Thursday, November 20, 2008
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Archive for the ‘American Nightmare’ Category

“I love LA!” Well, at least their new policies in regards to tenant rights of recently foreclosed homes.

However, let me disclose that I am not from Los Angeles, I am from the IE (Inland Empire,CA.) and my city of Corona and County of Riverside has done so little to address the foreclosure crisis that it is ridiculous.

Last count, I think we had a total of 8 housing counselors for the whole Inland Empire, which is ground zero here in Southern California. Please keep in mind that Riverside and San Bernardino Counties are two of the largest counties in the U.S. and the number of home builder/speculators and investors concentrated here is HUGE!

In addition to the first disclosure, let me also disclose that I am a “renter” and my investor/landlord is being foreclosed on and yes, she is collecting my rental monies and NOT paying Washington Mutual (AKA the FDIC). Oh, and she is an ex-Realtor who takes my $2,550 every month and lives off of it. Read the rest of this entry »

With falling housing prices in nearly every market, the questions that homeowners are asking have shifted. Rather than asking “what is my home worth?”, they are now asking “Is my home worth it?”

The problems are affecting the entire country, with nearly 1 in 6 homeowners owing more than their home is worth.For homeowners who owe more on their loan than their home is worth, they are put in a precarious position. Reports suggest that nearly 12 million homes are “under water” Read the rest of this entry »

No Hope for These Homeowners Part 1

Posted by Moe Bedard On October - 24 - 2008

De Las Mercedes, on October 20th, 2008 at 8:34 pm Said:

I am having a problem with Countrywide/Bank of America allowing me to apply for this program because I have not been delinquent.

I meet all the qualifications outlined by the Hope for Homeowners program; however, the home retention unit states that I am not eligible because I have not been late with payments yet.

I explained my situation and was told that I should try to short sale the property. My answer is I would like to keep the house. Do you have any suggestions??? Need Help???

EAE2MOM, on October 21st, 2008 at 9:10 pm Said:

I am having the EXACT same problem as De LasMercedes is with Countrywide. What do we do? Please help Read the rest of this entry »

Broken Big Time

Posted by Moe Bedard On October - 20 - 2008

She scrambled to renegotiate her loan and got trapped in a red-tape nightmare. The bank would not talk to her because she was not yet late on her payments.

“I ended up renting it out, my income was going down,” Ms. Formariz said. “I tried to hang on to it because I thought I was going to make up for it.”

Eventually, she stopped making payments.

“I tried to modify the loan, contacted the bank several times and each time they would take my information and say they would get back to me and they never did,” said Ms. Formariz, tears welling up. “Towards the end they said there was nothing they could do.” Read the rest of this entry »

Trapped in American nightmare

Posted by Moe Bedard On October - 20 - 2008

Here on LoanWorkout.org, I have been writing about the American Nightmare and the resistance homeowners recieve from their mortgage servicers when reaching out for help. And until this “serious issue” in our mortgage and housing crisis is addressed and these mortgage servicers are held accountable, Main Street and plumber Joe will continue to drown in foreclosures.

Our country’s consumers were victimized coming into their homes via predatory lending and toxic mortgages. Now, they are being screwed as they leave and or get foreclosed on via predatory servicing.

Welcome to the American Nightmare!

Chicago Times:

Bottom line: The government and the political candidates can announce all the grandiose mortgage restructuring plans they can dream up. But in real life, it’s almost impossible for people caught in this trap to get out. Those mortgages aren’t sitting in the bank’s vault. They’ve been packaged, and sold, and some have even been sliced into pieces. (See story, next page.) Getting all those owners of the mortgage to agree to restructure the loan is more difficult than it was getting Congress to agree on a bailout plan. Only this delay will be even more costly to our finances, and our society. And that’s The Savage Truth. Read the rest of this entry »

Mortgage servicers sucking loans dry?

Posted by Moe Bedard On October - 9 - 2008

Mortgage industry milking homeowners before foreclosure, critics say

“I have had people in the [servicing] industry tell me that their best customer is the one who is always 30 days late,” said Howard Glaser, a former official at the U.S. Department of Housing and Urban Development, and the president of the Washington, D.C.-based Glaser Group, a mortgage industry consulting firm.

“If you can keep the borrower on the hook and paying late fees, that is where the profit is in servicing,” Glaser said. “Otherwise, if everybody is paying on time, there isn’t a tremendous amount of profit.

Moe Bedard, president of Loan Safe Solutions, a California-based mortgage auditing and loan processing firm, said there is so much money to be made on delinquent loans that servicers are willing to risk that they will lose servicing fees on the percentage of homes that do go into foreclosure. Read the rest of this entry »

Longest Foreclosure Battle in US History Continues for Ohio Man

Posted by Moe Bedard On October - 8 - 2008

Supreme Court Denies Petition for Writ Of Certiorari of Couple Seeking Return of their Home taken under the Color of Law as the Trial Court lacked jurisdiction to Render Judgment as a Matter of Law.

Cleveland, OH, October 6, 2008- The US Supreme Court announced on October 6, 2008, that it denied the Davet’s Petition for Certiorari.

The Davets’ unrelenting and determined challenge as pro se litigants to stop the unlawful foreclosure of their home began in 1996 and has been widely reported in the national press for their willingness to pursue their claims.

