sje123

Foreclosure Defense No Docs

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I had dinner on Saturday night with a couple who are successfully defending their home against foreclosure based on the bank having no original docs. They said they had to have a forensic audit done which cost about 1k and it's not done but they have been at it about 2 years and seem to be doing well.

I have a relative in "soon to be foreclosed" program with BoA but they're also throwing every program at them "short sale" "refinance" (with a HUGE write off...for him it's very tempting, they are willing to forgive like 150 of his loan). The people I spoke to on Sat night told me to tell him NOT to apply for a short sale OR a refinance (even with a tantalizing huge reduction in what you owe). They said that if you do it will admit to the bank that they own the house.

But he' has a short sale agent working as well and now they are very confused as the short sale agent is bugging them for the application (for short sale and all financial docs)>

They asked me what I thought (having had two friends in foreclosure in the past but none of these programs were available then) and I had no idea what to say.

Can someone explain this to me. In English. Thank you.

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Mortgages have different terms, servicing banks, different investors, people may not or may be more or less in default of their loan. Hardships are different Understand every situation is different from your financial situation.

There is no evidence that forensic loan audits will help you get a loan modification or any other foreclosure relief, even if they’re conducted by a licensed, legitimate and trained auditor, mortgage professional or lawyer.

Some federal laws allow you to sue your lender based on errors in your loan documents. But even if you sue and win, your lender is not required to modify your loan simply to make your payments more affordable.

If you cancel your loan, you will have to return the borrowed money, which may result in you losing your home.

Your friends after two years - are sitting on a ticking time bomb, not making the payments, the payments go right back into the loan making it bigger. If it does get modified, the loan will become unfordable.

As for principle reductions, these are few and far between. Mortgages owned by Fannie Mae and Freddie Mac, FHA and VA loans are not eligible for principal reductions.

BOA has sent out letters after doing an NVP test to 200k plus people who they will consider reducing the principle. A borrower’s current monthly payment must be more than 25 percent of gross income, and the borrower must show they are unable to afford that.

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send the servicer a letter stating you want a copy of all NPV or modification review reports...by law they have to provide them to you.

but chances are if you or your friends tried going through the modification process, the servicer never ran that report. Then, depending upon your state laws are, you may have a lawsuit against them.

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