Faces Of Foreclosure

According to Robert Singer in an article about “The Great U.S. Housing Market Foreclosure Robbery of the 21st Century,” 18,700,000 homes are vacant due to bank seizures and that this economic behaviour on the parts of the mortgage lenders is irrational.

“There is 100 times as much money lost in foreclosure sales as there was in writing down balances in modifications.” said Alan M. White, an assistant professor at the Valparaiso University law school in Indiana who analyzed data on 3.5 million mortgages held by some of the nation’s largest loan services companies, such as Bank of America, Chase Home Finance, Litton Loan Servicing, and Wells Fargo — the companies responsible for putting these mortgages into large securitization pools.

So, what is going on? And, more to the point, how do we fight it? I bring this up because trying to deal rationally with mortgage lenders is NOT working the majority of the time, so a new strategy seem necessary; I propose that in addition to wide-scale fundraisers through TV drama shows (which is why this site was started), that class action suits be started against the biggest offenders.

Children raised in projects often suffer from Posttraumatic Stress Disorder (PTSD), which is an anxiety disorder that can occur following the experience or witnessing of a traumatic event. A traumatic event is a life-threatening event such as military combat, natural disasters, terrorist incidents, serious accidents, or physical or sexual assault in adult or childhood. Millions of us are being psychologically battered by the lenders.

I do not say this lightly. We are now seeing extremely strong, hardworking Americans buckle at the knees. Backs are bent by the confusion, inept client management, lost paperwork, and outright lies delivered by lenders.

What are the symptons of PTSD:

Repeatedly thinking about the trauma (i.e. “am I going to lose my home?”). You may find that thoughts about the trauma come to mind even when you don’t want them to. You might also have nightmares or flashbacks about the trauma or may become upset when something reminds you of the event.

Being constantly alert or on guard. You may be easily startled or angered, irritable or anxious and preoccupied with staying safe. You may also find it hard to concentrate or sleep or have physical problems, like constipation, diarrhea, rapid breathing, muscle tension or rapid heart rate.

Avoiding reminders of the trauma. You may not want to talk about the event or be around people or places that remind you of the event. You also may feel emotionally numb, detached from friends and family, and lose interest in activities.

Panic attacks: a feeling of intense fear, with shortness of breath, dizziness, sweating, nausea and racing heart.

Physical symptoms: chronic pain, headaches, stomach pain, diarrhea, tightness or burning in the chest, muscle cramps or low back pain.

Feelings of mistrust: losing trust in others and thinking the world is a dangerous place.

Problems in daily living: having problems functioning in your job, at school, or in social situations.

Substance abuse: using drugs or alcohol to cope with the emotional pain.

Relationship problems: having problems with intimacy, or feeling detached from your family and friends.

Depression: persistent sad, anxious or empty mood; loss of interest in once-enjoyed activities; feelings of guilt and shame; or hopelessness about the future. Other symptoms of depression may also develop.

Suicidal thoughts: thoughts about taking one’s own life.

Millions of people are having their minds battered by non-cooperative lenders. Hundreds of studies have been undertaken as to the effects of stress on people living in shelters — it echos post-traumatic stress disorder.” As of December 12, 2009, I will have 365 nights of going to sleep not knowing what my lender is going to do about my request for a modification.

I am working with more than 200 families in the same boat and before you “classify” them as “minorities” (I HATE that word) in order to somehow dismiss their strife, most of these families are white, as are the following examples:

• One 60-year-old gentlemen had been “negotiating” since 2007. His house, which he had lived in for 37 years, was just sold to an investment group who wants him out.
• Another is unclear as to who owns the house; she started with one lender and is now three or four down the road. Last week a real estate agent came to tell them she has the listing and they have to move.
• A 65-year-old woman was doing well until the downturn reduced her income by a few hundred dollars a month . . . and that is all she would have needed in a restructure. Her loan with Wachovia has been sold repeatedly, then taken over by Wells Fargo. No response in seven months. From the stress, she had a heart-attack a few weeks ago and her doctor is talking “bypass.”
• A senior citizen who has faced quite a few challenges through the years and worked through them all — including a year of treatment for cancer — faces life cheerfully and has never let anything break her. She is now admittedly “tired” of all of this and has said repeatedly that she now fully understands why someone would burn themself on the steps of a prominent building — like her lenders (She won’t. But she does understand why someone would.)

It doesn’t stop. These stories are across the nation. It is debilitating emotionally and puts great stress on one’s health. From the Washington Post, August 26, 2009:

Foreclosures Spur Depression
“The rate was especially high considering previous research showed that only about 12.8 percent of people living in poverty were depressed, the study found. Borrowers facing foreclosure were more likely to forgo filling prescriptions, and nearly 60 percent reported that they had skipped or delayed meals, according to the study.”

Princeton University defines psychological warfare as “the use of psychological tactics to destroy the opponent’s morale.”

