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Mod Program Falling Short of Govt’s Vague Goals

The government’s mortgage modification is on pace to fall short of even the administration’s vague goals, while details on why homeowners are being disqualified from the program raise questions.

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A bank-owned sign in front of a foreclosed home on Sept. 16, 2010, in Miami, Fla. (Joe Raedle/Getty Images)

The number of homeowners dropped from the government's mortgage modification program continued to mount last month, according to new numbers released yesterday. The results also demonstrate the increasingly limited reach of the program.

Take a look at our graphical rundown of the numbers, broken down by each bank or mortgage servicer participating in the program.

The administration has never clearly stated exactly how many modifications it aimed to enable through the program. Its only goal has been for mortgage servicers to make three to four million trial modification offers to homeowners by the end of 2012, a target the TARP's inspector general derided as "essentially meaningless" because only a portion of those offers result in permanent modifications.

But the Treasury Department, which runs the program, is unlikely to meet even that modest goal, as things start to slow. If the pace of trial offers made in the last three months continues (approximately 25,000 each month), the program would fall short of three million offers by several hundred thousand.

Meanwhile, less than half of the trials granted have resulted in a permanent modification. So far, about 1.3 million homeowners have begun a trial, a temporary reduction in payments that's supposed to last three or four months. For most, it has lasted longer than that.

About 1.1 million have received a final answer from their servicer. For nearly 60 percent of them, the answer was that they did not qualify for the program. Only 468,000 homeowners have received a modification through the program.

Below is a chart showing the most common reasons that homeowners have been disqualified from the program by their servicer, according to data the Treasury Department turned over to the Congressional Oversight Panel last month. It's based on the servicers' reports to Treasury.

Source: Congressional Oversight Panel, Treasury Department

The data raise "important questions" about why so many homeowners have been disqualified, the congressional panel writes. The most common reason was "request incomplete," which means the servicer reported that the homeowner did not submit all the necessary documents.

As we've reported here numerous times, the servicers often lose documents homeowners send in. Of the 373 homeowners who responded to a questionnaire we did, 232 said the servicer had lost their documents. Nearly as many, 214, said the servicer had accused them of failing to supply documents for which they'd never asked.

The panel also noted that in about 12 percent of cases, the servicer didn't even offer a reason for a denial when reporting it to the Treasury. (See the line "Denial Code Missing" in the graphic above.)

Treasury officials have repeatedly stressed that many homeowners who've been disqualified for modifications through the program have ultimately received other modifications from their servicer. That's been the case for about 45 percent of the cancelled modifications, according to Treasury. While such modifications typically do cut the homeowner's monthly payments, they tend to be less generous, resulting in a greater likelihood of re-default.

excellent work, Paul. just astounding that the fed keep bragging about the “success” of this program.
Phyllis Caldwell has the temerity to call any “chance” at a mod a success, even when initially or later rejected. She blathers on about the added “success” of bankster in-house programs, which carry a much higher burden of fines, penalties, interest and legal costs to the borrower. HAMP disallows those.
Of course they shovel borrowers toward these bad-deal products. Duh. They get to ream the homeowner with a toxic mix of laden-on fees that would embarrass a capo.
I salute propubica for bravely facing down this wave of propaganda, and speaking truth in the face of self-serving dopes in the Obama admin who think sitting on a hold with a bank for hours on end is “success.” The gov. is in bed with the banks and homeowners are left out in the cold, banging on the door as a moving van pulls up.
Keep on the story, please, Paul.

This entire modification program has been nothing but a paper shuffling, make work, bank enriching program devised by a treasury department headed by a tax cheat who works for a socialist pretender president.

Having been through the program, it’s obvious to me that the banks are equally as dishonest as the government. The banks lie, the administration lies, the execs draw huge bonuses, and the homeowners suffer along with the taxpayers.

Great system! Must have been invented by a moron.

Great story Paul.
If I may ad our President and this Administration is really clueles of the foreclosure problems out there. Yesterday
our president in Falls Church Virginia on national television annouced that:

“hundreds of thousands of people lost their homes”

If you look this you tube video in the 4th minute when the President is talking about the recession and how many millions lost there job and then he mention the homeowners. I saw it on Cnn and called right away but they hung up on me. There is the honest media.

We all know the actual number is over 2.3 million.
It is a big different but I guess our president is either lying or just clueless. I called many media outlet because it should be mentioned how many people are lost their homes but I guess our government want to keep the real numbers quiet.
You can see yourself the video:

http://www.youtube.com/watch?v=AVnKGYtD1M8

Why don’t you ever call out this lie?
The servicers and banks keep using this lie the entire time. It is patently untrue.
It may be that they don’t ask for things and then in the end claim they do not have it.

I have been in a ‘Trial’ mod since June 2009. My payment is 3950 per month. In spite of being provided pay stubs that documented my exact income, Saxon Mortgage inflated my income by 1600 a month to justify some other payment amount. This was done in a vacuum in spite of numerous request to explain. it was only after Saxon transferred the loan to another servicer and I submitted a complaint to the FED did I get the answer in a response to the Fed.

December 29th, 2009, I was told, IN WRITING, that I had been approved by the ‘investor’ and my perm modification was approved. At that time I was promised ALL Final paper work would be sent to me within 30 days.  Every month was some sort of story about delays and they had approved so many they were backlogged.  On April 14, Saxon notified me that they had transferred my loan servicing to Ocwen.  It was only after Saxon transferred the loan, I submitted a complaint to the FED and in Saxon’s response to the Fed, I did get some information about Saxon’s misinformation.  In that statement, Saxon also stated that I had failed to provide all documentation which was patently dishonest. It seem that the Fed as well as ProPublica just accept what they state as fact without questioning them. This in spite of repeated stories from borrowers refuting these facts.

