PLEASE ONLY POST - Articles, Official Letters, Testimony, Rules and Regs. Moe - perhaps a Sticky is

[THANKS2U]

I posted about this before, but here is another article about renting your foreclosed home: Fixing foreclosures with a right to rent - Money Features

So here's my take, if the NPV test favors foreclosure over loan modification, but then they say, "oh, but we don't want to take the chance on foreclosure and it will hurt neighboring home values, so what's the rent at fair market value?", then wouldn't it just make more sense to do the loan modification anyway? What they should do is calculate the rent at fair market value and weigh that against the loan modification payments to determine which one is in the lender's best interest. If I was given the option to pay "X" dollars in rent and it was the same amount as my modified payment, wouldn't I want to take the modification and retain ownership status?

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ama125

True - But you've got to think like a vegan - No, not a vegetarian - the other vegan ... you know the aliens from the planet Vega, which Jodi Foster found in the movie "CONTACT" - Carl Sagans film..

The Vega signal was sent in 4 dimensions, remember the schematic puzzle message, having to be folded together in 4 dimensions for the puzzle to be seen in its completion and deciphered correctly..

But if you did not see the movie contact, the above is a bit futile.

BOTTOM LINE - These EVIL Banks are NOT stupid they are diabolically clever and SINISTER ! They use their 4 dimensional knowledge for EVIL.

But, the Vegans were advanced enough in spirit, truth and ethics to NOT use their knowledge for evil, BUT THE BANKS USE PEOPLE TO HARM PEOPLE AND ADVANCE THEIR DIABOLICAL POWER OVER PEOPLE.

Funny, I am starting to sound like a science fiction writer ! LOL

But all the evil, unethical lies and law breaking damage that the banks are allowed to get away with is just like science fiction isn't it .....It is all to unreal to believe -- Well almost..

When these EVIL Banks / Servicers RENT your property back to you and YOU lose ownership, the Banks are now in the business of rental properties and Mr. Rich Dad Poor Dad, Robert Kiyosaki and Donald Trump know that rental properties make BIG BUCKS in the long run and short run..

The renter is now powerless.. The banks have ALL the power and power is even more desireable to them than greed itself...

The renter has NO MAJOR tax write offs anymore, the BANKS GET ALL THE TAX WRITE OFFS for the property they stole from you

Since you the renter has NO TAX WRITE OFFS, you now pay huge sums of INCOME TAX !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

The Banks now have all the tax write offs and the LITTLE people are once again flipping the bill and paying the MOST AMOUNT OF TAXES.

This is why the banks want to steal our homes, this is just ONE of their 4 dimension plans..

One other was to gain huge sums of TARP FUNDS..

One other was to INVEST those BILLIONS in BAILOUT funds and make double, triple, quadruple and even MORE money back on our tax payers money !!!!!

And there are other Diabolical Dimensions to the banks puzzling plans.

None of their plans include helping us, the borrowers they defrauded !

Keep on fighting them

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[ugh_2009]

New Second Lien Program (2MP) guidelines are out:

https://www.hmpadmin.com/portal/docs/second_lien/sd0905.pdf

 

[pdsfoley]

Just read the 1st couple of paragraphs and I find it amazing that the bill says "SERVICERS" need to include the 2nd lien. But the sevicers constantly state they need investor approval........Ughhhhhhhhh

 

[ama125]

New Second Lien Program (2MP) guidelines are out:

https://www.hmpadmin.com/portal/docs/second_lien/sd0905.pdf

I KNEW it! I posted on my thread last night after talking to Home Retention and they said they were putting in a request for mod on my 2nd. I've been watching eFannie Mae's site daily for the announcement. They usually post it there first but not this time. Oh joy! Of course, I still have not gotten anything accomplished on my 1st, but this gives me more hope! Thanks for posting!

 

[hope67]

This is a great site to find a good lawyer, using the "advanced search" feature, you can search by state, by city, and by practice area!!