The U.S. Department of Defense defines psychological warfare (PSYWAR) as “The planned use of propaganda and other psychological actions having the primary purpose of influencing the opinions, emotions, attitudes, and behavior of hostile foreign groups in such a way as to support the achievement of national objectives.” Is there a national objective to keep millions of Americans off-point? Leaders throughout the ages have employed tactics to control nations: Alexander the Great, Ghenghis Khan, Hitler, Winston Churchill . . .

Here’s a typical story . . . this just in from an eMail of a frustrated homeowner . . .

Just thought I would let you know the latest and greatest in our situation. As you may know, CHASE foreclosed our house while we were making payments under the loan mod.

Chase then sold our house to US Bank.

US Bank then served us an unlawful detainer. Because we filed BK, we have been able to stay in our home. In the meantime, we filed a complaint for the unlawful foreclosure; Chase and US Bank have been served and have responded to our complaint. Our hearing was scheduled for late January 2010.

Yesterday a Realtor from came to our door stating she was representing Wachovia Bank who now owns our property and she wanted our names and to know who we were because the house would be “going on the market.”

My husband told her: “you don’t want to get involved, but I will have my attorney contact you.”

It appears that US Bank is playing “hot potato” because they now see there is a problem with our property and they want nothing to do with it and have sold it to Wachovia.

I’d love to say that this is unusual. It doesn’t seem so.

I just learned that on the same day my lender was notified of bankruptcy, the Deed of Trust was assigned to yet another lender.

Here’s how bad it is (Note: We include parenthesis around each search term, i.e. “Wells Fargo Mortgage Complaints.” If search terms are entered without the parens, all complaints are noted, not just mortgage-related complaints; for the purposes of this illustration, we are interested only in complaints relating to mortgages.)

A curiosity re business practices . . . apparently Triple Investments (doing business in Sausalito as Charter Properties, it seems) purchased a home for around $400,000 and put it on the market for around $200,000 through a real estate auction firm out of the East Bay in Northern California

The curious part — and, admittedly, I don’t understand auctions or the rules of that game — even though this particular house was on the market with bids starting around $200,000, according to the auction house, Triple Investments said that they would not accept an offer unless it were somewhere around $400,000. If they didn’t get their minimum bid, they were/are going to pull the house off the market, update it, and put it back on the market. Now, this is all being done with the gentlemen who has been living in the home for 37 years STILL living in that home with a quite unclear picture as to just WHAT happened, who agreed to what, and, oh yes, just where IS that note?

So, aside from any ethics or legal questions, I am quite curious about WHO decides on these insane games? Do people with advanced degrees REALLY sit around thinking up this stuff?

I truly believe that freeways during the 70s and 80s (at least) were designed after two-martini lunches. Is such life-threatening/life-altering planning still happening during two-martini lunches?

If you want $400,000 minimum, why wouldn’t you ask for $400,000? It you will NOT sell for less anyway, what is the point of this masturbation? There is a world out there that needs advanced thinkers . . . and you are spending your time with this? Are you really that bored? Or just nuts? Can we bring back lions and Gladiators to give you something to bet on? Does it have to be our lives? (Actually, never mind that. I like lions.)

If you offer something at opening bids of $200,000, why wouldn’t you HAVE to accept whatever the highest bid is over $200,000? Why are such lunatic machinations even legal? Governor Schwarzenegger, what about changing this rule . . . as in “ask for the price you want or shut up”?

Truly, we must all have something better to do that guess at what the sellers of anything — let alone our houses — “really” want.

Dennis’ foreclosure

This is going from dreadful to insane starting with a request for loan modification from Wachovia/Wells Fargo in Octoaber 2007. From the November 7, 2009 Marin Independent Journal story: “A medical supply salesman who works at home, Temple said he was never told why the bank refused his regular $2,633 payments after his October 2007 modification request . . . Asked to explain why the bank refused Temple’s payments when no modification was done, Hammond responded in an e-mail that “monthly payments not equal to the amounts specified in the original contract (partial payments) would not be accepted. Bank officials would not confirm whether Temple’s rejected payments were partial amounts.”

The Sausalito company trying to take Dennis’ home has also recently foreclosed on two other Marin County residents with questionable methods/ethics.

On November 4, 2009, the Sausalito investors said Dennis could have 20 days to sell his house and/or move. Within 48 hours, the investors–who purchased Dennis’ home for $387,860–put it on the market for $199,888 through a real estate auction house. (The term “money laundering” is being bandied about in connection with the Sausalito firm).

The investment group also got Dennis to sign an agreement to NOT sue them (I’m not clear where this yet fits in).

It may be time for Dennis to ask for the note . . . if he has not already done so.

This just in:

If you would like to see a current, somewhat notorious application of produce-the-note, I direct you, this very day, to the Federal Bankruptcy Court in San Jose. Over the past few months the judge has issued repeated injunctions against foreclosure on the Peninsula home in question. The lenders have been unable (or unwilling) to produce original documentation. Today, I understand, it’s put up or shut up. If lenders can’t/won’t produce the note, the judge is likely to issue a permanent injunction. Check it out!

