Loan Modification Quiz Question 3

Q. A borrower has a loan that was originated by Bank of America and guaranteed by FHA and is now over 4 years in arrears. If the borrower is over 30% in arrears of unpaid principal balance, does the borrower have a chance for modification? For FHA HAMP, the maximum partial claim allowed is 30% of the unpaid principal balance. …

Loan Modification Quiz Question 2

Q. A borrower has a formerly World Savings Bank, option ARM loan and the current servicer is Wells Fargo. What is the most common type of modification granted for this type of loan? A. Most of these loans are being serviced by ASC/Wells Fargo. The modification program that these loans are considered for is MAP. We will discussing this scenario …

Loan Modification Quiz Question 1

Q. A borrower has a debt-to-income ratio (DTI) of 80% and a current housing ratio of 60% (ratio of housing payment to income). If the borrower is eligible for a Chapter 7 bankruptcy, would filing the Chapter 7 help in getting a modification? A. If you had been tried this before the 2008 crisis, your answer would have been unquestionably …

Top-Tier California Lawyers Take on Mortgage Servicers

Earlier this week, Mandelman Matters posted an interview with Mark Zanides and Kenneth Gertz, announcing the pair’s plans to sue mortgage servicers on behalf of California homeowners they say were defrauded. These two attorneys, both of whom attended Operation Strike Back in Vegas earlier this year, have impressive backgrounds, and they’ve spent months researching the claims they plan to raise against …

Industry Insiders Speak Out About Mortgage Modifications

Yesterday, Yves at Naked Capitalism shared this revealing clip from The Dylan Ratigan Show in which a former employee at Litton and and a former consultant to Fannie Mae share their perceptions of the modification “efforts” to date.  Unsurprisingly, the former mortgage servicer indicates that many borrowers who should have been eligible for modifications were denied simply because it was more …

Pro Publica Looks Beyond Claims of Modification Success

In Loan Modification Program Left Homeowners’ Fate in Hands of Dysfunctional Industry, Pro Publica looks at the realities surrounding the governmental effort to reduce foreclosures by encouraging loan modifications, and points out one obvious but often ignored flaw in the plan:  current programs leave both decision-making and execution in the hands of the very people who broke the system in the …

Servicer-Created Defaults

Naked Capitalism presents a clear and concise overview of how mortgage servicers and their bogus fees drive homeowners into default and foreclosure in How Servicer Junk Fees Push Borrowers into Foreclosure. Yves Smith explains why servicer abuse problems don’t get the same level of attention as less-sympathetic defenses based on missing paper and bad transfers: This problem is very much underdiagnosed …

Homeowners Trying To Get Loan Mods: Where They Stand Now

by Karen Weise, ProPublica, Jan. 6, 2011, ProPublica has been covering the government’s foreclosure relief effort [1] since the Obama administration launched the program in the spring of 2009. This week, ProPublica is checking back with some of the homeowners we’ve profiled over the past year. Some homeowners received modifications that prevented foreclosure, some are still in limbo and others …