At the time Saxon PROMISED that my loan modification was approved and would be completed by Ocwen. To date, I have made 17 payments of 3950, under a ‘3 month trial modification’ equal to almost 70 K in payments none of which has been properly applied to the loan. I have repeatedly asked for an accounting of the money I have paid on my loan modification. Now, six months after taking over the servicing from Saxon, after many stories and lies, Ocwen denied my loan modification stated I failed the NPV test. In spite of being provided DOCUMENTED VERIFICATION of my income which is right around 11K a month, Ocwen denied my mod based upon a gross income of 6041.00 per month.  Since the servicers do not share information enabling the borrower to verify the accuracy of the information we are at their mercy. In the week since the denial, they have refused to explain their error.
My ‘investor’ is Deutsche Bank. It seems that Duetsche bank, had the ‘servicers’ issue ‘blanket foreclosure notices to all delequent loans on September 9th. September 9th is the anniversary of the 1923 formation of the first SS brigade. This is more than coincidence. Why is Deutsche Bank, who funded Auswitz and was the leading bank that supported Hitler’s Regime and funded almost 100% of Germany’‘s WW II activities

Please stop supporting the lies that these banks and servicers put forth since it is clear that the banks use lies to cover their tracks and their lack of good faith.

Thanks paul. I find it amazing that anyone has received a modification but I’m happy to see that some are getting relief. I find it interesting that the reason we keep getting denied is not on the list. Our last letter stated that we failed to meet the requirements of the hardship test and that we were no more than 60 days behind in our payments. Now that we are 90 days behind they are telling us that we shouldn’t have fallen behind - that we would still be elligible for the program. Too late - were broke:(

Give the people their homes back by forgiving all the Freddy Mac and Fannie Mae loans.  Billions of dollars will flow into our banks-stolen economy. Forget the banksters, they received their own bailout. Now’s the time for the people to get ours.
The Modification Program is a farce.  The banksters are the perpetrators. Let’s leave them in the dust.

I wonder if anybody watched the Youtube video.

I am surprised that I don’t see the outrage of people who are loosing their homes about our President being so inacurate about the numbers.

If our President is so missinformed what do we expect from other politicians. Obama was only off with a couple of millions of homes.

I guess a million here and a million there doesn’t really matter when we give banks billions.

Gabor nice call out on President’s speech. Steve wrote an excellent article that is published in housingwire.com It is great reading,only wish our elected officials were as well informed!

Jeff- We were also denied first time around because"we were not 60 days behind in our payments” very curious isn’t it!  We were told to remain current no matter what, so we sold everything and went into Chapter 7 bankrupcty only to be told so sorry not 60 days behind. Now like you we are behind in payments because we have nothing left to sell or any savings to dig into. We started this process in 6/09 and we are still attempting to get a modification.

To Timothy Geithner who stated Tarp and Hamp was not created to prevent foreclosures.

Please Read


Written Testimony of Herbert M. Allison, Jr., Assistant Secretary for Financial Stability, before the United States House of Representatives Committee on Appropriations Subcommittee on Financial Services and General Government

Purpose of TARP

TARP is part of a broad effort by the Administration to promote financial stability and to stimulate the economy.  The purpose of TARP was to restore liquidity and stability to the financial system, and the beneficiaries of TARP are the American people.  Financial stability is a necessary precondition for economic recovery and growth.  Investment of taxpayer funds in financial institutions was necessary in order for this stabilization to occur.  These investments directly and indirectly continue to benefit taxpayers by re-establishing the willingness of banks to lend to consumers, by keeping interest rates low, and by helping homeowners stay in their homes. The TARP programs were created in order to benefit the American taxpayer.

Great story Paul! I can’t believe that someone can get the Bank to do an honest move that would help someone and not hurt them in the long run! Maybe I have just been hurt by them for so long and truly believe they are not here to help people that need the help!

Even though the program is pretty much a joke, I’m glad that it is actually helping a few people.

Thanks for reporting this Paul.

The most common reason of “request incomplete” is not being challenged. The banksters are well aware that this is an area where there is no oversight.  What happened to the SWAT teams the government was sending into branches of the banks to see what was going on behind the scenes?  That was simply a tactic to fool American homeowners into thinking the government cared. 

Servicers/banksters are not losing documents.  The fax your are sending your paperwork to is probably a shredder.

The “denial code missing” should not be an option.  If no code is entered, the computer system used should now allow the bank to enter any information about a mod.  Another small loophole. But big enough for the bank to drive their armored truck through.

The bigger picture is reported via the disqualification.  Banks make more money offering you the in-house (aka refinance) option because it cuts the government out and the banks are in complete control.  Some of the loan products they are using are interest only loans, they get to tack on junk fees, some fees totaling 10, 20, 30 thousand extra dollars to your loan. And at the rate of 45% of homeowners asking for help, the bank has helped almost one-half with their own loan programs.  Disgusting.

The government aka Wall Street abandoning Americans is mind boggling.  Are your local politicians, state senators, congressmen and women helping?  No.  They’re not.  You have a chance to voice your opinion letting the politicians know what you think about their representation of constituents in November.

How about you serve them a notice of foreclosure and evict them from office?

Please join us at beingmiddleclass dot org where we share information and ideas on how to strengthen and grow the middle class.

We the people are exhausted. Exhausted to the point we can’t even think straight any more because for the past two years we’ve been trying, trying, trying to get our home loans modified like we were lead to believe by our government was a possibility & said government set up agencies and hotlines and agreements with banks, etc. etc. ad nauseum but it was all a smokescreen lie lie lie lie lie lie. Nothing has changed except us.

I was impressionable and I voted for him but Obama has proven to either be worthless or a puppet. We don’t trust the government now. No one man has been as powerless a president as Obama has proven to be. Never in modern history has the banking industry and corporations blatantly disregarded federal laws with absolutely no consequences and their disinterest in compliance not only not addressed but covered up. Never.

So the republicans will be voted back into office to finish us off as we are not stupid enough to believe they will provide anything other than outright corruption as they continue the monumental fleece of 2001-10. There is no hope or change for most Americans. How could we have believed anything would change is the question we should ask and then fall into step with our poverty and joblessness and homelessness.