Here is a story representative of the people that need our prayers . . . and they need justice. Is our country so far amiss that this is allowed to happen without recourse?

I am 62 and have owned an over-the-water duplex in Marin County for 13 years. In 2007, I contracted a staph infection in my knee after an arthroscopic surgery at St. Francis hospital. The infection required an additional 4 surgeries to rid the infection, followed by a total knee replacement. I was bedridden for nearly six months followed by six months of rehab.

At the same time I became ill, my neg-am adjustable loan reset, and my mortgage payment tripled virtually with no notice. The bank, at that time IndyMac, and later OneWest, would not negotiate with me at all.

They filed an NOD, and followed with NOS with a sale date in Mid-March. I filed a Chapter 7 the day before the sale. The bank then filed for relief of stay, and submitted an erroneous appraisal to convince the court that there was no equity and therefore they should be allowed to proceed with the sale.

The appraisal was for a 4bd/2ba 2200 sqft property. Mine is a 6bd/4ba 3045sqft property. I advised the Trustee as to the bogus appraisal, but somehow, they approved the relief of stay – BUT only giving them permission to refile an NOD, followed by another NOS – specifically to allow me time (about 4 mos)to sell the property.

Without anyone’s knowledge, and none of the required filings, the bank sold the property for $1.0M. It had appraised in 2007 for $2.7M and the Trustee signed a listing agreement at $2.8M. We appealed the sale, but the Judge decreed that the buyer was in good faith, the sale would stand, and I could recover my losses from the bank.

In the meantime, I have been evicted – out of here by Monday. The trustee also seized my ’57 T-Bird that my Dad bought new, and a 30′ Catalina sailboat that I have owned for 28 years, as now I have no equity and no cash.

The law firm representing the bank has acknowledged misleading the Trustee, and all of these errors are well documented.

To add insult to injury, the property was then sold for $300,000 to a local company . . . sounds like money laundering. We have tried locating the company purchasing these homes at these low costs to little avail; they are flying under the radar, but we will scope them out. This is especially questionable because the area in question has dropped little in value; it is desirable on the world market.

A group in Marin County is behind this gentleman and is encoraging him to file a complaint with his local District Attorney’s office, which he will do if we have to drive him there!

The same group that purchased the above-mentioned home also purchased a home for $387,680 and is now offering it around $200,000 at a foreclosure auction on the assumption that it will create a buying frenzy.

By retreating to outsider angst the left forgets one of the most exciting lessons of the Obama campaign: that ordinary people working for common purpose wield tremendous power. For those of us who work for our income and have modest means, it was unbelievable to watch ourselves become donors to a political campaign and find that those donations made a difference.

Through Marin Family Action, I’ve been working with a group of homeowners from Marin, Napa and Sonoma Counties . . . most are in danger of losing their homes, some with obvious charlantry on behalf of the mortgage lenders, some with obvious incompetence on behalf of the lenders. I don’t know the background of the following or who really said what to whom, but I would think it quite impossible for an individual to be this far off in the understanding of a home loan, so one can only think that something is amiss (again) in the lenders’ paperwork.

I am a licensed real estate agent, and I do not understand much of what I’m being told is or is not true on behalf of the lenders. How does someone elderly (actually, I guess I’m elderly — is 66 elderly?), or ill, or with a low IQ understand all this. (That is not a slur; the average American has an IQ around 98 and mine, for example, is 143, and I don’t understand much of what the lenders are doing.)

The following was sent to Marin Family Action:

I spoke to you a few weeks ago. I could not make it to your office because I was sick. I live in San Rafael and my home loan was remodified in May of this year, with Washington Mutual which is now Chase or J.P. MORGAN CHASE.

The remodification terms in May were that I would pay $2348.51 for three years and
then would gradually increase. They also told me that they would include my taxes which they new they were two years delinquent. Anyway they sent me a letter on October 26th that my Mortgage would increase to $3700.00 by December 1st 2009 and then I received another letter dated October 28th that my mortgage payments would increase to $4700.00 on December 1st 2009.

At this point I know that usually anytime you refinance title knows about your taxes, etc., and they were aware of it and they told me because of the economy, etc. they would take care of it. I hope your office can help me.I am a single parent and have two daughters that I took care after my wife Diana past away in a Car accident. The last one just graduated and is started attending College.

I will not be able to make these payments and they would most likely take my home.
Please tell me what my option are. I know you have helped a lot of people in this stressful situation. Thank you.

Many people are going to try to pick that story apart . . . How could anyone have mis-read a note to that extent? Have you actually read your mortgage papers? Every word? Do you actually understand what you have agreed to and do you know — actually know — who holds your note? I’m quite sure that you do not. As for the changes in terms from Chase, I promise you that there IS, in fact, that much confusion in the world of mortgage lending. My own examples are proof of that; a letter one day saying a modification proposal is underway; another letter within days saying the holder of the note does not want to negotiate; followed by yet another lender saying that a modification proposal is underway.

WHAT is in our water? WHAT are the lenders drinking?

