Ways to Stop Foreclosure

Moe Bedard

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It wasn't really advice but a fantasy of sorts. But if this were to hapen, a homeowner strike of sorts, then I feel that maybe these lenders would get serious about helping borrowers that deserved to be helped. But for now, we will wait for Treasurer Paulson and Hope Now. Hopefully they will formulate a plan soon.
 

evel1999

ASC Success
Sep 15, 2007
396
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Sorry I just got carried away. I know in my mind and heart that something like that would ruin all of us homeowners and we would all be in forclosure and would definately loose our home. Then there would be no hope for us. So put that on the back burner as not a option.

We must continue to try to solve our problems with our homes and work with our lenders to come to a decision we can both live with and work to save our home, protect our credit, and find a solution to these problems we are all facing.
 

leap4juls

LoanSafe Member
Oct 27, 2007
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Hello to all, I received this in an email. I had joined their site. I wasn't sure where this best fit, hopefully this is the right spot. Read below.
juli

Dear Friend of AFFIL,

AFFIL Partners need your help NOW as we face a great opportunity to help homeowners. Here's a message from Mike Calhoun, the President of the Center for Responsible Lending:

"Congress is actively considering two bills that will help struggling homeowners avoid foreclosure and enact common-sense lending rules to keep the subprime disaster from happening again. Time is short—the bills may be voted on as early as next week—and the lending industry is lobbying hard to dilute or kill these bills. But if enough of us speak up now, we can encourage Congress to halt widespread foreclosures and protect families and local communities."

Don't let the industry call the shots - make sure your voice is heard in Congress! Click here and here to read more from the Center for Responsible Lending and take action today.

Thank you,
Sarah

Sarah Byrnes
Campaign Manager
Americans for Fairness in Lending

Americans for Fairness in Lending (AFFIL), is a non-profit organization working to end predatory lending practices, provide information to help consumers, educate policymakers about the need for reform, and demand action to assist debt-burdened Americans. AFFIL was created through a partnership of national consumer, civil rights, faith-based, non-partisan and grassroots organizations, including ACORN, Consumer Federation of America, Consumers Union, National Consumer Law Center, and U.S. PIRG, among others. AFFIL’s goal is to establish fair lending principle s and practices that will build and preserve individual and ! communit y assets.
 

Moe Bedard

Call 1-800-779-4547
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mjdodds03

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Jan 9, 2008
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Re: Stop Foreclosure With These Proven and Effective Methods

These are all good options but getting to them is quite another story. I've been told by the attorney's handling the foreclosure that these options exsist but it is up to the mortgage company (Chase) to obtain then, and I've been told the same thing from the HUD office. After trying for 3 days to reach and speak to the analyst assigned to my home I was told I had to be living in the home - I am not. I'm a victim of domestic violence and had to to leave the property for safety reasons and "too bad" is basically what I was told. He stayed in the house and abandoned it without my knowledge a few months later and quit making payments. I obviously had to live somewhere so I moved to an apartment, yes with a lease. Now I'm told the only way to review ANY options is to go back. I will be asking Genesis Women's Shelter for assistance at this point. That's the organization I belong to and didn't think to ask them from the start. We'll see if they can help because, Chase nor HUD is going to - regardless of how many times they say "no lender wants the property back!!!" I just don't believe it anymore. Thanks.
 

Judith

LoanSafe Member
Apr 8, 2008
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If Chase does not come through with an affordable loan for us, what are our chances of being able to refinance our home w/o knowing what it is worth - I know we are now upside down in our home. I was told by an appraiser that all the homes in my neighborhood have either been sold through a short sale or foreclosure.
 

Moe Bedard

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Judith,

Here is a little secret between us............;);)
Just call a Realtor and have them do a CMA (Comparitive Market Analysis) on your property.........tell them that you were thinking of selling in the near future, of course you wouldn't be under any obligation and you are not required to sign anything for them to do this service for you.........they offer these for free.......:)
 

Judith

LoanSafe Member
Apr 8, 2008
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I spoke with an appraiser this week - she ran some comps on homes that sold over the last 6 months in my neighborhood. The only homes that sold were all short sales and one foreclosure. The neighborhood is only 3 years old! I've been pondering about taking money out of my deferred comp and buying a home with a more manageable monthly mortgage payment. What do you think?
 

Moe Bedard

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Aug 10, 2007
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Southern California
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Judith.........

This was posted on a previous post by a mortgage loan underwriter about this very thing..........so I will repost it for your knowledge too......this is from the lenders standpoint..........


