This morning I spent 2 ½ hours discussing the current mortgage crisis with Storm Bradford from Mortgage Fraud Examiners (See here for Storm’s website). Storm brought to light a few disturbing issues that have been troubling me but I have not been able to articulate. As a homeowner that is continuing to battle the banks one of the most frustrating aspects is being able to clearly understand what the issues are, what the law says about those issues, and what the law says about whether I am entitled to a recovery from those issues, and what the law says that recovery should be. I hear a lot of theories but not a lot of case law cites backing up those theories.
With all the noise out on the internet – securitization failures, no real defaults, falsified and forged documents, TILA/RESPA audits – there seems to be a myriad of solutions that ultimately are NOT solutions but rather stall tactics in delaying the inevitable, the loss of one’s home. Some sites call these services “tools” in the foreclosure defense while others call them “scams”. So I am going to try to cut through the chaff and noise and talk about my own personal perspective on these services and hopefully, help you gain enough insight and knowledge so that you can further investigage them and make that determination for yourself rather than letting others tell you.
We have strong emotional ties to our homes, so much so that we seek to find reasons why we should be allowed to keep our home based on what we want, rather than what is proper and legal. Many of us have attempted “loan modifications” and have spent time (and for many, money) in having some fool lawyer submit our paperwork to the bank – only to have the bank deny the modification. I have not spent a lot of time pursing or investigating the whole loan modification services so I do not have a lot to offer you in regards to loan modifications. Other than I know of TWO people that have gotten one – and one of them had to write letters to our Senators, the CEO of Wells Fargo and the Obama Administration; she caught the attention of Feinstein (or was it Boxer?) and that caught the attention of Wells Fargo which ultimately lead to her getting her loan modification in the form of a more favorable rate. She did it herself and spent many an hour writing letters and making phone calls. I will ask her to write a guest blog detailing how she managed to get the elusive, and I say urban myth, “loan modification”.
As loan modifications continue to be denied, homeowners have started seeking defenses to the foreclosures. The first defense was the Produce the Note theory; the second defense was TILA/RESPA violations can lead to rescissions; and the third defense are Securitization Audits with mortgage loan files demonstrating the Note is not in the REMIC Trust and/or is NOT in default. Each of these defenses is being promoted by firms offering services to help you in your battle by employing the firm to conduct the service, so you can use it in your legal strategy. There are also two other services I hear a little bit about but are not prevalent, yet remarkably – these are the two services that most likely will result in getting the banks to the table – the first one is a Forensic Mortgage Audit and/or Mortgage Fraud Examination and the second is a Title Audit.
Before any homeowner (you) can justify the expense of any of these services you have to first determine why you are interested in fighting your foreclosure. We all have an emotional investment in the property that we call home as well as in our own credit scores and financial health. When a foreclosure is looming our gut instinct is to first to save our home and if that fails, to move past the situation as fast as possible. It is very hard to take a discerning look at your situation and make a decision based on logic rather than on the emotional gut reaction to fight and keep your home. Yet that is exactly what you have to do.
For myself I would look at what the value of my home is, what I owe and what the value of a loan modification would be. If I owe 500k on a house that is now worth 250k and most likely, in the next year or two will drop another 10 or 20% in value – what kind of loan modification would I want? I had an escalating ARM that was making the payments unsustainable – I needed my ARM adjusted to a fixed rate. This of course was 4 years ago; today I would want a principal reduction along with both a fixed AND lower rate on the Note. If couldn’t get that I would want to do a short sale or deed in lieu of foreclosure and move on with my life.
Why would the bank be inclined to reduce my principal or rate? Because they like me and want to be nice? Of course not. These are National Banks – soulless, careless money machines that only want as much money from you (and me) as possible. So they are only going to do a modification for one of two reasons – some government program qualifies you for the modification and allows the Bank to recapture what they are losing on the loan; or there is a violation of the law somewhere in either your mortgage origination or in the servicing of your loan and you bring that violation to their attention.
You have a choice now – go investigate the government home modification programs and determine whether you 1) are qualified for the program and 2) if your bank is participating in the program; and the other choice (which you can do both by the way) – is look at your actual loan papers and determine if there are any violations of the law that you can sue under – and if you can sue, what is the recovery for those violations and is that recovery worth the cost of the fight to get the recovery? Some people may have violations in the servicing of the loan as well as – such as forced placed insurance, misplaced or misapplied payments, etc.
Since so many people are in the middle of foreclosure (and trying to get a modification) I am going to go through the services mentioned above and how they may be used in a legal strategy to defeat the foreclosure. Notice I said “defeat” and not stall. Unfortunately some of these services only delay the inevitable – the foreclosure on your property.
I am going to go through these services in the priority of which I, if I were starting out today, would use the services. REGISTER FOR FREE AND READ THE FIVE MAIN SERVICES BEING SOLD TO HOMEOWNERS. CLICK ON THE BUTTON FOR A QUICK EASY REGISTRATION!
I would love your feedback on whether you have used any of these services and if so, were they helpful or not?
KEEP UP THE FIGHT!
JOIN US TODAY!