In response to blogging this to real estate agents, an agent who has also been subjected to the insane loan modification process, wrote: “Even though I am in the industry, I am so soured on mortgages and mortgage lenders, I may never buy another property again.”

THE FORECLOSURE SECRETS GUIDE I apologize going into this because the link takes you to one of those ugly pitch pages AND because I think this PDF publication is overpriced at $197 (or $67 through mid-November). And I shouldn’t say this, but it is also poorly written . . . but the techniques apparently work and it IS a low price if it helps save your home. I saw a piece in action during a Visit to the Sheriff’s Office and I will let you know next week if this helped save Dennis’ home. If you can get through more battling, this may help you save your house. I added the book to the site immediately following a response from a realtor who wrote saying that the bank did not disclose how they applied her late fees. Apparently you have the right to a full disclosure of how fees are applied AND you have the right to ask for ALL of the original documents so that you actually know who owns your house. If we do not fight back. this inept and/or illegal behaviour will continue!

The lending institutions behind every story here may have YOUR money in one of their checking, savings or investment accounts; THAT is a frightening thought.

I do not expect lenders to “have a heart;” I don’t care if they have hearts. I do expect them to be ethical and fiscally responsible. That is not being exhibited across the nation.

I don’t know what is going on or what is more disconcerting:

1. that the lending institutions are completely confused;
2. that they might be as corrupt as it appears;
3. that they are so insulated that they actually think their “bonus behaviour” is acceptable;
4. that they are as inept as is being exhibited!
5. mortgages have been sold and resold to such a degree that many lending institutions have trouble proving ownership.
6. uninformed real estate agents who assure you that “short sale” is the way to go; most do not know or are not disclosing the consequences of that.

All are extremely uncomfortable suggestions and, in my opinion, none are acceptable for those institutions that purportedly manage our dollars.

The Foreclosure Secrets Guide on this page was written by Alfonso Inclan, self-described “financial educator, credit analyst, real estate investor and online marketing coach.” He is not an attorney and a copy of his PDF guide was given to me by a legal advocate who is successfully using the techniques in this book — combined with others — to save homes. These techniques have been effective in saving at least five homes per the legal advocate and we will know next week whether or not it has saved Dennis’ home come Monday.

The book was written in 2008, the author has dozens of testimonials on his site attesting to the effectiveness of his guide. As you know if you are in the middle of this, most attorneys who claim that they can help save your home for fees ranging from $1500 to $30,000 or more have no specific power to do so. (In fact, the practice of charging upfront fees for such a service is now illegal in California — as well it should be.) Most lender negotiations are NOT successful, no matter who conducts them.

Here is an example given in the guide:

One of the largest subprime lenders was New Century. New Century went bankrupt. Loans were taken over by Countrywide, who then began foreclosures on homes. (After the guide was published, Bank of America was stuck with Countrywide . . . and Countrywide had more toxic loans than any other bank). Unless whomever took over their notes can provide the appropriately signed paperwork proving that they are the holders of the note, the borrower (you, the homeowner) may well be the owner.

It seems that my own mortgage holder cannot prove their ownership and did not provide notice of any sale of my note at any time.

I’m sure you do not want to go down this path. Neither do I. Because of the cost of getting in housing in California, it took me years to “purchase” a home and all I want to do is live happily ever after in it. However, it seems that it has come to “do battle or lose.”

The Foreclosure Secrets Guide contains:

• Ways to negotiate
• Workout proposals
• Foreclosure (including links to “Foreclosure Laws by State” and “Foreclosure Procedures by State.” These are crucial for you to know as they can help save your home because many lenders are NOT following the rules and are therefore in default.
• Legal Defenses of a Borrower. MOST IMPORTANT, i.e. things lenders don’t want you to know, letters requesting validation of debt, FTC and HUD complaints . . .
• Difference between mortgage and deed of trust

Editor’s Note: I just received the following . . . Here is the timeline of the ongoing saga of one person’s attempt to be responsible AND keep the family home. It is so close to my own situation, that I decided to publish it (with permission).

The Foreclosure Secrets Guide. I apologize going into this because the link takes you to one of those ugly pitch pages AND because I think this PDF publication is overpriced at $197 (or $67 through mid-November). However, it comes with a money-back guarantee from the writer/publisher and his strategies WORK; I saw a piece in action during a Visit to the Sheriff’s Office and I will let you know next week if this helped save Dennis’ home. If you can get through more battling, this may help you save your house. This was included immediately following a response from a realtor who is trying to save her home and who wrote saying that the bank did not disclose how they applied her late fees. Apparently you have the right to a full disclosure of how fees are applied AND you have the right to ask for ALL of the original documents so that you actually know who owns your house. If we do not fight back. this inept and/or illegal behaviour on the part of lending institutions will continue! Her closing comment: “Even though I am in the industry, I am so soured on mortgages and mortgage lenders, I may never buy another property again.”

This is a large lending institution; it is NOT Bank of America; I repeat, it is NOT Bank of America; they seem to be doing a good job for their clients.
The following can be verified.

