What we’re seeing here is the mortgage equivalent of credit-card sweatboxes: servicers who make sure to drain homeowners’ savings before they foreclose, since they know that they won’t chase homeowners after foreclosure, even in recourse states. By holding out the promise of a modification tomorrow, they make sure to squeeze every ounce of blood out of the homeowner before finally snatching the home away anyway.
So this is what I’d like to ask Megan McArdle, and others who like to extoll the moral virtues of paying one’s debts: just how much of your life’s savings should you give these snakes before they take your house?
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Aurora Loan Services are defrauding people left and right. They promise loan modifications only to foreclose on people. In my case, I’ve attempted to get a loan modification for almost two years. After repeated promises I still get denied for no reason what so ever. I qualify for HAMP, but apparently ALS does not follow the federal guidelines in regard to modification procedures. I am in California and have a negative amortizaion option ARM loan and will most likely loose my home. I have reached out to everyone. I hired a loan modification lawyer and contacted the Governor, Senators, the President, Dept. of Thift Supervision, Assemblymen/women, and the list goes on. No one cares, yet they say it’s a national problem. The lenders and banks have TOTAL control over us and the economy. Nothing is being done. ALS was given $789 billion from the government to help troubled homeowners. They report to the government that a certain amount of loans are in the trial phase, yet they fail to report that following the three month trial, they deny modifications. I wish someone would listen.