President Obama’s Foreclosure Prevention Plan Explained

NN_27obama2For 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.  The President’s 75 billion dollar plan is estimated to help as many as 5 million homeowners.  However, it will not help all homeowners.  In addition, details of the plan have been reported by virtually every media outlet and the details they each provide are inconsistent.

In my own experience writing blogs I have come to realize something extremely important, namely, that media outlets publish a wide range of “facts” regarding major financial news.  While the purpose of the media is supposedly to provide for an informed public, wide variations of so called “facts” only make it harder for the public to receive accurate information.  The purpose of this post, then, is to provide my public with a detailed explanation of the new plan, expose some of the inconsistencies in media supplied information and give you, my audience, the best possible source of information regarding the plan so you can best benefit from the sweeping changes announced today.

With the task of explaining broad ranging economic policy I feel it is best to first ask three questions that I know millions of people are asking. (1) Who will benefit from the new plan? (2) Who won’t benefit from the new plan? (3) What are the specific details of the plan?


Who Will Benefit from the Plan?

“The plan I am announcing focuses on rescuing families who have played by the rules and acted responsibly: by refinancing loans for millions of families in traditional mortgages who are underwater or close to it.” – President Barack Obama

The new plan will help two categories of homeowners as well as Fannie Mae and Freddie Mac. The homeowners this plan will help fall in to two categories.  First, homeowners that are in distress and at risk of foreclosure will benefit from the plan.  Second, homeowners that are current on their mortgage with high interest rates and with little to no equity would also benefit.  Lastly, Fannie and Freddie will receive a capital injection of 200 billion from the Treasury department to increase the amount of available credit.  While capital injections from the Treasury to Fannie and Freddie are not new, help to homeowners that are not at risk of foreclosure is a substantial departure from the economic policies of the Bush administration.


Who Won’t Benefit from the Plan?

This plan “…will not rescue the unscrupulous or irresponsible by throwing                                            good taxpayer money after bad loans.”– President Barack Obama

While details of the new plan are clear in that speculators will not receive aid, non-speculators in owner occupied homes may not benefit either.  So, there is one specific category that will not benefit and another category of homeowner, more difficult to describe, that won’t benefit either.  Here’s an easy way to understand if you won’t benefit: (1) if you are trying to either save a non-owner occupied home from foreclosure or you want to benefit from newly introduced government backed refinancing guidelines you’re just out of luck. And if (2) you are in an owner occupied home and you can’t afford the home due to job loss or complete inability to pay, lenders will not be forced to help nor will the government come to your aid.


What are the Specific Details of the Plan?

The new program will roll out on March 4th, 2009 and complete details of the plan will be available at that time. Obama’s new plan focuses on three critical needs.  First, the need to incentivize lenders to modify loans for distressed borrowers.  Second, the need to provide refinance options for homeowners that are current but with homes that have little to negative equity and finally, to increase the amount of available credit.

On the need to incentivize lenders to provide loan modifications:

Obama’s plan is voluntary for mortgage servicers except for Fannie Mae and Freddie Mac and banks that accept help from the government.  These institutions must adopt loan modification plans. The loan modification plan is for primary residences only and will benefit borrowers with higher rates, adjustable rates and interest only loans. The plan, however, will not reduce the principle loan balance.

The servicer would reduce interest rates so that the monthly obligation is no more than 38% of a borrower’s income and then the government would contribute money to bring payments down to 31% of the homeowner’s income.   Servicers can also reduce the loan balance to achieve these affordability levels. The government will share in the cost, up to the amount the servicer would have received if it had reduced the interest rates.

Homeowners with a total debt ratio equaling 55% of their monthly income must enter a debt counseling program to qualify for a modification.

Because loan modifications are more likely to succeed if they are made before a borrower misses a payment, the plan will include households at risk of imminent default despite being current on their mortgage payments.

