From the monthly archives:

August 2008

WE ARE NOT DEADBEATS!

by Moe Bedard

Contributed by an American homeowner. A woman, mother and wife who is suffering in what was supposed to be her American dream…………………………………….
From the movie:  The Terminator
Kyle Reese: Listen. And understand. That terminator is out there. It can’t be bargained with. It can’t be reasoned with. It doesn’t feel pity, or remorse, or fear. And it absolutely [...]

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Is Your Bank About to Implode? The FDIC is Hinting, YES!

by Moe Bedard

The lender carnage, death and destruction litter the home page of Aaron Krowne’s Mortgage Lender Implode-O-Meter like the beach at Normandy on D-Day. The infamous list has grown from September 2006 when Aaron started the website with approximately 10 failed lenders to a whopping 276 major U.S. failed lending operations today.
That comes out to about one failed [...]

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Should the FDIC & Sheila Bair be in Charge of Cleaning Up the Toxic Mortgage Crisis?

by Moe Bedard

This blog and my life has been dedicated to following what lenders, servicers and our government have done and are doing to assist the millions of Americans that are facing foreclosure as a result of being sold defective credit instruments. AKA subprime and ALT A mortgages.

In my hundreds of hours of research and work, only one agency [...]

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Are You a Countrywide Home Loans & KB Homes Client?

by Moe Bedard

If you have a mortgage with Countrywide Home Loans and are in a KB home tract where Countrywide was the preferred lender, then please contact me right away.
You may have legal rights that were violated and may be eligible for mortgage relief. Please contact me here and I will contact you ASAP with possible [...]

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Barney Frank Says Americans Were Pushed Into Homeowership

by Moe Bedard

“We made a mistake in this society. We assumed that everybody can be a homeowner. That was wrong.
We ended up pushing people into home ownership – including a great many who weren’t ready for it.”
Question: How on earth did the U.S. mortgage market get here?
Answer: We had too little regulation at a point of [...]

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States’ Countrywide lawsuits shift to federal court

by Moe Bedard

SPRINGFIELD, Ill. (Legal Newsline)-Illinois Attorney General Lisa Madigan says its lawsuit against Countrywide Financial Corp. should not be lumped with others filed by California Attorney General Jerry Brown and San Diego City Attorney Mark Aguirre, as the lender requested.
The Illinois attorney general’s office confirmed on Friday that its legal team will join Aguirre and, presumably [...]

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The Social Impact of Foreclosures: Homelessness, Crime & Death

by Moe Bedard

For millions, the American Dream has become the “American Nightmare”. Many people have lost their jobs, their mortgages have become cancerous and they can no longer pay the loan on their overvalued homes.
The social impact of these foreclosures is reaching every “dark” nook and cranny in almost every city in the country. Homelessness, domestic abuse, crime, violence and instability are [...]

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Fannie Mae & Freddie Mac Failure: The Lies, the Cover Ups and the Making of a Disaster

by Moe Bedard

Wall Street Journal October 4, 2004:
Fannie Mae isn’t an ordinary company and this isn’t a run-of-the-mill accounting scandal. The U.S. government had no financial stake in the failure of Enron or WorldCom. But because of Fannie’s implicit subsidy from the federal government, taxpayers are on the hook if its capital cushion is insufficient to absorb [...]

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Remarks by FDIC Chairman Sheila C. Bair on the IndyMac Loan Modification Announcement

by Moe Bedard

Good afternoon, thank you for taking the time to participate in this conference call. I would recognize John Bovenzi with IndyMac Federal, who is also on the line, and thank him for his contributions to today’s important announcement. John will provide brief remarks following mine.
I am pleased today to announce the implementation of a systematic [...]

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Loan Modification Program for Distressed Indymac Mortgage Loans

by Moe Bedard

From the FDIC: IndyMac Federal Bank, FSB (“Indymac Federal”) will implement a new program to systematically modify troubled mortgages.
The program is designed to achieve affordable and sustainable mortgage payments for borrowers and increase the value of distressed mortgages by rehabilitating them into performing loans. This in turn will maximize value for the FDIC, as well [...]

