Commissioner should coming and nail these bastards to the wall and put them all in jail. Unfortunately, Wall St. is too big to fail as are the Banksters. They manipulate $600 Trillion Dollars on a daily basis. This is also why the SEC regulators took so long just to caught Mr. Maddox in his Ponzi Scheme, and even other Hedge Fund Managers that had been caught lately on many Ponzi Schemes. Can you imagine how many more Ponzi Schemes are taking place right now in front of our eyes and they get away with it like business as usual?
There are many reports out there already exposing the SEC in bed with the Banksters, and perhaps even the Government. Do you really think that Henry Paulson was in the middle of negotiations for the TARP money because he is a nice guy? Let’s remember back a little, Henry Paulson was who in Goldman Sachs and who selected the whole cabinet for Obama, starting from Mr. Keith Transparency Geithner, and let’s find out where all of them came from? Thait’s right! Faulks. They all came from Goldman Sachs. Didn’t Goldman Sachs just got a slap in the hand without any admission of wrong doing for just a few million dollars after the SEC investigation? Who said that Crime Doesn’t Pay? Angelo Mozillo, the Ex-CEO of Country Wide just did a settlement with SEC for $67.5 million dollars without even showing up in court, and guess how much did he ended up paying, a drop in a bucket of $22.5 millions and BOA picked up the tap for $47 millions. Is that a deal or what?
For example, if the bank sold your note in the secondary market as a MBS, Mortgage Backed Security. Then an investor bought it and a servicer collects your payment. As we know by now, the servicer can not offer you a loan mod because, he doesn’t have the note, the transfer of the note, the assignment of the note, actually he doesn’t have anything. Perhaps he has only the terms of the payments and conditions of the loan.
I had several meetings with many banks’ reps and asked them why you guys don’t do loan mods. They told me that there are many reasons they can not do a loan mod.
First, many of them do not have the portfolios. Many of them inherited the loans from the banks that imploded for the last 3 years. Many of them service the loans for private investors. They receive the loan mod package and pass them to the servicer for the investor to decide if they want to do a loan modification or not.
Many investors do not want to lose money, so they don’t approve the loan mod.
This is where the government should step in and make every lender and servicer accountable for the mismanagement of the TARP money, for the mishandling of the HAMP money, and best of all, for the unlawful and illegal foreclosures. They way I see it, the banksters and the servicers are raping this country for generations now. It is time the whole charade stop and make them pay for their crimes.
If the government, the Judges, the Judicial system does not serve justice for the people, it will be a matter of time that the people of the United States will not take it anymore and there will be lot of blood in the streets.
In a few weeks, we will learn more from the investigation from the 50 Attorney Generals. Meetings are taking place as we wait for the results, I only hope the AG’s do not fall in the traps of the Banksters after been dined and wined. The meeting should take place always with a third neutral party to witness any wrong doing.
God Bless You and God Bless America.
A loan mod? who’s better off with a loan mod? where they take you out of a situation where they can’t foreclose, and put you in a proper one that they can.
Yep, that pretty much sums it up!
Our MOD was plenty full of great lingo… like this;
“in consideration of our willingness to enter into this modification, borrowers agree to presently release ________, _________ & their affiliates, subsidiaries, officers, directors, employees, investors, agents, attorneys and each predecessor and successor thereto from any and all claims, demands, actions, causes of action and liabilities, whether known or unknown, arising out of or in any way connected to the Loan, the Note, or other loan document. This release is effective upon your execution of this agreement and is not conditioned upon your satisfaction of the conditions required by this agreement.”
The MTG MODS are trap doors. Would you have done business with your lender if they told you that they were going to use your credit score, your signature and your collateral to commit fraud against third-party investors… OF COURSE NOT!
Wells had to buy back $1.4 BILLION of their toxic crap. So you mean to tell me that these Banks LIED TO INVESTORS but told the truth to homeowners… I don’t think so!
What would be logical and prudent is for ALL of these banks to buy back their toxic crap and for a lot of people to go to prison.
[youtube=http://www.youtube.com/watch?v=xX5NAc_j-6M&fs=1&hl=en_US&color1=0x5d1719&color2=0xcd311b]
In researching the local land records over the last few months, I have discovered the growing pattern I knew was coming. All of the sudden there are recorded power of attorney’s….assignments, etc….all the crap that SHOULD have been there in the first place. However, the better late than never attitude doesn’t work for me!
The banks have been more irresponsible than the average homeowner and should be held to a higher fiscal standard. Just because they can hire the high priced attorneys and “work ” the system does not mean they should not be held accountable.
Who wants a modification?
Fight for your home all that is possible, sue everyone involved, and if you lose, go down the street and buy one just like yours for 1/3 the cost. One thing for sure that bothers me no end is if you agree to any help you are offered, that shows me there is a weapon you can use somewhere that they are afraid you’ll discover or they would not offer you any deal.
One thing for sure, when you take any deal, you can be assured the new paperwork will be all in order for them to kick you out nice and clean the next time.
OVERLEVEREDGING CA– USES DELEVERAGING. RESULT WE LOSE EVERYTHING IN ORDER FOR THE GOVERNMENT TO COVER THEIR ASSES FOR ALLOWING FANNIE/FREDDIE TO OVERSPECULATE THE HOUSING MARKET WITH NO GOVERNMENT REGULATIONS BY THE SEC OR ANY OTHER FEDERAL AGENCY. THIS IS COUNTRY IS FLAT %$#%&^ BROKE. THERE IS A HUGE MONEY GRAB GOING ON HERE AGAIN JUST LIKE WHAT OCCURED DURING THE STOCK MARKET CRASH OF 08. DEFEND YOUR FORECLOSURE. DO NOT ALLOW THE BANKSTERS AND THE GOVERNMENT TO PAY BACK THEIR RAUNCHY DEBT .THEY OWE US BECA– USE OF THEIR ROTTEN PONZI SCHEM PAHSE 3. WATCH MICHAEL MOORES MOVIE; CAPITALISM A LOVE STORY. READ THE ROBERT SHEAR BOOK ;THE GREAT STICKUP OF AMERICA, THIS IS JUST ANOTHER PART OF THE GREATEST PONZI SCHEME IN THE HISTORY OF AMERICA.
The Government allowed FANNIE/FREDDIE TO BECOME OVERLEVEREDGED BY ALLOWING THEM TO OVERSPECULATE THE HOUSING MARKET. RESULT; THE GOVERNMENT IS BUSTED BROKE RESULT; THEY WANT YOU TO PAY WITH YOUR PROPERTY. THERE IS NO MONEY FOR A LOAN MOD. THE GOV. IS BROKE . DEFEND YOUR FORECLOSURE!!!!!!!!!!!!!!
Not only is this a great summary of how things go from bad to worse quickly, but it is the tip of the iceberg. I have a letter from Wells Fargo in relation to a case I currently am dealing with through the OCC. It in no uncertain terms says that my mortgage is in a mortgage-backed security and is therefore ineligible for a modification…EVER. How many other homeowners are in this same position? The servicer KNOWS whether you are in an MBS or not. If these loans are ineligible for modification, it should be criminal to mislead them, causing extra fess and doing little more than sucking as much money as you can out of them, while doing little more than priming them for foreclosure