We’ve known for two years now that mortgage mediation won’t work without court intervention. (The Colorado PBS station KRMA recently stated they were getting 10% success results.) A missed point here is that as mortgage servicers buy their way out of the HAMP program, they became increasingly reluctant to deal in good faith negotiations.
The simple solution today is to calculate an unbiased Net Present Value of the distressed property and see that it results in either a mortgage modification or short sale remedy when presented to the mortgage investor. By bypassing the mortgage servicer in negotiations, all the servicer treachery and obfuscation is moot. The REST Report uses bank software to do exactly that. No enlightened mortgage servicer can argue with that in foreclosure court. Some have tried, and every one had their knuckles rapped by a judges gavel. Every single one.
Mortgage mediation for distressed borrowers, as a requirement prior to foreclosure, was growing more common at national, state and local levels.
Mortgage mediation efforts, where lenders reach out to borrowers in trouble in an attempt to bring loan payments current, suffer from the same lack of industry accountability that haunts voluntary federal mortgage modification programs, according to a new study from the nonprofit National Consumer Law Center (NCLC).
The NCLC says for all of the good these new regulations intend for borrowers, in the end it equaled more bark than bite.
The NCLC is a consumer advocacy group representing low-income families. For the latest research, the NCLC reviewed 25 foreclosure mediation programs in 14 states and warned that the expectations these programs encourage could be misleading.
Researchers also found that the existing programs fail to impose significant obligations on mortgage servicers.
The programs do not require servicers to substantiate a right to foreclose, and they do not mandate an analysis of alternatives to loan modifications. Many of the programs set procedural barriers that keep some homeowners from participating, according to the study.
The nation’s foreclosure judges have been vocal in their desire to hold mortgage servicers accountable for good faith mortgage negotiations.
The next step after obtaining the REST Report is to file all documents by certified mail, return receipt requested. The servicer is not entitled to collect any monies, nor keep and penalty fees, nor foreclose, until the mortgage modification is dealt with in good faith. If the mortgage servicer can’t make any money, they find a way to negotiate immediately.
For those readers that prefer YouTube videos, try this: How to Get A Beneficial Mortgage Modification Now
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