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California Senate Foreclosure Bill 1137 Q & A’s

by Moe Bedard

TEN REALITY QUESTIONS & ANSWERS ON CALIFORNIA SENATE BILL 1137
Ronald D. Roup, Esq.Legislative Chairperson UNITED TRUSTEES ASSOCIATION
Q1. – When does this bill take effect and become law?
A1.- SB 1137 passed the California Senate and Assembly as urgency legislation to take effectupon execution by Governor Schwarzenegger. The Governor signed the bill on July 8,2008 and the [...]

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The IRS on Shorts Sales, Foreclosures and Debt Forgiveness

by Moe Bedard

He said, she said and then the IRS said. Who are you going to listen to?
From the The IRS on Shorts Sales, Foreclosures and Debt Forgiveness
Update Feb. 4, 2008 — The Mortgage Forgiveness Debt Relief Act of 2007 generally allows taxpayers to exclude income from the discharge of debt on their [...]

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Wachovia Says They are NOT Offering Loan Modifications to Struggling Homeowners

by Moe Bedard

The Soup Nazi from the TV show Seinfeld was known for his abusive customer service skills and saying, “NO soup for you, to the back of the line!” Now, it appears that he is working at Wachovia in the loan modification department.
Attention American homeowners, the FDIC, the OCC, the FTC, Barney Frank and anyone else who [...]

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Breaking Down Overcharges by Brokers: N.C. Takes a Big Step

by Moe Bedard

From the Center for Responsible Lending:
In all the ongoing analysis of the foreclosure crisis, one point should not get lost: mortgage brokers played a key role in making the abusive subprime loans that continue to wreck the U.S. economy. 
Today North Carolina became the first state to ban systematic overcharging by brokers.  Governor Mike Easley signed [...]

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Countrywide is trying to kill me

by Moe Bedard

By a Countrywide Home Loans Client, American homeowner and mother, Shauna.
I am a little nervous, as this is my first time posting….here is my story. Due to my 3 year engagement ending in Jan 08 and me assuming by ex-fiancé’s portion of the bills which included an additional car note (I have since returned the [...]

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Judge Rejects Countrywide Settlement

by Moe Bedard

A federal bankruptcy judge has rejected a settlement involving the Countrywide Financial Corporation, the mortgage lender, saying he was not convinced that it was fair to nearly 300 borrowers who claimed to have been hurt by the company’s abusive practices.
The settlement called for Countrywide, acquired by Bank of America last month, to pay $325,000 to [...]

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Countrywide pact challenged by Justice Dept

by Moe Bedard

NEW YORK (Reuters) – The U.S. Justice Department has challenged an agreement that Countrywide Financial Corp reached in a bankruptcy court in Pittsburgh, saying it would make it harder to investigate and sue the mortgage lending giant.
 
Last month, Countrywide agreed to pay $325,000 to the Chapter 13 bankruptcy trustee in Pittsburgh, Ronda Winnecour, to cover [...]

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GOP: Probe Countrywide’s Sweetheart Mortgages

by Moe Bedard

House Republicans want the House Ethics Committee to investigate whether House members and aides received sweetheart deals on their home mortgages.
 
According to The Hill, Reps. Darrell Issa, R-Calif., and Mark Souder, R-Ind., told the Committee in a letter that the “serious and broad allegation that members of Congress, congressional staff, and other officials were given [...]

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Suicides, Murders and Stand Offs With Swat. Welcome to the world of foreclosures.

by Moe Bedard

The social impact that foreclosures are having in our communities is nothing short of disturbing. From suicides, murders and as in this case, a stand off with swat.
NewsDay:
SADDLE BROOK, N.J. – Authorities say a son held Bergen County sheriff’s officers at gunpoint as they tried to evict his 88-year-old mother from her foreclosed home.
Officials say John [...]

