Stop Foreclosure Answer

It never ceases to amaze me.

Here we are in the second year of this foreclosure crisis. We have heard these horror stories of how people who are facing foreclosure have been taken advantage of by their mortgage companies. They have filed applications for loan modifications. Their mortgage companies take forever to review them. The companies lose paperwork over and over again. The only way some get their mortgage companies to act is by letting the public know what has happened. They have had to let the public know how they have been victimized by their mortgage companies before these companies act. Then they agree to modify their loans at the last minute right before the auction of the property is to take place.

Yet most people persist in trying to work with their mortgage company themselves. They deal with them directly. They submit their applications on their own. Then they follow up. For some reason they think that they will be treated differently. Their mortgage company will take care of them.

There Is No Reason for Them to Believe This

It is just false hope.

Some may believe that they are not worthy of being helped. They feel that they have screwed up and there is no reason they should be allowed to keep their homes.

That is Pure Hogwash

Everyone facing foreclosure is entitled to help to save their homes. Since they are not experts in the foreclosure process and do not know the best way to get a loan modification, they need help from people who know the process. They need help from people who know what they are doing. That is either a lawyer or an expert in loan modifications.

I have seen and heard of far too many cases where people wait too long to get this help.

If you are facing foreclosure, please, let me say that again, please don’t represent yourself. Your family deserves better. Find a lawyer or an expert in loan modification to help you. Check with your local county Bar Association for the names of lawyers who specialize in foreclosures. To find an expert in loan modifications click on this link, http://www.hud.gov/offices/hsg/sfh/hcc/fc/. That will take you to the HUD website and you can find an agency and a counselor in your area.

If you want more information on the process and what you can do to avoid foreclosure, check out my EBook at Stop Foreclosure.

Much Success,

Mark Elkins

Prior to elections every year we hear politicians putting their own spin on the truth.  Well, let me tell you – mortgage companies are doing it too. 

If you read the posts on this blog regularly you know that I have been very critical of Bank of America’s performance in the Making Home Affordable Loan Modification Program.  Through the end of September they had approved trial loan modifications for 10.8% of those eligible for the modifications.  (The actual numbers were 94,918 trial modifications out of an estimated 875,917 eligible for them.)  Their performance is the worst of all of the large mortgage companies participating in the program.

So you can imagine my reaction when I saw the spin Bank of America put on their performance in a press release on October 29.

The subtitle of the press release was

Company Continues Momentum in Comprehensive

Effort to Help Struggling Homeowners

The main points Bank of America mentioned in this press release were:

• They had surpassed their target of offering trial modifications on 125,000 loans by November 1.
• They have initiated nearly 20% of all of the trial modifications in the Making Home Affordable Program.
• Their employees have contacted nearly 600,000 people facing foreclosure and have offered trial modifications to 200,000 of these.
• Their employees are working hard to keep as many people facing foreclosure as possible in their homes.  

Anyone who read this press release alone would commend Bank of America for the job they are doing.  Their statistics look great.

Let’s Look at How They Spun the Numbers

I am taking these from the Servicer Performance of the Making Home Affordable Modification Program through September of 2009.  You can read the report by clicking http://www.treas.gov/press/releases/docs/MHA%20Public%20100809%20Final.pdf.  Remember – These are figures on the performance of all the mortgage companies participating in the program. 

• Out of the estimated 3,100,305 loans which were eligible for loan modifications 875,917 were through Bank of America.  They had 28.3% of the total.  45 companies are participating in this program.  Bank of America had far more of these loans than any other mortgage company.  Much of that is due to the loans that they picked up when they acquired Countrywide.
• They extended offers for trial modifications on 156,120 of these loans.  That is 17.8%.  In their press release, they said it was 33% (200,000 of 600,000).  17.8% is quite a bit less than 33%.
• Trial loan modifications had started on 94,918.  That is 10.8% of the estimated 875,917 loans that were eligible.

There have been more complaints about how poorly Bank of America has been handling applications for loan modifications than any other mortgage company.  In fact there was an article in the South Florida Sun-Sentinel on October 29 that hundreds of people facing foreclosure in Florida have filed complaints with the Attorney General of Florida. These complaints were over their failed or stalled attempts to get loan modifications through Bank of America.  The total number of complaints thus far has been 452.

Does it really sound to you like Bank of America is working hard to help people facing foreclosure save their homes? 