Previously posted by an underwriter in another members thread relating to this thread:
To represent to the new lender that things are AOK with the old properties and compel/induce the lender to make a new loan on a property with the express intention that after you get that loan the old properties are going to be either Shorted or just plain Walk Away is really, really a problem.....like loan fraud. We are not tolerating it and when we catch it and believe me sooner or later we will, well......we are not to happy with the situation. There is a SAR report filed and that can be very detrimental to anyone in the industry...that is a Suspicious Activity Report that is filed with the Treasury Department. The Feds can often and will more and more become involved in these matters as it is now the "new" thing....

It is considered confirmed material misrepresentation and they will act on it, so I do not advise that anyone consider doing it.

Do they catch everyone, no, but they are looking for it now as it has become epidemic and we are rather PO'd about it. So, do I like what the lenders did on these loans, no I do not, but can we continue to allow the excesses of the past that got us here? I have declined so many of these loans that were build on smoke and mirrors...and rightfully so it appears...we can not let this mind set continue, our credit markets are completely in disarray, we are verging on total recession and we are going there to the glee of the rest of the world with our high and mighty position that we have taken for so long....

So I do not support or advise the continuation of the issues that got us here in the first place.
 

Judith

LoanSafe Member
Apr 8, 2008
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So underwriters are looking into the problem of people bailing and getting into an affordable mortgage. What choice do they have? If lenders are still FORCING people to pay the newly adjusted rate - as our is nearly $900.00 more a month - and refusing to work with us, again, what choice do we have? We tried to refinance our home over a year ago and did not find any takers due to the fact that we did not have enough equity in our home. I, personally, as well as my husband, would love to stay in our home, but we cannot afford the adjusted increase. And if no lender is willing to work with us, what do we do? Chase has still not given us any notification that they will redo our loan. Should we hire an attorney?
 

Moe Bedard

Call 1-800-779-4547
Staff member
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Aug 10, 2007
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Southern California
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Most in the same situation are renting until they build their credit back up and get past the situation, on a foreclosure you need to be at least 3 years past it with payments made to all tradelines of credit on time during those 3 yrs............it is obtaining a new " mortgage loan" that would be considered fraudulent.

You can hire an attorney...National Association of Consumer Advocates – Consumer Protection Advocates and Attorneys or try a non profit to help with the modification like HOPE at 1-888-995-HOPE.

If you are going through the modification process with Chase, they are modifying most of their loans as long as you can show that you can afford the modification going forward........
 

gb7488

LoanSafe Member
Oct 6, 2008
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Having an audit done right now, pretty sure we're going to be able to rescind the mortgage - still in the 3 yr window - we put $250k into the house (our money), since the bank benefits from the work can we either sue for that or put a mechanics lien on the property
 

Moe Bedard

Call 1-800-779-4547
Staff member
Loan Safe Mortgage
Aug 10, 2007
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Southern California
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that would be an attorney question............
 

Social Apocalypse

LoanSafe Member
Mar 17, 2009
693
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Washington State
I have been posting in "Ask The Attorneys" about our progress, and so I won't repost here, but in the case of rescinding the loan and bankruptcy: There are MANY documented cases and previous findings sustantiating what my attorney is now doing for us. I will be posting the progress, and it should be fairly quick...

1. We filed a valid rescission on both of our mortgages 2 years and 11 months and 28 days after our closing date. The rescission is water-tight, the numerous TILA/HOEPA/RESPA violations are clearly there, and the all-important "Material Disclosures" were not only not made, but falsified on the ones that were.

2. We are now filing Chapter 13 Bankruptcy with the help of an experienced bankruptcy attorney who also has done numerous cases of consumer protection and real estate law litigation, and has in fact personal case history of this action in our area.

3. The two mortgages will be listed as "unsecured debt" because they are. The loans were rescinded. Our mortgage debt will be included with credit card debt and all other unsecured debt, and will receive the lowest priority repayment in our trustee plan.

YES, you can do this, yes, it has been done, and EVERYONE considering bankruptcy should make SURE that their attorney checks out the details of their mortgage to see if there are TILA violations and whether you are within your rights to rescind. Bankruptcy attorneys, until recently, usually take your mortgage balance and status at face value and assume it to be legal. You can no longer make that assumption, we all now know.

YES, you can walk away with NO MORTGAGE on your home (in Ch13), and it is happening every day. Please don't depend on your mortgage company to make this suggestion to you, they won't.