THE SAGA OF LOAN MODIFICATION . . .

I preface this with I have NEVER asked anyone for anything. I have worked full time every day for 50 years, including in the corporate finance department of a well-regarded bank. I KNOW how a lending institution is SUPPOSED to run! Although my home has been seriously devalued, that is not a concern to me. I live in the home and would pass it on to family; the price will eventually turn around. The property devaluation has NOTHING to do with restructure and it is actually not the fault of a lending institution; devaluation is part of the ups and downs of real estate (or any investment).

I also would like naysayers to know that I would not ask for anything now were it not for the fact that The President of the United States has given mortgage lenders money to help tax-paying working people restructure home loans. The money is there and the lenders are having a difficult time parting with it . . . they’d rather give themselves bonuses. Because I was an executive assistant for many years, I keep notes on everything. What’s “restructure” look like?

• April-September, 2008: Stage 2 Breast Cancer Treatment (Chemotherapy and Breast Cancer) – Worked full-time throughout. Depleted most of my savings with co-pays.
• December 2008: Laid off from my executive assistant position. Had 2-3 months of savings remaining. Out of work for the first time in my life along with many thousands of other fine, highly skilled people!
• December 2008: Property was devalued by $97,000 by the County Tax Assessor.
• December 2008: Given the employment situation, I contacted my creditors seeking breathing room: By July 2009, I would have two retirement incomes, in addition to income from work. All cooperated immediately except The Lender (who will be named if/when appropriate). The Lender requested paperwork, which was lost repeatedly.
• January 5, 2009: The Lender sent a form letter requesting more paperwork. I sent it via mail and FAX. When I called in, no paperwork could be located. I sent it again. It was lost again, so I contacted a non-profit negotiator seeking help.
• February 8, 2009: Received a form letter from The Lender regarding options, including “loan modification.” Because I was short one month, The Lender stopped applying payments, even after sufficient funds were in my account to make payments. The Lender started charging me substantial late fees.
• March 5, 2009: Letter from The Lender indicating that they would talk with the negotiator.
• April 2009: No word from The Lender. I went through debit counseling/consolidation, “home save” counseling, etc.

Editor’s Note: News stories continually report numbers of “houses” lost to foreclosure. As I have mentioned elsewhere, “foreclosure” is not about “homes.” Foreclosure is about men, women, children, and pets losing their shelter, and the collapsing of community. The list of pain is endless: About 2 million children had or will have their lives disrupted; they fall behind in school, they have to move away from frirends, they have to live in tent cities under America’s freeways. One of my closest friends just had a heart attack from the stress of lost clientele to her business due to the flagging economy which led her to believe she might be able to restructure. She is with Wachovia and was told — after several months of trying to get an answer — that she would now have to wait to November. It was too much. People have committed suicide. And it gets to the simple things we love: I care for a feral cat. I have tried socializing the cat and can actually pet her, but after a few years it seems that Mrs. Dancer prefers sleeping in my backyard shed and depends on the homeowner (in this instance, me) for food and water. (Mrs. Dancer was caught and neutered for those of you who are rightfully concerned about such things.) Animals like this stand to lose their homes also. Because we are in a rural area, if Mrs. Dancer is left alone with an empty house, she will be subject to dogs, racoons, skunks, and wolves. PLEASE keep in mind that it is less expensive to KEEP someone in housing than to provide services to homeless people and/or to attempt to get them back into a home.

