State Assemblyman Pedro Nava, D-Santa Barbara, wants to allow homeowners who have been served a notice of default to enlist the help of a state-appointed monitor to negotiate lenders with the goal of lowering monthly payments.
The mortgage mediation bill, CA AB 1588 titled the “Monitored Mortgage Workout (MMW) Program” would mandate mediation between borrowers and lenders before a foreclosure can proceed.
The proposed negotiations would provide borrowers with a vital source of leverage that would dramatically reduce the number of foreclosures.
“Too many homeowners have lost their homes because they lacked the tools to navigate the legal landscape of lending laws,” Villaraigosa said. “The Monitored Mortgage Workout Program provides borrowers with a vital source of leverage in their negotiations with banks. Sitting at the same table, both parties have an incentive to find a solution that avoids foreclosure; this benefits the borrower, the bank, and our communities.”
The proposed bill would help implement President Obama’s plan by creating a MMW Program. A state appointed monitor would ensure that lenders or their servicers consider, evaluate and enter into loan modifications.
The MMW Program would do the following:
- Any borrower who receives a Notice of Default (NOD) is eligible to participate in a MMW Program administered by the California Housing Finance Authority (CHFA).
- The borrower must communicate to the CHFA his or her intention to participate in the plan within 30 days of the NOD.
- If a borrower elects to participate, a Monitor is appointed to oversee and if necessary, direct, the loan modification process.
- Once the MMW Program has been initiated, no further steps may be taken to foreclose until the MMW Program has been completed.
- The Monitor shall assist the parties in assessing the affordability of any loan modification and analyzing the net present value economic effect on the lender of modification (versus foreclosure).
- If the parties are unable to modify the loan bilaterally, the Monitor shall prepare a reasonable loan modification proposal.
- If the lender/servicer rejects the proposal or has acted in bad faith during negotiations as determined by the Monitor, the borrower may seek to enforce the Monitor’s proposed loan modification in an expedited court action.
- If the borrower rejects the proposal or has acted in bad faith as determined by the Monitor, the foreclosure process will resume pursuant to existing state law.
{ 4 comments… read them below or add one }
The last time California threw a sop to the homeowners was a 90 day moratorium, but they waived it for all their friends at the big banks. I expect this new program will pretty much follow suit.
Well I thought I would be writing with some good news but after reading this entire page im not very confident anymore. I made my last payment to Bank of F’Americans in march 09 due to a disability. I hired a bunk loan mod company,riped me off for 2g’s, to help me because I could not write or concentrate very well at the time. Here I am 8 months later. The offered me a sale date instead of a mod. When I finally realized the mod guys were a fraud I frantically got on the web to try to get educated. I understand B of F’Americans only offers one of their own mod plans unless you specifically ask them to evaluate them under the H.A.M.P. law that Obama signed into law Feb 17th 2009. So after getting the runaround like everyone else on here. I fired off an email which went something like this:
Dear Jacqueline McGill, My supposed negotiator, Regarding account number.#######
It is November 10th 2009 at 5:20p.m. I write you in desperation as the sale date you gave me (11-16-2009), quickly approaches and I have not yet heard from you since our last conversation in which you said you would be contacting me. I need to know, Is my modification file in the process of or has it been completely reviewed under the H.A.M.P. guidlines under directives 09-01 thru 09-07 set forth by president Obama signed into law on February 17th 2009? Also, I spoke with a BofA agent this evening and her information is in contradiction to the information you supplied me with regarding the sale date. She informed me that there is currently no sale date set. She also sent you an email to try and clarify. Please advise me of the status of my sale date. I understand that under the H.A.M.P. law, a borrower cannot be forclosed upon untill they have been evaluated under the the H.A.M.P. law guidlines. Do you have all the information necessary from me, for me to be evaluated under the H.A.M.P. law? If I have been evaluated under the H.A.M.P. law and was found ineligable please advise immediately. If I have not been evaluated persuant to H.A.M.P. guidlines please accept this as my formal request to halt forclosure proceedings and provide me with the necessary forms to be evaluated under H.A.M.P. I am begging you to please make contact with me. Please.
Kind Regards, Jack.
The next business morning I called the Loss Mitigation line and waited a half an hour on hold and just as I was about to hang up a rep named Franklin answered. (No email response at this time) So I ask him if they got my email and whats the status on my sale date? He put me on hold for 10 minutes then comes back to tell me the sale date has been removed and that I have been approved by the bank but not the investor yet…and I will be recieving a Fed Ex package with details. I recorded the whole conversation with my digital recorder too. I asked it was under the H.A.M.P. law and he said he couldn’t say. I called the forclosure company and the sale date was pushed to december 16th 2009 one more month. So after hanging up with Franklin I fired this email to Jacquelin:
2009
Dear Jacqueline ,
I spoke with Bank of America associate Franklin at extention 2028 this morning at 10 a.m. and would like to follow up with you regarding the conversation. Franklin informed me that I have been approved by Bank of America for a modification of my loan # ######## and that my forclosure sale date of November 16, 2009 has been removed. He stated that B of A is awaiting final approval from the investor. I asked him if the modification had been approved under H.A.M.P. law and he said he didn’t have those details. Will you please contact me to confirm the accuracy of my conversation with Franklin? I contacted Recontrust Company to inquire about the sale date and was electronically informed that the date was moved forward to December 16th, 2009 in contrast to what Franklin informed me in regards to it being removed completely. I would appreciate a response from you or if you are no longer my negotiating officer, could you please direct me to someone who can communicate with me on the matter.
Kind regards, Jack.
So short story long, if you don’t specifically ask to be evaluated under the H.A.M.P. law they don’t have to offer you that program and maybe that’s why they can tell you you don’t qualify. And remember, this law say’s they can’t forclose on you if you haven’t been evaluated under H.A.M.P. guidlines.
I am still bracing myself for the trial payment bullshit package to show up and get screwed after that too.. I would appreciate any comments and I hope this is helpfull to some… Good Luck All and
Don’t forget to denounce Bank of F’Americans every little chance you get.
55 Jack B. Nimble November 13, 2009 at 10:39 am
Also, Don’t deal with U.S. Loan Assistance Center!!!!! They are a fraud!! Note: If you want to record your converasation with the bank. Go get a digital recorder then when the rep begins a conversation, put your phone on speaker phone, start the digital recorder recording then ask their name and extension#, then, as a question ask ” This a recorded conversation?” they will say yes. then say as a question again, “It’s for quality assurance?”. State the date and time and your loan number somewhere in the conversation. Always try to ask it as a question. Like,”Whats todays date?”,”Are we referencing loan # such and such today?” try to get a recorder that is P.C. compatible so you can back it up to you computer as a file then burn a CD.
The California politicians have bankrupted our state. This plan of theirs will be like all their other plans. It will be just like the phone “moratorium” where all the big banks got a waiver on that. Those same big banks will still get a pass to do whatever they want with us. The plan will have some loophole so the banks don’t have to follow any rules. The banks control the politicians, and that is the sad truth.
I agree that politicians have bankrupted our state. On the other hand, I know that a professional consultant can help you renegotiate your loan with your lender.