Our friend Denise Richardson of givemebackmycredit.com has posted an article what’s really behind the cause of the continuing mortgage and foreclosure crisis. It seems that one of the major underlying problems is that there’s no motivation for the banks, credit bureaus, corporations, or debt collection agencies to tell the truth. When the facts and the law aren’t on their side, they simply bend the facts and situation to their advantage and end up hurting you, the consumer.
Many people feel that’s exactly the scenario playing out across this country in courtrooms and on Capitol Hill. With continued reports of unfair and wrongful foreclosures and use of fabricated title documents cropping up in courtrooms across the country, it adds up to trouble. A whole lot mistruths, twisted facts and personal attacks designed to cover the truth -and someone else’s butts.
In fact, here’s a great example of how they do just that:
“Legal Tips for Servicers” a guide that essentially teaches mortgage services how to side-step liability. This can be considered as a little “cheat sheet” in what one can easily view as a handbook designed to show how servicers can legally get out of owning up to one’s own mess. Nice. Too bad consumers didn’t have the same ready made manual.
Consumers are definitely playing a losing game. Recent financial reforms have succeeded in toning down the worst of the predatory lending, wrongful foreclosures, most people believe it hasn’t gone far enough to protect consumers.
One example; Fannie Mae and Freddie Mac and the auto financing industry all got big get out of jail free passes. And, we now have a huge 2,500-page bill set to be law, without full understanding as of yet, what these reforms will mean for the consumer. One thing is certain out of this: there will now be a much needed consumer financial protection agency -an agency designated to act as the consumer’s watchdog.
Richardson brings up a specific case about how the Bank of America lied to a couple about a loan modification. Lynne Lucas and her partner, Patrick, approached BoA about a loan modification after they saw a decline in their incomes after he was diagnosed with lung cancer and given a slim chance of survival. They were approved for a modification in January of this year, and discovered that their interest rate was lowered from 6.5% to 4.75%…which sounded great until they read the terms and BoA had actually increased their monthly payment by $570 a month.
Lynne and Patrick tried to negotiate the modification, which was denied in March with BoA claiming “investor denied.” The very next day, with no warning, the property was sold as a foreclosure…an illegal foreclosure at that.
There are two problems with this; BAC Home Loan Servicing (Bank of America’s servicing arm) owns the note.
Bank of America’s attorneys sold the property at Sheriff’s Sale less than 24 hours after being denied a loan modification.
However, Bank of America’s servicing company BAC Loan Servicing didn’t sell the property.
Fannie Mae sold it and they sold it to themselves for the filing fee of $35.00.
According to representatives in Barbara DeSoer’s office and the Office of the Benzie County Register of Deeds, BAC Home Loan Servicing owns this note not Fannie Mae. Fannie Mae also has no record of owning this note.
This is yet another example of how creditors are tweaking the system to their advantage with little regard for the homeowners it hurts!
If you have further questions or concerns, feel free to contact us through our website or by calling 205-879-2447. You may also obtain a copy of our free book on stopping wrongful foreclosures and the problems of hidden fees by emailing us.
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