See, e.g., Amir Efrati, The Courthouse: How One Family Fought Foreclosure, WALL STREET JOURNAL (12/28/07) at page A-1:

Mr. Davets’ case is believed to be the longest residential foreclosure of its kind in the history of Cuyahoga County, which is at the epicenter of the foreclosure crisis currently enveloping Ohio and many other parts of the country. Read the rest of this entry »

Killer Mortgages

Posted by Moe Bedard On October - 5 - 2008

The social impacts that this mortgage and foreclosure crisis are having on people, families and our communities are nothing short of devastating.

What was once a rare occurrence has now become daily normal life in many neighborhoods across the country. Suicides, murder, divorce, depression, crime and blithe are all attributes of the foreclosure crisis and it all can be traced back to the toxic mortgage. A mortgage that was sold by the very players that are getting golden parachutes and Wall Street on the verge of a trillion dollar bailed out as we, the people, foot the bill and continue to suffer on Main Street. Read the rest of this entry »

Attorney: Bailout Bill Fails Foreclosed Homeowners

Posted by Moe Bedard On October - 4 - 2008

When Baron decided to become a homeowner a few years ago he thought he was doing the right thing. He says he went to the wrong person to make his dream of homeownership come true.

“What they told us is after three years we could come back and re-finance,” Baron, who didn’t want to share his last name since his foreclosure case is still tied up in courts, says. “And then after the three years we couldn’t re-finance and everything started going up and up and up.”

His attorney April Charney has seen countless cases like Baron’s in Jacksonville. Read the rest of this entry »

Ohio woman, 90, attempts suicide after foreclosure

Posted by Moe Bedard On October - 4 - 2008

A 90-year-old Ohio woman, facing eviction from the home she has lived in for 38 years, shot and wounded herself this week, becoming a grim symbol of the U.S. home mortgage crisis.

Addie Polk was found lying on the floor of her home with what appeared to be a self-inflicted gunshot wound to her shoulder when police came to the home on Wednesday to serve an eviction notice, Akron police spokesman Lt. Rick Edwards said on Friday. Read the rest of this entry »

These days, it may look like the Wall Street trading floor is ground zero for the country’s economic crisis, but the root of the problem is still in your neighborhood.

The State Foreclosure Prevention Working Group, a coalition of officials and mortgage servicers in North Carolina, California, New York and other states, has just put out a grim report on foreclosure prevention efforts. Read the rest of this entry »

The $700 Billion Bailout of the Secret Shadow Banking System

Posted by Moe Bedard On October - 2 - 2008

By Moe Bedard

There are over 8,000 US Banks insured by the FDIC operating across the country and the reports coming from these banks are actually good. Most of the 8,000 banking institutions are doing fine because they do not have huge problems with toxic mortgage portfolios. Nor do they have loan portfolios full of cancerous pay option mortgages.

The sector that is dying and is being bailed out with $700 billion of yours and my money is called “The Shadow Banking System.”  Wikipedia - The “shadow banking system” or the “shadow financial system” is Read the rest of this entry »

Privileged Loan Safe Communication with ASC:

Loan Safe: Spoke with Dannette (id# O9T) and Bryce (id # KL1).  Both parties at ASC have advised they didn’t receive the modification package yet. Both parties also advised that they don’t have capability to receive faxes themselves and/or their supervisors.  Also note that both individuals advised that the homeowner shouldn’t have waited so long and it’s her fault for waiting until the last moment.  I advised she is an elderly woman who had very serious medical issues.  This seemed to not faze them.  Bryce even advised he has a hard time feeling any emotions for Ms. Roberts due to her home being worth over 800k while he is sitting in his 80,000 home in Ohio.  Both individuals advised there’s nothing they can do even after speaking with their managers and advised to leave it chance that the documents will get scanned in sometime during the night. Read the rest of this entry »

Uncle Sam Realty and Loans Inc.

Posted by Moe Bedard On September - 30 - 2008

Sadly, recent events in Washington suggest that this optimism of some kind of meaningful rescue plan for Main Street may have been misplaced and that politicians, never the most economically intelligent of mankind, may be working towards constructing the Great Depression - Part II.

The reality now is that we are heading into a major recession and the largest destruction of wealth that this nation as ever encountered. Much greater than the depression of 1929.

The new sad fact facing us all is that our new mortgage lender (FHA) and quite possibly, property manager (Henry Paulson), will be controlled by none other than Uncle Sam. Can anyone say, “Uncle Sam Realty and Loans Inc?” Read the rest of this entry »

The Mortgage Servicing Sector Has Failed & Is In Complete Chaos

Posted by Moe Bedard On September - 26 - 2008

The facts remain that without provisions mandating loan workouts and loan modifications, increased regulation on mortgage servicers, servicer accountability and without complete 100% control of these mortgages, themselves, this bailout plan WILL NOT work.

Well, at least for the people on Main Street losing their homes.

The proposed $700 bailout proposed by U.S. Treasury Secretary Henry Paulson, in its current form, will do absolutely NOTHING to help you, your family or your neighbors on Main Street. This bill’s costs will be gargantuan, yet it is suffering from famine in the substance department. Read the rest of this entry »

Lost Home Not a Lost Voice, Official Says

Posted by Moe Bedard On September - 26 - 2008

Maryland Attorney General Douglas F. Gansler instructed local and state election officials to make certain that voters who have lost homes to foreclosure know that they have not lost their right to vote.

Gansler (D) sent a letter this week to Linda H. Lamone, administrator of the state Board of Elections, after his office was notified about calls made to local election boards from people who were worried about their voting rights. Read the rest of this entry »

It looks like American tax payers on Main Street America may be on the hook for trillions of dollars as we try and figure out how to get gas in the car to find a second job and not lose our homes.