I thank God every day that I found this forum. If it wasn't for this forum, I would have never questioned what I was being told by my creditors (who are lying like dogs). Thank you thank you thank you. TB98629:)
 
F

freediykits

Guest
From what I understand, in most cases the bottom line is; he bank will only approve a loan modification, short sale, or an other foreclosure alternative if they are losing less money than if they pursue foreclosure on your home. The bank is a business and if it makes them more money by selling your home through foreclosure 9 times out of ten thats what they are going to do...
 

Tarot

LoanSafe Member
Apr 1, 2010
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"Asset-Based Lending
A lender provides financing to a homeowner based on the homeowner’s equity and without regard to the borrower’s ability to realistically repay the loan. The lender determines that there is equity enough to cover any loss that might incur in the event of a default."


Isn't this what all HELOCs pretty much do? Lend against the purported equity of the house? Would that make most HELOCs predatory/in violation?
 

Social Apocalypse

LoanSafe Member
Mar 17, 2009
693
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18
Washington State
Isn't this what all HELOCs pretty much do? Lend against the purported equity of the house? Would that make most HELOCs predatory/in violation?
No, UNLESS the HELOC was approved WITHOUT regard for the borrowers ability to PAY. In other words, if it was a "stated income" loan.

HELOCS are not predatory. But giving a mortgage with FULL KNOWLEDGE the borrower could not afford it, with only the EQUITY in the home being the "approval factor", means they intend for the borrower to fail and repossess the home later.

THAT is predatory. Mortgage lenders are supposed to be financing homes, not committing entrapment, like a police officer parked outside of a tavern at night waiting for drunks to stagger out to their cars and drive off. Even THAT is illegal!! :)
 

Tarot

LoanSafe Member
Apr 1, 2010
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"...like loan fraud. We are not tolerating it and when we catch it and believe me sooner or later we will, well......we are not to happy with the situation. There is a SAR report filed and that can be very detrimental to anyone in the industry...that is a Suspicious Activity Report that is filed with the Treasury Department. The Feds can often and will more and more become involved in these matters as it is now the "new" thing...."

This is BULLSH!T scar tactics.

I work with SARs, they are the red-headed stepchild of the banking industry. They come in and come in and come in, thousands and tens of thousands a day. Nobody looks at them, IF they get printed off, they are stacked in piles on floors in offices, later boxed up, and sent god knows where. Nobody does investigations into the circumstances of SARs, unless the person comes under suspicion for some other crime. Then their banking is forensically audited in conjunction with another crime. And that information would all be available via subpoena anyway. It's just a lead, like the thousands of leads that pour into the police station when a child is reported kidnapped--99% of which are meaningless. Sooner or later everyone who makes large purchases or moves large amounts of money around (have you purchased or sold houses, cars, settled an estate, received large bonuses, had an ebay business, switched money from one bank to another, got a settlement--well, you probably have a SAR). Most people who get captured on a security camera are not crooks and most people with a SAR have done nothing wrong.

This is alarmist and misleading--like people who insist that the government is using the NSA to listen in one everyone's phone calls. No way.
 

Tarot

LoanSafe Member
Apr 1, 2010
109
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No, UNLESS the HELOC was approved WITHOUT regard for the borrowers ability to PAY. In other words, if it was a "stated income" loan.

HELOCS are not predatory. But giving a mortgage with FULL KNOWLEDGE the borrower could not afford it, with only the EQUITY in the home being the "approval factor", means they intend for the borrower to fail and repossess the home later.
All they cared about was how much our house had appreciated and how much equity we had in it. They asked for income verification, but it was like an afterthought, instead they focused intently on the house equity. At least in our case. Our second was a 10 year interest only for $100k. And our equity in the house at the time was $110k.

I don't think they lent intending for us to fail, but I don't think they cared very much if we did or didn't because at that time it was just before the bubble burst.
 

SONORACADREAM

LoanSafe Member
I am the perfect example of a HELOC Victim, WAMOO took my interest only option out and said bye! I borrowed to pay them any they loaned against my home when my lender locally refused to, I had no alternative? I had to keep the Medical paid and the family fed on top of work. Now it is the end Courthouse on the 13th in forclosure. I copied all the funny stuff they did with my loan on the internet. I mean really strange? A 40 yr Armortization Schedeule pay down on a Variable HELOC? Is it worth a audit? I am all for Ameriacs Values, but seeing the rising home prices was a fixed to fail fraud.

Kirk