New Report Describes How Little Noticed Incentives Prompt Banks to Deny Relief to Homeowners
BOSTON, Oct. 20 /PRNewswire-USNewswire/ — Why have several recent programs designed to encourage loan modifications failed to slow America’s
still-worsening home mortgage foreclosure crisis? A new report from the
National Consumer Law Center (NCLC) discloses that mortgage servicers -
including many large banks – have found it cheaper to foreclose on homeowners than to offer loan modifications that would benefit homeowners and investors.
The result: Americans who might be able to stay in their homes under a loan
modification plan are being moved right past that option and on to
foreclosure
If yoy review your title insurance policy there is a provision that covers the lender when foreclosures occur! I’ve been told that title company’s are in bed with the banks… And it does appear that the banks are profiting from foreclosures in more ways than one. I’ve submitted loan modification applications with Wachovia twice since Aug and was just told i need to resubmit because the appls fell out of underwriting, with No Explanation why.
Some of this is true,but remember if you have mortgage insurance you only pay till the home’s value of what you owe is at 80% or less. If I am not mistaken PMI only pays the 20% to the mortgage companies or else why wouldn’t you continue to pay PMI after your home’s value is 80% or less of what you owe. You might want to hire a good forecloser attorney that does loan modifications. In my situation there is no way they would benefit more by foreclosing than modifying my current loan. When an attorney is involved,such as is with mine, they can slow down the forecloser process. I had a summary judgement hearing cancelled for them to buy me time to modify my loan. When this process is halted they seem to want to change their toon somewhat and my lender is the same as yours, well Wells Fargo, which owns Wachovia. Good Luck.