Posts tagged as:

Predatory Servicing

Don’t Trust Those Mortgage Servicers

by Moe Bedard

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 [...]

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Do Loan Servicers Really Prefer Foreclosures?

by Moe Bedard

At the start of the foreclosure crises, personal finance experts urged struggling homeowners to contact their lenders if they started to fall behind on their mortgages. The lenders want to do everything they can, homeowners were told, to avoid a foreclosure.
Now, the experts aren’t so sure that’s the case.

Consumers who have jumped through a frustrating [...]

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Turning the tables on the bankers

by Moe Bedard

Particularly mind boggling are mortgage servicers who plunge ahead with foreclosure filings, and then, when called on it my activist groups, say they have no power to stop the proceedings since they don’t own the real estate!
Now it appears the legal system may slam the brakes on this runaway corporate train wreck.

A pending decision in [...]

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Predatory-lending lawsuits on the rise

by Moe Bedard

NEW YORK (CNNMoney.com) — During the housing boom, mortgage lenders were doling out the dough, giving loans to people who could never have qualified before.
Now, homeowners and government officials are increasingly taking these institutions to court, alleging unfair and predatory practices. While many of these suits are still winding their way through the legal system, [...]

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Customer DIS-Service: The Unspoken Reason for the Continued Collapse of the U.S. Housing Market

by Moe Bedard

If it’s this hard for a housing counselor, what is the poor homeowner supposed to do? “Call a nonprofit, HUD-approved housing counselor,” say all the government brochures and broadcast public service announcements. But housing counseling agencies like ours cannot possibly handle the flood of calls for help we receive on a daily basis. Thousands of [...]

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FORECLOSURE MEDIATION PROGRAMS’ POTENTIAL TO HELP HOMEOWNERS NOW IN JEOPARDY DUE TO LACK OF INDUSTRY ACCOUNTABILITY

by Moe Bedard

NCLC Looks at 25 Programs in 14 States: CA, CT, FL, IN, KY, ME, MI, NV, NJ, NM, NY, OH, OR and PA; Mediation Programs Seen as Faltering For Same Reasons as Struggling Federal Voluntary Foreclosure Modification Efforts.
WASHINGTON, D.C.///September 23, 2009///A spate of new state and local programs that have emerged over the last year [...]

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Helping homeowners?

by Moe Bedard

Lenders are not moving quickly enough to do their part and refinance mortgages
In March, Phoenix homeowner Bobbi Giguere started asking her mortgage company, Wells Fargo, to modify her loan. She since has gone rounds with the company, trying to provide information and get an answer.
As The New York Times recently reported, it took bankruptcy Judge [...]

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Mortgage servicers accused of preying on the people they’re supposed to help

by Moe Bedard

Billions of dollars the government is spending to help financially pressed homeowners avert foreclosure is passing through — and enriching — companies accused of preying on the people they’re supposed to help, an Associated Press investigation has found.
Foreclosure affects a persons life in many ways. Not only is the emotional strain difficult, but the financial [...]

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Obama’s Foreclosure Dilema: Where’s the Accountability?

by Moe Bedard

Mortgage servicing is at the heart of the foreclosure crisis. Few people understand the role that servicers play as opposed to the institutions that provide loans (banks and lenders). When critical aspects of problems are not well understood the probability that problems will linger on increases exponentially.

Servicers do not merely accept payments from borrowers, they also play a major role in deciding when to foreclose on homes. As intermediaries between the borrower and the institutions that lend money, servicers clearly play a critical role in the solution to the ongoing crisis.

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Schumer Says 2/3 of Mortgage Servicers on Board Obama Foreclosure Boat

by Moe Bedard

It appears that 2/3 of mortgage servicers are on board the Obama foreclosure boat has it heads to neighborhoods to rescue struggling homeowners. The boat is leaving the port very soon and the remaining mortgage hold outs will most likely will drown in a sea of bad PR  if they don’t jump on the Obama [...]

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FTC Obtains $28 Million From Bear Stearns and EMC

by Moe Bedard

The Federal Trade Commission today announced that the agency returned almost $28 million to consumers this week as a result of a settlement with The Bear Stearns Companies, LLC and EMC Mortgage Corporation. Using the defendants’ records, about 86,000 consumers who had mortgage loans serviced by EMC have been mailed redress checks.

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The #1 Reason Why Loan Modifications Are Not Working: Mortgage Servicers Suck!

by Moe Bedard

Many people in the media and our government are trying to figure out why loan modifications are not working and it is really quite simple to figure out. Yet, here we are almost two years into this foreclosure mess and it’s as if we are all stuck on stupid.
One doesn’t have to look further than [...]

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Are Wells Fargo, Wachovia, ASC and CEO John Stumpf the Kings of the Predatory Servicing Sea?

by Moe Bedard

“I just want to let the my readers and the world know that Wells Fargo, Wachovia (who they now own) and their mortgage servicing arm that they “try” and hide behind, American Servicing Company (ASC) is one the absolute worst and predatory mortgage servicers that I and thousands of homeowners have ever experienced. I feel [...]

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Homeowner Survey Says Countrywide is the Worst Mortgage Servicer in America

by Moe Bedard

CORONA, Calif.: 25 November 2008 — In the current mortgage and foreclosure crisis, the data and feedback from actual homeowners in regards to outreach and customer service by mortgage servicers during the loan workout process is crucial. Improving communication, customer support and timely resolutions for struggling borrowers are critical components to easing the foreclosure crisis.
This independent survey of [...]

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Millions of Predatory Loan Modifications: Homeowners Left to Suffer in Their Toxic Assets

by Moe Bedard

Predatory lending begets predatory servicing, begets predatory loan modifications, begets predatory foreclosures. You simply cannot have one without the other.
You cannot have millions of predatory loans without having millions of predatory foreclosures because they are all inherently bound together in a tangled web of unfair, deceptive and fraudulent business acts and that is exactly [...]

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Survey on Mortgage Servicers: Please help us help you

by Moe Bedard

Mortgage Servicer Survey – The Loan Safe Report
The homeowner responses are coming in by the droves and to no one’s surprise, it is looking very bad for many home mortgage servicing companies. Apparently many of them simply, “suck!” Homeowners get the foreclosure shaft and has they are losing their homes, they are being kicked in [...]

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Trapped in American nightmare

by Moe Bedard

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 [...]

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Mortgage servicers sucking loans dry?

by Moe Bedard

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 [...]

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Nearly eight out of ten seriously delinquent homeowners are not on track for any loss mitigation outcome

by Moe Bedard

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 [...]

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Is Wells Fargo’s Mortgage Servicing Unit, ASC, Abusing Elderly Homeowners?

by Moe Bedard

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 [...]

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