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Earlier this week I read a story that caught my attention.  I had to pass it along to you.  It reveals the challenge the counselors and the agencies they work for are facing.

Randall Guerra, the head of the Community Housing Council, quit on January 29. The Community Housing Council is a non-profit counseling agency in Fresno, California.  Randall had been the head of the agency for 18 months.

What’s Interesting Is the Reason He Quit

Plain and simple – he lost faith in the Making Home Affordable Program.  He expected that the program would be able to help many people facing foreclosure save their homes.  However, the program was not doing this.

The challenge he and the counselors who worked for him faced was that their efforts to get mortgage companies to agree to permanent modifications on loans were unsuccessful.   Thus far they have only been successful in helping 2% of the people they represented get permanent loan modifications.

Mr. Guerra said that the Making Home Affordable Program is a good program.  However, the mortgage companies are not following its guidelines.

What were He and His Counselors Experiencing?

All too frequently mortgage companies would tell them that applications and files were lost.  Frequently counselors were hung up on.  Mortgage companies lost faxes.  Many times different people at the mortgage company would tell them different things on the same files.

The challenge that he and his counselors faced was that too many of the people they represented got frustrated with the lack of action on their cases.  They accused the counselors and the agency of not doing anything for them. 

It truly is sad when you can’t help the people who are reaching out to you.  It’s sadder when they lose confidence in what you are doing to help them.

The Sad Thing Is

This same thing has to be happening at other non-profit counseling agencies across the country.  At the end of 2009 only 7% of the people who applied for loan modifications had been approved for permanent modifications.

Facing foreclosure and a financial crisis is an extremely challenging time in anyone’s life.  When a person in this situation reaches out to a counselor at an agency to represent them and little or nothing is done on their case, they legitimately can become very frustrated.  Since they are unaware of the efforts of the counselor and the resistance they are experiencing, they naturally may accuse the counselor of doing a poor job.

Should You Be Demoralized?

If you are facing foreclosure and are working with a counselor at a non-profit agency to get a loan modification, I wanted you to know what is happening.  Your counselor is there to help you.  He or she is probably doing all that they can to get your request approved.

Don’t give up.  Try not to get frustrated.  Talk to your counselor on a regular basis.  Find out what is happening.

If you feel that your counselor is frustrated by the resistance they are getting from your mortgage company, try to build them up.  Let them know that you are grateful for sticking to it and trying to get your modification approved.  Ask them if there is anything you can do to help.

If you are facing foreclosure and are trying to deal with your mortgage company on your own, these are the challenges you are going to run into.  Unless you are determined to follow through, you are very likely to get frustrated with what your mortgage company.  You will want to give up.  Please don’t.  Get a lawyer or an expert in loan modifications to help you.   

You need to know more about the foreclosure process and the steps that you can take to save your home than the people at your mortgage company with whom you deal.  Learn as much as you can about it.  You will probably find the information in my EBook very helpful.  You can get more information on it by clicking Stop Foreclosure.

Much Success,

Mark Elkins

Do you remember hearing that there’s no such thing as a stupid question? That’s not exactly true. The stupid question is the one that doesn’t get asked! This is never been more true than it is with regards to your mortgage

If you are having an issue with your mortgage company whether you are in foreclosure or you’re just behind on your payments, there’s a valuable tool available to you provided for by federal law. This is known as a “qualified request” for information. I said in my book that I think sometimes the bank is just foreclosing out of tradition and not because they actually have the right to do it. This is your opportunity to find out.

The law provides that if you write a “qualified request” to the mortgage company, they must respond in a specified period of time. If they fail to respond in that specified period of time, they are subject to penalties. In your qualified request, you can ask all the things that you ever wanted to know about your mortgage. Things you might want to know are, who owns the mortgage, who owns the note, how much do I owe, what is my interest rate, what is the pay off figure for my loan, are there any fees and charges applied to my loan, and any other thing that you could think that you want to ask about your loan. This is your opportunity to do it.

Once you have this information, you be in a better position to decide what to do with it. Certainly knowing these things will be useful in a negotiation for modification, defending a lawsuit for foreclosure or simply assessing your situation.

