“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 »

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 »

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 »

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 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 »

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 »

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 »

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 »

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 »

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 »

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 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 »

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 »

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 »

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 »

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 »

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 »

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 »

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?

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.

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

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.

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

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.