Meanwhile in Washington and Wall Street, AKA, Washington Street, they have come up with another sinister plan. Their plan to save them with our money…………………………

Our glorious ex-Goldman Sachs Executive, now turned US Secretary Treasurer, Henry (Hank) Paulson is at it again. Asking congress for what will amount to trillions of dollars (he says hundreds of billions), to bail out his buddies on Wall Street and guess what America, you WILL be on the hook via your tax dollars for years to come. Read the rest of this entry »

IRS Tax Laws on Short Sales

Posted by Moe Bedard On September - 15 - 2008

Disclaimer: I am not an accountant or an attorney. It is important to consult with a professional tax attorney or accountant when considering the implications of the law upon your individual situation.

In order to avoid home foreclosures, which can be complicated and lengthy, banks often engage in term negotiations with borrowers. A short sale occurs when the mortgage lender (the “mortgagees”) agrees to alter the original terms of the loan by lowering the outstanding balance of the debt. Such forgiveness often takes place in cases of a financial deficiency, or when shifts in the real estate market result in a negative net equity on the part of the borrower (the “mortgagor”). In particular, under a short sale the home owner is allowed to sell their home for less than their outstanding debt and give the proceeds to the lender in return for forgiveness of the loan. Read the rest of this entry »

Bank Armageddon: The FDIC is Strapped for Cash

Posted by Moe Bedard On September - 15 - 2008

The Federal Deposit Insurance Corp (FDIC) looks to be strapped for cash. Just like the banks and the American people for which their cash, they protect. It looks like they’re following in the footsteps of Bear Stearns, Freddie and Fannie because now the FDIC may seek to borrow money from the Treasury Department AKA the American People, to see it through the inevitable tsunami of bank failures that are coming to a bank near you.

One doesn’t have to look far to see what bank failures can do to what they call “depositors”, also known as, people, who put their money in the bank. Do you think ALL your money is safe in a FDIC insured banking institution? Think again. Read the rest of this entry »

A Deed in Lieu of Foreclosure as a Cure for Your Mortgage Woes

Posted by Moe Bedard On September - 13 - 2008

For home borrowers (”mortgagors”) facing foreclosure, a deed in lieu of foreclosure provides an alternative solution to the standard default process. In particular, the deed grants the lender (the “mortgagee”) full rights to the property title to satisfy the conditions of the loan. Such agreements are a common form of mortgage contract settlement. In general, a deed is a right granted by a legal contract based upon mutual agreement; therefore, a deed-in-lieu must be based upon voluntary agreement in good faith.

In cases where a borrower lacks sufficient assets for a deficiency judgment, the lender will often pursue a deed settlement independent of court proceedings. Under certain conditions, a deed in lieu of foreclosure can offer several advantages to the borrower and lender alike. If agreed to by both parties, the lender is then able to assume ownership of the property, creating a more efficient process by limiting court costs and waiting periods involved in standard foreclosure processes. Standard foreclosure procedures can take years to court and are further complicated by personal bankruptcy declarations, which can be relatively Read the rest of this entry »

Attention American Homeowners: Do you think your servicer may be charging you fees illegally, abusing the debt collection laws or just plain scamming you? Guess what? They most likely are and if you do not do anything about it. You are what are called a helpless victim.

I am begging you to fight back and CHANGE the way homeowners are treated when reaching out for help. Do NOT tolerate this abuse and contact the proper governing authorities to protect your rights NOW!

Bear Stearns and EMC were caught in the act of deception and scams by the FTC and I am 100% positive there are many more of these huge fines to come. EMC and Bear Stearns are certainly NOT the ONLY servicers abusing the American homeowner……………………………

The FTC:

The Bear Stearns Companies, LLC and its subsidiary, EMC Mortgage Corporation, have agreed to pay $28 million to settle Federal Trade Commission charges that they engaged in unlawful practices in servicing consumers’ home mortgage loans. The companies allegedly misrepresented the amounts borrowers owed, charged unauthorized fees, such as late fees, property inspection fees, and loan modification fees, and engaged in unlawful and abusive collection practices. Under the proposed settlement they will stop the alleged illegal practices and institute a data integrity program to ensure the accuracy and completeness of consumers’ loan information. Read the rest of this entry »

Written by Jenzy. A 56 year old American woman, homeowner, and another mother who has lost her American Dream.

I once owned two businesses, and had a nice car and a roof over my head. I lost it all at age 55 yrs. old due to a very deceitful mortgage company. Things were fine in 2004, 2005, and after taking out a loan to better my business in 2006. Then it all went HAYWIRE!

It started when my original mortgage company sold my loan to another without my knowledge. My payment of course went to the original lender.

I was at my store one afternoon in November, 2006 when I received a call and a lady introduced herself as being my new lender. She told me where to start sending my payments. For quite awhile after this call when I’d talk to them they’d say, “where’s your payment for November?”I kept saying I sent it to my original. Then after going to my bank, I found out it was signed over to them in early December, 2006. Read the rest of this entry »

WE ARE NOT DEADBEATS!

Posted by Moe Bedard On August - 29 - 2008

Contributed by an American homeowner. A woman, mother and wife who is suffering in what was supposed to be her American dream…………………………………….

From the movie:  The Terminator

Kyle Reese: Listen. And understand. That terminator is out there. It can’t be bargained with. It can’t be reasoned with. It doesn’t feel pity, or remorse, or fear. And it absolutely will not stop, ever, until you are dead.

