Journalism in the Public Interest

Even After Mortgage Modification, Shoddy Bank Practices Hurt Homeowners

Many homeowners have been granted a hard-fought mortgage modification only to have their mortgage company effectively pull a bait and switch.


A foreclosure sign hangs in front of a home in Richmond, Calif. Many homeowners who have been granted a loan modification to avoid foreclosure find their mortgage company effectively pulls a bait and switch on them, with some, in the worst cases, having their house ultimately foreclosed upon. (Justin Sullivan/Getty Images)

Chanel Rosario was supposed to be one of the lucky ones. After years of sending and re-sending documents, waiting on hold and attending court hearings to avoid foreclosure on her Staten Island home, she'd finally received a much-needed reduction on her mortgage. Eagerly, she and her husband signed it and mailed it in last September. "We thought it was over."

It wasn't. After months of making payments, Rosario called the bank handling her mortgage, Chase Home Finance, and found out Chase was still reporting her as delinquent, damaging her credit score and putting her home in jeopardy. Despite months of trying to get an explanation with the help of a legal-aid attorney, she still doesn't know why Chase isn't abiding by the agreement.

It's a disturbingly common occurrence, say consumer advocates: Many homeowners have been granted a hard-fought mortgage modification only to have their mortgage company effectively pull a bait and switch. The problems range from homeowners being hit with unexpected extra charges to the bank simply ignoring the signed agreement.

Handling these types of cases "seems to be our specialty these days," said Noah Zinner, an attorney with the nonprofit Housing and Economic Rights Advocates in Oakland, Calif. In addition to the prospect of losing their homes, homeowners can also see their access to other credit cut or have their interest rates on their credit cards jump as a result of being reported delinquent.

To get a sense of how common this problem is, the nonprofit Connecticut Fair Housing Center conducted an informal survey of 16 legal aid organizations and one private attorney. In nearly a quarter of the 655 cases of modifications they reviewed, the mortgage servicer didn't abide by the terms of the agreement. In the worst cases, homeowners who thought they'd successfully run the gauntlet of servicer errors and delays found themselves once again facing foreclosure. Sometimes the house was actually foreclosed on.

"It's not just one servicer screwing up," said Andrew Neuhauser, an attorney with Advocates for Basic Legal Equality of Toledo, Ohio. "It's industry-wide practice."

ProPublica investigated six cases in which banks and other mortgage servicers offered modifications they didn't abide by. In some cases, like Rosario's, the bank was accepting new lower payments but seemed to have no record of the agreement. In another, accounting mistakes resulted in a buildup of arrears and late fees. One homeowner was hit with a bill for more than twice the agreed-upon payment three months into a modification. Another received a foreclosure notice out of the blue. You can see our rundown of these cases and the servicer responses here.

In general, the servicers contacted by ProPublica either corrected the problems or said they'd work to do so. None responded to a question about what steps the company was taking to prevent these sorts of problems.

Attorneys interviewed by ProPublica said that they were usually successful in getting servicers to correct the problem but that it often took the threat of litigation. "It certainly seems that when the servicers have to, they'll fix it," said Zinner, the legal-aid lawyer from Oakland. That may work for those who can afford lawyers or find free legal help, but most homeowners don't have legal representation.

The frequent errors are par for the course for mortgage servicers, the companies that collect payments from homeowners and handle modifications and foreclosures. From widespread forgery to "robo-signing" to mistaken foreclosures, the failures have stemmed from the industry's choice to devote inadequate resources to handling troubled loans. Those issues, it turns out, can continue to affect borrowers even after a modification has been signed.

All this has happened on the watch of federal banking regulators, who only launched an investigation of the servicers' practices when they became front-page news.

Bryan Hubbard, a spokesman for the Office of the Comptroller of the Currency (OCC), the primary regulator for the country's biggest banks, said regulators were aware of the problems and are putting processes in place to address them. The banks, for instance, will soon be required to provide a "single point of contact" for each homeowner, so that when an error does occur, the homeowner will supposedly be able reach someone knowledgeable about their case.

The homeowners interviewed by ProPublica often complained of being unable to get an explanation for why their servicer wasn't following the signed contract. One had even complained to the OCC without any results. Inevitably, they found themselves passed from one servicer employee to another, none of whom seemed to understand the situation.

"What they did was put blame on me, burden on me to get this straight when they already knew what the mistake was," said Carolyn Chaney of Seattle, Wash., after battling with Bank of America.

As we've noted, advocates have criticized regulators like the OCC for their poor track record in identifying servicer abuses and are skeptical that the new regulations will substantially improve the experience for homeowners.