Quote:

About Super Lawyers

Super Lawyers is a listing of outstanding lawyers from more than 70 practice areas who have attained a high degree of peer recognition and professional achievement.
Super Lawyers is published as a special supplement in leading newspapers and city and regional magazines across the country. Super Lawyers magazine, featuring articles about attorneys named to the Super Lawyers list, is distributed to all attorneys in the state or region, the lead corporate counsel of Russell 3000 companies and the ABA-approved law school libraries.
Polling, research and selection are performed by Law & Politics, a publication of Key Professional Media, Inc. Law & Politics has been publishing legal magazines since 1990 and Super Lawyers since 1991.


Search Super Lawyers - Lawyer Directory, Attorney Listings, Legal Resources, Attorneys, Law Firm, Articles, Law Firms, Local :: Super Lawyers

 

[SillyWorld]

Gee thanks for the info, for those who have the cash for a Lawyer

 

[hope67]

Gee thanks for the info, for those who have the cash for a Lawyer

You never know if you will ever need a lawyer, so I saved the link just in case.

Keep in mind that a lot of prominent lawyers offer free consultation, some would accept installment payments and even few would accept to take a case pro-bono.

 

[Riley18]

Hi Luvmyhorse, After reading your post a few days ago, and reading it again today, I have to respond. You are not alone with your pain, but try to take encouragement from everyone on this site. I felt the same way you do. I even felt so guilty for putting my kids into this misery that I considered suicide. I am, however, a big coward in that respect so I decided to fight the bank instead. Believe me if I could go back to October of 2004 things would be very different. I cannot go back and so can only go forward. If things do not move forward with these robber barons that call themselves "banks" then we will have to be more vocal in our fight. There are so many people in the same situation that we need to think of ways to get our situation out into the public. Make the government take a more active stance in the situation. One person on YouTube who is fighting GMAC against foreclosure is Rosemary Williams. Check out her story because it is inspirational. She lived in her house for 23 years, and lived on the same block for 55 years. Now, the bank wants to kick her out. There are people, young and old, who are sitting on her porch willing to get arrested for her.

Please remember that it will get better. It has been a long and difficult journey, but I have to believe it will work out for the best. It brings the phrase "the audacity of hope" home so to speak.

 

[Skipper]

I KNEW it! I posted on my thread last night after talking to Home Retention and they said they were putting in a request for mod on my 2nd. I've been watching eFannie Mae's site daily for the announcement. They usually post it there first but not this time. Oh joy! Of course, I still have not gotten anything accomplished on my 1st, but this gives me more hope! Thanks for posting!

Hi Ama,

Regarding the Back-End Ratio, is this the percentage of a persons monthly secured debt payments (mortgage/car payments/lease) divided by the monthly gross income?


2MP Compensation Per Dollar of UPB in CLTV Range
(Loans Less than Six Month Past Due)
CLTV Range

Back-End Ratio <110% 110% to 140% >140%
>55% 0.09 0.06 0.04
<55% 0.12 0.09 0.06

I am looking at the extinguish option...

Thanks for your input!

Skipper

 

[ama125]

I just wanted to post this here. I got this email from Home Retention after speaking with them the other night. I've never gotten any such email from them before. Could they actually be trying to improve their image and customer service through direct customer feedback???? I will have to complete the survey (if only I could find the link...my husband forwarded this from his cell phone):

Dear Bank of America Customer,

Thank you for your recent conversation with our Home Retention
Division Representative. We appreciate the opportunity to have been of
service to you regarding the status of your existing loan. Customer
satisfaction is our number one priority and your feedback will help us
understand what we do well and what we can do to improve. We
appreciate and value your responses. The survey will take
approximately 45 seconds to complete and you can access the on-line
survey by clicking on the link below (Usted puede proseguir a la
encuesta en línea haciendo clic en el enlace siguiente).

You may be aware that Countrywide was acquired by Bank of America. For
the purposes of this survey, we will be referring to Bank of America
rather than Countrywide.

Thank you for your participation!

Bank of America Home Retention Division
Bank of America Home Loans

Please do not reply to this email. We currently are not able to
monitor or respond to inquiries submitted to this email address.