If you are facing foreclosure and the Bank of America is your mortgage company, beware of the spin that they have put on what they are doing in the Making Home Affordable Modification program.  Although they claim that their employees are working hard to help as many people facing foreclosure as possible to save their homes, their track record so far does not support their claims.

With Bank of America you will need a lawyer or an expert in loan modifications to help you.  If you try to represent yourself there is too great a risk that you will be taken advantage of. 

Also – learn as much as you can about the foreclosure process and what steps can be taken to save a home from foreclosure.  The process and the steps that can be taken are not complex.  This knowledge will help you tremendously in knowing what is happening each step along the way.  You will also be able to work more closely with the lawyer or expert you hire to prepare your case.  A good source of information is my EBook.  You can get more information on it by clicking Stop Foreclosure.

Much Success,

Mark Elkins

Jude Elliott and Joanne Hexom are at the end of their rope.  Their mortgage company, JPMorgan Chase, is not helping.

They have owned their home in California for eight years.  During that time they made every monthly mortgage payment on time.

Jude had been a speech and language pathologist in a local school district until a severe medical condition forced her to stop working two years ago.  Since then she has received monthly disability benefits.  However, these have been about 50% of what she was earning as a speech and language pathologist.

Joan is a high school teacher.  She continues to teach. 

The drop in Jude’s income has had a severe impact on her and Joan’s finances.  They first used their savings to make their mortgage payments, property taxes and insurance.  Once the savings were gone they did something no one should do.  They used credit card advances to make ends meet.

Late last year they realized that they were reaching the end of their rope.  In January they applied with their mortgage company, JPMorgan Chase, to have their mortgage reworked.   Since then they have submitted four more applications.  Each time the people at Chase have either asked for more information or have lost documents they have submitted. 

Most recently they asked for proof that Joan was still employed as a teacher.  This had been submitted to them previously.

Then their request was denied.  Supposedly their combined income was too high.  They have disputed the way their income was calculated and are continuing to fight for a loan modification and a lower monthly payment.

The stress they have been under has had a negative impact on Jude’s condition.  It also has started to make Joan sick.

They were able to continue to make their monthly mortgage payments through September.  They weren’t able to make their October payment and fear that Chase may foreclose on them.

Their experience with Chase highlights two things all facing foreclosure should be aware of:

• Mortgage companies are routinely losing documents.  Make sure to keep copies of everything you send them so that you don’t have to waste time going out and getting duplicates of what they lost.
• Mortgage companies can make mistakes calculating income.  If they say that your income is too high and deny your application for a loan modification, don’t accept what they tell you.  Double check them on it or get someone to double check it for you.

Jude and Joan have been trying to get Chase to modify their mortgage since the beginning of 2009.  They have sent much paperwork to Chase.  Can you see why I recommend each person facing foreclosure get help from a lawyer or an expert in loan modification?  Delays like this occur regularly.  Many people trying to deal with their mortgage company themselves would have a tendency to give up, not pursue a modification and allow the foreclosure to go through.   Look at how it can affect them and their families?

If you are facing foreclosure, you need to know as much or more about the process and what you can do than those people at your mortgage company.  It won’t take much study for you to become this expert.  One good source of information is my EBook.  You can check it out by clicking Stop Foreclosure.

Much Success,

Mark Elkins

There was an interesting article on www.realytrac.com in mid October that I have to tell you about.  It was about the variance between the number of homes on which foreclosures have been finalized and the number which have been listed for sale.

In normal times a mortgage company will normally have a home listed for sale within 30 days of the date on which they acquire the home through foreclosure.  That is not happening today.  It is estimated that between 450,000 and 500,000 homes that mortgage companies have acquired through foreclosure in the last year have not been listed for sale.  Let me say that again.

450,000 to 500,000 Foreclosed Homes Not on the Market

When questioned what is causing this mortgage companies are saying:

• Many have title issues which need to be corrected.
• Some need major repairs.
• Some states have laws which prevent homes from being listed quickly.
• The number of homes to be sold is just too great for their systems.

Some mortgage industry analysts feel that there are other reasons mortgage companies are not placing these homes on the market for sale. 