The Homeowner Stability Initiative has a simple goal: reduce the amount homeowners owe per month to sustainable levels. Using money allocated under the Financial Stability Plan and the full strength of Fannie Mae and Freddie Mac, this program has several key components:

  • No Aid for Speculators: This initiative will go solely to helping homeowners who commit to make payments to stay in their home – it will not aid speculators or house flippers.
  • A Shared Effort to Reduce Monthly Payments: For a sample household with payments adding up to 43 percent of their monthly income, the lender would first be responsible for bringing down interest rates so that the borrower’s monthly mortgage payment is no more than 38 percent of their income. Next, the initiative would match further reductions in interest payments dollar-for-dollar with the lender to bring that ratio down to 31 percent. If that borrower had a $220,000 mortgage, that could mean a reduction in monthly payments by over $400. This lower interest rate must be kept in place for five years, after which it could gradually be stepped up to the conforming loan rate in place at the time of the modification. Lenders will also be able to bring down monthly payments by reducing the principal owed on the mortgage, with Treasury sharing in the costs.
  • “Pay for Success” Incentives to Servicers: Servicers will receive an up-front fee of $1,000 for each eligible modification meeting guidelines established under this initiative. They will also receive “pay for success” fees – awarded monthly as long as the borrower stays current on the loan – of up to $1,000 each year for three years.
  • Incentives to Help Borrowers Stay Current: To provide an extra incentive for borrowers to keep paying on time, the initiative will provide a monthly balance reduction payment that goes straight towards reducing the principal balance of the mortgage loan. As long as a borrower stays current on his or her loan, he or she can get up to $1,000 each year for five years.
  • Reaching Borrowers Early: To keep lenders focused on reaching borrowers who are trying their best to stay current on their mortgages, an incentive payment of $500 will be paid to servicers, and an incentive payment of $1,500 will be paid to mortgage holders, if they modify at-risk loans before the borrower falls behind.
  • Home Price Decline Reserve Payments: To encourage lenders to modify more mortgages and enable more families to keep their homes, the Administration — together with the FDIC — has developed an innovative partial guarantee initiative. The insurance fund – to be created by the Treasury Department at a size of up to $10 billion – will be designed to discourage lenders from opting to foreclose on mortgages that could be viable now out of fear that home prices will fall even further later on. Holders of mortgages modified under the program would be provided with an additional insurance payment on each modified loan, linked to declines in the home price index.
  • Institute Clear and Consistent Guidelines for Loan Modifications: Treasury will develop uniform guidance for loan modifications across the mortgage industry, working closely with the bank agencies and building on the FDIC’s pioneering work. The Guidelines will be used for the Administration’s new foreclosure prevention plan. Moreover, all financial institutions receiving Financial Stability Plan financial assistance going forward will be required to implement loan modification plans consistent with Treasury Guidance. Fannie Mae and Freddie Mac will use these guidelines for loans that they own or guarantee, and the Administration will work with regulators and other federal and state agencies to implement these guidelines across the entire mortgage market. The agencies will seek to apply these guidelines when permissible and appropriate to all loans owned or guaranteed by the federal government, including those owned or guaranteed by Ginnie Mae, the Federal Housing Administration, Treasury, the Federal Reserve, the FDIC, Veterans’ Affairs and the Department of Agriculture.

On the need to provide refinance options for responsible borrowers:

Those who are current on their payments and whose loans are held or guaranteed by Fannie Mae and Freddie Mac are eligible.  The plan would help borrowers who owe more than 80% of their home’s value to refinance and reduce their monthly payments.  However, the new mortgage, including refinancing costs, can’t exceed 105% of the current market value of the property.  So if your mortgage is $210,000, your property can’t be worth less than $200,000.  Borrowers with a second mortgage are eligible as long as their first mortgage isn’t more than 105 percent of their home’s value. The value of your property will be determined after you apply to refinance.  The government backed refinance program allows borrowers to refinance into 15-year or 30-year fixed-rate mortgage at prevailing market rates, currently hovering around 5.00%

Increasing the amount of available credit:

Like the Bush administration’s economic stimulus plan, Obama’s new plan will provide more capital to Fannie Mae and Freddie Mac.  While the last stimulus package provided 100 billion in aid to the mortgage giants, Obama will double the figure to 200 billion.  This plan has two primary goals.  The first and most obvious goal is to significantly add to the amount of available credit.  Second, and less obvious, this new injection of capital will allow Fannie Mae and Freddie Mac to expand the size and scope of their mortgage portfolios, perhaps as a safety valve for banks on the brink of insolvency.