I would rather live in a 3rd world country as there are no illusions or lies or hope.

Tutt - I agree.  I am exhausted.  Everyone I know who is going through the mod nightmare is exhausted.

I believed Obama too and although I know his powers are limited by Congress, I had high hopes that he would put a stop to foreclosures, or at least help stop the illegal foreclosures.  His Making Home Unaffordable program is a complete failure.  At least for homeowners that is.  Since the program was designed to help the banks, then I guess he would consider it a success.  The ones benefitting from HAMP are the banks and the bank-controlled government.

Republicans probably will be voted into office and if we think things are bad now, it will get worse.

Hang around the US for a while.  We’re already looking like a third world country.

Lies Lies and more lies.

“Foreclosure Prevention Part II: Are Loan Servicers Honoring Their Commitments to Help Preserve Homeownership?”

If you watch this video you will see Congress is trying .
But the banksters are lying to congress.
I believe lying to congress by anybody is a crime.

It is worth to watch. Just paste it into your browser then click on watch webcast.


http://oversight.house.gov/index.php?option=com_content&task=view&id=5001&Itemid=2

Sorry I haven’t been around lately!  The first month of school is REALLY busy, so I haven’t even had time to check my email!!  LOL

In any case, I have a meeting with Congressman McGovern (MA) on Friday morning.  Apparently, his office “has had more complaints against Chase regarding loan modifications” and, according to his assistant, have been at the forefront of “making mistakes” that are unethical, illegal and were avoidable.  SO, I’ll keep you posted, Lori!  We’re going to thave a 3 way phone conference with Mr. Dimon & Mr. Lowman via Congressman McGovern.  This should be pretty interesting, huh???

Keep your fingers crossed!!!  :)

Thought I would share this article with you.

Corporate Mortgage Scams Threaten to Crash an Already Shaky Housing Market

A foreclosure pandemic riddled by corruption may stall America’s recovery.
September 29, 2010 | 
(Exerpts)

The Great Recession may have ended in June 2009, according to the National Bureau of Economic Research, but U.S. Treasury Secretary Timothy Geithner isn’t buying it. And neither are recently revealed foreclosure and eviction scams at GMAC Mortgage, JP Morgan Chase, Bank of America, Wells Fargo and other too-big-to-fail financial firms swimming in both American taxpayer cash and the Federal Reserve Bank’s divine intervention.

That’s a colossal understatement; our creaking housing market is being capsized by a foreclosure pandemic riddled by corruption. Last week, predictable news emerged that Jeffrey Stephan, a GMAC Mortgage team leader for affidavit execution, signed off on nearly 10,000 foreclosures each month without even bothering to read them, although he is legally tasked with doing so.

This securitized madness is exactly how owners were saddled with predatory adjustable-rate mortgages to begin with. The plan was never to keep them in their hastily constructed properties, built during a post-9/11 housing boom that more or less functioned as a casino for hedge funds and other deregulated power players. The plan was to saddle homeowners with artificially inflated loans that would exist long after their assets’ true value was reached, in the best case. Or, in the worst case, long after they were kicked out of their homes, or could have their homes illegally repossessed thanks to obscure legalese and naked grift.

As of August, HAMP helped about 450,000 of a promised 3-4 million homeowners modify their loans, while foreclosures hit a monthly record of 95,000 homes, the highest monthly total ever recorded by housing industry analysts RealtyTrac. Those failures will only increase repossessions and evictions, which will spark off a persistent unemployment crisis featuring 15 million out-of-work Americans.
Meanwhile, more than half of the $400 billion government has recently spent to promote home ownership has benefited not the people-at-large but the wealthiest five percent of taxpayers, according to a new study funded by the nonprofit Annie E. Casey Foundation and the Corporation for Enterprise Development (CFED). Now we can add shocking—shocking!—revelations of corporate boilers courtesy of GMAC, the nation’s fourth-largest lender, getting caught illegally mass-producing foreclosures using robo-signing slaves. Great.

Like ourselves, our houses are increasingly underwater, submerged by disingenuous banks looking to callously capitalize on properties and securities they may not even own, all while willingly committing fraud on the nation.

“I’m pushing to establish an Office of the Homeowner Advocate at the Department of Treasury that would assist borrowers in the HAMP program who believe their mortgage servicer is breaking the rules,” Senator Al Franken told The Huffington Post. “Right now, these families have nowhere to turn when wrongly denied from the assistance program or when they encounter difficulties in navigating an incredibly complicated system of avoiding foreclosure.”

More taxpayer revolt against the banks, as well as a double-dip recession, are practically guaranteed unless the government gets serious about protecting its people, not just corporations, from systemic financial failure.

“Popular anger against taxpayer dollars going to the largest banks, especially when the economy continues to struggle, remains high,” explained the Congressional Oversight Panel—whose chairwoman Elizabeth Warren is expected to be named by the Obama administration to head a new consumer watchdog—explained in its September report. “The program’s unpopularity may mean that unless it can be convincingly demonstrated that the TARP was effective, the government will not authorize similar policy responses in the future. Thus, the greatest consequence of the TARP may be that the government has lost some of its ability to respond to financial crises in the future.”

Note: The 10,000 foreclosures probably put GMAC over the hump of $2.5 Billion in Losses that allowed them access to the Loss Sharing funds from the FDIC via the FED’s $1.4 Trillion tax payer bank bailout money, so banks make Profit on Foreclosures and Shortsales. Wells Fargo processed an estimated 250,000 foreclosures the first six months of 2010 and reported $5.2 Billion in Profit the first six months of 2010.

http://www.alternet.org/story/148340/corporate_mortgage_scams_threaten_to_crash_an_already_shaky_housing_market?page=entire

Maureen, good luck.  I would love to be on a conference call with those people.

If you need some help compiling questions, please ask.  I would love to help you get a list together.

Gabor, sorry about your registration problems on beingmiddleclass dot org.  I will post that video for you.