      To our family, Countrywide represents the terminator: 

      Like thousands of Americans who are losing their homes and struggling to let go of their hopes and dreams of homeownership we are also struggling to hold on our home and to the plans we made long ago and have worked so hard to bring to fruition. At this stage in our lives we had imagined we would be taking the necessary steps to secure our retirement, not having to consider the possibility of starting all over again.  If it were not enough that we have to gather together our resources and consider our other options we have to also be subjected to the further humiliation of being blamed for not being “savvy” enough to see this disaster coming.  Read the rest of this entry »

California Senate Foreclosure Bill 1137 Q & A’s

Posted by Moe Bedard On August - 20 - 2008

TEN REALITY QUESTIONS & ANSWERS ON CALIFORNIA SENATE BILL 1137
Ronald D. Roup, Esq.Legislative Chairperson UNITED TRUSTEES ASSOCIATION

Q1. - When does this bill take effect and become law?

A1.- SB 1137 passed the California Senate and Assembly as urgency legislation to take effectupon execution by Governor Schwarzenegger. The Governor signed the bill on July 8,2008 and the statute took effect immediately. However, the new requirements in Section2 for Notices of Default and Notice of Sale and Section 4 for Notices of Sale becomeoperative 60 days after the effective date, or September 8, 2008. Read the rest of this entry »

SavingtheDreamTV1-3.jpg picture by MoeBedard

Please watch this 1 minute video on the truth behind the Freddie Mac and Fannie Mac bail out.

Housing Circus: Why Should You Bail Out Fannie Mae & Freddie Mac?

Thomas Jefferson made that quote over 200 years ago and it has never rang more true than today.

Never has there been a time in our history where our freedom has bee over shadowed by our burdens of debt and war, as it is now.  The time has come to unite in the streets of America as people, families and communities who must stick together, stand tall and keep fighting for what the fathers of our country did over 200 years ago. Read the rest of this entry »

By Moe Bedard

From Alan a NOW ex-Countrywide employee-

HERE IS THE CHL COMPENSATION THAT WAS JUST PUT IN PLACE EFFECTIVE 12/01/2007
THE MEANS THAT A LOAN ORIGIONATOR COULD GET A HEFTY WAGE INCREASE BY GOING TO WORK AT WALMART. I QUIT THE DAY THIS WAS ANNOUNCED.
Units Funded
Units Payout (Bps) BPS = 12 BPS = .012%
0 – 2 0
3 12
4 14
5 16
6 18
7 20
8 22
9 24
10 27
11 29
≥12 31

Lead Type and Product Specific Incentive -
The incentive basis points in the following tables will apply only to funded loans from the specified lead source and/or of the indicated product. These incentives are in addition to any Units Funded and FICO Score incentive for which the loan may be eligible for. For a loan to be considered self sourced it must meet the eligibility criteria indicated in the incentive plan. Also note that the additional lead type payout for Internet Outbound loans will apply only through February of 2008.

Lead Type Incentive
Lead Type Payout (Bps)
Self Sourced 15
Internet Outbound * 5
Portfolio Outbound ** 5
* non-port customers only; effective only through Feb. 28, 2008
**applies to NSC Port Dedicated AEs only

Product Type Incentive
Product Type Payout (Bps)
A-HELOC 40

Units Payout (Bps) BPS = 12 BPS = .012%
Loans BPS Paid $200,000 x .12 bps = $240
0 – 2 0
3 12
4 14
5 16
6 18
7 20
8 22
9 24
10 27
11 29
≥12 31

THE TOP PRODUCERS THAT HAVE WORKED AT CHL FOR YEARS DO BETWEEN 6 AND 8 LOANS A MONTH ON A GOOD MONTH, SO THEY JUST TOOK A 75% CUT IN PAY.

NEXT TIME YOU TALK TO A CHL LOAN ORIGIONATOR, GO EASY AS THE ORDER TAKER AT MCDONALDS IS MAKING AS MUCH OR MORE MONEY.

Why Lenders & Servicers Are Not Cooperating to Modify Mortgages

Posted by Moe Bedard On October - 28 - 2007
America and homeowners need to understand the “facts” and the “reality” as to why our great country is in such a ridiculous housing and mortgage mess.

I’m so sick of hearing that homeowners are in homes they cannot afford. They over speculated. They bought way above their means. They can’t be helped. Rubbish! Bullshit!

WE ARE IN THIS MESS BECAUSE OF RIDICULOUSLY TERRIBLE LENDING PRACTICES AND PREDATORY LENDING!

Without a loan for borrowers to “qualify” for then there would be no buying of home they supposedly could not afford and these lenders were dishing out these toxic loans in the millions. These lenders preyed on people with subprime credit. They would charge excessive fees and give them rates they could not afford while they pocketed yield spread premiums on the back ends of these loans. Sometime raising a rate form 6% to 8% so they could collect 2-3% in the form of secret commissions.

I believe that most all of these subprime loans were made to fail and have all the characteristics of predatory lending.

Now, homeowners are stuck in these predatory loans and they are reaching out for help to their lenders and servicers. What they find is far from help. The predators continue to feed off of the borrowers and suck what little blood (money) they have left.

So the question is, “why are lenders and servicers are not “really” cooperating and assisting struggling borrowers and modifying their loans?”

The answer is simple. GREED AND DECEPTION!