Moe’s Commentary:

For struggling homeowners, the most important idea to take away from this plan is that lenders and servicers are not required to participate in loan modification programs.  Participation is voluntary. On the surface, this may seem like a policy without any teeth.  However, lenders and servicers will be incentivized with government handouts to do the right thing for homeowners.

Motivating mortgage servicers to work with homeowners is the basis of the plan.  The government will pay servicers $1,000 for loan modifications and an extra $500 for mortgages modified before the borrower misses a payment. Additional incentives for mortgage servicers are included in the “pay for success” provision of the plan which pays servicers up to $3,000 over three years if the borrower successfully makes payments on the modified loan during the same period.

You as a homeowner may be asking yourself, “What’s the benefit of giving my mortgage servicer my tax dollars to help me save my home?”  Actually, it will do a whole lot of good because now mortgage servicers can recoup fees and possibly make money by helping you with a loan modification.  Before the plan, servicers would receive fees when one of the homes they serviced went in to foreclosure.  Now, servicers have a monetary incentive to not allow your home to go in to foreclosure.  Without such payments servicers might continue to foreclose on securitized mortgages even when foreclosure is not in the interests of borrowers and lenders.  These monetary incentives are the key to the Obama plan.  Moreover, these incentives set this new plan apart from past attempts to stem the tide of foreclosures.

Another critical aspect of this plan to keep in mind is that the loan modification program will not guarantee a reduction of your mortgage balance.  But, again, lenders will be incentivized to do so.  The Treasury will share the cost when lenders reduce monthly payments by forgiving a portion of the borrower’s mortgage balance, the government said. In addition, the average borrower’s home value could be stabilized against a price decline by up to $6,000, according to the White House fact sheet.  So, if the government can incentivize loan modifications, if they can incentivize servicers to not foreclose on homes and if they can incentivize limited principle reductions, then why can’t they guarantee principle reductions for borrowers hardest hit by housing market declines?  The answer is simple, guaranteeing principle reductions will be a “prohibitively expensive proposition” according to Glaser, a mortgage industry analyst.

Focusing on the shortcomings of the plan belies the tremendous benefit this plan will have for the millions of struggling homeowners.  In addition to the government incentives for doing the right thing by the suffering homeowner, this plan will also establish clear guidelines for loan modifications.  Universal modification guidelines could not have come sooner as thousands of Americans have been victimized by fraudulent and unscrupulous “foreclosure consultants.”

I’d like to close this important post with a quote from Walter Lippmann, journalist, media critic and philosopher:

“Unless the reformer can invent something which substitutes                                         attractive virtues for attractive vices, he will fail.”

I honestly feel President Obama is trying his best to improve the foreclosure crisis with this program.  It seems to me President Obama is incentivizing the attractive virtue of helping the American homeowner with this plan and I will continue to serve this cause with every ounce of my effort.

Sincerely,

Moe


Posted in Political News | 31 Comments

31 Responses to “President Obama’s Foreclosure Prevention Plan Explained”

  1. Thomas says:

    Hello and thank you for following this plan. What about those that have already filed for bankruptcy and the morgage is not included in the bankruptcy? My current morgage is at 10.99%, really high for today’s standards, but my morgage company will not budge because of the bankruptcy. Thank you for your time…

  2. Julio says:

    Moe,

    Would you please explain this to me… as I don’t fully understand.
    I bought my house for 335,000 and it’s now worth 232,000 according to zillow. My interest rate is a fixed 6.25. I have kept my interest only loan payments current. Do I qualify for help? I am confused with the 105 % clause.

    thanks. I have been following your site for almost two years now.