I know that I might have shared this story from other sources but I found the “Original” author, an Arizona Realtor. Banks are making money with a foreclosure via Loss Sharing taxpayer money.
This person is sincere, judge for yourself the video.

Making Sense Of The Mortgage Crisis-How The FDIC Loss Share Program Is Hurting Homeowners

The video explains exactly what happened (in a “real-life” transaction) with one of my clients that I represented on a short sale in September/2009.  The numbers are the actual numbers that I used to remind OneWest of the profits they stood to make from the FDIC loss share program.  When faced with these numbers, they immediately gave up on their demand for a $75,000 promissory note from my client, and approved the short sale.  Since writing this FDIC OneWest IndyMac blog in September/2009, I know of at least a dozen other agents across the country that have used this same argument with OneWest Bank, and were successful in closing their short sale deals.
The point of this video is not to bash OneWest Bank.  What I hope and pray is that someone in Washington will see it and actually decide that “enough is enough”.

http://www.forsalephoenixhomes.com/sellers/making-sense-of-the-mortgage-crisis-how-the-fdic-loss-share-program-is-hurting-homeowners/

Lori Thank You.

Maureen Good Luck.

You may let them know that the telephone number Mr.  Lowman (Chase CEO) gave to congress on Jun 24th hearing ” so people can call (800) 335-0123 is a number for Chase credit cards. I called this number and when I asked for Mr. David Lowman the guy didn’t even know who is Mr. Lowman.

If anybody watch the video I posted earlier they can hear when Rep. Kucinic ask for the tel number and Mr. Lowman giving it to congress. Under a sworren testimony. Is it a lie or just a mistake. You be the judge.

It just seems funny to me that the mainstream media is not saying a word about this whole TARP debacle. Just wondering if maybe the American people were lied to by the government and told they would be helped and then everyone in the media was told to shut up about all of the foreclosures and such because these people couldn’t afford these houses anyway and that maybe we would all just all go away quietly. Not a chance. Sounds like a conspiracy by the government to take everything they can away from the people,wipe out the middle class in a subtle,sneaky kind of way.Maybe we all need to rally together and organize a protest march in our own major cities to try and get the attention of the media or the Obama Administration. The media is definitely not listening to the people. I have been e-mailing all major news sources and have only received vague, automated e-mail replies from a few.

Linda If you watch the video I posted earlier (oversight Committee) then you can see banksters lying.

I called all the major media. I am really upset especially with Anderson Cooper (keeping them honest ) because he is a *%$#*%$* and would not even touch this story. Maybe he is just a puppet just like everybody else who has a voice in this country.

I am mad as hell and I can’t take it anymore.

The media is controlled by the left that’s why and Lori, Obamas powers were NOT limited by congress the first year and a half.  Too bad so many americans are so easily swayed by a slick orator.  Now terrorists are planning attacks in Europe and guess what folks…we are next.  Home loan mods may be the least of your worries.

My amazing Chase saga, with new updates, as of Sept 30th 2010 (PART 1):
1. I was laid off in May 2009, right after my 55th birthday, ending a 32 year career at Macy’s.
 
2. I paid my mortgage for as long as I could, while applying for a Loan Modification with CHASE.
 
3. CHASE bank moved us to foreclosure rather than process our paperwork within the stated 30 day period.
 
4. CHASE has made it almost impossible to complete the process.  They have employed the following tactics:

They made it EXTREMELY difficult to communicate with them They asked over and over, and OVER for the same paperwork, including those that don’t require updates.

They told me that we don’t qualify for the Federal Loan Modification program because ours is a 2-familiy house (which of course, is a lie!)

They sent a package marked “FORECLOSURE” all over the outside, to me, at my former place of employment, Macy’s, even though this was never a contact address on file with CHASE Bank, and I hadn’t worked there for 10 months!

After I complained in writing, about the FORECLOSURE package sent to Macys, CHASE sent yet ANOTHER package, marked “personal and confidential” in an OPEN, UNSEALED, envelope!

They sent us a written rejection from the Federal Loan Mod. program, stating that we didn’t meet the 31% income/housing cost requirement (which is a lie)

They failed to answer how they came up with that assessment when the NPV input values show that we DO meet the 31% requirement by a HUGE margin.

They failed to send a corrected rejection letter from the Federal Loan Modification program, even though they acknowledge that the stated reason for reject was incorrect.

They put us on a CHASE (not Federal) Trial Modification.

They told us that we probably didn’t qualify for the Federal program because we have TOO MUCH EQUITY in our home, but again, refused to put that in writing.

They told us that they are NOT TRYING TO KEEP US IN OUR HOME. They ARE trying to mitigate their losses, and that CHASE BANK WOULD PREFER THAT WE SELL OUR HOME and pay off our mortgage!

They told us that CHASE will most likely reject us for a permanent CHASE modification because we have TOO MUCH equity on our home.

They failed to answer our repeated, written requests for an explanation of all the items listed above.

They failed to complete our modification after 3 trial payments, as specified and as indicated on the CHASE web site. (I’m making our 5th trial payment today.)

CHASE advertises “CHASE. THE WAY FORWARD”.

One of the CHASE web sites states:
“THE WAY FORWARD”
“At JPMorgan Chase (NYSE: JPM), we do our best to manage and operate our company with a consistent set of business principles and core values. First and foremost, this means always trying to do the right thing. “

REALLY?  Their actions tell a different story!

UPDATES AS OF Aug 30th:
======================
1. CHASE sent a letter dated Aug. 18, 2010, stating that we have now been rejected from both the Federal AND CHASE loan modifications because our housing expenses are less than or equal to 31% of our gross monthly income.  THEY ARE NOT. NOT EVEN CLOSE! CHASE (Bonnie) has already acknowledged this verbally!

2. CHASE requested my DEATH CERTIFICATE!!  (YES, REALLY) CHASE sent a letter dated Aug 21, 2010 stating that they recently wrote to us to advise us that they don’t have all the required documents for our loan modification.  THIS IS FALSE.  FURTHERMORE I SPOKE TO CHASE TWICE RECENTLY , AND THEY STATED THEY HAD EVERYTHING! 

