digging_out

Foreclosure while in HAMP process

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Hi Everyone,

I use this board alot for my credit issues but my brother is now in the middle of a foreclosure mess and since I do not have much knowledge in this area I thought I would post it on here to get some good advice as I always do for my situations.

My brother lost his second job and has yet to find another to replace it. His property taxes went up. He is working with a local housing authority on trying to get loan mod since Oct 2009. His loan has been sold several times over the last few months and the loan mod process has had to be started over several times during this.

So now a lender has filed for foreclosure. He doesnt even recognize the plaintiff name as now being the owner of his loan.

We have filed an answer and also requested mediation thru the courts foreclosure mediation prog.

What else can we do? Can they file foreclosure if he has been working on loan modif for months but keep reselling his loan? How do we find out plaintiff owns the loan now and has rights?

Ive tried reading up on here but I am very unclear on all this mortgage stuff. Any help would be greatly appreciated.

Thanks. I love this board and am so grateful for it!!

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Hi Everyone,

He is working with a local housing authority on trying to get loan mod since Oct 2009. His loan has been sold several times over the last few months and the loan mod process has had to be started over several times during this.

So now a lender has filed for foreclosure. He doesnt even recognize the plaintiff name as now being the owner of his loan.

We have filed an answer and also requested mediation thru the courts foreclosure mediation prog.

What else can we do? Can they file foreclosure if he has been working on loan modif for months but keep reselling his loan? How do we find out plaintiff owns the loan now and has rights?

Ive tried reading up on here but I am very unclear on all this mortgage stuff. Any help would be greatly appreciated.

Thanks. I love this board and am so grateful for it!!

First off, you need to clarify whether the note has been sold several times over the past several months, or the servicing rights have been transferred over the past several months. There is a huge difference there.

In order to find out who clearly has the rights to proceed with foreclosure, a trip to the county courthouse is necessary. Ask the clerk there to pull the property file, which will show the owners name, and any lien owners on the property. There is usually a fifteen dollar fee (or so) for them to print this for you. If the company that is pursuing foreclosure is not listed as a lien holder, then they cannot foreclose. As a matter of fact, all transfers need to be filed on this document.

Next you will need to prepare a Qualified Written Request Letter to the mortgage company asking for full payment history (although there probably is no payment history???), all mortgage documents pertaining to the loan. Hopefully, your brother has been keeping records of all the companies that have had the rights to this loan, and a Qualified Written Request Letter should be sent to each and every one. They will each have 20 days to acknowledge and (I belive 60 additional days to produce the documents)Each one of these companies had better be able to produce these records or he will have a defense in the courts. These QWR's should also be filed at the courthouse with your case file. The foreclosure will then be unable to proceed until all companies have responded. For Qualified Written Request samples please go to the mortgage fraud section of this forum, and you will find several samples there.

Finally, your brother (or you) need to get real familiar with the "produce the note" defense. It has a significant case history in Ohio, and may hellp greatly in this matter.

Edited by amortgageman

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All the rules have changed in the last couple of months. Lending banks are now being held accountable for the trap they set, borrowing money they didn't themselves have, while using loose and illegal practices in the process. The massive lawsuit against Wells Fargo / Wachovia, Indymac / OneWest bank, Citibank, Bank of America, JP Morgan Chase, GMAC..............can actually, not only put a stop to your foreclosure, but also pause your house payments with no loss to you............

Call (323) 519-0837

:roll::cool::?:cool::):lol::shock::wink:

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.

Not soliciting you - concern about giving you the right advise

I understand and can sympathize what is going on, speak and analyze situations with 100's homeowners in defaulted loans monthly, every situation is different. My law firm has attorney affiliations in 49 states, processing other Attorney offices submissions for loan modifications. We deal with 154 different Lenders across America. We are handling 200+ incoming loan modifications a week.

How can people give you advice - having little or no experience about the modification process as well as knowing hardly anything about your brother's situation. Their intentions might seem good, where your brother is now, it would be a big waste. You are running out of time.

Question - was there ever a check to see if Fanny or Freddy hold's his loan?

Do your brother a big favor right now - put in his information on these two links.

http://www.fanniemae.com/loanlookup/

https://ww3.freddiemac.com/corporate/

No one is going to check this for you - if his loan is held by Fanny or Freddy, this is good.

I am reading between your lines - you telling us what the bank is doing, denying for a HAMP. That tells me it is not an FHA loan which is good. The Lender changing bank names selling, it is clear to me they are moving towards Foreclosure. Once to property is foreclosed upon, the Lender wants to get money from the investor in exchange for the loan note. I am willing to bet, because you live in a redemption state, they are writing off the loan to a subsidiary bank.

This is due to where you are - Ohio, which is a Judicial state that requires a court to approve a foreclosure. It can be as soon as 6 months of no payments. The home to be sold though a sheriff sale. His lender is going to ask for the amount due in one payment by a certain date. Many times a Lender will use a sheriff to deliver this summons. If your brother doesn't come up with the entire pas due amount. He will be served a court summons to appear in court, which if he does not settle, a sale date to be assigned.

The reason why I am saying this - if the Lender wanted to work with your brother, they would offered a forbearance payment for the arrears. If probably is more profitable for them to foreclose and get reimburse the amount owed by the investor. They are not going to pass any of this information that your bother can use. Once the investor holds the note, or in your case this new bank. You have a certain amount of redemption time to pay for it in full to get it back.

To qualify for a HAMP modification, it is requires the borrower have 12 on time payments before the modification. Yet almost every Lender in America submits for a HAMP approval - not it is going to be denied. It doesn't a take a Rocket Scientist to understand the bank is Jerking him around.

