Many people struggling to pay the mortgages are motivated to consider a short sale. I am often told that it is considered because of their concern that if a short sale is not done, and the property is allowed to foreclosure, they will never be able to own a home again. Today, I want to tackle the perception of that…and present a bit of reality, from my point of view.
Posts Tagged ‘mortgage’
The Cramdown Bill is Dead
Thursday, April 30th, 2009
From MSNBC:
A dozen Democrats joined Republicans in the 45-51 vote to scuttle the bill, which Obama had said was important to saving the economy and promised to push through Congress. But facing stiff opposition from banks, Obama did little to pressure lawmakers who worried it would encourage bankruptcy filings and spike interest rates.
I remind everyone that next year, 2010, is an election year. If you want to know who to blame, here’s the roll call vote.
US Trustee Sues Countrywide
Monday, March 3rd, 2008
The United States Trustee has filed suit in the US Bankruptcy Court in Atlanta seeking sanctions against Countrywide Home Loans. From the New York Times:
“Countrywide’s failure to ensure the accuracy of its pleadings and accounts in this case is not an isolated incident,” Donald F. Walton, the trustee for the Atlanta region, wrote in a brief. “In recent years, Countrywide and its representatives have been sanctioned for filing inaccurate pleadings and other similar abuses within the bankruptcy system.”
In addition to a litany of other abuses, it is alleged that Countrywide accepted payments on a mortgage that had already been paid in full (the mortgage company had issued a “satisfaction of mortgage” acknowledgment).
I recall Countrywide commercials where some delightful spokesperson would proclaim: “Countrywide says YES!.” According to a statement from Countrywide, they are not commenting on the pending litigation.
News of the suit is also reported in The Sydney Morning Herald.
You may have missed…
Is Countrywide Fabricating Evidence?
The US Trustee v. Countrywide
Is Countrywide Fabricating Evidence?
Tuesday, January 8th, 2008
Today’s New York Times is reporting that Countrywide Financial “fabricated documents related to the bankruptcy case of a Pennsylvania homeowner.” Apparently, the documents were letters addressed to the homeowner claiming that $4,700 was owed. Countrywide’s local counsel told the bankruptcy court that the letters were “recreated.”
“These letters are a smoking gun that something is not right in Denmark,” Judge [Thomas P.] Agresti said in a Dec. 20 hearing in Pittsburgh.
Countrywide denies any wrongdoing.
For an interesting take on this, please check out Tanta’s entry early this morning over at Calculated Risk: “Turns Out Judges Don’t Like ‘Efficient’ Servicers.’”
When Your Mortgage Company Files Bankruptcy
Wednesday, December 26th, 2007
The foreclosure crisis sweeping the nation is also sending some mortgage companies into financial ruin, leaving many folks caught in the middle. Last week the Federal Trade Commission issued a new publication giving consumers advice on what to do if their mortgage company files bankruptcy.
The PDF of “How to Manage Your Mortgage If Your Lender Closes or Files for Bankruptcy” can be found here. There is also information how to obtain the publication by mail.
NY Suit Targets Appraisal Company
Friday, November 2nd, 2007
According to a New York Times report, the NY Attorney General filed a lawsuit in Manhattan accusing an appraisal firm of inflating the values of homes. According to the report, the firm – a subsidiary of the First American Corporation – inflated the values of homes because of pressure from Washington Mutual, a claim the bank denies.
Mr. Cuomo’s case is built on e-mail messages obtained through a subpoena to First American. According to the complaint, the messages show that executives at eAppraiseIT initially resisted the pressure from Washington Mutual to raise the values of the appraisals it was conducting for the lender in early 2006. The loans in question were largely used to refinance mortgages and take equity out of homes. Higher appraisals would allow a lender to make bigger loans and earn greater returns when selling them to investors.
In a written statement, Washington Mutual denies any impropriety.
Pro Bono Foreclosure Assistance Hotline
Wednesday, August 1st, 2007
I am thrilled to hear that Massachusetts Attorney General Martha Coakley has announced the establishment of a Pro Bono Foreclosure Assistance Hotline. The hotline is designed to steer low income Massachusetts residents to professionals who can offer them the help they need. (I am also pleased to let you know that both Roy and I are among the volunteer lawyers).
The numbers are (800) 342-5297 or (617) 603-1700.
For Everything, There is a Time
Thursday, July 26th, 2007
One of the most common client complaints I have heard throughout my career is how long the legal process can take. I can appreciate that. At the same time, what’s worth doing right, is worth doing well. Sometimes, it takes time to do something well. And lately, time is something that has been a luxury with some of the clients I see. Today, I was reminded how important time can be.
I received a call from some homeowners. They are in one of my least favorite mortgage products: 2/28, interest only. Translated: the first two years of their mortgage payments are “interest only.” Then, in 2 months, the principal will be added to their already high interest-only mortgage payment.
Fortunately, they are not behind. Yet. But they will be if time continues to march forward without some intervention. And even more fortunately, they are calling me early enough that we can take our time and explore all reasonable options available. There is no rushing to the Bankruptcy Court to stop an auction. We can take our time, explore the options, and move in the best direction for them.
Not everyone has that option, but the fact is, the only reason why they do not have the option is because they do not, or cannot look at the handwriting on the wall. Privately, colleagues have expressed their view that I tend to have a negative view of the economy. At the risk of continuing to sound like a ‘Negative Nancy’, today the stock market decided to deal with the summer heat by slipping into the deep end of the pool. Is the end nigh? No. But one cannot ignore that come October $50 billion worth of mortgages will be adjusted to reflect higher interest rates. For real. The handing writing is on the wall for more than the folks who were brave enough to pick up the phone today.
If you see the handwriting on the wall – and perhaps most importantly, if you can muster up the strength to look at what might not be so pleasant to look at on that yonder wall, call someone. Call someone now. It’s only July. There’s two full calendar months before October to plan, prioritize and strategize. That is time. And time is a precious commodity when it comes to saving your home.
October is a time for pumpkins, leaf raking and the World Series. If you are looking to October with a sense of dread, it’s time to do something about it. You can. There is time.
Some ‘Provocative’ Questions about ‘Extend and Pretend’
I read this today on HousingWire. Its publisher, Paul Jackson, poses the following “provocative” question about all of those modification plans and programs we keep hearing about (and I often write about):
Or, perhaps it can be said like this: what if consumer confidence statistics are actually being artificially buoyed by the extra cash homeowners (at homeowners ‘on paper’) who are not making mortgage payments, but instead, allocating those resources to things they would not otherwise purchase? (more…)
Tags: Commentary, Economy, HAFA, HAMP, modification, Modifications and Workouts, mortgage, Mortgage and Foreclosure, mortgages, Mortgages and Foreclosures
Posted in Foreclosures and Real Estate | 1 Comment »