They are now asking for a “Copy of Recorded Death Certificate.”  (NO ONE HAS DIED!... although they are making me seriously consider a self-induced death!). 

WOW CHASE, I think you’re ad’s are meant to say “CHASE - THE WAY BACKWARD”  not “CHASE - THE WAY FORWARD”

This really is quite unbelievable! 
Propublica; SOMEONE!  PLEASE HELP!
PLEASE feature my story.  Help me embarrass CHASE into doing the right thing!

......hmmmm maybe I AM dead, and this is hell?

JS

(See part 2 in subsequent post)

My amazing Chase saga;  (PART 2 - New updates, as of Sept 30th 2010):

(see previous post for the beginning of this saga)

After arguing my point with the Federal HAMP Escalation team, via a third-party HUD-sponsored agency, CHASE sent a new rejection letter, stating the reason for rejection as “negative NPV result”  (ie, something I can’t dispute, since it really isn’t a reason at all)

Since Chase has formally rejected our request for a permanent modification, I called to ask how I can maintain the home and avoid foreclosure (which will require use of retirement funds and/or borrowing from family). 

To my amazement they told me that one of the options is to apply for a LOAN MODIFICATION !  When I pointed out that they (CHASE) had just rejected our modification request, they explained that the rejection was from the “Imminent Default” department, and I was now dealing with the “Loss Mitigation” department.  I told them that CHASE employee’s on previous calls had repeatedly identified their department as the Loss Mitigation department. They still insisted that I was rejected by the Imminent Default department. 

We will have to submit a brand new application!  They cannot use any of the documents previously submitted.  We must start from scratch!

Incredible!

Here is a possible explanation:

According to the articles in today’s news, Chase has frozen 56,000 foreclosures:

http://www.cbsnews.com/stories/2010/09/30/politics/washingtonpost/main6913801.shtml

“J.P. Morgan Chase, one of the nation’s leading banks, announced Wednesday that it will freeze foreclosures in about half the country because of flawed paperwork, a move that Wall Street analysts said will pressure the rest of the industry to follow suit.”
 
“The bank’s decision will affect 56,000 borrowers in 23 states where allegations of forged documents and signatures and other similar problems are being used to try to overturn court-ordered evictions.”

I bet Chase has simply decided it’s better to tie us up with another set of trial payments until they can proceed with foreclosure.

WOW!

My amazing Chase saga;  (PART 2 - New updates, as of Sept 30th 2010):

(see previous post for the beginning of this saga)

After arguing my point with the Federal HAMP Escalation team, via a third-party HUD-sponsored agency, CHASE sent a new rejection letter, stating the reason for rejection as “negative NPV result”  (ie, something I can’t dispute, since it really isn’t a reason at all)

Since CHASE has formally rejected our request for a permanent modification, I called to ask how I can avoid foreclosure (which will require use of retirement funds and/or borrowing from family). 

To my amazement they told me that one of the options is to apply for a LOAN MODIFICATION ! 

When I pointed out that they (CHASE) had just rejected our modification request, they explained that the rejection was from the “Imminent Default” department, and I was now dealing with the “Loss Mitigation” department.  I told them that CHASE employee’s on previous calls had repeatedly identified their department as the Loss Mitigation department. They still insisted that I was rejected by the Imminent Default department. 

We will have to submit a brand new application! 

They cannot use any of the documents previously submitted.  We must start from scratch!

Incredible!

Here is a possible explanation:

According to the articles in today’s news, Chase has frozen 56,000 foreclosures:

http://www.cbsnews.com/stories/2010/09/30/politics/washingtonpost/main6913801.shtml

“J.P. Morgan Chase, one of the nation’s leading banks, announced Wednesday that it will freeze foreclosures in about half the country because of flawed paperwork, a move that Wall Street analysts said will pressure the rest of the industry to follow suit.”
 
“The bank’s decision will affect 56,000 borrowers in 23 states where allegations of forged documents and signatures and other similar problems are being used to try to overturn court-ordered evictions.”

I bet Chase has simply decided it’s better to tie us up with another set of trial payments until they can proceed with foreclosure.

WOW!

Independant
I have to differ with you. When the Fairness doctrine of 1933 was done away with by Ronald Reagan for the benefit of the Religious Right in 1988, the Corporations took over our media.
Limbaugh ($48 million), Hannity ($20 million) and Beck ($28 million) with political opinion (theirs and their Corporate sponsors) are on 24 hours seven days a week convincing everyone Conservative values (no government, no taxes, no regulation that led to the likes of Bernie Madoff) is the right way to go. SInce 1988, wages of the Middle Class has been stagnate, Defined Pensions disappeared, poverty has increased, Wealth has shifted to the elite and top 1% while it is nearly impossible to gain access to the media with rebuttal to Limbaugh, as he is fast on the mute switch. The consolidation of media in the same market, Newspaper, TV and Radio owned by the same Corporations like Clear Channel with over 1500 radio stations and Fox news owned by one of the Richest men in the world, Rupert Murdock. The loss of 18,000 investigative reporters, and the money that flows into Congress that has turned our Democracy into a Plutocracy
As a young man, I worked in Television and have followed the changes in media with interest, keeping in contact with those who chose broadcasting as a profession.
We, are in trouble, with the takeover of our media by Corporations, the elite, with propaganda similar to what the Nazi’s did in the 30’s in Germany.
I hope and pray, the Fairness Doctrine will be restored. It served us well for over 50 years and the elimination of it, seemed to be the start of the demise of our Democracy and shift to a Plutocracy, a government run by the wealthy few.