Begin Survey
To complete the survey: Please click the "Begin Survey" link on the left.

 

[ama125]

Hi Ama,

Regarding the Back-End Ratio, is this the percentage of a persons monthly secured debt payments (mortgage/car payments/lease) divided by the monthly gross income?


2MP Compensation Per Dollar of UPB in CLTV Range
(Loans Less than Six Month Past Due)
CLTV Range

Back-End Ratio <110% 110% to 140% >140%
>55% 0.09 0.06 0.04
<55% 0.12 0.09 0.06

I am looking at the extinguish option...

Thanks for your input!

Skipper

Hi Skipper...if only it were truly an "option" that one could simply select. It is at the servicer's discretion (just as reducing principal is an option). Will they actually extinguish anyone's second mortgage? Who knows, but I would be shocked if they did. I'm not saying it's not possible, I just have little hope in them doing it. I am just about out of the range as I am nearly at the 6 months past due mark already. They can still extinguish beyond that 6 months delinquency, but only at 3 cents on the dollar.

To answer your question, here is an excerpt from the Treasury's guidelines on the HAMP regarding back-end DTI:

The Back-End DTI is the ratio of the borrower’s total monthly debt payments (such as Front-End PITIA, any mortgage insurance premiums, payments on all installment debts, monthly payments on all junior liens, alimony, car lease payments, aggregate negative net rental income from all investment properties owned, and monthly mortgage payments for second homes) to the borrower’s Monthly Gross Income. The servicer must validate monthly installment, revolving debt and secondary mortgage debt by pulling a credit report for each borrower or a joint report for a married couple. The servicer must also consider information obtained from the borrower orally or in writing concerning incremental monthly obligations.


Hope this helps! Best of luck to you!

 

[ama125]

HMMM...my last post has me thinking, if that is all that goes into the back-end DTI, I am not going to submit anything on monthly expenses other than what is listed here (I'll omit items such as gas, food, etc). If they ask for it, I will direct them to the guidelines or perhaps quote it directly on the expense list. I'll let you know what happens with that!

 

[SillyWorld]

HMMM...my last post has me thinking, if that is all that goes into the back-end DTI, I am not going to submit anything on monthly expenses other than what is listed here (I'll omit items such as gas, food, etc). If they ask for it, I will direct them to the guidelines or perhaps quote it directly on the expense list. I'll let you know what happens with that!

When I turn in info I say $10.00 a week on Gas, $5.00 for Food and no other expenses, they cannot prove how much it takes you to live on, hey I been negative for the last 12 months of 700.00 without some things added it makes me plus $200.00 They say how can you spend that little on food, well my children and Church helps me out monthly

 

[Skipper]

HMMM...my last post has me thinking, if that is all that goes into the back-end DTI, I am not going to submit anything on monthly expenses other than what is listed here (I'll omit items such as gas, food, etc). If they ask for it, I will direct them to the guidelines or perhaps quote it directly on the expense list. I'll let you know what happens with that!

Thanks Ama,

Please do...

Regarding the HELOC, I am so far upside down, that I am considering looking into a Chapter 13 filing (after the modification is complete) to deal with it and cc debt that I have.

I plan to be in my house for at least another 5-7 years, so if I can get an MHA mod done and also discharege (strip?) the HELOC and cc debt over a three year period, I feel that it may be worth it, to keep it as an option. It would be nice when the kid's college comes around that there be some $$ available to help pay for it.

Take care,

Skipper

 

[hope67]

Will they actually extinguish anyone's second mortgage? Who knows, but I would be shocked if they did.

ama125, I think this would depend on several factors:

-They have to take into consideration the possibility of the borrower defaulting again
-They have to take into consideration the LTV based on the fair market value of the house at this time.
-Also they have to consider the housing market trend, is property value going further down or heading up, etc...
-Etc..

Example:

-The 1st is $200,000 and the 2nd is $50,000. The market value of the house is $100,000. The 2nd is basically an unsecured debt at this point.

