From the monthly archives:

February 2009

Governor Schwarzenegger Places 90 Day Freeze on California Foreclosures

by Moe Bedard

California Governor, Arnold Schwarzenegger signed into law a 90-day moratorium on home foreclosures on Tuesday. The foreclosure freeze bill will impose a 90-day moratorium on foreclosures in the state of California.  The bill exempts lenders who have a loan modification program in place meeting the standards set forth in the bill.

One such mortgage servicing standard [...]

4 comments Read the full article →

New Debate on Obama’s Foreclosure Rescue Plans

by Moe Bedard

On the verge of rolling out President Obama’s new foreclosure rescue package some politicians are squabbling over the details. To me the details seem minor, to others, namely the politicians themselves, they are, in customary form, making a mountain out of a molehill.
While the Secretary of Housing announced banks are ready to roll out the [...]

Read the full article →

Another Fannie Mae Bailout

by Moe Bedard

Will bailouts of mortgage giants Fannie Mae and Freddie Mac ever stop? Today, Fannie Mae made public to the Securities and Exchange Commission their profit and loss statement to the Securities and Exchange Commission. Total losses at Fannie Mae for 2008 are greater than 58 billion dollars.
Given President Obama’s recent plans for normalizing the housing [...]

Read the full article →

Schumer Says 2/3 of Mortgage Servicers on Board Obama Foreclosure Boat

by Moe Bedard

It appears that 2/3 of mortgage servicers are on board the Obama foreclosure boat has it heads to neighborhoods to rescue struggling homeowners. The boat is leaving the port very soon and the remaining mortgage hold outs will most likely will drown in a sea of bad PR  if they don’t jump on the Obama [...]

Read the full article →

HUD ALLOCATES MORE THAN $10 BILLION OF RECOVERY ACT FUNDING ONE WEEK AFTER BILL SIGNING

by Moe Bedard

Nearly 75 percent of HUD Recovery funds allocated today
WASHINGTON – The U.S. Department of Housing and Urban Development (HUD) today allocated nearly 75 percent of its funding, or $10.1 billion, made available through the American Recovery and Reinvestment Act of 2009. The Recovery Act includes $13.61 billion for projects and programs administered by HUD, 75 [...]

0 comments Read the full article →

Loan Modification Assistance to Thousands of Homeowners Free of Charge in Columbia, SC

by Moe Bedard

LoanSafe Solutions and Neighborhood Assistance Corporation of America (NACA) to Provide Loan Modification Assistance to   Thousands of Homeowners Free of Charge in Columbia, SC
Corona, CA (February 24, 2009) — For the second time this year LoanSafe Solutions (LSS) will participate in yet another Save the Dream Event Hosted by NACA in Columbia, SC from March [...]

Read the full article →

Congress Still Concerned About Mortgage Servicers & Loan Modifications

by Moe Bedard

This Thursday the House of Representatives is expected to vote on a bill that would provide much needed help to  struggling homeowners. The bankruptcy bill that we have been talking about for well over a year on LoanWorkout.org, HR 200, would allow bankruptcy courts to modify mortgages and slash principles for underwater homeowners.
See Moe’s past bankruptcy blog posts [...]

Read the full article →

Legislature May Pass Bill Modifying Bankruptcy Providing Judges Wide Reaching

by Moe Bedard

Following the trends of bankruptcy law over the last year the subject of “cramdowns” has made some lenders tremble and others, like me, anxious to see what our legislature will do to empower homeowners nationwide. If this new legislation makes it in to the senate and passes, I’m hoping President Obama will sign the new [...]

Read the full article →

Learn how to avoid mortgage and loan modification scams

by Nathan Fransen Esq.

Is it me or are “loan modification scam” companies becoming as prevalent as mortgage broker chop shops were a couple years ago? I don’t mean to be overly critical, and I understand many do good work, but I have heard stories of “former mortgage industry professionals” charging thousands of dollars to negotiate with the bank on behalf of the borrower.

At the risk of sounding like a protectionist, isn’t this something that should be done by a lawyer?

I have so many people come into my office who were victims of “predatory lending” and then victims of this next loan modification craze.

Take for instance just last month, I had a client tell me they paid $15k to a “modification company”. The company promised her they would reduce her balance and lower her interest rate to 5%. This truly sickens me.

22 comments Read the full article →

Loan Modification Lawsuits Looming in the Near Future?

by Moe Bedard

Since October, 2008 LoanWorkout.org has been following various legal developments as they pertain to loan modifications. One such issue is whether loan servicers can be sued by share holders for providing loan modifications without the consent of the owners of mortgage back securities. Since President Obama has passed a stimulus package that incentivizes services to [...]