My amazing Chase saga;  (PART 2 - New updates, as of Sept 30th 2010):

(see previous post for the beginning of this saga)

After arguing my point with the Federal HAMP Escalation team, via a third-party HUD-sponsored agency, CHASE sent a new rejection letter, stating the reason for rejection as “negative NPV result”  (ie, something I can’t dispute, since it really isn’t a reason at all)

Since Chase has formally rejected our request for a permanent modification, I called to ask how I can maintain the home and avoid foreclosure (which will require use of retirement funds and/or borrowing from family). 
 
To my amazement they told me that one of the options is to apply for a LOAN MODIFICATION !  When I pointed out that they (CHASE) had just rejected our modification request, they explained that the rejection was from the “Imminent Default” department, and I was now dealing with the “Loss Mitigation” department.  I told them that CHASE employee’s on previous calls had repeatedly identified their department as the Loss Mitigation department. They still insisted that I was rejected by the Imminent Default department. 
 
We will have to submit a brand new application! 

They cannot use any of the documents previously submitted.  We must start from scratch!
 
Incredible!

Here is a possible explanation:

According to articles in the news today, Chase has frozen 56,000 foreclosures:

http://www.cbsnews.com/stories/2010/09/30/politics/washingtonpost/main6913801.shtml
 
“J.P. Morgan Chase, one of the nation’s leading banks, announced Wednesday that it will freeze foreclosures in about half the country because of flawed paperwork, a move that Wall Street analysts said will pressure the rest of the industry to follow suit.”
 
“The bank’s decision will affect 56,000 borrowers in 23 states where allegations of forged documents and signatures and other similar problems are being used to try to overturn court-ordered evictions.”
 
I bet Chase has simply decided it’s better to tie us up with another set of trial payments until they can proceed with foreclosure.

WOW!

JS,

I know exactly what you’re going through. I’m submitting the same paperwork at Chase that I’ve submitted since last April for the fourth time. They still haven’t rejected my application and I’m still praying they’ll accept it.

It’s been grueling. I’m at the end of my rope. I’ve cashed in my IRA, exhausted our savings, and have begged and borrowed to the hilt to save our home.

I can no longer bear listening to my wife quietly sob in bed in the middle of the night. My children don’t understand why my temper is short. I can’t sleep without waking at 3 am with chills about leaving our home or someone else living in what we’ve worked toward all our lives.

The apathetic remarks from readers telling us that we don’t deserve to live in our homes if we can’t afford them is just inane. This situation was brought upon by the lenders risking our mortgages. They’ve brought down the US economy to its knees. It’s not a natural economic cycle.

Of course, they were bailed out. And, now, they want our homes.  When will they stop?

I understand the federal government needed to infuse funds into the financial industry. But, never did anyone imagine in our wildest dreams that the receivers of the bailout funds would this to us. This recession isn’t about a corrective bubble in an economic cycle.  It’s about the financial industry gambling with our lives. And, they failed! Their deeds are criminal.

What do we do?  I haven’t got a clue.  We’re at their mercy and we’re devastated. We don’t even know who handles our files because the Chase employees don’t even know who’s handling our files. We don’t know how to help them because they don’t know what they need. The rules change everyday according to several Chase employees.

Help! The HAMP program sounded like it was trying to help us. I’m increasingly skeptical.

Every day I continue to hope that I’ll get my modification approved. But, every day draws me closer to believing this is a drawn out pipe dream.

I know I can’t help you personally. But this forum has helped me feel like I’m not alone.  It’s not much, I know, but I hope it helps you feel the same way, too.  Best of luck, really.

I invite you to join the forum at beingmiddleclass dot org—you are not alone.  Many people are going through this mortgage nightmare and welcome you.

Tom,
One of the things to remember is that the HAMP program was NOT to help people get a mortgage modification. The banks are using the HAMP doorwary to put you at more risk of losing your home. Geithner has stated that the HAMP program is to shore up the assets of the banks. The banks are motivated to get you into a shortsale or foreclosure so the banks, once they reach the $2.5 Billion loss threshold, can receive Loss Share agreement money from the FDIC via the FED.
WIth that in mind, have you considered going the refinancing was of a credit union? Another lender?
The appraisals done a year ago may have changed since the banks have satisfied the $2.5 Billion loss needed with shortsales and now have shifted the appraisal system back to where it was before the meltdown.
I would suggest you try a different route. The HAMP program has been bastardized by the banks to make money. Whatever route you take, make sure you get a loan that cannot be “Sold to the Big 9”, preferably one of your local banks.
If you can, get out of HAMP. It is a scam for the banks benefit.

WOW, some heavy remarks. If I may I would like to give everyone a quick up-date on what has happened in the past few days and what I see as some possible hope. There are a number of AG’s around the country that are starting to fight the poor execution of HAMP and modifications on a whole with legal action (GMAC) for one.  I see Chases announcement yesterday to halt foreclosure action on 56k files as a reaction to GMAC problems along with there own whistle blower.  I have been reaching out to every one the past two days, including the AG’s to add in their case the inherent conflict of interest in the process. I feel that the other servicers will start to follow suit to avoid legal action against themselves which will be very costly and time consuming. I think WF will be next. They (servicers’) will also run the risk in court to have mortgages thrown out due to improper paperwork and who actually holds the notes (Suffolk County case against One West Bank). Everyone should contact their AG and urge them to join in the class action suit against some of the servicers.

I may have mentioned that the “investors” (non -GSE loans) are just as up-set with the process as the homeowner is. They are losing billions of dollars in fee’s and value in their investment because the servicers are not doing their job. I am in contact with a law firm that is representing investors with over $500b in mortgage notes.  I suggested to him today to use the current court action against GMAC (Ally) to file suit. Although they have nothing to do with HAMP many of their servicers have signed on.

If I my on the NPV test - that came about from the FDIC recommendation.  It is part of HAMP and is actually part of the original TARP legislation (EESA-2008).  The reason the FDIC wanted that is obvious; they wanted to make sure that if the house had value (equity) and the investor can make money on foreclosure they should. The FDIC has a greater interest in the banks surviving so they do not have to bail them out or buy failing institutions. Just think of the logic: ok - lets foreclosure on properties where there is still equity. As we all know foreclosures cause depreciating values so why would we want to force down values in strong neighborhoods. Talk about a consistent strategy to stabilize Real Estate values nation wide….