    Julio Rivera

  3. Bob Cloar says:

    I am a lawyer working on foreclosures and I have seen a lot of servicers who have abused homeowners by adding unnecessary fees and penalties, not crediting payments timely, flat billing attorney fees, etc; How will these programs audit these accounts and require lenders and servicers to correct these abuses for the homeowners participating in these new programs?

    Thank you.

  4. Mike M says:

    Many have an opinion about how to solve the housing crisis, but none address the root cause. Which is the artificially high home prices created between 2005-2007 by speculators and lenders who were influencing the appraiser to validate those higher prices. Which did not reflect the true value of those homes. Not to mention the underwiters who approved those int only,pay option arms loans and the like knowing most of the buyers could not afford it. Next, were bailing out the very companies who cause the mess. Now, were going to provide incentives to servicers and give the homeowner a $5000 credit over 5 years. To make payments on a home they can never sell!
    Loan modifications are a temporary fix to a long term problem. Although, it may slow the ship from sinking were still headed for the bottom. If Americans would every come together as one we could stop this injustice between the rich and the middle class. Instead of telling how your going to spend our tax dollars because you can. Let us decide how we wish to spend our money!! But that would make the rich upset! Why can’t we all just work together and share the wealth?

  5. Linda W. says:

    I first became delinquent on my mortgage in September 2007 after trying to manage it alone since March 2006, when my husband’s Social Security disability benfits were stopped. I called Countrywide every 2 weeks explaining my situation and asking for help. I fax the materials they requested three different times. Each time I was told the process takes up to 90 days. I struggled to make a payment, but by February 2008, I was 3 month delinquent. I never got a call from Countrywide. I never received any letters from Countrywide. I asked was I in danger of foreclosure, and I never got a straight answer. Not wanting to lose my house and still fighting with Social Security to reinstate my husband’s disability, we decided to file Chapter 13 bankrupty. My payment to the courts are $1,000 a month for the next 5 years. Now, I have missed the February 2009 payment and the likelihood of making the March payment is pretty slim. Finally, my husband got his disability eligibility reinstated. We need to clear up his medical bills, but if given a loan modification to reduce the 6.825% interest rate loan to something more sensible, thereby reducing the monthly payment, I believe we will be okay. I purchased my home in 1995 and 2007 was the FIRST time I was EVER delinquent. Now I am in trouble again. Will Countrywide help this time? I believe this stimulus package will help. I did not purchase something I could not afford. If my husband’s disability had not been cut, we would have never fallen into this situation.

  6. Anthony Williams says:

    Hey Moe,
    Even with the govt’s incentive plan to banks do you think a reputable loan mod company would be able to yeild more favorable results representing a homeowner as opposed to a homeowner going at it alone?

  7. Kim F. says:

    Hi-
    Do you think student loan income would qualify for Obama’s modification? My husband lost his job and is now a full time college student and I am on disability. We have been living and paying our house and bills with private student loan money, which is adding up very quickly! Our current mortgage is with Indy Mac at 8.25% and I have tried for a year and a half to get the interest reduced with them, but they will not work with us because we are current on our payments, but if I stop paying the mortgage, we will not get the student loans. It is a complicated circle. We live in Michigan and our home value has dropped by at least $50,000 or more from all the foreclosures- we are in the auto industry area hit very hard. Any insight on this would be helpful. My husband also has an “S” corporation in the construction field but we did not have any income with that last year, but could use that if necessary for the modification, but I think the self employed people are not getting the stated income deals anymore.

  8. Maryann says:

    Hi,

    I have owned my home for 12 years. My name is the only name on the mortgage, I am single with a child. I lost my job in March of 2008. I have been living off of unemployment for the past year, trying to find something close to what I was earning a year ago and have had no luck! I currently have been late on my mortgage payments for the past 4 months. I pay them; however, they are a month late, November I paid in December, December’s was in January, etc. My mortgage is currently $105,000 as I refinanced several years ago to get out of debt. Would this plan help me in anyway? and if so, please tell me how I can contact/call someone for help.
    Thank you

  9. Moe Bedard says:

    You may be in luck based on the limited facts you provided. A lot depends on who your lender is…..