-Let's say they decided that there is 70% chance the borrower will go in default again in 8 months. so based on 1% rate and 30 years term, the monthly payment (P&I) would be $160.82. 160.82 x 8 = $1286.56, principal paid would be about $1000.

-The property value forcast is not good. Let's say is heading further down.

-The Government will pay them 4 cents on the dollar if they extinguish the 2nd = $2000. So they will have to decide whether to take the risk and modify the 2nd which could result in a total loss if we would include the foreclosure cost, or extinguish the 2nd now and receive $2000 from the gov?

I wonder if they came up with a calculator (similar to NPV) to help them decide whether to modify or extinguish the loan..

 

[luvmyhorse]

Riley18, thanks for responding. It actually felt good for me to be able to express my sadness and shame about my ridiculous decision to buy this house, here in this forum, where I know there will be people like me.
It does help a lot to know I am not alone, and I have had a calm come over me the last week that I can't explain. Nothing has changed, yet I am not worried.
I have not yet applied for the mod, because I don't have enough incomce to qualify. and I am also more than 105 underewater. So I have been waiting for the 125 to kick in and looking for another job to boost my monthy income. I may be applying next week, but I am pretty sure I will be rejected, but since you can reapply I am thinking I should go for it. I just heard horse board will help so I wonder if I get a boarders will they look at that as income?

 

[Skipper]

Luv,

Keep in mind (as I understand it...), if you cannot qualify for a MHA re-finance, you may very well qualify for the MHA loan modification (note: this is not a re-finance, it is a re-structure).

I wish you the best of luck.

Skipper

 

[Garry]

I KNEW it! I posted on my thread last night after talking to Home Retention and they said they were putting in a request for mod on my 2nd. I've been watching eFannie Mae's site daily for the announcement. They usually post it there first but not this time. Oh joy! Of course, I still have not gotten anything accomplished on my 1st, but this gives me more hope! Thanks for posting!

That's great news ama, I hope it all works out for you. I plan on calling B of A on Tuesday to see what they have to say. It will be a little harder this time for them to tell me it's my responsibility to contact the second bank.

 

[ama125]

Just an FYI, the administrative website for servicers got a makeover and some of my prior links may no longer be working. I like the new look and its much easier to locate things as it is divided up by program now. Here is the main website: https://www.hmpadmin.com/portal/index.html

I just wish they would have something similar for borrowers (secure login access to upload your documents, etc). I understand there has been talk of such a thing, but have yet to see anything in that direction. I'm sure by the time they get around to it, the program deadline will be here!

 

[ama125]

ama125, I think this would depend on several factors:

-They have to take into consideration the possibility of the borrower defaulting again
-They have to take into consideration the LTV based on the fair market value of the house at this time.
-Also they have to consider the housing market trend, is property value going further down or heading up, etc...
-Etc..

Example:

-The 1st is $200,000 and the 2nd is $50,000. The market value of the house is $100,000. The 2nd is basically an unsecured debt at this point.

-Let's say they decided that there is 70% chance the borrower will go in default again in 8 months. so based on 1% rate and 30 years term, the monthly payment (P&I) would be $160.82. 160.82 x 8 = $1286.56, principal paid would be about $1000.

-The property value forcast is not good. Let's say is heading further down.

-The Government will pay them 4 cents on the dollar if they extinguish the 2nd = $2000. So they will have to decide whether to take the risk and modify the 2nd which could result in a total loss if we would include the foreclosure cost, or extinguish the 2nd now and receive $2000 from the gov?

I wonder if they came up with a calculator (similar to NPV) to help them decide whether to modify or extinguish the loan..

You must remember one thing here, the only way to get the 2nd modified is if the first has already or is going to be modified. That means, they already have chosen not to go the foreclosure route. They'll be determining whether it is worth it to take the lump settlement now, or whether they will collect more over the long term by modifying. By modifying, we're talking about 30 to 40 years worth of time for that house price to recover. This is why I seriously doubt they will extinguish anyone's 2nd unless mandated to do so.