Take this quote from Nicholas Weill, chief credit officer at Moody’s:

“As far as the security is concerned, it’s only once the property is effectively sold that a loss is recorded,” “The process of foreclosure is a long process. It doesn’t’t just happen overnight.”

If lenders and servicers work with all struggling borrowers then they would have to report massive losses to investors in their mandatory quarterly earning reports. So, what they are doing is stalling and refusing to assist many homeowners because of this very reason. If they cooperate on a massive scale and modify loans and offer more short sales then the reported losses would be gargantuan. Causing their stock to go down the toilet and most likely cause them to go out of business.

The reason lenders have not yet reported significant losses, is because these losses are only recorded when loans are modified or when homes have been foreclosed and sold. Up to two years can pass between a borrower’s falling behind on payments and an auction. These loans which are backed by mortgage securities have a reservoir of excess cash so bondholders can draw upon that cash when borrowers do not make monthly payments.

The “TRUE REALITY” of the problem is not yet on the radar because many loans are just now defaulting or shortly will default. It takes time for the defaults to result in NODs and then Trustee’s Sale, and then as an REO.

This buys them time. The reason why the loans are not modifying is because the banks are not willing to mark to market. If they were to modify, they would have to take the losses immediately whereas a foreclosure could take 12-24 months to surface on the books.

Furthermore, the foreclosure may generate management and marketing fees for a subsidy.

Then you have the servicers who are in on the scam.

Servicers seem to be more interested in REO management and collecting delinquent fees then assisting homeowners. They make WAY too much cash to pass up terrorizing borrowers and making their lives lives hell, then helping them. PLAIN AND SIMPLE.

Before the dust settles, there will be some fierce legal battles over servicing related losses. Servicers also stand to lose customer goodwill and their business reputation. Customers will ultimately blame the Servicer.

What lenders and servicers are doing is buying time at the cost of the American homeowner and very likely, our nations economy. Families are being ruined. Local economies devastated.

ALL OF THIS, SO LENDERS AND SERVICERS CAN CONTINUE THE DECEPTION AND NOT REPORT THE FACTS. ALL FOR THEIR GREED AND THEIR BOTTOM LINE. 

I call it, “THE GREAT AMERICAN HOMEOWNER SWINDLE” and ladies and gentleman, our whole country has been scammed and the scam continues right in front of your very eyes. Yet, we still sit here and let them do this bullshit. I am amazed that this is happening and nothing is being done to stop it.

Countrywide Loves Foreclosing on Homes in California

Posted by Moe Bedard On October - 24 - 2007
 Another disturbing fact from the Countrywide school of subprime horrors. One that I have not seen in the media and hopefully this will get some attention.
 
I just ran the most recent stats on REO properties in the Countrywide portfolio as of 10/24/2007. I was astounded by the fact that Countrywide has a HUGE number of homes they have foreclosed on in the state of California. A whopping 3,435 homes to be exact. More than double the amount in Michigan which came in second on the list with a total of 1,611. Florida came in third with 825 Countrywide foreclosed homes and the state of Vermont came in last with only 1 property on the list.

When I look at these numbers it is obvious that Countrywide made a majority of their toxic loans in California and it is also the preferred state where they Mr. Mozilo would purchase servicing rights to these toxic loan contracts.

Was this part of the scheme? My guess is that this is no coincidence at all.

These numbers are based on the shear greed of Countrywide and point out that they targeted the golden state of California with these toxic loans for many years. Originating thousands and thousands of subprime mortgages on high priced properties and collecting HUGE origination and servicing fees on these loans.

You make a lot more cash in origination fees on a $500,000 home in Cali then you do on a $50,000 home in Arkansas. It wasn’t that the great people in Arkansas didn’t need loans because they most definitely did. However, they were the low hanging fruit and didn’t feed the greed of the Countrywide machine.

I would say that the average commission on an a subprime loans was approximately 3%. Usually a loan officer would charge 1% point origination fees and receive another 2% in the form of rebate. 3% on $500k= $15,000 vs. 3% on $50k = $1,500. That’s a $13,500 difference and I GUARANTEE that is why Countrywide made more loans here in California than anywhere in the country.

 These fees continue as these borrowers become delinquent on their loan and their collection departments squeeze big fees from strapped borrowers. Again, there are a lot more delinquent fees to be collected on a $500,000 loan than a $50k loan. A LOT!

I would also say it is safe to say that you have a better chance of getting a loan modification with Countrywide in any other state but California.

OK, here’s the Countrywide REO numbers by state:

State           REO’s

AK                9
AL                131
AZ                424
CA               3435   
CO               435
CT                88
DC               14  
DE               16
FL                825
GA               661
HI                30
IA                56
ID                19
IL                402
IN                350
KS                70
KY                78
LA                53
MA               340
MD              131
ME              2
MI               1611
MN              381
MO              332
MS               115
MT               5
NC               158
ND               4
NE               34
NH               75
NJ                82
NM              15
NV               635
NY               130
OH              657
OK              55
0R               33
PA               143
RI                58
SC               49
SD               8
TN               190
TX               595
UT               19
VA               516
VT               1
WA             68
WI              75
WV             26
WY             5

 Thanks for the car California! I’m outta here.
                   

Countrywide is sending mortgage consultants to hold open their foreclosed houses. So now they will capture loans. Multiply that by thousands and thousands of homes and now you have a real estate company to compliment your lending division.

Countrywide Real Estate & Loans? Heck, you might as well open an escrow company also and hire out of work real estate professionals for $10 an hour to run your new real estate company and sink every other that is left standing when this mess is all cleaned up later in the non so “NEAR” future. 