• May 9, 2009: No response from The Lender. Due to the lagging job market, I was unable to get my salary up quickly. Financial counselors recommended bankruptcy.
• June 2009: I called The Lender; they said that the loan had been sold and the holders of the note do not want to negotiate.
• June 18, 2009: The Lender sent a letter asking for information (which had previously been sent), along with information re the bankruptcy. The letter stated: “If your client wishes to retain the home we have programs available . . . extended repayment plans as well as possible modification of repayment terms . . . “ signed by . . .”
• June 2009: Called The Lender to check status. During the conversation The Lender said: “if you didn’t file bankruptcy, we could have helped you.” This struck me as insane given that we were six months into the process and if The Lender had acted in a timely manner, I might have avoided bankruptcy completely.
• On October 20, 2009 an associate recommended checking the County Recorder’s Office to see if my house had been sold out from under me – apparently it happens. The County Recorder’s office had an “Assignment of Deed of Trust” indicating that the Grantor (which was not The Lender I had been working with) had sold the deed to Grantee.” Apparently, according to federal law, both the grantors and grantees are to inform borrowers of such a sale with 15 days. I never received anything on either transfer.
• June-July: More lost paperwork by The Lender.
• July 9, 2009: Court document with inaccurate information provided by/signed by The Lender’s representatives (under penalty of perjury). I checked with my attorney; The Lender did, in fact, perjure itself but he basically said, “too bad ‘cause they have dozens of lawyers and you can’t win.” (Documents can be provided.)
• July 16, 2009: At the recommendation of a U.S. Senators, Congressional Inquiries filed.)
• July 24, 2009 generic update letter from The Lender: “We’re writing to let you know what we’ve received your request for assistance with your mortgage payment challenges . . . reviewing information . . . committed to working with more customers than ever . . .” Signed by . . . . At no time have I talked with or heard from the same person and this person never got back to me.
• July 27, 2009: Documentation sent to The Lender through the negotiator indicating that my income – which now comes from five sources (including SSI beginning mid-2009, and a retirement account) – is close to where it was when I took out the loan in 2006.
• August 2009: NINE MONTHS INTO THIS PROCESS . . . Letter dated 8/9/2009 received Saturday, August 15, 2009 stating that $30,000 needs to be paid by September 9, 2009 or The Lender will accelerate foreclosure.
• September 2009: House again devalued by the Office of the Assessor; the upside of this, of course, is that my taxes go down
• September 27, 2009: Received modification recommendation via mail – not through the negotiator, who has been negotiating on my behalf for several months. “Modification” was at same payment level that I had been and The Lender was requesting full payments for three months, after which time they would review the account again at January 2010. At the negotiator’s request, a copy was sent to them and they continued negotiations.
• September 29, 2009: I called The Lender to make sure they were negotiating with the negotiator and to be sure that they did NOT expect payments to be sent per their September letter. The woman I spoke with said I did not have to sign the agreement, but I should send the payments in. I asked if they would be applied to the loan. I wasn’t clear about her answer and I explained that I was afraid to send them in given that they have not been applying payments to the loan, but had been using all funds for late fees.
• I was also told during this period that I did not quality for ANY of President Obama’s modification plans, which further confused me . . . in that case, why do I have letters suggesting that modification is possible?
• October 10, 2009: The negotiator said The Lender representative had my paperwork and that the representative agreed that the “modification” proposed was “ridiculous” and said to continue working to obtain a better solution. The negotiator said The Lender has changed its mind again and said we would know something in a week or two.
• October 21, 2009: Letter dated October 14, 2009 from one of The Lender’s Mortgage Specialists. The Lender in response to a Congressional Inquiry: Misinformation. Incorrect figures. INACCURACIES ON THE LENDER’s PART:
  

  “The Lender was subsequently notified that you would be unable to afford the payments required to the above-referenced Agreement as your financial situation had changed.” Not true. No one told The Lender that I was “unable to afford the payments.” I told them because we did not/do not have a concrete offer, I was uncomfortable making ANY payments to them given the missing/lost paperwork throughout this process. (I was recently told that current Lender’s tactics is to get as much money out of individuals, then to foreclose anyway.) While I no longer know what is or isn’t true, because of the last ten months, I would not put anything past this Lender.

• October 21, 2009: County Recorder’s office indicates that the Deed of Trust was reassigned in mid-2009 . . . six months AFTER my initial request for restructure. I was never informed of either transfer. Again, aren’t they legally bound to inform clients within 15 days of the transfer?




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• October 21, 2009: Telephone messages to call The Lender at xxx-xxx-xxxx. I called 5:59 p.m. PST. Initially, no one knew why The Lender called. A rep said that there is “conflicting” information in the file: She said that one statement is that The Lender is considering modification; another is that The Lender is not considering modification. The Lender’s representative offered, “I’m confused.” Then she asked for updated budget information, which I provided. The Lender’ figures indicated that I was a few thousand dollars short each month on my income. Not true. New information has been provided to them throughout this process; The Lender’ files were not updated. She carefully went through my numbers to update their records. And she said I have to submit more paperwork . . . after almost a year of lost paperwork, I don’t see the point.
• October 22, 2009, 4:11 PM: Another message to call The Lender. This time is was a call center. I explained that I spoke with someone the prior day. She found the updated information, but when she repeated it back, some was still incorrect. Unfortunately, I was tired and upset at the insanity of all of this. A few rare tears fell. I told her that in my 50 years of work, I’d never seen anything like this mess. She was typing fast, so while The Lender has lost paperwork and never gotten anything accurate since December 2008, she probably got this right. Sad. I requested that The Lender begin contacting me through the Negotiator as I was exhausted at this process, confused by the inaccuracies and I prefer that a professional stay on top of this.
• October 23, 2009: Updated information sent to the Negotiator (and FAXED) with copy of October 14, 2009 letter from The Lender and updates on conversation(s) with The Lender.
• October 29, 2009, 11:56 a.m.: Call from The Lender in xxx asking for paperwork and before I could respond she said, “oh I see we have the paperwork.” I asked if it had been sent from the Negotiator. She said yes. I asked her who held the note on this property. Ensuing conversation:
  

  The Lender Rep: “In September 2006, XXXXX (The Lender Mortgage Backed Securities) purchased the note.”

  Me: “I was told XX or someone had the note and they would not negotiate. Also, according to the County Recorder’s office, Deed of Trust was reassigned on June 19, 2009.

  Lender’s Rep: “That is incorrect.” (She repeated this twice when I asked about it again.)

  Me: “Then the County Recorder’s Office is wrong? They have the paperwork in their records.”

