Supporting, Informing & Connecting People in Foreclosure

Permanent loan modification is not permanent after all.

my seventy two year old frind was offered a permanent loan modificatin and eight months latter slapped a notice of trustee sale. she was placed on a trial modification and made her trial modification payments for over a year before she received and accepted her permanent loan she received a copy of her modification agreement signed by a representative for her records.

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Permalink Reply by Frank V on October 16, 2010 at 10:48pm

Tks., Bob... Make matters worse the lender after nearly two moths of "we will review" stated hat borrower must reapply for a loan modification workout. And guess what we did... we reapplyed. Only to have the lender decline the appliaction. Borrower is social security income and pension. When she purchased her home she dropped sixty thousand into escrow and got a sub prime interest only fixed for two years. Her interest rate increased continually. After draining her savings and trying to comply with the lenders so called "permamnent loan modsification agreement" she was placed into foreclosure sale date. How do you explain the a permamnet loan modification agreement is permanet after all.

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Permalink Reply by Sheryl Adams on October 22, 2010 at 4:25pm

Who's the Servicer/Bank/Lender ?

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Permalink Reply by Frank V on October 23, 2010 at 2:15am

Chase Home Finance.

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Permalink Reply by Frank V on October 23, 2010 at 1:31pm

Tks., Bob. Please keep in mind that the borrower has had this property for many years. When she obtained this loan she was gainfully employed. She got into an adjustable rate mortgae loan that has since adjusted causing her mortgage payments to increase. The borrower was placed on n a trial payments and after nearly a year her lender offered her a permament loan modification in writing, signed off by a bank representative. She does have social security income and pension retirement income. I've heard of borrower's failing the net present value test and being denied for a permanent loan modification. In this case she recieved an agreement with terms indicating her permanent loan modification was approved under the CHAMP program. When a lender provides you a permanent loan modification in writing and the borrower agrees to it, signs and returns it back to the lender and the lender signs off on the permanent loan modification agreemnt and provides the borrower a copy accompanied with a congratulations letter "You've been fully approved for a permant loan modification," anybody will be under the assumsion that that it's final. Chase Home Finance has breached the agreemnt and perhaps thats what they do best. When we contacted the lender they advised that the loan modifiction maintenance department failed to plug in the correct codes to finanlize the loan modification agreemnt and because it was over 60 days the borrower must reapply. We did and were denied... lost with out hope.

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Permalink Reply by david f. black on October 24, 2010 at 10:14pm

hello
In some cases, the mod process has been shown to be dupe of the homeowner. by that I mean that all of their payments go into a suspense account instead of being credited to the mortgage. the lender or servicer's computer is in effect told there were no payments. this fund ie the suspense account is then used to bill attorneys fees from the lenders attorney . this is absolute and total unmitiageed fraud. I found this out by going o nthe servicer's website and found that my payments were not being applied. then o ntop of that the servicer was adding interesnt and escrow charges to my mortgage balance while NOT applying my multiple payments to my mortgage in their computer. As I have said before, these are discriminatory mortgage servicing and lending practicds for which one remedy is to file a housing discimination complaint with the federal Housing and Urban Development Agency. I did this and it has the servicer's attention.
one other thing, it seems that no one knows who owns their mortage. well you can bet the mortgage servicer knows because they have to have the bank account and routing numbers for where to send your payments if you make them or did make them in the past.

the point here is under federal law, called RESPA Sections 1594, that stands for the Real Estate Practices Act, any homeowner can demand to know under that statute who the owner of their trust is . the servicer must provide this information upon request which is called a Qualified Federal Written Request under the Federal RESPA Act or they will be fined by the Federal Trade Commission.

all of this neews that no one knows who owns their mortgage .well if that is the case, I followed the money made my request and it came back who owns the mortgage. once I had that info I could like the trust up in the SEC Federal Securities and Exchange Commission database and it must be registered with the SEC to be a valid trust and the trust must file an annual report called a 10k. in my case, I found out who owned the trusts by googling their names that I got from my servicer and found out that both trusts are owned by
the FEDERAL RESERVE BANK OF NEW YORK. now aint that special and I was denied access to HAMP and the FED Bank owns my trust. now what implications are embedded inthat ownership while denying me access to hamp that used taxpayer TARP money to bailout the banks. Allegedly the FED used TARP money to bail out my first trust which is BEAR STEARNS Pass Through Certificates 2007 AR4 that is being sued in federal court in new york by the investors.

does that mean the investors are suing the Federal Reserve Bank of New York. it looks like it to me.

this just gets better and better.