In April, regulators ordered 14 of the country's largest banks to make a variety of changes to their servicing operations and to review their foreclosure actions over the past couple years. Servicers violating modification agreements is "among the kinds of issues that the enforcement actions are intended to address and that the foreclosure 'look back' review will help quantify," the OCC's Hubbard said.

Under the foreclosure review, homeowners could be reimbursed for "impermissible or excessive penalties, fees, or expenses, or other financial injury suffered," he said, including somehow compensating the homeowner if there was an improper sale of the house. As we've reported, many details of the reviews remain uncertain, including how much banks will be compensating wronged homeowners.

"The biggest factor in determining an appropriate remedy is to determine the actual financial harm suffered by the homeowners as a result of an improper foreclosure action," said Hubbard.

Homeowners seeking redress often face an additional hurdle due to the servicer not returning their signed copy of the agreement, said Jeff Gentes of the Connecticut Fair Housing Center. "You're arguing uphill," he said, if you don't have conclusive proof that the servicer agreed.

Told of this problem, the OCC's Hubbard said regulators would consider requiring servicers to return the signed agreements to homeowners.

The time has come to stand up and demand justice! All responsible for the biggest financial fraud in the history of the world MUST be prosecuted or this country will never be healthy again. I want a nice, prosperous future for my kids, but with the same players who brought America to its needs that would be impossible!
Please join and send a letter to your Registrar of Deeds - they need to take a lead!
My Register of Deeds (MA) ran an audit on my mortgage and found a lot of illegalities (the things that I knew since the beginning). We should all stand up and demand justice or we’ll be slaves forever:

ALL these homeowners need to put signs on all their cars, with names of banks to draw attention to this problem>

What can someone like my husband and I do who has had our credit ruined from Chase going back to June 09, never got a modification, never recieved any bonding information from the lender on facts. Not once were we told our credit would be ruined during our trail period which lingered on for 10 months..THIS IS AN OUTRAGE..Help!!!

After a 22 month ordeal with Wells Fargo I was denied a permanent modification and had to hurry to pay back all of the “delinquent” funds that were not applied to my account even though I was never late with my temporary modification payments.  Since it went on for so long I was nearly $10,000 behind.  Luckily I was able to pay back the money owed through the sale of my primary vehicle, my motorcycle, several yard sales, and the use of my savings.  All of my assets were sold off to keep my home.

I found that I was going to be 1 month behind again last month due to a change in the way I am paid at work. Instead of being paid for completed work I am now only paid on the work that our customers pay for.  That means I had several completed jobs not picked up and thus I was not paid for them.

To remedy this situation I entered into a repayment plan that was to go into effect on the 29th of May, last Sunday.  The deal was that I had to pay over the phone on the day it was due and completely in full.  When I contacted Wells Fargo’s account payment department on Sunday they were closed.  I called back on Monday, Memorial Day, and they were closed.  I then called them first thing Tuesday morning and attempted to make the payment.  I was then informed that I was no longer on the repayment plan because I hadn’t made the payment on time.  After explaining that I had called I was told that I should have called their Collections Department, not Payment or Customer Service as they are “always open”.  This information is not available on their website nor is it an option of thier phone prompt system.

The only option at this point to reestablish a repayment deal is to do so in writing.  This will likely take several days and I was informed that I would be incurring late fees and foreclosure proceedings retroactive to the day of default even though I was only 31 hours late over a government and bank holiday weekend.

Not to sound sarcastic but I would gladly pay my next installment a few hours early to make up the difference. I just don’t understand their lack of flexibility and the importance of paying them on one specific day and in one specific format other than to intentionally trip up the homeowner even if they are willing and able to make payments based on agreed upon terms.

Now I am over 30 days behind and my most recent payment is not adequate because of the fees that were also made retroactive and then applied first to all payments.  If only Maryland were one of the states in the headlines like Nevada and Florida there would be more local help and access to representation that is useful.

I don’t think the OCC can improve the behavior of Bank of America or Citibank or any other large financial institution. When you have institutions simply ignoring agreements with their customers your dealing with a lack of ethical behavior.  Regulation will not make these companies change thier culture to reward acting in an ethical way.

Good old Chase strikes again.  They’ve done the SAME thing to me with regard to reporting payments delinquent during the forbearance period (3 months that turned into 6 months that’s now STILL in limbo - they’ve even gone so far as to send payments BACK to me).  Chase is by far the worst.  They failed to credit my forbearance payments to my loan, reported them as “partial payments” however, continue to request “updated docs” even after 2 1/2 years of this nonsense, and the list goes on.  They so-called “single point of contact” has changed 4x in the past 2 months (many more since the onset of this process).  Each time, I tell the “Relationship Manager” to contact my attorney as I’ve retained him to further handle this mess - I’ve sent it to Chase in writing, emails (directly to Dimon), vm’s, person-to-person.  Guess what one Re. Mgr. told me??? “Well, we here at Chase prefer to work directly with OUR customers because those attorneys, well they have a mighty full plate these days and are difficult to reach.”  LOL!!! 

