collusion?!
Posted by admin on December 3rd, 2009
(Editor’s Note: For those of you who aren’t aware of it, this website — FacesOfForeclosure.com — is the fastest growing website I’ve ever built. I’ve never seen one “climb the charts” so fast.
I HATE conspiracy theories and decided in the ’60s that those being bandied about came from people who were smoking way too much dope. Now I’m thinking they saw something I didn’t see . . . We need insight into the lending industry and what’s been happening for the past couple of years. Looks to me like Bush said something like:
“I’m outta here in 2009, so get all the money you can out of those idiots (that would be Americans), in any way that you can. We’re covered by insurance, so none of you will lose anything, although millions of those idiots (that would be U.S. citizens again) will default and they will lose everything.
I sent out the following eMail:
An overview of a conversation with a real estate broker who also has a degree in law:
If you are behind in loan payments and trying to modify your loan and your lender asks that you make three monthly payments after which time they will consider your request, be careful.
Example: In October, my servicer, who does not hold the note, asked me to pay $4309.62 per month for three months after which time they would consider my request in January. That payment amount is actually HIGHER than my payment was in the first place. (I told them I wanted to modify the loan DOWN not UP, and sorry for the confusion — perhaps I wasn’t sufficiently explicit.)
By the time that letter came from my loan servicer, I knew that the servicer CANNOT speak for the holder of the note and my servicer repeatedly told me the holder of the note does not want to negotiate. I’d also been hearing horror stories about people who paid the requisite three months and who were told at the end of that time: “Too bad; the holder of your note does not want to negotiate.”
So my response was “No, this does not resolve anything; I will put the money in a separate account and hold it until there is an offer on the table.” Interestingly, one of the executives of my servicer said the offer sent to me was “ridiculous.” I concur.
This week, I received a letter from my servicer confirming what I suspected: the holder of the note does not want to negotiate . . . obviously the plan was as suspected: get as much as they could out of me and then tell me that there was no deal. They plan on foreclosing anyway . . . whether or not I paid the three months as requested.
The recommendation from the broker/lawyer:
Find out who has the note, contact them, say “I want to keep my home. Please make an offer.” Odds are the people actually holding the note brought it at cents on the dollar. A loan that was $550,000, for example, may be held now at $350,000 . . . meaning if the current lender can get anything over $350,000 out of you, they might be quite happy.Once you are turned down for modification, the servicer of the note HAS to tell you who holds the note — and so we are also back at “produce the note.”
Now, following are responses to my initial eMail . . . each of which confirms what was written above and each of which confirms that there is something wrong with this picture; I can provide thousands of almost identical responses from families facing foreclosure:
- “This is what happened to me! Chase said (in a written contract) that I WOULD GET THE LOAN MOD after three payments at the reduced rate. After I made the three payments, they said, “Oh, sorry, the “investor” will not modify because they don’t have to, but we will offer you a fully amortized loan at a higher rate.” I cried. My first higher payment was to go into effect on September 1st and my house was foreclosed on July 10th without any notice. Beautiful isn’t it? Watch out for these suckers. I myself am a Realtor and am disgusted!”
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Thanx so much for sharing your info: This entire situation is making me very sick in “this land of freedom and opportunity.” I’m a hard worker and have been dealing with my modification since February. My loan originated with World Savings, Wachovia took over World Savings, and now its with Wells Fargo. I stopped paying my mortgage in June of this year in hopes they would pay attention to me instead of pushing me off month after month.
I gave the modification department everything they asked for: twice, three times and at the fourth time, they told me we have to start all over again. I told them they can have the house back. It needs a lot of work anyway and that they will have to speak with my attorney as I feel harassed, feel like they wasted my time while I collected bank statements, divorce decrees . . . over and over again. This (saving one’s home) is almost a fulltime job…
Tags: collusion among lenders, foreclousre, lies