• One is that the companies are deferring their losses on these.  They don’t have to report their actual losses on these homes until the sales are finalized.
• They are trying to force the government to create a “toxic bank.”  This bank would pay them 50 to 60 cents on the dollar up to the value of these homes rather than the 30 to 35 cents on the dollar that they will get on their own through a sale.  If they threatened the government with releasing all of these homes for sale at once, the government would see that this would cause a massive meltdown in home values in the housing market and would not allow this to happen. 

Let’s Look at This From the Other side

Here we have 450,000 to 500,000 that are vacant.  You know – That really upsets me.  Families lived in each one of these homes.  Where are they now? What has happened to these families?  How have they handled the foreclosures?  What mental and emotional scars do they have?

I also wonder how many of these families would still be in these homes if they were offered lower monthly payments through legitimate loan modifications as outlined in the Making Home Affordable Modification Program. 

If you are facing foreclosure, you want to make sure that this does not happen to you and your family.  You want to do everything you can to save your home.  The first step you need to take is to get representation either from a lawyer or an expert in loan modification.  The stakes are too high for you not too.  In addition you want to learn as much as you can about the foreclosure process and what you can do to save your home.  There is much information on this in my EBook.  You can get more information on my book by clicking Stop Foreclosure.

Much Success,

Mark Elkins

If you look at the September report of the Making Home Affordable Modification Program you will see that Wachovia Mortgage only has authorized trial modifications on 2.7% of the estimated loans that they have which are eligible for such modifications.  The estimate is that they have 75,074 loans eligible for a modification.  Trial modifications have started on 2,019 of these.

Wachovia was taken over by Wells Fargo some time ago.  Wells Fargo has started trial loan modifications on approximately 20% of their eligible loans.

Why Is Wachovia So Far Behind?

Earlier this month Wachovia reported that a computer glitch had caused this problem.  Its computer system could not handle the applications for loan modifications.  Changes are being made and this problem has been corrected.  They should be able to process the applications now.

Wachovia’s management confirmed this.  Executives from Wells Fargo also said that this was the problem.

Wait a Minute – What Was That?

They are saying that Wachovia is lagging in processing applications for loan modifications because of a computer glitch.  Isn’t that just a copout?  It’s just like the old line – My dog ate my homework.

The Making Home Affordable Modification Program started in March of this year.  Wells Fargo signed up to participate in the program on April 13.  Wachovia didn’t sign up to participate until July 1.  Wells Fargo owns Wachovia.  Why was there almost a 4 month delay before Wachovia signed on? 

Did Wachovia really want to participate in the program?

It doesn’t look like they did.  Otherwise why did they drag their feet?  It also looks like the senior management at Wells Fargo supported them on this.

How frequently does it take 6 1/2 months to correct a computer glitch?  Normally companies assign a team of programmers to work on any computer glitches and they are resolved more quickly.  It looks like this was not a top priority for Wachovia and Wells Fargo to correct.

Let’s say that this computer glitch existed and was severe.  They were doing everything they could to resolve it but it did take all of this time.  Couldn’t Wachovia have assigned people in their company to manually review the files and approve trial modifications on loans?  Wouldn’t the executives at Wells Fargo have suggested this if they really wanted people facing foreclosure to be helped?

If they had made a serious effort here and manually reviewed and approved applications, they would have approved more than 2,019.

What Was The Cost of Wachovia’s Actions?

Was a halt put to the foreclosure actions on the other 73,055 loans that were eligible for a trial modification?  Did any people in this group lose their homes because of this alleged “computer glitch?”  Were any of the people facing foreclosure who had applied for loan modifications told what was happening?   Did any of the management at Wachovia or Wells Fargo really care about the impact their actions were having on people’s lives?

Here is another instance where the ones who suffer most are the people who are facing foreclosure.  Most people feel that mortgage companies will do all they can to help their customers any way they can.  Yet that does not happen.

If you have a loan with Wachovia and are facing foreclosure and if you want to save your home, get a lawyer or an expert in loan modifications to help you.  See them as soon as possible.

If you have a loan with a different mortgage company and are facing foreclosure, don’t think that your mortgage company is going to do all they can to help you save your home.  Expect that they will treat you the same way.  It will take them forever to review your application for a loan modification and they may lose what you submit to them many times before getting back to you on it. 

Learn as much as you can about the foreclosure process and the rights you have during it.  Also learn about what action you can take to save your home.  My EBook has much information on this that you may find very useful.  If you want to find out more about this EBook, please click Stop Foreclosure.

Much Success,

Mark Elkins