Getting a little technical to prove my case - I wrote a college paper last semester on the mortgage crisis, when Wall Street brought the Government. The Financial Services Modernization Act of 1999 effectively removed the separation that previously existed between Wall Street and depository banks and has been blamed by some for exacerbating the damage caused by the collapse of the sub prime mortgage market that led to the Financial crisis.

People blame President O'Bama - he controls the Judicial branch of our government. The US Treasury Sec and Congress are responsible setting guidelines to Lenders. The Fed has only three ways of controlling banks - the overnight Lending rate, the overnight reserve requirement, and to buy or sell Gov bonds. Banks are making up their own rules as to who/what/how they are lending too - going unregulated, controlling our economy. This is the number one reason why we are in our financial crisis today.

Not knowing his income and mortgage balance - there has to be two tests to show he can afford the house. Because he sent in pay stubs and bank statements showing he does not make enough to afford his mortgage payment. By him dealing directly with his bank, he is letting them determine what he can afford. This is a very big mistake made by many homeowners, that think they are saving a few dollars up front for help. Only to end up denied, in a worst situation, or losing the home to foreclosure. People need to understand - their Lenders are in this for profit!!! If home owners miss up they lose their home, I the banks mess up, they have a get out of jail card issued by the government (remember Wallstreet brought and now owns our government).......can't make this stuff up.......lol....

Anyway the primary point here is proving he can afford his home......

Take his gross monthly income and multiply by 31% = (A)

Follow this link for a mortgage calculator - enter in the existing loan amount, 360 payments listing 2% = (B)http://www.mortgage-calc.com/mortgage/simple.html

The (A) amount has to be higher then (B) amount. The modified payment can be around the (A) amount.

If he cannot afford the payments - no free agencies or paid attorney (at least an honest firm) will be able to help him. The propose of the mediation hearings (some states called settlement hearings). They are to get you and your lender talking about a loan modification. The are the Plaintiffs, and your brother is the defendant - they want to prove in court they offered you a chance to catch up, he doesn't come up with the past due amount, and the foreclosure request is approved.

Laws, rules......it is all written on the loan note - if the payments are not made, the bank has to right to Foreclose.

amortgageman - mentioned preparing a Qualified Written Request Letter to the mortgage company. Heres a Link http://www.scribd.com/doc/13571859/Qualified-Written-Request-1st-Step-of-Forensic-Loan-Audit-Predatory-Lending-Violations

In my opinion, trying to request this now is not constructive. He is probably over 5 months or longer in default. Once the court date happens - in Ohio that have to advertise in local newspapers for three weeks before a sale. Trying to devote time and resources, for something that will not be completed in time. I want you to go another course using the above letter.

The definition of the QWR letter, the bower is qualified to make a written request. You goal here is to show you have enough income to support the loan at the minimum 31% guidelines. Sometimes this request has to a qualified third party for the best resolves, why because there is no relationship with the loan. Because you are dealing directly with the Lender, that are deciding on your behalf.

You want to request a Moratorium while you are requesting an In-House Modification to be done.

Lastly - if is existing payment was less than 31% percent of his Gross income, they you have to request a Net-to-Net In-House modification.

Keep us posted on whats happening.....:)

Edited by 2ndTimeAround

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The Treasury, nor the GSE's do not approve HAMP applicatons it is all up to the servicer unless a GSE intervenes. It is up to the servicer who make far more money on stringing out and then foreclosing.

The class action suits against the servicers for fraud and state consumer law violations will do nothing to stop any foreclosure sale unless you can get a TRO at least in non judicial states. The cases if not tossed will be tried years from now and if won, probably small damages given.

In the few judicial states like Ohio at least you have access to the Courts which makes fighting far easier than in majority of non judicial States.

Servicers have a huge incentive to foreclose which is why they falsely deny modifications, lie and lose paperwork many times even sent in by Congressional offices. The abuse by the servicer banks is well known, reported in 4 Congressional oversight hearings and why there are so many lawsuits many class actions being filed for consumer fraud against the major banks.

Taxpayers take most of the large foreclosure sale losses or private investors. The bank servicers make lots of fees to keep on trials for as long as they can, then deny and foreclose. All this is widely reported but since HAMP was required under TARP, there is no law to enforce.

The bank servicers are making billions after being bailed out on the backs of homeowners that should qualify for modifications and most (at least 50%) or foreclosure losses go to the taxpayers via the GSE’s

There is no HAMP law it was required as part of TARP for banks to get funding. They had to sign participation agreements. Since there is no provision related to cancelation it is unclear if the banks that paid back the TARP funding are still "suppose" to follow their contracts. But there is no practical way to enforce without a law from Congress.

Obama/Admin/Treasury did about all they can even sending in "swat teams" to banks in 2010. They know the servicers are falsely denying but realize they have no real power to to anything practical about it. They can take back previous incentives for the few mods they do but that would be counter productive.

In house is better for the banks but bad for home owner since payments usually much higher than under HAMP.

The re default rate with inhouse is about twice that of HAMP mods per the latest data.

Edited by davephx

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Hi fellows....

Many of us don’t understand the foreclosure meaning. Foreclosure is a procedure that takes place when the borrower is not able to pay the loan on time. Due to this reason the lender would declare the borrower as default. If the borrower is not able to pay the loan on time then the lender would try to sell the property and recover the loss that was made by the lender. Foreclosure would have an effect on the credit of the borrower. The credit of the borrower would decreases.i hope you would have known the meaning of foreclosure by now.

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If your HAMP application is denied, the lender can continue the foreclosure process. But you can re-apply, if not for HAMP, for an alternative or traditional loan modification based on your lender's in-house guidelines.

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Personal Bankruptcy

Edited by Loverde

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