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Permalink Reply by Frank V on October 25, 2010 at 1:03am

Thank you David foir that information. What I want to express and make a point here is that Chase (borrower's morgage lender) provided my friend a permanent loan modification in writing and then eight months latter slapped a trustee sale date against her home. Anybody would think that the written agreement is final! Not in this case. The lender lied to her, brought her hopes up high, and breached the agreement. How do explain that a written signed loan modifiaction agreemnt, both by the borrower and the lender, is not what it appears to be.

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Permalink Reply by Sheryl Adams on October 27, 2010 at 7:45pm

Tell your Senior friend no matter what she does do not leave her house- tell her to save the modified mortgage payment in the bank every month and fight. Make numerous copies of all supporting documents, write AND send all to Elizabeth Warren the Watchdog Obama hired ( if they say they didn't receive it send it again and e-mail it if you can ) - I am in CA fighting for a loan specifically for Seniors that were duped by predatory lenders, Senior mortgages s/b 31% or less of their FIXED INCOME - the same FIXED INCOME they had when they were sold these neg am and adjustable rate loans - www.goodhouse.org

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Permalink Reply by Frank V on October 27, 2010 at 10:08pm

Hi Sheryl,
Thank you for that information. This file is curently under review with the executive branch of Chase Home Finance. We were told today the the file was under review and that the foreclosure was on HOLD. I have never heard of a LENDER PROVIDING A PERMAMANENT LOAN MODIFICATION and then eight months latter slap a foreclosure trustee sale date. We hope and pray...

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Permalink Reply by david f. black on October 27, 2010 at 10:59pm

hi Theryl

there is a bit more going on with these mods then you might think. MY neighbor got one from chase after not paying her payments for 11 months. now for a year she is on trial. However, this is a major POINT HERE. She stopped getting her mortgage statements.
In my case, that happened to me from a mod prior to HAMP. what I caught the servicer/lender doing was not crediting my payments in their computer , not sending me any statements, not telling me how much or where to send my payments but six months later, I found out from a suddenly reappearing mortgage statement that a suspense account had been created where the mortgage payments were being credited. From www.msfraud.org website and Jack Wright that runs it, I found out they did the same thing to him.
this little suspense account is what the bank uses to pay their attorneys when they foreclose on you.

I hope you got this. My and Jack's payments were put into a slush fund and then used in his case and allegedly might have been used to pay for the lender/servicer's attorney fees .

to me that is pure wire fraud, mail fraud and telephone and internet fraud on an interstate basis. so when you get a mod and a trial, not only are you getting a ding on your credit report saying you defaulted on your mortgage but a person may allegedly unbeknowst to them, having their payments going into to attorney bill slush fund to finance the banks attorney fees as they proceed against you.

finally , the term modification is really allegedly a misnomer. under this guise, the banks and servicers are demanding tax returns, copies of your car titles and other liquid and fixed assets especially their addresses, titles etc and value.

what this mod program should be called is

a FUTURE HOMEOWNER BANKRUPTCY ASSET SCREENING PROGRAM.

OF COURSE THIS IS AN ALLEGATION BUT JACK WRIGHT OF MSFRAUD.ORG AND I BOTH CAUGHT THE SAME COMPANY FO R DOING T HIS AND SO DID THE FTC AND FINED THEM $ 24 MILLION DOLLARS.

GOOD LUCK IN YOUR CASE. TODAY bloomberg tv stated that all the state attorney generals are meeting with your lender and other lenders. the deal they are trying to broker is to keep all homeowners and occupiers i n their homes as settlement of suits against them for fraud etc in this foreclosure fraud debacle.

good luck to yo uboth Sheryl.

as I stated earlier if you have a n arm loan it probably was predatory in nature. if it was predatory you may have a valid complaint to make for civil rights violations under the Fair Housing ACt with H.U.D. be careful with them and not fall into the traop of filing your complaint over the phone. do it in writing and get a stamped copy of whatever yo uturn in as in the intake questionnaire.

www.hud.gov has the details on how you can file that complaint.
your state agency for housing discrmination on the web has the complaint questionnaire for you to fill out. arm loans means predatory lending and predatory lending means housing discrimination and is definitely a violation of federal and possibly your state's law on Fair Housing. If your lender servicer is found guilty or at fault there are heavy fines against them, plus yo umay get restitution like all of your mortgage payments back on your predatory loan plus attorneys fees paid all by your lender/servicer.

good luck

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Permalink Reply by L on December 10, 2010 at 6:55am

I know of a reporter interested in stories about older Americans being evicted out of their homes after modification scams by the servicers. Please email ForeclosureHamlet [at] gmail [dot] com if your friend would be interested in sharing her story.

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Permalink Reply by Frank V on December 10, 2010 at 6:45pm

Tks. This file is currently being review by an operation manager of the executive branch of CHASE. Borrower file a complaint with the Office of the Controller Currency and the Attorney General Office of the Satte of California. In return we have been assigned a operation manager to review the file. We are waiting for an out come.