  Lender’s Rep: She sounded confused and said, “Oh, we have to correct that.”

  Me: “I AM confused. Aren’t you supposed to notify me when the note on my property is transferred or sold?”

  Lender’s Rep: Yes.

  Me: And isn’t whoever purchased the note supposed to notify me also?

  Lender’s Rep:: Yes.

• This type of confusion is indicative of The Lender’s ongoing “management” of my request for loan modification. This, along with the fact that I have NEVER talked with the same person more than once since this started in December 2008, is a perfect example of WHY I did not want to make payments for three months without a firm agreement as to a loan modification. There is NO indication that The Lender knows what it is doing.
• I told several of this Lender’s reps during the past few months that I am afraid of The Lender and I am afraid to talk to The Lender because of their repeated twisting of information.

Am I afraid to send you this? Am I worried about some type of retaliation if the Lender can figure out who this might be? You BET!

Would any of my friends believe that I’m afraid of anything. NO THEY WOULD NOT. This is a first.

A group of high-spirited, well-organized, caring and sometimes scared neighbors at Marin Family Action in San Rafael, California have been working to help save homes for a couple of months. They have covered quite a bit of ground (and uncovered a considerable amount of duplicity) in a short time.

Their immediate focus: Dennis, a dapper 60-something-year-old gentleman who has owned his home for 37 years is facing eviction somewhere between 9 a.m. and midnight on Monday, November 2nd.

Dennis’ story: Dennis has lived in his house for 37 years. Due to economic downturns, he asked lender for a restructure. The lender said “You are current. Miss three months and we will talk.” After missing three months’ worth of payments, lender said no to restructure and said they were going to foreclose. Dennis sent them full payment to catch up. They refused the payment. Dennis went in with his attorney and a check. The lender again refused payment (which, apparently, is against the law). Bank sold the house to an investment group (soon to be named . . . and who have reportedly purchased 80 homes through shortsale, some LESS THAN other all-cash offers, which is also questionable).

Dennis is supposed to be out of his house on Monday. We are staging a sit-in on that day. Papers have been served on the Sheriff’s department to cease due to illegal activity, and on the purchaser of the note. Local media will cover, as will PBS out of Canada.

Through Marin Family Action, Dennis has been working with Jeff Smith. Jeff is neither an attorney nor a paralegal; he is a brilliant legal advocate that has had success in saving homes by documenting the illegal machinations of lenders . . . particularly through the Common Law court in Washington DC.

Lawsuits are underway: The first was FedEx’ed to Washington, D.C. for filing and returned within 24 hours. The paperwork was faxed to all parties involved and a group of us went to Marin County Sheriff’s Department on Thursday, October 29th, to apprise them of the situation with a request to hold the eviction until there is time to prove that Dennis is wrongfully being evicted. This suit includes a petition for declaratory relief and an order to cease and desist. This should stop the eviction and allow time to follow up with the second suit which will be an “action to quiet title.”

At this point, it’s a matter of what the sheriff’s department decides to do.

The group supporting Marin Family Action has grown from a few people three months ago to more than 150 concerned residents of Marin and Sonoma Counties . . . is prepared to “sit in” at Dennis’ house on Monday.

Once this fire is put out, the group will continue working with others who have been or are being duped by lenders. Some of the illegal activity going on with foreclosures is surely due to staggering incompetence; other activities are clearly coverups on the lenders’ parts; sadly, I have proof of this and will be naming names soon.

Update: November 4, 2009
Dennis is still in his home. Eviction papers have not been served. It is down to the wire and the legal advocate is waiting for papers from the Federal Court in Washington to see about a stay a “cease and desist order,” something.

If it matters, the person writing this has never been an activist, not even during the Vietnam War when it would have been appropriate to speak up. I prefer anonymity, have always kept my head down, worked hard, and volunteer to help endangered animals. But it is clearly time to speak up at the injustices being inflicted upon American homeowners.

As I’ve written throughout these pages, I don’t care if lenders have hearts; I do care that they are ethical and fiscally responsible; neither of those traits are being exhibited by todays mortgage lenders in America.

PLEASE keep in mind: “There But For God Go I” and “You.”

This IS an unprecedented time in our country; if we don’t stand by each other, if we do not work to halt illegal activities, what is the point of this country?

God Bless Us All! And God Help Us All!

NACA (Neighborhood Assistance Corporation of America) has been holding “Save The Home” events across the states, including San Francisco from Friday, October 16 through Tuesday October 19 at the old Cow Palace.

On Sunday, October 18, from 10 a.m. to 11 p.m. amazing stories were told by people who got their home loan restructured right then and there. Bank of America was dramatically coming through for people — 30 years fixed at 2-3%, mortgage money owed put at the back of the loan, back-taxes taken care of . . . Many of the loans were $500-$1200 LOWER than they were when the person showed up at the doors.

If you have hit a rough time in your life and need help to save your home, consider attending one of their “Save the Home” sessions, or at review their website to see if you qualify. (It does have to be your principal residence, not investment property, and you do have to have income from other than unemployment.)