For those that may have watched the Flash Presentation on AAHMP’s website - many people in the Vice Presidents office where watching it today and can not understand why this strategy is not being used.

I wanted to correct something from my last post, WF sent a statement to a reporter today saying they have confidence in their process and procedures and will not be halting foreclosure.  This was from the Mortgage Communication.

Interesting in your post you mention investors suing the banks.  Most of the loans are insured against loss.  It was my thoughts too that these investors should be suing the banks because they are not modifying loans, keeping people in their homes.

But our loans were insured against loss when they were put into the trusts/pools and sold on Wall Street.

The Pooling & Servicing Agreement (the document that has provisions about loans being removed from the pool to be modified) usually has language that prohibits the servicer from removing the loan.  If the document does not prohibit the servicer from removing the loan, it states it must be replaced with a loan.  Banks are not going to take the change of modifying a loan via removing it from a pool due to the liability.

Sorry you are going through this.

beingmiddleclass dot org

Thank you Paul and all of you at propublica for publishing the stories, and all the work you do.

You have been very instrumental with the current developments of banks halting foreclosures by your reporting the failed Making Home Unaffordable program.

I, and many homeowners I know, are truly grateful for your dedication and hard work.

I reported on an earlier post that I was denied after 18 months and being approved for a 6 month trial. I sent a letter to Chase and cc’d the treasury dept. and got a call today. When I asked the representative from Chase Executive team to follow thru w/my request as it is part of Hamp - you are entilted to a line by line review and reason of your denial I was told they were calling me to tell me and din’t have time to put it in writting - hello it is a requirement. When I questioned my income she gave me the incorrect amount then told me it didn’t matter, I needed 4x to qualify.  I was given 4 different reason’s from 4 different people as I challenged the answers and they would transfer me to someone else.  They have advised me, my income would need to increase 4x to qualify for Mod. yet they qualified me for a temp mod (w/o verifying my income which is against hamp) and my income was not 4x when I bought the home.  They advised me to to forbear they would need 50% down.  They advised my denial was due to NPV, then income, then too high delequency. More cost effective for them to foreclose. Then to turn a non-performing asset into a performing one!  I have started a class action suit for Califonia residents if anyone wants to join.
Disgusting!

FEDERAL NOTARY BILL ATTEMPTS TO GRANT FULL PARDON TO LENDER ...
Oct 6, 2010 ... HR 3808. Your kidding..really? SO it’s OK for notaries to not really .... by coincidence a new Notary Bill just pops up out of nowhere… ...

livinglies.wordpress.com/.../federal-notary-bill-attempts-to-grant-full-pardon-to-lender-notaries-witnesses/

NISSIM SASSON

Oct. 9, 2010, 8:28 p.m.

Hi I will try to explain who i believe the Banksters really are in our country:
First they went and lobby the Gov for deregulation so they can lend money, make money on lending and then make more money by selling the loan (note) to somebody else
So then they came up with a new Loan (stated assets) and a lot of people that did not qualify for a loan (because of lacks of assets) suddenly qualify, that created a demand for houses, and prices when up (Banksters kept making money selling the mortgages notes) then they came up with stated assets, stated income loans (meaning you didn’t have to show assets or income)  but they didn’t care because they were selling your mortgage to somebody else, when houses became more expensive (thanks to the banksters) and people could not afford a house anymore they came up with a new type of loan “Interest only Loans” and also 2-3 year low interest loans then the interest went up after 2-3 years (trap Loans)  and suddenly millions of people can qualify again, they created another false demand on housing and prices on houses went up more, so Banksters have to come up with something new in order to keep making more money by lending and then selling the mortgages note to somebody else, so they came out with the “Pick Up Payment loan” (4 different payments to pick) where the first payment you could pick was not even the interest of the loan and the difference will go in to the principal, so when the Banksters run out of tricks they went and they bought insurance against all those mortgages (AIG) and when the Bomb Exploded they went to the government (Bush administration) and they cry for tax payer bail out (your money) after that when Obama became President he came up with an excellent program call HAMP ( if Banks would really implemented the program) but the Banksters used all kind of tricks not to implemented or implemented the least possible, now we find out that they were doing foreclosure fraud so they can collect there mortgage insurance on top of the 299K -500K they get for the house (cash money ) This is who the Banksters are in our country, They created this mess and on top of it they making billions, while middle class people struggle to keep their homes, Is there anybody that still surprise of this new foreclosure fraud that we just find out about?. In regard to who the Banksters really are in our country, We are just touching the tip of the Iceberg
God help us and God bless America

“The reason why men enter in to society is the preservation of their property”

I like your “Banksters” nickname for bankers aka “Gangsters”. Now, last week, the “Banksters”, the same Bank exec’s who were telling Congress that the reason so many homes were in foreclosure and the failure of not modifying loans to keep people in their homes were those darn dead beat home owners, not filling out the paperwork ten times, not sending in all their asset information 20 times, not providing things they needed by deadlines and not paying the forebearance 33% interest short term 6 month loan they signed up for when they applied for HAMP (just our way of putting the home owners at risk of foreclosure). .
Now, Congress is meeting, asking the same banksters how to dismantle the VA, HUD, Fannie Mae, and Freddie MAC housing lenders for Veterans and others and turn it over to Private banks like Wells Fargo, Chase and Bank of America. They will make sure that everyone gets an apartment and fail to qualify for a mortgage and shift everyone to a high density apartment complex that in 20 years will be a ghetto and then we can move those deadbeats out into new apartments at double the cost and make tons of money, the landlord, the banks, FOR PROFIT.
Yep, like privatizing Social Security, lowering the Capital gains taxes to 10% (CEO’s get paid 90% in stock taxed at Capital Gains, same with Hedge Fund Managers, I am sure the banks will do a bank up job, making sure nothing like Sub Prime ever happens again, you know, the subprimes that failed as a result of the Law the banks paid to be passed by Congress with all that Bribe money and PAC money the banks funneled into Congress.
See this CSPAN video to see how the Banks will provide as outstanding service in the management of former VA and HUD loans like they did to get all those 3 million deadbeat families out of their homes in 2009 and 2010 for the betterment of PROFIT like Wells Fargo who reported $5.2 Billion Profit, the first two quarters of 2010 while foreclosing thousands.(they told Congress they lose money on foreclosures). Yeah Right.
Let your Congressman know that having the banks in charge of anything in the housing market will screw the American People for PROFIT and single family homes will be a thing of the past.

