Stop Foreclosure Answer

If you have been reading the posts here on my blog, you know that in the past I have commented on the poor performance of Bank of America in the Making Home Affordable Program. 

 The Largest Mortgage Company

The Lowest Percentage of Permanent Modifications

 On January 15, 2010, the U S Treasury released the monthly Performance Report for mortgage companies in the Making Home Affordable Program through December of 2009.  The report showed that through December Bank of America had authorized permanent modifications on 3,183 loans out of the 292,305 loans on which trial modifications had started.  That is 1% of the total.

 There were 9,178 permanent modifications pending.  That is 3% of the total.

 Let’s see – 1% plus 3% is 4%.

 Would anyone say that Bank of America is doing a good job?  I am sure that you would say no.  I also am sure that you would agree that many have to be outraged that the largest mortgage company in this country is treating people facing foreclosure so poorly.

 Bank of America’s Disgraceful Performance

Has Caught the Attention of Others

 The lack of help Bank of America is giving to people who have loans with their company and are facing foreclosure has caught the attention of various consumer advocacy groups.  One of these is the PICO National Network PICO).  This network represents more than 1,000 religious congregations with over 1 million members from 40 different denominations across the United States. 

 Representatives from PICO have met with officials from Bank of America at various times since 2008.  At these meetings they looked for Bank of America’s help in reducing the number of foreclosures.  They have been frustrated because Bank of America has not cooperated.  The bank has done nothing to help more of their customers save their homes.

 PICO Increases Efforts Against Bank of America

 On Tuesday night, January 12, representatives from PICO had a meeting with nine high level executives from the Bank of America at a catholic church in Antioch, California.  Antioch is in the San Francisco Bay area.

Also joining the representatives from PICO were leaders from National People’s Action and labor leaders from the Service Employees International Union (SEIU).  These groups are also very concerned about the role of Bank of America in the growing number of foreclosures across the United States. 

Reverend Lucy Kolin of PICO was the main spokesperson for PICO and the other consumer advocate groups.  They made these requests of Bank of America:

• Do all they could to help people facing foreclosure save their homes.
• End predatory lending.
• Get their act together and approve loan modifications for more of the people eligible for them.
• Stop hurting families and communities.

The representatives from Bank of America had no responses to these requests.

Picture This – Witnesses to the Meeting

Because of their unsuccessful discussions on this matter with Bank of America in the past the people from PICO invited representatives from other groups to sit in and observe what transpired during the meeting.

Just picture this.  There were over 50 people who witnessed the discussion at this meeting. These included the local congressman, representatives from the local and state governments and representatives from other national organizations. 

People Praying Next Door and Across the Country

 There is more. 

Next door hundreds of residents from the San Francisco Bay area gathered to pray and let the others know of the poor treatment they received from Bank of America.  After the meeting ended the representatives from PICO and the other organizations updated them on what transpired at the meeting.

PICO also enlisted people in other cities across the country to pray that they would get a positive response from Bank of America at the meeting.  Individuals and groups prayed prior to the start of the meeting and while it went on.

A Well Thought-out Ongoing Strategy to Get Bank of America

To Change the Way They Handle People Facing Foreclosure

 PICO is intensifying their campaign to get Bank of America to change its practices.  What they have planned will not only get more visibility to the way the bank is treating people facing foreclosure, it will also hurt the bank financially.  Here are some of things they have planned:

 They are asking the individual people, churches and religious denominations as well as other institutions and local and state governments to withdraw any money that they have invested in accounts at the Bank of America.

 They are sending delegations to meet with the chief executive officer and members of the Board of Directors of the bank.

 They will petition the U S Treasury to investigate the mortgage companies participating in the Making Home Affordable Program.  The Treasury should impose financial penalties on the Bank of America and any other mortgage company not following the guidelines of the program.

 It will be interesting to watch as this develops.  I imagine that other consumer action groups will urge that people withdraw their money and close their accounts at the Bank of America.  If enough accounts are closed, the bank will have no alternative but to change their practices.

 What about You?

Here is your opportunity to let your opinion be heard.

I urge you.  If you have any accounts at the Bank of America, go into your local branch.  Close the accounts.  Let them know that you are doing it because of the way they are handling people facing foreclosure.  You are upset with their poor performance in the Making Home Affordable Program.

