USA Today reports that lawsuits are springing up all over the country against lenders who have not negotiated HAMP (Home Affordable Mortgage Plan) mortgage modifications in good faith, applying for class status in order to become class actions. On Sept. 30 in Nashville, TN, a federal court hearing is scheduled to consider consolidating one couple’s case against Bank of America with more than a dozen others. Apparently similar cases are pending aginst Chase and Wells Fargo. It’s about time.
Most of the suits allege that the trial modification plans are contracts, and that these lender/servicers and every other servicer broke them by not granting permanent modifications to homeowners who made their trial payments on time and provided the necessary documentation; basically abiding by every stipulation of their contract.
This less-than-publicized development flies in the face of well-publicized accounts by the lender/servicers that the huge number of failed trial mortgage modifications were because of failure to comply by the distressed mortgage owners. It is just about time. Those of us attempting to stay educated about the mortgage modification mess knew very well that not that many distressed mortgage owers were not complying with trial modification requirements. The number of lost files by the banks was just not to be believed.
The homeowners in these lawsuits also accuse servicers of intentionally denying permanent modifications and keeping loans in default so that they can profit from exorbitant late fees and other charges associated with foreclosure. We knew that, too, but waited for inside whistleblowers to come forth. (Please read yesterday’s article and view the first video on this homepage.)
Bank of America representatives were allegedly and specifically instructed to lie to homeowners calling about loan modifications. The complaint is based on information provided by unnamed former Bank of America employees, and according to USA Today, says: “… representatives regularly inform homeowners that modification documents were not received on time or not received at all when, in fact, all documents have been received.” Mandelman has a recording of a bank employee doing exactly that and worse. But his lawyers informed him that the recording was made illegally, so they wouldn’t let him publish it.
The USA Today story also says that some of the complaints claim that Bank of America employees have demanded up front fees to begin the process of being considered for a loan modification. One homeowner says that he was told he had to pay $1400 to get the process started. (Mandleman goes on to sarcastically observe that the FTC, Federal Trade Commission might prosecute BofA for illegally requiring these upfront fees. Heh.)
A Government Accountability Office report in June of this year found that servicers were improperly denying permanent modifications to homeowners because, “… they were inaccurately applying a formula used to determine if the value of modifying the mortgage was greater than the proceeds from foreclosing. The number of homeowners who had been wrongly denied could range from a handful to thousands.”
This observation is huge, and is an incredible recommendation for the REST Report as a mortgage modification discovery and foreclosure defense. Banks have used the NPV, or Net Present Value, as prime argument for denying mortgage modifications since the passage of HAMP. The fact that they allegedly have manipulated NPV cinches the necessity that a distressed mortgage owner get their own, accurate REST Report.
The REST Report uses the same software the banks use to calculate NPV. Any U. S. court judge that researches the validity of the REST Report immediately sees it as an unbiased tool in deciding the best resolution for a troubled asset mortgage.
I am a vendor of the REST Report. I have seen the benefits of this incredible tool in mortgage modification and a foreclosure defense. 4000 successes out of 4000 submissions. The REST Report has yet to fail.
USA Today presents the position of the Treasury Department as being the following: “Treasury Department officials say homeowners in HAMP trial plans are not promised permanent modifications.”
I have written before about the obvious observation that the federal government, or Congress will not do anything to enforce HAMP. But we know and have seen that the nation’s judges will, when given the right tools. (Read, REST Report.) Please see the ‘Corrupt Title’ link at the top of this blog’s homepage.
It is patently obvious that trial modifications are in fact a contract in word and intent.
There is no reason or justification to pay a third party to negotiate a mortgage modification. Appearing in court on your own behalf is just as good a plan.
Call me when you get mad enough to fight for a mortgage modification. It’s so much cheaper than paying someone to do what you can do yourself.
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.
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