http://www.c-spanvideo.org/program/295725-1

just got another mod. w/ ocwen. very hard to engage. pmt went from $ 1,675 to $ 950. 40 yrs at 2%. borrower was 21 days from foreclosure sale date when we started, took 3.5 months to get trial

acmodspecialists

Oct. 16, 2010, 3:01 a.m.

Well,  All I that have to say about all these new fraudclosures that we are now hearting about that the bankster were and are committing is this:

Property rights which are the core of capitalism and the core of American freedom and now more than ever it appears to be in question, thanks to these Bankters !

Who is finally going to stand to this Banksters? who is going to do it ? who can? and who has the power to do it?
Maybe this new consumer protection agency were Elisabeth Warden will be working? I’m skeptical she can do much or that they are going to let her do much but maybe there is hope, who knows

acmodspecialists

Oct. 16, 2010, 3:34 p.m.

“Banksters” make sometimes up to 30 times over the value of a house when they “fraudclose” because they bough foreclosure insurance (AIG) so they can get pay sometimes up to 30 times over the value of the houses if they go in to “fraudclosure” . These Banksters knowing that many people were not going to be bale to pay these mortgages because the Bnaksters themselves designed these mortgages to be easy to default and knowing all of this, the “Banksters” bought these mortgage insurances (AIG)

To put it more in prospective imagine I sell you a beautiful car that looks great on the outside but i ringed it under the hood so it will crash in the future and then i go i buy insurance (30 times over) that such car will crash and when it does i collect my insurance 30 times over ! how’s that for a business practices in our country? Why should the banks lend money to business and others and wait years to collect when they can fraudclouse in your home and make millions easy and fast?
What a scamers !

Nissim Sasson

Oct. 16, 2010, 8:03 p.m.

“If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around them will deprive the people of all property until their children wake up homeless on the continent their fathers conquered. The issuing power should be taken from the banks and restored to the people, to whom it properly belongs.”  Thomas Jefferson, Letter to Treasury Secretary Albert Gallatin (1802)

Brandon Dwight cohen

Oct. 17, 2010, 3:40 p.m.

Indymac sucks was approved for a permanent mod on 6/8 after 9 months in trial Indymac still has not imputted my mod into their computer they keep saying 30 more days we had an internal error I’m afraid ! It’s been over 4 months to input numbers they refinanced me in 10 days with no paperwork no wonder people are pissed Obama what happened to change sub prime loans should all be recalled they tried to triple my payment huh that’s sad

I applied for a modification with chase on 2/10, 0n 10/10 was told my modification was denied. When I ask why the denial they told me I have sufficient income to pay the arears I am behind three months.I ask whats my income they say $14500.00 my income is actually $11,500 they also understated my expenses. I believe these banks are robbing uds with our eyes open and there nothing we could do about it. If we vote out the democrats and put in republicans its even gonna be worse, democrats wanted to allow bankrucy judges to restructure mortgages republicans blocked it. If they had allowed it the banks would be more willing to modify these mortgages because the would stand to lose more if the judges were allowed to do it. In a time when the country should unite for a common good (restoring america) they are using politics to mash it up. This president had huge potential world wide but we use politics to undermine the president and now he has no power because he lose the people.

Linda Venturella

Oct. 21, 2010, 7:52 a.m.

Just want to spread the word there have been some exciting developments in the Foreclosuregate scandal.Gocheck out 4closurefraud.org as soon as you can! Go to the right side of the page and scroll down to recent posts. 6 paragraphs down you will see a postcalled Foreclosuregate video- Bloomberg interview of Chris Whalen- “Foreclosure issue is a cancer"Now things are getting interesting. It seems that the investors want to start sueing the banksters. Looks like things could start rolling in our favor. Infowars.com is another interesting website.

Linda Venturella

Oct. 21, 2010, 8:42 a.m.

Looks like our elected officials are starting to feel the heat.  Do not stop complaining to anyone you can that is an elected official that is supposed to be working for the people. We must keep e-mailing the WH at whitehouse.gov and calling the comment line   You must call your :Senators,congressmen/congresswoman, Alderman, States AG office,  E-mail the media.  States Attorney’s office,The FBI investigates morgage fraud, call your FBI field office,E-mail a complaint to SIGTARP or call them at 877-516-2009,,E-mail the occ.treas.gov, if your mortgage holder is a bank, if your mortgage holder is a mortgatge servicer , the FTC.  at ftc.gov. Go to the Financial Stability.gov website and leave a complaint. Complain to the FDIC, the GAO,SEC, ,your state’s DFPR. . We must keep the pressure on our elected officials, it is election season. We need to be very pro-active and persistant.It is starting to have results.

This article is part of an ongoing investigation:
Foreclosure Crisis

Foreclosure Crisis: Banks and Government Fail Homeowners

Banks and the government have fallen short in helping homeowners in danger of foreclosure.

The Story So Far

Systemic failures at the country’s banks and mortgage servicers have exacerbated the most severe foreclosure crisis since the Great Depression, and government efforts to limit the damage have fallen short. ProPublica created an unrivaled database of homeowners who have faced foreclosure, opened a Facebook page to encourage homeowners to share their stories, wrote profiles of some of them, and incorporated their experiences into our reporting. We also provided a comprehensive rundown of the numbers behind the crisis.

More »

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