Hey guys. So I
have heard the rumors, honestly I dismissed them as being untrue, but I heard
from a client today about the Dept. of Justice and the Secretary of State in 49
states sending out letters about refinancing your loan, loan modifications, and
foreclosure. This apparently is a pretty big thing, and I honestly think that a
little auditing is needed in situations like these. When you have banks that
are being sued, or are in court for fraudulent underwriting, answers need to be
had. So I did a little reading up on the issue and there is a joint
state-federal settlement. This settlement is involving the big 5: Ally/GMAC, Bank
of America, Citi
Mortgage, Chase,
and Wells Fargo. This is
the absolute largest consumer protection settlement that the United States has
ever seen. In laymen terms, all of the robo signing, the underwriting fraud,
and not really running a checks and balances, has now back fired. We are
looking at a $25 billion settlement here. You can get more info at http://www.justice.gov/opa/pr/2012/February/12-ag-186.html.
Loan Modifications:
If you are behind
on either the first or second lien, you may be receiving a letter from The Department
of Justice. It is going to explain to you that you are going to be able to get
a loan modification. Here is what it is not going to explain. The time line
that you are used to seeing still remains. You are still going to pull your
hair out and send in the same paperwork over and over again, every 30 days.
That is not going to change. If you feel like it will, I want to burst your
bubble. For these banks to refinance, modify, or even write checks for
foreclosure reimbursement a total of $25 billion. How fast would you come off
of that kind of money? The fact does remain, that it WILL be easier. Your chances
do increase. It still is going to take some time, and it still is going to go
against your credit. So make sure that you are taking names, taking notes, and
speaking with the proper departments.
Refinance:
If you are
current on your payments, but your mortgage exceeds your home’s value, you will
be able to refinance through this settlement. Refinancing is always going to be
a hassle. The credit checks and closing
costs are always going to be the same. These
banks are being forced to provide $3 billion in refinancing relief across the
nation. So if your mortgage is upside down, I would suggest you try to take
care of this as soon as possible. There is probably a long line.
Foreclosure:
If you lost your
home after defaulting under any of these faulty loans, or if you were a victim
of robo signing, you can receive a check immediately. There will be about
750,000 borrowers receiving these checks
and it will add up to about $1.5 billion nationwide.
According to http://www.nationalmortgagesettlement.com,
the banks “are still accountable for other claims not covered by this
settlement”. You can go to their website
to get more information on that. This
settlement deals with the basic immoral principles that have hurt people the
most. Foreclosure, servicing, and the underwriting will all be covered. Anything
else you will need to seek an attorney.
Well that’s it guys. I hope you enjoy. I just read a few
things about it and wanted to relay it to you on terms that we understand. So let
me know if you have any questions or if I can help in any way.
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