Banks who participate in the HAMP (Home Affordable Mortgage Program) are supposedly not allowed to foreclose on a distressed homeowner who is negotiating a mortgage modification. Turns out that expectation is voluntary. Turning in my homework was always voluntary too. Wasn’t yours?
“The federal government requires banks participating in HAMP not to foreclose on homeowners while they’re being considered for a loan modification.” Those of us in the mortgage modification biz have all known this forever. This is akin to: A law prohibits car mechanics from selling someone’s car while they’re repairing it.
However, in HAMP, the rule is voluntary and has no enforcement mechanism.
Kinda like HAMP in general. We also know that banks foreclose on homeowners while they’re being considered for a loan modification all the time. We read about it weekly. If you haven’t seen or read it before, the Foreclosure Dept. and Loss Motigation Dept. at your bank are two, autonomous offices and no one requires them to communicate. One person actually getting up and walking to another department to talk? Nah? Email? Not possible. Now anyone that even knows how to hook a computer up knows that scenario is evidence of total disregard for business ethics – unless you work in a bank.
You assume that your bank negotiates a distressed mortgage in good faith at your peril. If you’ve read even more than one story of banks losing mortgage modification files, you might see a pattern here. We do.
And that seems like… if your car dealership blew up your car while they were repairing it… and then claimed it was a mistake. Oh, my. Did we do that again? Sir, I’m so sorry… I had no idea… Larry… damn it… it was a break job. You threw your cigarette into the gas tank again, didn’t you? Look, we’ve talked about this before… Sir, I’m sorry, it looks like you’ll have to buy a new one. (Actually, that happened to me. Again, how do you prove it? Stay with me. The answer is the REST Report, again.)
California SB 1275 was bill that would have required lenders to provide homeowners with a fully considered loan modification decision prior to foreclosing. It also would have given homeowners the right to sue their lenders if the bill’s process wasn’t followed.
The Center for Responsible Lending said, “The confusion and errors that cost Californians their homes, are devastating to the state’s housing market, but are avoidable.”
In New York this year, the legislature approved a new law that gives the state attorney general permission to sue lenders for repeatedly failing to consider loan modifications in a timely manner and for foreclosing during the modification process.
Even though the bill was supported by EVERYONE but the banking lobby, it was rejected 36-30 in the California Assembly. Even after it was approved by the state Senate and three Assembly committees. This time… no… Can you say, “Banking lobby?”
If your philosophy is that the lenders should not be held accountable and not have repercussions for their actions, then you might buy into this.
This is the third leg of evidence that the legislative and executive branches of either federal or state government will not hold banks accountable for ineptitude in their processes. But again, we see the judicial branch stepping up to the plate and insisting that banks do assume responsibility to negotiate in good faith on a mortgage modification or short sale. All the distressed homeowner need do is prove compliance every step of the way. If you understand “Return Receipt Requested” when you go to the Post Office. You’re good to go.
I sell the REST Report: the one single tool to mount a foreclosure defense in any court, to prevent foreclosure and neotiate a beneficial mortgage modification – without an attorney – which is the best way currently anyway.
The REST Report uses the same software your bank uses to approve a mortgage modification or short sale.
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The internet being what it is, certain search terms need to be empahasized so that you can find the best information. The REST Report is best classified as loan modification software, or mortgage modification software. It’s claim to fame is that you use it to calculate Net Present Value exactly the way the banks do, using the same software. It is best used as a do it yourself loan modification or do it yourself mortgage modification. For some reason, loan modification 2010 and mortgage relief 2010 are popular search terms.
This YouTube video says it all. Go here: How to Get A Beneficial Mortgage Modification Now Please ‘Like’ the video, will you? That makes it easier for others to find.
Read Mandelman here
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Originally posted 2010-09-02 12:45:05. Republished by Blog Post Promoter