  10. pascual encarnacion says:

    Hello
    My name is Pascual Encarnacion, I bought my house in 2005. I have two mortgage payments every month. The first one I owe 460,007.17 and the payments a month is 4,077.96 with a interest rate of 7.1%, the second mortgage I owe 114,000 and the monthly payment is 900.62 with a interest rate of 8.5%. I always made my payments on time , but right now im behind by 3 months, and im trying everything to get back on track to keep my house for me and my famaly.

  11. Lydia says:

    Good morning,

    Countrywide Home Loans informed me yesterday that my home loan is owned/controlled by Ginny Mae and that I would not qualify to refinance under President Obama’s new plan. But in your 02/19/09 article, under the subparagraph titled “Institute Clear and Consistent Guidelines for Loan Modifications:”, you stated “…all loans owned or guaranteed by the federal government, including those owned or guaranteed by Ginnie Mae,…”. Ginny Mae’s website states they are “Government Guaranteed” and “The only mortgage-backed security that enjoys the full faith and credit of the United States Government”. Does this mean that Countrywide was incorrect and that I could possibly qualify for refinancing? Also, I had never heard of Ginny Mae before yesterday. How is Ginny Mae different from Fannie Mae or Freddie Mac?

    My husband lost his job in December of 2005 and will probably not be able to work again due to his disabilities. I was able to hold on financially until December of 2007, but ended up filing for bankruptcy. I almost lost my house, but repaid everything in arrears. If I do qualify for the refinance program, how will the bankruptcy affect the process?

    There is so much information to absorb regarding President Obama’s program, that I’m confused. Any information you could provide would be greatly appreciated.

    Thank you!

  12. Becky R says:

    My house is currently in foreclosure, has been for over a year.I have not been able to keep my mortgage current in over a year. Only my name is on the
    mortgage loan, my husband is on the deed only. I am making half the income
    I used to. My husband is getting unemployment. We cannot even afford the fee to pay a lawyer so we can file bankruptcy. Can the president’s plan help us. I am dealing with Bank of America. I would pay my mortgage if it were reduced. In the past the mortgage lender would not accept partial payments.

  13. Irene says:

    If you are recently unemployed and have a Ginnie Mae loan that you will fall delinquent on soon, do you qualify for any help thru Obama’s plan? If so, where do you apply for help?

    Thank you

  14. Marianne A says:

    If you are current to your mortgage but struggling and have Ginnie Mae loan, do you qualify for any help thru Obama’s plan, where do you apply for help?

    Thank you

  15. Frank says:

    Hello Moe,

    I have currently hired NATIONS CHOICE financial solutions to help modify my mortgage but they are terrible in getting back to me or even answering an urgent email.

    Also, I got mail from Ditech saying that my mod was declined because my expenses exceed my income… mostly because of a 2nd investment house in foreclosure.

    But Nationschoice is just working on the primary homesteaded and I even had a CMA ran that says my house is worth $70k less than what I owe.

    Should i just fire Nations Choice and go at it on my own? Any advise to get my principle and interest down to a respectable rate or should I just walk and start over?

    Thanks!

  16. Moe Bedard says:

    Who is Nations Choice? Never heard of them and that scares me? Are they an attorney firm?

  17. Tina says:

    I just got off the phone with Homeq Servicing. There loan modification department is reviewing my hardship request to modify my mortgage. Homeq is not giving me much hope for reducing the payment amount enough for me to make payments on time. In November I lost half of my monthly income due to a contract termination. Since then making mortgage payment have been very difficult. I am currently two months behind. The investor is NY Mellon fka Bank of NY succ Tte to JPMorgan Chase as Trustee for Soundview 2005-CTX1 Trust. I sent them all of my financial information and hardship letter and have not heard from them. Do you have any suggestions? Who else can I talk with that will help me negotiate a payment that I can afford. Thank you

  18. Ms j says:

    I have not heard anything about commercial property. where is the help for mixed use commercial property for those who are facing forclosure with commercial property. Where do I go for help. I have a private lender.