Isn’t that the next logical step Mr. Mozilo? I mean why pay a real estate agent 5-6% when you can control the entire transaction from a-z? What about property management? You’re going to need to have that service because the majority of your real estate inventory will not sell. Now you will be renting homes to the American people and I’m sure you will be calling them at dinner to sell them a mortgage while they send you rent every month.

Countrywide is in the news big time lately and for good reason. Big things are happening in Calabasas, California and Mr. Mozilo seems to be orchestrating some pretty bold moves for the ailing mortgage giant.

Take this Reuter’s article.

“The largest U.S. mortgage lender also said more than 7,000 mortgage consultants will over the next six weeks fan across the country at weekend “open houses” to help Americans who may be shopping for homes.”

So let me get this straight. Countrywide is going to outscore loss mitigation efforts to India and then pay mortgage consultants to go ambulance chasing and pawn loans to the uneducated and ill informed people that are stupid enough to buy a home in this market? They just don’t stop these great public relation campaigns.

It’s as if everything they do now is to impress investors and not consumers.

Then a light clicked in my head. Wait a minute here. What are they really trying to do because everything they do, make no sense, so their has to be some reasoning behind these business moves that I personally feel, are a joke?

Why didn’t Countrywide send 7,000 of your loss mitigation staff to help distressed borrowers? The reason is because they are only interested in generating new business and not taking care of the borrowers it has. They seem to follow the old sales model of churn em and burn em. Just keep the suckers coming. Once we hook em, throw em to the sharks.

How do I know this? Because I have dealt with them many times, I research what they are doing and who they are helping. I network with other professionals and non-profits. What do they all say? That Countrywide’s loss mitigation department is one of the most ridiculously ran in the industry.

More from the article:

“The Calabasas, California-based company is joining homebuilder Hovnanian Enterprises Inc (HOV.N: Quote, Profile, Research) among housing industry participants to step up marketing as foreclosures have risen to record levels while home sales have slumped.

Countrywide is focusing on smaller home loans, which investors consider safer, and has stopped offering many riskier mortgages. It set plans this month to fire up to 12,000 workers by December because it expects loan volume to decline.”

Foreclosures, Mortgage consultants, open houses, more foreclosures, more lay offs, partnering with builders, taking back homes left and right, not working with borrowers?????????????????? Daily their real estate portfolio increases and increases.

“Morgan Stanley analyst Kenneth Posner has said write-downs might result in a $2.4 billion third-quarter loss at Countrywide, more than wiping out the prior year’s profit.

Countrywide nonetheless said it is encouraged by what it called “signs of renewed consumer interest” in home finance.”

Sorry to inform you Mr. Posner, the losses will be much more than that. That renewed interest was just homeowners who have already tried to apply and mistakenly thought a Fed rate cut would help their situation.

Unfortunately, they cannot be helped.

Moe

Founder & Homeowner Advocate
LoanSafe.org
LoanWorkout.org
951-271-6283 Phone
800-734-8819 Fax
Moe at LoanSafe.org Email

Investors Are Going to Lose it All if They Don’ Agree to Modify Loans

Posted by Moe Bedard On September - 11 - 2007
Homeowners can’t refinance. There are no mortgage products to cure their diseased loan. Vanished. Never to be seen again. Foreclosures are engulfing neighborhoods everywhere. Values are plummeting faster than your favorite housing stock. Employment is down for the first time in years. People are losing their jobs left and right.

Loans are adjusting everywhere like the plague and catching homeowners completely off guard. Their payments are going up 25%, 50%, 75%. Their homes have lost their equity. Many are upside down and owe more than it’s worth. But still, many want to save their homes. Their fighting to do whatever they can to find a solution.

Daily I’m blogging and running my forum at LoanSafe.org advocating loan modifications as the only way out of this mess. Meanwhile articles come out like this one today in Smart Money. I’ll pull some quotes and comment on the ignorance of investors and Wall Street in general.

“By Danielle Reed
Of DOW JONES NEWSWIRES

NEW YORK -(Dow Jones)- Regulators want banks to help subprime mortgage borrowers avert disaster by easing their loan terms, but for bond investors, the cure may not be better than the disease.

Changing the terms of these home loans - which are made to risky borrowers with poor credit profiles - after they have been packaged into bonds leaves investors scrambling to adjust to new terms they hadn’t expected at the outset. That type of uncertainty, the concern is, could make an already unpopular asset class even more unpopular.”

Your unpopular asset will be worth nothing if you don’t modify these loans. People can’t refinance and there is zero equity in their homes. Most can’t afford the new adjusted payment. Many will default and be foreclosed on. Most of them could have had loan workout arrangements that would have saved their homes and lenders/investors tens of thousands of dollars. But daily many more become a statistic in the foreclosure madness.

Who wins there? Where is the sense in that? How many more months can we go before it affects every homeowner?

Let’s face it. Most American homeowners are not sitting in their homes with lots of equity and cash to spare. Most are close to tapped out of the market completely. Many are in debt to their eyeballs. The house of cards keeps falling.

More from Smart Money.

“Effects Vary By Bond Class

On the other hand, because loan modifications may stop some borrowers from defaulting - at least for a certain time - that may help investors who own the very lowest classes of bonds, from BBB-minus to the unrated piece.

These classes of bonds, because they absorb losses first, stand to benefit the most from any measures that can stave off mortgage foreclosures and the hefty losses associated with them.

