Upside Down Mortgage

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Mortgage Loan Modification Bank Of America

Question: mortgage refi question?

Hi,

My husband and I owe 179,000 on our home, our home estimated value is 169,000....our payment is 1,4039.00 per month which due to me having to go part time at work has made it extremely tough every month to make payment. We are current on our payments. We applied for modification loan, loan company received documents on 23aug and then the called me again on the 20sep needing more info which I gave. They said a package would be coming via fed x, and its been over a week and I still haven't received anything. My broker told me about the new home affordable refi at 125% which would be good for us since we are upside down in our home.....I called our current lender and bank of america and they said it hasn't launched yet. What should we do, wait and wait for modification loan or try for this 125% refi? What are some recommended mortgage companies, are there any that are offering this program?

Answer: figure them to cut your payment to 31% of your net income.
wait for it to review it...

Oh, and sometimes they want you to be late..stupid part if you ask me.

over a week,did you change addresses? did they send to an old address from your initial loan app?

...They sometimes f' up with the zip codes due to automated computers spitting them out.. Mine did.,it kind of makes you feel secure with the whole housing industry and recovery

Mortgage Loan Modification Helping Few Borrowers

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Mortgage Modification Bank Of America

Question: Recourse against Bank of America?

I have been working with Bank of America since the beginning of June regarding a mortgage modification. Last month one of the representative told me that I could make a reduced monthly payment based on the modifcation payment if I called that payment in at the due date. I did this. Now I log onto my account and it tells me I am past due. I called BofA and now am being told that the money is in unapplied funds just sitting there and I need to pay the remaining balance or it will show up as a late payment on my credit report!! The rep I talked to today sees notes of the previous conversation saying I could pay the reduced amount...but "that is not correct". "Sorry there is nothing I can do." I don't have the money to pay by that date as I used it for other bills. It will now cause an endless cyle of late pays on my credit report if I can't come up with the extra money. What recourse do I have against Bank of America for their error?

Answer: When I don't get the answer I want from a B of A representative, I ask to speak to their supervisor. If I don't get the response I desire from them, I write a letter.

B of A will stick it to you every chance they get so you'll have to be persistent.

Mortgage Modification-Too many options not enough solutions

Bank Of America Predatory Lending Settlement

Back when the housing market was hot, lenders were qualifying borrowers for loans who were probably never able to qualify for a home loan before.  These borrowers are now upside down on the mortgages because the rates adjusted and they can no longer afford their homes, in turn most are going into foreclosure, or being forced to sell through a short sale. 

In turn, homeowners and the government are taking more and more of these institutions to court, stating unfair and predatory practices. While most of these suits are still finding their way through the legal system, most banks have already settled for millions of dollars. 

Wells Fargo, Countrywide Financial and Citigroup are just a few among the rest of the defendants.  Borrowers who are suffering with such issues are turning to the legal system to save their homes.  Many professionals say they have not seen so many cases in over 23 years. 

Some Homeowners are seeking the courts' help individually, while others are serving as part of class action lawsuits. With foreclosures continuing to rise, borrowers are looking to force banks to modify unaffordable loans or to stop them from foreclosing on homes. Often, they also seek money for loss and damages. 

Banks have faced lending lawsuits and have paid millions of dollars in settlements. But the recent housing boom was fueled by questionable loans that many borrowers had no hope of repaying, because realistically they would not be able to afford it in the long run.

During the housing boom the mortgage industry went after the middle-class borrowers, these people are able to hire attorneys and go after the lenders.  Borrowers in a more sticky financial situation, are turning to attorneys who take payment when the case is won.  In most cases when an attorney is hired to help against the foreclosure of their home, they win the case. 

There are also a ton of class action suits on behalf of thousands of homeowners. A lot of the class action cases are because borrowers were originated payment option adjustable-rate mortgages. This loan allows you borrowers to make very low monthly payments, with the unpaid interest added to the principal balance of your loan. Most borrowers have ended up defaulting on their payments because of this.  The purpose of the lawsuits are to get the lenders to restructure the loan to make it more affordable for the borrower.  This lawsuit will also seek damages for those borrowers who have already lost their homes or paid off their loans.

State attorneys general are also filing suits against the industry's key players, stating deceptive business practices. The California-based lender agrees to do some more loan modifications and not to foreclose upon up to 2,200 loans without notifying the attorney general's office and seeking court approval in certain circumstances.   Attorney Generals continue to hold the lender liable for this nightmare they have caused so many people. 

Bank of America agreed to spend $8.4 billion to lower the interest rates or loan balances of nearly 400,000 Countrywide customers with subprime loans or payment option ARMs.  The number one lender in the Country is now responsible for giving out loans that the borrowers could not afford 

Although there has been in increase in lending disputes, there aren't as many lending lawsuits as expected, considering the how big subprime loans were during the housing boom. These suits are expensive and difficult to win.  Said cases could take anywhere from months to years to resolve.  

This lending crisis has left many people in a bind.  Seeking proper legal help is the only way to insure you get out if it in one piece. 

About the Author:

Yanni Raz is a mentor for many in the Real Estate Mortgage industry, Yanni Raz is been tutoring many homeowners in California and help some also to save their homes. http://www.homesinsale.com

Source - Mortgage Lenders Being Sued

AMERICA IS BUSH FINISHED IF MCCAIN WINS PRESIDENCY!!! YIKES