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Lenders & Servicers Are Overwhelmed

by Moe Bedard

NACA Durren Duarte - As for why it’s taking so long, the lender/servicers are overwhelmed. When you send lenders thousands of proposals, they get backed up, and it takes them longer to respond. Also, many of the lender/servicers who promised to be in their offices working on cases from the event Sunday, July 20th, did not show [...]

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New FTC Scrutiny Deemed Likely for Servicers

by Moe Bedard

An attorney who spoke at the Western States Loan Servicing Conference in Las Vegas predicts that the Federal Trade Commission will produce a “significant enforcement action” involving a major mortgage servicer within the next several months. Anand Raman, a partner at Skadden, Arps, Slate, Meagher & Flom, said the FTC has broad authority to scrutinize [...]

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Loan workouts good for you and the bank?

by Moe Bedard

The pace of loan modifications has quickened in recent months. According to data from Hope Now, modifications made up 42.2% of total workout plans in June, or 76,000 modifications, compared with 18.6% in July last year, or 23,000 modifications.
About 220,000 modifications were completed in the second quarter, as opposed to 64,000 in the same period [...]

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The Enronization of America & the Economic Cartel

by Moe Bedard

Kenneth Lay, CEO of Enron is lead in handcuffs after Lay was found guilty on all six counts of conspiracy and fraud by a jury of eight women and four men. In a separate bench trial, Judge Lake ruled Lay was guilty of four counts of fraud and false statements. Will we see similar indictments [...]

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Foreclosure Prize Fighters: Obama vs. Mccain

by Moe Bedard

Obama wants the government to step in to help homeowners facing foreclosure. McCain has gradually broadened his position to support government intervention, but wants stricter requirements for borrowers seeking aid.

Obama’s plan to fight foreclosures:
 

Give homeowners the chance to have their loan modified, provided they meet certain criteria.

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New California Foreclosure Law Says Servicers Must Exhaust All Avenues in the Loan Modification Process

by Moe Bedard

You can literally hear the clock tick when facing a looming and ominous foreclosure sale date. Tick tock goes the clock and the time just flies by. Now top that off with stress, lack of money, paralysis by analysis and we have a recipe for another lost home to foreclosure.
American homeowners need to know that [...]

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The Housing Circus: American Tax Payers Bail Out Fannie Mae & Freddie Mac

by Moe Bedard

Please watch this 1 minute video on the truth behind the Freddie Mac and Fannie Mac bail out.
Housing Circus: Why Should You Bail Out Fannie Mae & Freddie Mac?

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I must confess: I am a renter and my landlord is being foreclosed on

by Moe Bedard

I have now officially become a “victim” of the foreclosure crisis. I don’t own a home, I do not have a mortgage and the ironic part of this is that my job actually entails assisting borrowers online that are in foreclosure. 
Never would I have thought that I would be caught with my family in a home that is soon [...]

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Bank Failures Have Customers Wondering About FDIC Protection

by Moe Bedard

Aug. 8 (Bloomberg) — As U.S. regulators brace for more bank failures, consumers are wondering for the first time since the savings-and-loan crisis of the 1980s about the safety of their money.
Harry Newton, a former publisher who lives in New York City, moved $604,000 in cash to seven different banks last month after the seizure [...]

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Home Equity Freeze Could Back Fire on Trigger Happy Lenders

by Moe Bedard

A couple gentlemen came into the office today and the subject came up about home equity loans. The conversation started with the notorious recent freezes implemented on home equity lines of credit and then quickly went down the road of loan modifications and they were wondering if lenders are modifying these HELOC’s.
What they didn’t realize and many consumers do not know is [...]

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CA Attorney General Urged to Seek Injunction Halting Foreclosure on Deceptive Countrywide Mortgages

by Moe Bedard

The California Reinvestment Coalition and the Greenlining Institute today sent an urgent letter to California Attorney General Jerry Brown urging him to take immediate action against Countrywide Financial/Bank of America. The community groups are asking Brown to secure a foreclosure moratorium on mortgages that fit the profile of the deceptive loans and practices cited in [...]