You’ll never believe what happened to me when I wrote a “qualified request” recently to a bank, with whom I was negotiating. Two weeks after they got my letter they sent me a letter back that effectively said, “we don’t know who you are or why you think you have a loan with us”! It also said, “all of our loans have been sold and are now owned by someone else”.

The significance of this is that the mortgage company that wrote the letter cannot now foreclose. In the lawsuit a bank files for foreclosure, they state up front who they are and why they’re allowed to sue. They will state that they are a bank and that they lent you money, which you didn’t pay, so now they’re entitled to sue you to get the money. This means that somebody handed the lawyers a case with instructions to sue, the lawyers wrote the standard suit and followed the banks instructions. Unfortunately for the lawyers, the bank says that the borrower in this case doesn’t owe them the money. If the borrower doesn’t owe them money, there can be no foreclosure.

Many of these banks were in such a hurry to get your money by making loans, they didn’t pay attention to the small things. In this case, a small thing would have secured their rights and they didn’t do it!

How did I find out this information that stops the foreclosure in its tracks? I asked for it in a “qualified request” for information. Don’t let the small things slip past you! Read my book. You’ll learn how to find them and make them work to your advantage.

Go get ‘em!

Mark

Facing foreclosure? Is Chase your mortgage company?  Have you applied for a loan modification with them to try to save your home? Then you need to read this.  You also need to read this if you or someone you know was denied a loan modification because the hardship was not considered permanent.

In an article for ProPublica dated February 7, 2010 Paul Kiel reported that Chase has improperly denied some applications for loan modifications.  The reason they gave for the denials is that the applicant’s hardship was not permanent.

In his article Mr. Kiel reports that ProPublica found several cases denied for this reason.  They all occurred in November of 2009.

• One case involved a mortgage broker.  In the paper work he submitted to Chase the broker indicated that he felt that the steps taken by the Obama Administration might turn the Housing Market around.  If that occurred, his income might increase.  Because of that Chase denied his request for a loan modification.
•  Another case involved a lady in California.    Chase denied her request because they said her income had not decreased.  She works as an  x-ray technician.  Because her salary was not high enough, she delivered pizzas three nights a week to supplement her income.  The interest rate on her mortgage was 9.5%.  The monthly payment on her mortgage was over 50% of her income.  When she couldn’t pay the property taxes early in 2009, she fell 2 months behind on her mortgage payments.  She had applied for a loan modification in the spring.  Chase cut her monthly payment from $3,350 to $1,778.  She was able to make these payments and made six before they denied her request for a modification.

The sad thing is that Chase misinterpreted the guidelines for the Making Home Affordable Program.  In December the U S Treasury advised the mortgage companies participating in the program that they could not deny an application because a hardship was not considered permanent.

If Chase denied your application because they felt your hardship was not permanent, take action immediately.  The problem is that the guidelines for the Making Home Affordable Program that once a mortgage company denies a modification, there is no provision for an appeal of that decision.    

If you tried to get the loan modification on your own, speak to a lawyer or an expert in loan modifications.  Explain what happened and get them to represent you.

You may have to file a new application for a loan modification.  If you do, follow up with Chase regularly to make sure that they are processing it.

You can also contact a housing counselor at  1-888-995-HOPE (4673).  Explain that Chase denied your application because they felt your hardship was not permanent.  Add that you understand that this denial was incorrect.  Ask them if there are any steps you can take to get Chase to reopen your case.

You may have read this far and said that your mortgage company is not Chase.  However, they denied your application for the same reason – your hardship is not permanent.  If that has happened, I recommend that you do the same.  Get a lawyer or an expert in loan modifications to help you.  Also call the housing counselor at  1-888-995-HOPE (4673).

The same is true for any family members and friends you have who may have been denied a loan modification for this reason.

In order to save your home from foreclosure, you need to know as much about the process and what steps you can take.  This is not difficult.  You can become an expert in a short period of time.  There is much information available to you.  One source is my EBook.  To get more information on it, please click Stop Foreclosure.

Much Success,

Mark Elkins

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