Showing posts with label Wells Fargo. Show all posts
Showing posts with label Wells Fargo. Show all posts

Tuesday, July 17, 2012

Notice of Default, Foreclosures, and Loan Mod Progress.

I always read on a daily basis about Loan Modifications, Short Sales, Foreclosures, and the like. I read alot of information and from what I am seeing, as general consensus, Lenders have been helping alot of people with whatever mortgage relief that is deemed necessary by the lender. According to what http://www.dsnews.com says, in the month of May, there were 63,000 permanent solutions for homeowners in default. Of that 63,000, there were 17,590 of those homeowners that were made complete by President Obama's HAMP program. By all means, these numbers are great. When Wells Fargo accounts for 11,000 of those modifications  alone, it seems to be looking up for the homeowner. My problem with this is that I speak to alot of people throughout the day,  and I am wondering why the majority of these people have not been helped. see the majority of my clients, or potential clients have been trying to get loan modifications, even for the trial period for 7-12 months. Those that are longer than that have flat out been denied and the lender is speaking of private investors not willing to budge. In some cases this may be true, but I will bet my last dollar that 90% of those cases are not. See the problem is very simple. People need help. Homeowners are defaulting on loans that they couldn't afford in the first place and they become complacent once they hit a certain time frame that they have defaulted and the bank as not acted. There is approximately 2.53 million homeowners in default currently and that has been close to the same number  since 2009. So while the lenders are supposedly "helping", there are just as many people that are looking for answers at the same time.  Foreclosures are still up. According to HOPE NOW, there was a rise in forecloses from the month of April (60,000) to May (65,000). what this tells me, is that lenders are willing to put more people on the street than they are looking to help. I say this ignorant to the individual situations, however I speak with or meet hundreds of people a day that are in dire straits and need help so I think that I can speak for the majority of folks when I say that it isn't enough.

Bi- Partisan settlement that has come into play leaves the Big 5 having to give out 125 Billion in relief in a matter of 3 years. This is a large amount of relief. My issue with this is that the big 5 are going to hold out as long as they can to offer this assistance and the foreclosure rate is going to continue to go up unless the state officials do what California did and make it a law that lenders may not foreclose while in some sort of relief program. This is a great law for those that will be approved for the relief program, but what about the ones that are "not qualified", I see these lenders denying any relief after going through the motions, and escalating foreclosure. Believe you me, these machines are debt collectors and I think we homeowners are thinking incorrectly if we think that they are out for our best interest. they may offer some form of relief to some of us in this 3 years, but it is going to be on their terms, which can increase your payments, balloon the payments for any relief that they are putting on paper and still put you in a bind, and ultimately line their pockets with money of the struggling. Look at it this way, marketwatch.com expresses that 56% of people that get their loan modified permanently, a going back into default in an 8 month time period.

I know that this is a personal rant of mine and i apologize if you feel it too "opinionated". However I am writing on behalf of the clients that I deal with on a daily basis and offering this opinion based on what I have to do to keep people in their homes on terms that are beneficial to them and not the lender.

Please comment or email me if you have questions, or concerns.

Monday, June 11, 2012

Big 5 to Modify Mortgage Rates in Settlement


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.