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Milwaukee man faces foreclosure because he didn’t pay parking fine

by Moe Bedard

In what city officials believe is the first case of its kind, the city foreclosed on Tubic’s house on W. Verona Court after repeated attempts to collect the fine – which over the years had escalated to $2,600 – had failed.
“Our goal isn’t to acquire parcels,” said Jim Klajbor, special deputy city treasurer. “Our goal [...]

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WAMU Borrowers Sue After Being Denied a Loan Modification

by Moe Bedard

What? You are not late? NO loan modification for you. To the end of the line. Next!
That is the usual lip service borrowers receive when they reach out to their servicers when they are not yet late on their mortgage payment. Many reach out because they know they will soon be in very deep trouble and [...]

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He’s Taking Law Into His Own Hands To Help Broke Homeowners

by Moe Bedard

This is a great story of man that is truly using his power and the law to help people. Sometimes you have to “not” uphold the law to make a difference in the world. This is when people come first and the law second.
Especially when it involves kicking people out of their homes.
(Hat tip to [...]

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Fannie & Freddie Offer More Carrots (Cash) for Servicers to “Try” and Entice Them to Help Struggling Borrowers

by Moe Bedard

Cash is king and when it comes to helping people in need, cash seems to light a fire under people’s arses to make them help a little bit more than they would if there were no cash incentives involved.
This is the “new” American way, right?
The facts are that it costs a servicer more money to perform some type [...]

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Testimony Urging Passage of Foreclosure Moratorium Where Financial Institution Fraud Occurred

by Moe Bedard

By Robert Gnaizda
No efforts by the banking industry, by the federal regulators or Secretary of the Treasury Paulson will protect the vast majority of those who live from paycheck-to paycheck from foreclosure. Hope Now’s failures are a classic example of the failure of voluntary action without the threat of effective action via either class action [...]

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Housing Lenders Fear Bigger Wave of Loan Defaults

by Moe Bedard

The first wave of Americans to default on their home mortgages appears to be cresting, but a second, far larger one is quickly building.
Homeowners with good credit are falling behind on their payments in growing numbers, even as the problems with mortgages made to people with weak, or subprime, credit are showing their first, tentative [...]

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US Attorney – Countrywide Home Loan Employee Arrested For Selling IDs of Loan Customers

by Moe Bedard

LAWFUEL – Legal Newswire – Two men were arrested today on charges related to the illegal access of computers containing personal identification information of Countrywide Home Loan customers and the illegal sale of the data, announced Salvador Hernandez, Assistant Director in Charge of the FBI in Los Angeles, and United States Attorney Thomas P. O’Brien.
Rene [...]

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Mortgage Trouble? It Pays to be Subprime

by Moe Bedard

Amidst the second quarter earnings season, yesterday brought about a quarterly report of a different kind — this one from industry coalition HOPE NOW, which said that mortgage servicers helped a record number of homeowners avoid foreclosure during the second quarter.
In June 2008, mortgage servicers completed more than 181,000 mortgage workouts for home loans, HOPE

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Lender cuts Mass. deal over subprime mortgages

by Moe Bedard

A California investment firm has agreed to modify 200 Massachusetts homeowners’ subprime mortgages – slashing interest rates and forgiving thousands of dollars in late charges, legal fees and past-due interest.
“This shows what can be done if (the banking industry) looks beyond just saying: ‘Let’s foreclose,’ ” Attorney General Martha Coakley said yesterday in unveiling a [...]

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Big housing bill: no rescues soon

by Moe Bedard

New York – The $300 billion housing-rescue legislation that President Bush signed Wednesday is partly designed to pull some 400,000 homeowners out of foreclosure.
With more than 2 million foreclosures expected this year, who will be saved?

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