Also, most subprime securitizations are structured so that if loan delinquencies reach a certain level - called the trigger level - cash flows from the lowest-rated (or unrated) classes of bonds get turned off and redirected to higher-rated classes of bonds, such as those rated AAA.

However, if loan modifications prevent those trigger levels from being reached, it benefits the holders of lower-rated classes of bonds at the expense of the holders of the higher-rated bonds.

Investors’ reaction to loan modification “depends on where you are in the capital structure,” said Gary Greenberg, senior vice president and mortgage strategist for Payden & Rygel Investment Management in Los Angeles.”

The more I dig into investigating the complexities of loan modifications, the more I realize how screwed homeowners are. There are too many people to consider what will affect what and who affects who. The government needs to take the the bull by the horns and get it the hell out of the china shop. Because if we keep letting these jokers control the show then our nation will suffer huge financial loses in every market sector as a result of foreclosures. 

Save Our Economy and Force Lenders to Modify Loans

Posted by Moe Bedard On September - 6 - 2007
From day one, the inspiration for this blog and my forum has been to promote a massive loan modification campaign of these exploding adjustable rate mortgages that are blowing up families, neighborhoods and our economy. I realized long ago that the only way to stop foreclosures from ruining our entire economy was to modify these ARM’s into stable and affordable loans that homeowners can afford. Fix these damn mortgages that borrowers cannot refinance out of.

The FHA Secure Loan is going to cut it Mr. President.

Daily, I have ben blogging, yelling, scratching and screaming to get the word out to homeowners, lenders, media and congress. But who am I? Just some dude is California with a laptop and a dream?  Some guy with a blog and a forum? I guess you can say that or you can say that I am one of the ONLY outspoken people in America along with Senator Christopher Dodd, my new hero and the many non-profits who has the gull to fight back against lenders and advocate for homeowners.

The President, Congress, the SEC, the Fed, they are all asking lenders to work with borrowers and modify loans. Do you really think they are listening? Do you think these politicians have ever listened to how homeowners are treated as they reach out to their lender for help? Have any of these politicians listened in on a call to a loss mitigation department? If any of them would just see what goes on behind the scenes then they would realize that we are totally up shit creek without a paddle, if we leave it in the lenders hands.

These loan modifications need to be governed and there needs to be guidelines, policies and procedures. Now there is nothing. No uniformity, no methods, no qualifying procedures, nothing. These lenders need to be forced to have systems, guidelines and policies in place so borrowers, non-profits and attorneys can work with them in a professional and timely manner. Now, it’s as if these lenders are hogging the ball and forcing our whole country to play their game. I don’t know about you but I am sick of playing their way. We have already let them place our whole country in jeopardy of financial ruin. Now, we’re asking them nicely to fix things. Screw that! Force them to change and force them now, before it’s too late.

I don’t know if you noticed, but most of the country is against us. They would just see it fit for people to lose their homes so housing prices drop and so they can buy your home at the auction. Investors are watching and waiting like vultures to snatch up your dreams and prey on your misery. Wall street is still in that investor cloud where many still have no idea that all these loans that they packaged and sold worldwide are complete junk. Worthless. Lenders are making life miserable for troubled borrowers because they don’t want to offer loan modifications and make it public that they are helping people. Hell, everyone and their mother that received a subprime loan over the past few years will be calling their loss mitigation departments asking to modify my loan. Then they would have to report how screwed they really are to Wall Street. Creating more panic and chaos with investors. So, they continue to screw with borrowers and lead them down a path of misery and hopelessness.

The facts are that there are just too many chiefs and not enough Indians. There is clearly no one in charge. Not the President, not Ben Bernake and the Fed, not the Securities and Exchange Commission, not Congress, not the lenders, not Wall Street, not housing reform advocates, no one. Just a bunch of hearings, summits and press releases. Stop talking and act. It’s just a big mess, everyones pointing fingers and blaming everyone else. It’s quite sickening to me to watch a great country like ours go down the tubes when there is a solution to our mortgage mess and our housing crisis.

The President and congress need to come in and take charge and force lenders to undergo a massive loan modification campaign. That is the ONLY way that we are going to crawl out from under this trillion pound guerrilla that is suffocating our whole nation and quite possibly the world.

The FHA Secure isn’t going to do it. Lenders aren’t going to do it. The time is now for government to take charge before it’s too late.

Moe

Founder
LoanSafe.org
LoanWorkout.org
951-271-6283 Phone
800-734-8819 Fax
Moe at LoanSafe.org Email

As I sit in my home over looking the hills of Corona, California, I ponder as I think about the suits on Wall Street.  Do they know that there is a solution to this mortgage crisis and if everyone would just get their act together and work together, then we all can curb losses and thousands of homeowners save save their homes?

What I am talking about is loan modifications and it’s my belief that modifying borrowers mortgages is the only way to place a band aid on the gaping wound of our country’s economy. There is no other solution. Plain and simple.

One of my favorite TV shows is Jim Kramer’s “Mad Money”. He keeps talking about the Fed and Bernake. Jim seems to think that the only way to pump some money into Wall Street and to help save our economy is through a rate decrease. I think that would help but how is that going to help the millions of people that are stuck in ARM mortgages and they can’t refinance out of them? What good is a rate decrease going to do for them? It wont help them at all!

The facts are that most all of the subprime mortgages written over the last three plus years can be modified. Meaning that lenders can work with borrowers and modify these crazy mortgages into fixed rates, lower rates, longer terms, waive penalties etc. But you have a system that is based on greed and not common sense. Yes, it’s business,  but it’s stupid business when everyone can cut loses significantly by streamlining the loss mitigation system.

