Stop Foreclosure Answer

I saw this last week and I just had to let you know about it. It’s another story about how a mortgage company gets a black eye for not working with people who really need help.

Thomas and Raquel Quinn bought a home in Massachusetts in 1998. In 2003 Raquel was diagnosed with cancer. Because of her condition she got nervous about their finances. She and Thomas decided to refinance their mortgage and roll their car loan into it. For some reason they got a 15 year adjustable rate subprime mortgage.

Raquel’s condition deteriorated and she died. As a single parent Thomas knew that he had to spend more time with his two teenage daughters. So he took a new job with less travel. His pay on this job was less than he had made before.

His mortgage was with Wells Fargo. His monthly payment increased from $1,600 to $2,000. He could not make that payment and fell behind.

Thomas explained his situation to Wells Fargo. He asked them about refinancing into a new 30 year fixed mortgage. They would not agree to refinance it and started foreclosure against him in the spring of 2008. He was outraged at what his mortgage company had done and was determined to save his home.

He contacted several local organizations. Boston Community Capital got involved in Thomas’ case. They bought his home from Wells Fargo and sold it back to him several weeks later for $198,750. That was nine months after the foreclosure. The amount of the mortgage was just about the same amount that he owed Wells Fargo.

They gave him a fixed rate thirty year mortgage on it. The new payment was about $1,000 a month less than his old one. Thomas was very happy with that. He has no problem making that payment.

Needless to say, Thomas is upset with the treatment he received from Wells Fargo.

Now I ask you. Why couldn’t Wells Fargo have done the same thing? Wouldn’t they have looked much better helping this man rather than putting him through what they did? It’s stories like this that make me urge people facing foreclosure to have a lawyer or an expert in stopping foreclosures represent them? With representation like that they won’t be taken advantage of.

Much Success,

Mark Elkins

In case you have not heard. If you have a mortgage through Chase, Washington Mutual or EMC and are facing foreclosure, JP Morgan Chase has set up 26 Regional Home Ownership centers in various parts of the country.

These centers are designed to help people facing foreclosure, where possible, save their homes. They do this by modifying their mortgages and reducing their monthly mortgage payments to levels that these people can afford to make.

Currently they have about 2,500 advisers in these centers. The centers are in California, Florida, Michigan, New Jersey, Arizona, Colorado, Illinois, Nevada, Georgia, New York, Pennsylvania and the District of Columbia.

If your mortgage is with Chase, Washington Mutual or EMC, you may want to find out where the Home Ownership Center in your area is. You may also wonder if you should go to them and see how they will modify your mortgage.

I would tell you not to. The reason is simple. While their advisers are there to review your case, modify your mortgage and reduce your monthly mortgage payment to a level you can afford to make, they are not impartial.

Remember – They are working for Chase. They are not going to look at whether there were any errors made at the time of closing on your mortgage which jeopardized your legal rights. If there were, you would have a stronger case and be able to get a better deal. That deal might have a much lower payment than the one they offer.

Also – since they are representing Chase and not you, they are not going to look in great detail at your finances and income. They are going to rely on what you give them. They will only take into account what you say. If you inadvertently omit something crucial, the offer they make to you might be at a higher monthly payment than you can afford.

I suggest that you hire a lawyer or an expert in stopping foreclosures to help you. They can contact Chase’s Home Ownership Center. Prior to that, they will get complete information on all of your current debts and your income. They then will do a thorough analysis to see how low a monthly mortgage payment you really need to save your home. They also will review the paper work from your mortgage application and closing to see if any legal errors were made. If there were, they can open your entire case and may be able to negotiate a more favorable outcome for you.

It is great that Chase has opened up these centers. However, let the person representing you do all the negotiating with the adviser at their center assigned to your case.

Much Success,

Mark Elkins