Read the full article →

Wisconsin Attorney General Announces $40 Million Settlement With Countrywide

by Moe Bedard

“I am pleased that this agreement means eligible borrowers in Wisconsin will be able to stay in their homes and that other relief will be brought to the State of Wisconsin,” Van Hollen said. Under the terms of the settlement, Countrywide has agreed to provide various forms of relief, including:

Read the full article →

HUD Chief Defends Obama Housing Plan

by Moe Bedard

“We have millions of families across this country through no fault of their own that are in trouble on their mortgages,” he said. “Let’s remember that every time there’s a foreclosure, a next-door neighbor loses value in their house too… by stopping foreclosures, this benefits everyone.”

Read the full article →

White House Press Secretary Responds to CNBC’s Rick Santelli

by Moe Bedard

By Moe Bedard
 
White House Press Secretary Robert Gibbs put CNBC’S Rick Santelli in his place today. Acting more like a rabid dog than a professional journalist, Santelli referred to suffering American homeowners as “losers.” Whereas Santelli feels the White House is awarding “bad behavior” Press Secretary Gibbs and I both feel the plan can and [...]

Read the full article →

CNBC’s Rick Santelli Refers to Suffering Homeowners as “Losers”

by Moe Bedard

By Moe Bedard
CNBC’s Rick Santelli isn’t a happy man. Referring to the millions of suffering Americans as “losers” Santelli spews forth some of the vilest verbiage I’ve heard in the foreclosure prevention debate. Santelli argues the new administration should use their powers of social media to determine how the average American feels about President Obama’s [...]

Read the full article →

Obama’s Foreclosure Incentives Yield Positive Results

by Moe Bedard

By Moe Bedard
Two days ago I wrote an article that summarized the complex details of President Obama’s Foreclosure Rescue Plan.  My prediction was that incentivizing lenders to do the right thing would improve Main Street directly and not merely line the pockets of major lenders and financial executives.  Today, two major lenders, Bank of America [...]

Read the full article →

Where’s the note, who’s the holder: Enforcement of the promissory note secured by real estate

by Moe Bedard

I have been writing about the missing note theory almost two years now and it appears that the great minds in the legal profession and of our courts have decided to really dive into this fascinating subject. The results have been nothing short of awesome and the banks should be very scared about the potential implications that this has and will have on initiating “illegal foreclosures.”

A hat tip to foreclosure fighter and consumer advocate lawyer from Florida, April Charney for sending this great legal analysis of the missing note theory to me via email.

16 comments Read the full article →

Help for homeowners: Courtesy of the White House

by Moe Bedard

Questions and Answers for Borrowers about the Homeowner Affordability and Stability Plan

Borrowers Who Are Current on Their Mortgage Are Asking:

* What help is available for borrowers who stay current on their mortgage payments but have seen their homes decrease in value?

Under the Homeowner Affordability and Stability Plan, eligible borrowers who stay current on their mortgages but have been unable to refinance to lower their interest rates because their homes have decreased in value, may now have the opportunity to refinance into a 30 or 15 year, fixed rate loan. Through the program, Fannie Mae and Freddie Mac will allow the refinancing of mortgage loans that they hold in their portfolios or that they placed in mortgage backed securities.

* I owe more than my property is worth, do I still qualify to refinance under the Homeowner Affordability and Stability Plan?

Read the full article →

President Obama’s Foreclosure Prevention Plan Explained

by Moe Bedard

For those of us that pay attention to the world of home loan workouts there was a great deal of anticipation leading up to President Obama’s speech today.

27 comments Read the full article →

Financial Crisis: “Silver Bullets” for Toxic Mortgages?

by Moe Bedard

The Obama Administration is floating a proposal that would allow the government to directly buy more loans from servicers of mortgage-backed securities

With the financial crisis quickly becoming President Obama’s primary burden, his Administration has intensified its efforts to stem the rising tide of foreclosures in order to solve the root cause of the difficulties. On Feb. 11, Treasury Secretary Timothy Geithner and Shaun Donovan, Secretary of the Housing & Urban Development Dept., met with community groups and key stakeholders in the banking industry to gauge support for a potential program that would allow the government to directly buy whole loans from servicers of mortgage-backed securities (MBS) in order to modify them—and keep more borrowers in their homes.

Read the full article →

What’s the latest fitness craze? The loan workout

by Moe Bedard

Brownstone and other local loan workout specialists have their hands full these days. With condo sales stalled and commercial building values eroded across the region, antsy lenders have been quick to put projects on watch lists at the first sign of trouble. Those signs could be anything from insufficient sales or leases to slashed asking prices that could make a project unprofitable.

Read the full article →

← Previous Entries