I work with these lenders and servicers daily. It’s a joke how unorganized and pathetic these loss mitigation departments are operated. They are set up to fail and need a complete over haul. Instead of sticking millions into advertising, they need to stick millions into these departments and train their people better. Because I can tell you right now, that most these employees could care less if you lose your home and the economy goes in the toilet.

Lenders need a reality check. They need to understand that 20 year old kid in collections is costing them millions of dollars because he’s an ASS and that lady in the short sale department has a chip on her shoulder that is also costing you millions. Don’t believe me? Wait till I post my recorded phone calls with your idiot employees. I’m sure a lot of jobs will be lost then!

But if you called the refinance department you would be handled like royalty. Too bad no one can refinance right now! So, your logic just baffles me!

There needs to be a streamlined system that ALL lenders and servicers abide by in the loan modification process. It makes me sick to see Countrywide and Lending Tree commercials all day and not one commercial geared towards helping homeowners in distress and giving them accurate information to help them avoid foreclosure.

Why the hell isn’t the SEC and Wall Street demanding that servicers and lenders start performing mass loan modifications

 to help curtail losses and the economy?
There must be some conspiracy theory or something because it’s quite comical on how this is all being handled!

 

I have been following the foreclosure crisis very carefully. It’s a full time job for me now. Researching, writing and developing websites for my various projects. I probably read up to 50 plus articles per day trying to find the latest news and also tips to help my blog readers avoid foreclosure.

All my research and work has lead me to one conclusion. ”I predict that the only way to help solve the housing crisis is through massive loan modifications of ARM mortgages and people that have suffered hardships.”

The mortgage market has went in the tank. Investors no longer want to buy these mortgage pools, so there are no mortgage refinancing options available for these people that are stuck in bad loans. Many have very little equity and can’t sell because they will have to come out of pocket (they don’t have the money). There is a lot of talk about short sales and that being the way to help the situation.

How can that help when these homes aren’t selling? They are just sitting on the market and everyone’s losing.

But this isn’t about selling peoples homes, it’s about saving them.
Most everyone I come in contact with wants to keep their home and work with their lender. They don’t want to sell or be foreclosed on. The only way to really make this win/ is to modify loans and make them affordable for borrowers who qualify.

 

The only solution is massive loan modifications. Read my blog and learn how you can find ways to avoid foreclosure and save your home

This isn’t rocket science. The greedy investors on Wall Street need to understand that they are already losing big time on their investments and by foreclosing on borrowers is only going to make it worse. Let the lenders modify these mortgages, so people can save their homes and you can save your investments.

Safe Investments , Investment Property Recession Stocks and Business,   Work From Home, Make Money Online, Loan Modification, Home Loan, Short Sale, Deed in Lieu of Foreclosure, Mobile Home Loan, predatory lending, loan modification service, loan modification lawyer, countrywide home loans

Predatory Lending Touches Everyone

Posted by Moe Bedard On August - 9 - 2007
There seems to be a misconception that predatory lending only touches the lower income and minority communities of America. I’m here to tell you that it touches everyone and anyone can become a victim. It doesn’t matter if you have a $50,000 mortgage or a $3 million dollar mortgage. You can become a victim and there are many victims everywhere.
I received another phone call today. It was a gentleman form Connecticut. Real nice guy. I didn’t catch his name because I was driving and I didn’t write it down.
 
He told me his story of predatory lending. How a mortgage broker misrepresented him from day one. But he put his trust in this guy. It was clear from his story that this broker wasn’t at all interested in helping him. The loan benefited the mortgage broker. A $2.6 million dollar loan. Does anyone know what kind of money can be made on these deals. I have seen $50,000 - $75,000 checks on ONE LOAN! I wouldn’t doubt if this broker made tens of thousands of dollars and put this poor guy into a worse loan then he was in before. He’s definitely in a worse situation.
 
He explained how he was dealing with Countrywide and wasn’t getting anywhere. I asked him how much equity was in his home. He told me approximately 1 million. I said there not going to help you when there is that much equity. They stand to gain by foreclosing on you. They stand to gain a lot. If you had no equity then they would work with you. There job isn’t about being nice. It’s about money and until they start doing things different then I will always say that. Pocket books drive your fate, not a heart or compassion.

I advised him to hire a lawyer and go after that broker for predatory lending. Unfortunately Countrywide is the cat left holding the bag and they will also be involved if it goes into litigation. I don’t like court. I don’t want everyone suing everyone because that just makes lawyers rich and their rich enough. I’m about mediating and finding solutions.

But when that fails, I’m about taking out the big guns and protecting the fort!!!!!!

Let’s get one thing straight. I’m not here to point fingers and talk bad about lenders and mortgage brokers. There are enough blogs, website and news reporters to fill that job of bashing the industry.

I created this website to help people and find solutions to the foreclosure crisis. However, I’m not going to stick my head in the sand or throw a blind eye when I see BS. The more I blog and write, my message reaches across the internet into households everywhere. The more people I talk to, the more I realize that this isn’t just about helping people, it’s about touching people.

I hope the gentleman from Connecticut keeps in touch. He thanked me for my time and asked if there was anything he can for me. I told him I just want to help and that if he can keep in touch then that would be great.  I  just hope it all works out for him and his family.

Another day on the front lines of the foreclosure mess.

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