The facts are that most lenders packaged and sold these loans and most likely yours in massive pools to Wall Street who in turn sold them to investors. These investors are now in control of most of these loans. The problem is these investors are hard to locate and many simply do not want offer loan modifications.
So, what loans are regularly being modified?
Most lenders have what is called portfolio loans. These loans were made by the lenders and were not sold. These usually were the “good” loans. A lender who owns your loan and has the power to modify will agree to some kind of loan workout or loan modification if it makes sense to the lender and they will deny it if it doesn’t.
The problem is that most of the loans that are going into default are SUBPRIME and the lender most likely sold it and now it is being serviced by a loan servicer. The loans with less risk they kept and the loans with a lot of risk, they sold.
Essentially profiting by placing you in a toxic loan and then getting rid of you by immediately selling your loan to Wall Street who then sliced and diced them and sold them to unsuspecting investors. Thus they also profited immensely and then washed their hands clean. Leaving hedge funds and 401k’s with peoples life savings holding these cancerous investments.
OK, I’ll refrain from ranting about all that for now.
Lender say they are modifying loans. Countrywide say they are modifying loans. But according to a recent Moody’s survey, only 1% of subprime loans are actually being modified.
So. what the hell are these lenders talking about and what loans are being modified?
Good question! Let me tell you.
These are the loans that are being modified:
FHA
VA
Fannie Mae
Freddie Mac
Lender Held Portfolio Loans
Loans that are not really being modified and if they are it’s very limited:
MOST ALL SUBPRIME LOANS
The luck of the draw depends on the type of loan you have and then on your lender or servicer. My research has shown that companies like EMC, Litton Loan Servicing, Chase, Washington Mutual, Option One and a few more are actively working with homeowners. But companies like Countrywide, AMC, ASC and many, many others are not actively helping people or they do not have the authority too.
What you need to do is get educated and prepare to deal with your lender and also prepare an exit strategy in case they do not work with you. Save your homes first and then if that fails, save your credit. The homeowners who prepare mentally and physically to relocate and start over, will not be in shock if they lose their home to foreclosure because they will have prepared and have most likely have a home or an apartment to move to and start over.
Moe
Founder & Homeowner Advocate
LoanSafe.org
LoanWorkout.org
951-271-6283 Phone
800-734-8819 Fax
Moe at LoanSafe.org Email
Don’t forget Congress, Fannie, Freddie, the Fed, the SEC, the OCC, the FDIC, etc. and the press for being late to the story.
Exactly April. I am sure this will be the new media topic and they will all claim they uncovered it. Thanks for all your tips and info. Hey, I have a loss mit/predatory lending standards and procedures manual that I have been working on since, well, since you have been telling me and hinting for weeks to start. I would love to collaborate with you, Nathan Fransen *& Paul Molinaro on this and also a Nation Wide network of to notch legal aid non-profits to unite and REALLY help homeowners. Thanks April and I hope you had a good trip!
So, to sum it up, you think there’s a conspiracy?
Yes a conspiracy by several entities to get rich on the backs of homeowners.
Hi Moe:
I’m curious about something. If the regular people start hounding their state reps and senators to get busy about this crisis in Washington DC – do you think something will happen. There are a few senators that are very outspoken about this and how many homeowners were qualified and could afford the payments but got put in crapy loans that would reset meaning they could loose everything. Do you think it’s worth the time and effort to start making our leaders aware of the problem?
I think that is a great idea and that is something that I am doing now. It all starts with people and the more people who take interest and do something, then the more people we can reach and get the message out. Our leaders know what’s going on, they just need some help.
I’d be happy to start emailing all the people in my state. Do you recommend just emailing senators or house reps as well? Our state (Michigan) is in to disray right now and we rank right under California with foreclosures but all of our jobs are pretty much gone. Its a sad state of affairs.
I have been emailing my county and city supervisors and also the locl house reps. Start low and work your way up. They need our help and support.
I am very intregued by taking action. How can I contact my city and state officials. I am in Manteca, Ca. small town with lots of homeowners in the same boat.
What you need to do is affiliate yourself with a non-profit or start one. It’s hard to talk with these officials as just ordinary concerned citizens. At least that is what I have experienced.
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