  19. Lauren Peton says:

    We live in a pocket of bad foreclosures in MN, 32 miles from the metro. We have an ARM that we tried to Re-Fi 5X, but the value of our home dropped because of some serious local builder fraud. When the ARM adjusted last year it went up over 20% in payments. We were advised to try and ‘short sale’ the home, so stop making payments. That has ruined our credit. We have had no buyer for this short sale. We can’t re-fi. We owe over $417,000 on a 1, 2, and 3. At least my husband & I have great jobs and earn $125,000 a year. We have extreme consumer debt and have to file for bankruptcy. We have been trying to work with Nation Star to modify the loan, they don’t return our calls. We had paid without a glitch for 5 years until the ARM adjusted. We had great credit up until this point of being advised to try and sell the house. Who over-sees the bank when they don’t work with you? Can a relative come in a offer a short sale and rent back to us?

  20. cgraham says:

    I moved into my home about 5 yrs. ago and everything was fine until my husband was in a bad car accident which left everything on me. I had to file wage earner and that too was going aline okay. aaaAt least my bills were getting paid and then my company closed leaving me jobless. After 6mos.my wage earner was dissmissed. I refiled 3 mos. later after finding work with a temp service but the assignment was up and so was the wager earner.I’ve been trying to work with my j p morgan chase on a payment plan,but they want between 7,000.00-8,000.00 down with 3 monthly mortagage payments of 1,500.00, before my loan will be modified.I’m back at work now andI could afford a 800.00-900.00 monthly payment comfortably, but I don’t have that type of down payment .I am in pre forecloser now and I don’t want to lose my home.The idea of that is already affecting my son.Do I have a chance of getting help with the new stimulus plan?I know for a fact that a couple of other banks have already brgin working with their mortagage holder without a large down payment and have already told them about a plan that’s going to help them without the stress of worrying of losing their homes.Of course chase is not telling me anything except try to get they down payment so that they can modify and that they don’t want to see me lose my home.Will if that’s so, “work with me”. I don’t have that kind od money. Can you let me know if this plan will help and give me any other helpful information?. Thank You

  21. Jeannie Vannorsdel says:

    I want very much to keep my home and I have kept current on my mortgage payments. However, I am struggling very hard to make ends meet as I am recently divorced and now have to pay the home mortgage by myself. I asked my mortgage company for a loan modification (I currently have an adjustable rate loan that is also interest only) and they declined my request and told me I may be eligible for a short sale. I really do not want to lose my home so this is not an option I wish to persue. Will there be any help soon for people like myself? If so, what do I need to do other than contact my mortgage company who already turned me down?

  22. k. ward says:

    Is ginny mae part of the presidents plan? and what do i need to do? Wife recently lost job. Current on payments

  23. desperoto says:

    TOO MARYANN

    Maryann says: “March 3, 2009 at 8:26 amHi,
    I have owned my home for 12 years. My name is the only name on the mortgage, I am single with a child. I lost my job in March of 2008. I have been living off of unemployment for the past year, trying to find something close to what I was earning a year ago and have had no luck! I currently have been late on my mortgage payments for the past 4 months. I pay them; however, they are a month late, November I paid in December, December’s was in January, etc. My mortgage is currently $105,000 as I refinanced several years ago to get out of debt. Would this plan help me in anyway? and if so, please tell me how I can contact/call someone for help.
    Thank you”

    MARYANN DID YOU GET ANY RESOLUTION TO THIS? I AM IN THE EXACT SAME SITUATION AND I CAN NOT REFINANCE CAUSE THEY WANT TO SEE 12 MONTHS OF ON TIME, IV BEEN HAVING TO DO THE Nov in Dec, Dec in Jan etc etc FOR A WHILE. ANY LUCK? ADVICE? IM WITH COUNTRYWIDE TOO AND THEY JUST KEPT SAYING NO! :(

  24. [...] And finally, systemic risk is massively intensified by the complexity of financial instruments (CDOs, CDSs) which allegedly increase liquidity and volatility (evidence for this is mixed; the VIX volatility index declined through 2006 even as CDO usage intensified), exacerbate systemic linkages (IMF report, Figures 2.1 and 2.6), and decouple the financing/servicing aspects of loans that are usually married together in vertically integrated banks (both creating information barriers, and making loan restructuring more difficult). [...]