“Save the Dream” days are grueling, but well worth it. You will see that you are in a very big boat with thousands of very fine other working people in the room. NACA’s staff is extraordinary and phenomenally hardworking. Everyone was impressed with how wonderful NACA’s crew is — about 100 volunteers and about 250 loan counsellors lined up at banks of computers for 14-18 hour days to help people.

Drill is:

1. Fill out forms on line at NACA’s site. Bring all of your papers with you to their meeting(s), especially updated financial information, current paystubs, copy of mortgage billing (including your second, if you have one). They have it all on file, but bring it anyway as it makes it easier for everyone. Bring a book to read. (One woman made substantial headway on the baby blanket she was knitting for her nephew.)
2. Get to the meeting site about 5-6 a.m. (the later you arrive, the longer you will be there as the lines do grow fast). You will stand in line waiting for doors to open. I showed up at 10 a.m. and that was a big mistake; while I did not wait in line because everyone was already inside, it was so late in the day that and I almost didn’t get to see a counsellor; I didn’t get to see a banker at all and have to go back (at 5-6 a.m. and stand in line).
3. Once you are in the doors, you will have to attend a counselling workshop. This process takes 2-3 hours. If you have attended a NACA workhsop already, this is exactly the same, but you will need to do this again to get a voucher.
4. After the workshop, you sit and wait and wait and wait. The food concessions at the Cow Palace were open, but it’s expensive and not healthy food — all fatty and mostly fried — no fruits or vegetables. Because the day is so long, I recommend taking fresh fruit, water and maybe a sandwich to keep you healthy.
5. It is extremely well-organized by section. NACA’s volunteers keep you apprised of the wait time as best they can, but, again, it is a very long day. Quite a few families brought their children; if that can be avoided, I would advise so doing. It’s too much to ask a toddler to sit for 12-14 hours. A close friend just had a heart attack and wanted to go with me because she will now need help for several months; this would have been a disasterous mistake.

While you are waiting, families who have received a solution relate their stories. The stories brought tears to my eyes repeatedly. Losing a loved one is the only thing worse than losing your home. Owning a home is the American Dream; NACA is trying to keep that dream true . . . thus the name “Saving the Dream.”

• A woman’s home was not only saved, her loan went from nearly 11% to 2% fixed for 30 years. Her payments dropped by about $1500/month. (Assistance is based on ability to maintain. The goal is to KEEP you in your home.) Her parting words: “God is good if you believe. Keep trying!”
• One man said his family had actually completely lost their home, had moved out, the home sat empty on the market. His family got their home back on Saturday!
• Wonderful young couple from Las Vegas with three children had been trying to get help for months. In addition to the long drive to San Francisco, they waited three days to get through the process. Their mortgage was reduced by about a thousand dollars a month.

Talked to all kinds of people around me: Chinese (both Mandarin and Cantonese), Indian (from Fiji and they’d never seen India, which I thought interesting), black families, Hispanic families, Samoan, Armenian (truly — they needed a translator), Vietnamese and those of us defined as “White.” It reminded me of what Ellis Island must have been like with the huddled masses waiting in huge rooms praying for a new life. NACA is giving new life.

This gathering comes at a time when I am researching information on DNA; just yesterday, I attended a geneaology workshop. Until a new theory is proven (if there be a new theory), we all came out of Africa through migratory paths through Asia, Europe and points south; and we can be traced back to Africa through our DNA. I bring this up because I read many blogs attempting to segment people facing financial hardships as “the other,” “those that did something wrong,” “not us.” Guess again. We are all “us.” I hope the people waiting in the room at NACA also realize how alike we all are, take that home with them, and greet their multi-colored, multi-cultural neighbors in a new way.

There is so much proof of our inter-connectedness. Consider the similarities of world art. Years ago, the Russian author Dmitrii Nagishkin wrote Folktales of the Amur: Stories from the Russian Far East. It is beautifully illustrated with images that clearly point out the mixing of cultures, including the East, Far East, Native Americans and down into South America.

NACA, for those who don’t know, was started by Bruce Marks in Boston about ten years ago. It is extraordinary what ONE person can do. We’ve seen the dark side of the carnage created by people like Bernie Madoff and his ilk; here is a bright side. What Marks is doing is akin to what Martin Luther King did. Mr. Marks is levelling the playing field. He is ignoring the rules, ignoring the larceny which surrounds us, and creating a new dream for people . . . or recreating the dream of home ownership at a time in America when millions of people have been thrown out of their homes.

On those blogs I mentioned above, many insist that “it is the families’ fault.” Has anyone figured the odds of 4 million families (10 million people) all making the same mistake.

Many of us met with counsellors at 10 p.m. Because bank reps had gone home around 9 p.m., we have to go back Tuesday as early as possible.

Very tiring, but also exhilirating due to amazing heartwarming stories of people who got excellent help on the spot. Most larger banks were on site. FYI, Wachovia (now owned by Wells) isn’t negotiating at all yet — they are waiting for an Obama Plan in November.