12-23-2010, 09:25 AM
Aloha Kathy H,
We did EVERYTHING we could to get help from BofA, EVERYTHING. Bottom line is we now have $90,000 plus invested in our 30 year 6% mortgage. BofA wants to keep that money and our house. Thank G/D that we have been able to keep afloat and stay current on our mortgage and other bills...But many others have not been that lucky. That is why we will fight tooth and nail to make sure that BofA and other banks are forced to do the right thing when a GOOD & RESPONSIBLE customer needs help.
Thank you Kathy H for your thoughts, it is nice to see strong opinions and discussion, not just opinionated statements.
Merry Christmas
We did EVERYTHING we could to get help from BofA, EVERYTHING. Bottom line is we now have $90,000 plus invested in our 30 year 6% mortgage. BofA wants to keep that money and our house. Thank G/D that we have been able to keep afloat and stay current on our mortgage and other bills...But many others have not been that lucky. That is why we will fight tooth and nail to make sure that BofA and other banks are forced to do the right thing when a GOOD & RESPONSIBLE customer needs help.
Thank you Kathy H for your thoughts, it is nice to see strong opinions and discussion, not just opinionated statements.
Merry Christmas
quote:
Originally posted by KathyH
wecelli,
I highly encourage you to check out the forums and topics I linked. There are people there who have successfully navigated the loan modification process, even with BoA. BoA and Wells Fargo are probably the worst lying bastards of the bunch in terms of processing loan modifications.
Bob Orts, deceptive is when a lender tells a person who is on track to foreclosure due to a loss of income, that they are working on the application, when they are not. Deception is telling people who have submitted documents that were submitted that the fax didn't arrive, or the mail (even certified) didn't arrive. Deception is forwarding a loan to the foreclosure process without notifying the homeowner -- when the Fannie Mae/Fannie Mac guidelines clearly state that no foreclosure steps are to be taken while the application is under review.
Certain banks took the bailout funds and agreed to participate in the Obama program, and are not acting in good faith.
All this is not really related to experiences with underwriting new mortgages, or even refi's -- different branches of the organization.
However, it is not true that there's nothing to the loan modification program. People do get them, but most have to apply themselves to figuring out a hellish system. The ugly truth is that homeowners with equity are told the bank wants to foreclose. If the home was purchased with little or no down, the bank doesn't generally want to foreclose, because the value isn't there.
Short sale, great, the homeowner loses the home and all equity, and then gets a whopping tax bill from the IRS for having debt forgiven.
This is why I get annoyed with people who take the moral holier than thou view of the modification and foreclosure issue. Virtue and thrift are NOT rewarded. Get sick or laid off, and you're out on the street no matter if you've paid for years and put a conventional down when you bought.
The mortgage bundling to investors brought down the real estate market in a very direct way, the rating of subprime mortgages as AAA ... when failing, caused credit to tighten. Tight credit meant loans choked. Loans choking meant no buyers. No buyers meant excess inventory. Surplus inventory led to prices dropping in freefall. Freefall prices meant that people who needed to sell due to death in family, illness, relocation, change in circumstances, divorce, and on and on, could no longer sell and get their equity out.
People can't afford to sell and lose it all, and can't afford to stay ... more and more foreclosures, recession, towns with boarded up houses and blight ...
Going back to the beginning, we had Greenspan using the housing bubble to ward off a recession.
Banks do not want bad loans if they have to keep those loans and share in the loss if they fail. With the new scam of bundling loans bound to fail along with good loans, the groups of loans were sold to investors who paid for solid value and got taken. The banks who originated collected the points and fees, and the servicers stood to make money on foreclosures. They get paid for all that.
Yes, the American people were taken for a big ride, and everyone loses who ever thought they had equity in property.