  25. [...] And finally, systemic risk is massively intensified by the complexity of financial instruments (CDOs, CDSs) which allegedly increase liquidity and volatility (evidence for this is mixed; the VIX volatility index declined through 2006even as CDO usage intensified), exacerbate systemic linkages (IMF report, Figures 2.1 and 2.6), and decouple the financing/servicing aspects of loans that are usually married together in vertically integrated banks (both creating information barriers, and making loan restructuring more difficult). [...]

  26. Lucia Davison says:

    DOES ANYONE HAVE ANY ANSWERS TO THESE QUESTIONS??? All I see is questions and no resolve?? I have a Ginnie Mae loan and need help. What are we other Americans supposed to do?

  27. Angie Hoyt says:

    I just found out today I have a Ginnie Mae loan! I have never heard of them before. I was always under the impression, FHA, was Fannie or Freddie.

    We are going to foreclose on our home. Our mortgage company has been keeping my hopes alive up until today. They told me that Ginnie Mae, may be on board really soon. So the guy heard. And to continue to call back every week to see if they are on board yet.

    WHY. WHY doesn’t this Obama plan include Ginnie Mae. WHY?
    I have done nothing but cry all evening.

  28. Douglas says:

    Dear Sirs,
    I have applied for a modification from Ocwen Loan Servicing twice. It has been going on for a year, they wait till the bank statements are out of date and then send a message that they are too old to use and need new ones, I have sent them 5 times. In addition they are using a company in India to approve the modification. Why are we sending work over seas when many are out of work here. Who thought of putting US mortgage help funds in the hands of people from India to distribute back to Americans??
    I have called to check the statis and they refuse to allow me to speak to the approval agent, now they have blocked my number from customer service. They have the President’s money to help but will not process the loans.
    Is anybody listening???

  29. N. Jones says:

    Re: Nations Choice Financial Solutions, LLC – Major Scam Artists!
    My son paid Nations Choice a fee of $2100 to get a loan modification from their lender, Wells Fargo. They took his money upfront, screwed him around with more paperwork requests for months, then stopped taking calls from him. Wells Fargo loan modification process wasn’t much better, they say a lot and do nothing so in the end he is losing his home. These companies are only looking for a profit at the expense of the ousted homeowner.

    If anyone knows of a class action suit against Nations Choice (Lake Worth, FL ) please let me know. James Adorna, Managing Partner Nations Choice Financial Solutions, LLC. states their company is commonly referred to as “The Borrower’s Advocate!” What a joke!!

  30. April says:

    My house is in modification at the moment, but yet there is a sale date on it. In spite of what the president says Bank of America is still foreclosing on poor peoples houses even during modification, I don’t understand.
    President Obama put the stimulus plan in motion for the poorer class people like myself, but he never even inquire to see if the banks are doing what he had ordered them to do, banks like Bank of America (Countrywide Home Loans), this bank is the hardest and most vicious bank to help people, they need to be shut down.
    I never vote in my life and NEVER will, this president will never do a second term in office….people are loosing their home left right and side ways and what is he doing to prevent that, NOTHING. That is why their are so many people are taking their own lives because of this economy and I’ll be next in line… this government sucks, I’d rather take my own life before losing my home, every savings I ever have are into my home like everybody else and for someone to just come in and take it over I’d rather kill myself.

  31. Ocwen foreclosed on our after taking two payments after stringing us along for three years. Calling India is impossible. I do not believe thery are helping Americans.. Who can I turn to? says:

    The President needs to do more. I followed his advice and the bank still foreclosed our home. We were promised a HAMP modification but, received Ocwensin house modification in stead. I hope you are not giving Ocwen credit for helping. Who is watching the processing company?