Don’t stop there.  Talk to your relatives and friends about this.  Urge them to do the same if they have any accounts at the bank.

If enough of us do this, we will catch the attention of the executives at the Bank.

If you are facing foreclosure and your mortgage is with Bank of America, hire a lawyer or an expert in loan modifications to represent you.  You cannot trust that the bank will process your application for a loan modification promptly or correctly.  You also have a far greater chance of losing your home if you try to handle everything on your own.

Please learn as much about the foreclosure process and the steps you can take to save your home.  You need to know this even if you hire someone to represent you.  My EBook can help you.  To find out more about it, please click Stop Foreclosure.

 

Much Success,

Mark Elkins

I don’t know if you saw or heard about it. 

 On December 30, 2009, the city of Memphis and Shelby County, Tennessee where Memphis is located filed a federal lawsuit against Wells Fargo.  The suit alleges that Wells Fargo had their loan officers steer members of minority groups who were buying homes and looking for mortgages into subprime mortgages.  This was done even though many of these people may have qualified for conventional or FHA mortgages. 

 The suit alleges that Wells Fargo took this action to increase their profits.  They did not think about the ultimate outcome that might occur.  The interest rates on these subprime mortgages were quite a bit higher than the interest rates on either the conventional or FHA mortgages.  Many of the people who got these mortgages could not continue to make the monthly payments and foreclosure action commenced.  As a result of Wells Fargo’s action a disproportionate and unnecessary number of foreclosures were finalized.

The suit contends that Wells Fargo targeted African-American neighborhoods in Memphis and Shelby County. Over 43% of the foreclosures on Wells Fargo’s’ mortgages in Memphis and Shelby County were on homes in these neighborhoods even though  only about 15% of all of their mortgages in the area were on homes in these neighborhoods.  Over 59% of their mortgages in Memphis and Shelby County were on homes in white neighborhoods. Foreclosures occurred on only 21.5% of these mortgages.

 Former employees of Wells Fargo are supposed to confirm that the company gave their loan officers financial incentives to steer people into subprime mortgages where the interest rates were higher even though they qualified for conventional or FHA mortgages.  They frequently told these people to make a minimum down payment.  They also encouraged them to state their income and assets rather than to fully document it in the paper work for their mortgages. 

 The suit contends that as a result of the foreclosures that have been finalized, many homes are now vacant.  Squatters have moved into some.  There has been an increased risk of fire and crime.  This has created additional costs for Memphis and Shelby County. 

 Property values in these neighborhoods have dropped.  This has led to a loss of revenue from real estate taxes for the city and county. 

 Wells Fargo Also Sued By Baltimore and Illinois

 In 2008 Baltimore and the state of Maryland filed a similar suit against Wells Fargo.  In August of 2009 the Attorney General of Illinois filed a suit alleging that Wells Fargo targeted people in African-American and Latino neighborhoods in Chicago for subprime mortgages.  The interest rates on these were higher.  On many of these the foreclosure process has started.

 Just last week, January 7 to be exact, a federal judge dismissed the case in Baltimore.  The judge said that Wells’ harmful practices on mortgages which had been alleged could not be connected with the damages the city has suffered.  It could also not be shown that real estate taxes dropped as a result or that home vacancies rose.  Likewise it could not be established that an increase in criminal activity and the higher police and fire department costs stemmed directly from Wells Fargo’s actions.

 There are strong similarities between the suit filed by Memphis and Shelby County and the suit in Baltimore.  The suit in Illinois is slightly different.  It will be interesting to see whether a judge will reach the same conclusion or a decision will be made in Memphis and Shelby County’s favor.

 If Memphis and Shelby County win their suit and if the Attorney General wins the suit filed in Illinois, the door will open.  Wells Fargo will have no alternative but to agree to modify their loans on virtually all of their subprime loans not only those for African- Americans and Latinos.  This will happen nationwide not only in Illinois and Tennessee.

 If you are facing foreclosure and if your mortgage is with Wells Fargo, I suggest that you talk to a lawyer or an expert in foreclosures.  It would be best for you to be represented by a lawyer or an expert.  They can let you know what your options are.  They can also guide you in the steps to take to save your home.

 I also suggest that you learn as much about the foreclosure process and the options open to you.  There is a lot of information in my EBook.  You can find out more about it by clicking Stop Foreclosure.

 Much Success,

 Mark Elkins