So, my attorney sent a very to-the-point letter to Mr. Dimon et al last week.  That’s the point I’m at. :)

Almost forgot:  my “case” with the OCC has been “under review” since LAST July, 2010.  So, I keep sending in new complaints, which they just add to the old one.  STILL “under review.”  Thought that process was to take a max of 90 days???  Guess not.

Michele Zimmerman

June 2, 2011, 11:53 a.m.

I experienced the inability of the credit card companies (independent of a Loan Mod) of reporting “late payments” to all three credit agencies due to THEIR fault in posting an electronic payment late. the net effect: within 45 days my interest rate went from 1.99% to 35.% and it was the incipient cause of my own bankruptcy. The rate went to 64% by the time I could not even make the Minimum Monthly payments, and had to declare bankruptcy. I did an analysis for the bankruptcy trustee and of the >170,000 assets that were discharged >32,000 was late fees and interest rates because of their error.
When I tried to have the cr dard companies correct THEIR ERROR I got no responsibility, and no action.
I went to a credit lawyer and he told me “You are not alone. If you have 7 years and $30,000. we might win in court.Your evidence is indisputable” BTW: I am a professional accountant who did corporate payables for 28 years, so I did/do have the proof. It availed me not.

I have been dealing with CHASE since September of 2008.  It’s been the same routine -sending updated documents- update drive by appraisals, which by the way they have inflated because I was told by a CHASE rep. that they needed to present it to the investor so they can decide whether it will be a loss or benefit for my modification.  It was inflated by an obvious $100K!!  I had never been turned down or offered trial payments. They did strongly encourage that I be late at least 90 days in order for my modification file to be submitted then they would review it then it would be assigned.  I was going through NACA which a lot of us know CHASE and NACA were bumping heads for several years because of CHASE’s dishonest and breach of contract.  Just last month I get a letter stating my modification was denied because it was incomplete.  ARE YOU FREAKIN’ KIDDING ME!!  Then within a week I get an acceleration letter for Foreclosure.  OMGoodness, how depressing, disturbing, and all of the above.  I cannot think straight anymore.  I have been in constant communication with my lender and speaking to thousands of representatives which they all give me different information.  This is insane!  Talk about stress levels sky rocketing and it shows on me, home at work.  I’m a single mom of a toddler and I cannot imagine how I look to my poor baby.  I cannot function well.  This has to stop.  I have asked for help early on and its been a year that i have fallen behind but I started asking since 2008!!  I don’t hide nor lie.  I work hard to support a roof and food and of course, my child!  And I’m in this mess because my lender lost my payments in 2007-they told me to try again in a year and I did but now what?  They lied to me in 2007, they told me they would lower my rate, they returned my payments (3) before they could start a loan restructure.  They had this planned.  I’m on a 7.5% interest only loan now and the balance is $400k Plus…

THANK YOU PAUL for great reporting. 

The OCC is worthless.  That agency will not help so please do not put faith into any type of assistance coming out of this government agency.

Andrew, so terribly sorry to hear about what Wells did to you.

There was allegedly regulations put in place, i.e. the consent orders that the “regulators” (and use that term is used loosely) put in place with the banksters.  The guise of actually implementing new regulations was nothing more than a backdoor deal to circumvent the AGs settlement.

The economy will not recover until the housing market is stabilized and the end is not even in sight yet.

Century+ old real property laws have been ruined by the filing of fraudulent, not flawed, documents in courtrooms across the country.  Where is the FBI, the Department of Justice?  No indictments?  No one has gone to jail for the biggest crisis since the S&L scandal.

If you are considering a loan modification, beware.  The first step in this should-be illegal process is the bankster telling you to be in default before they can help you.

We’re helping people and sharing knowledge at beingmiddleclass dot org.  Please join us.  There is power in numbers.

For anyone who has the bankster reporting your late because you started a trial program, read this guideline, at page 14.  Contact the bankster to remind them of this Guideline.  Should they fail to correct the credit report, dispute it with every credit agency.  We have much more information about the subject of wrongful foreclosures, fraudulent foreclosures, HAMP, MHA, sample letters, contact information, etc. at —we’ll help you.  It’s a free forum.

Remember, corporations are just people, too (according to the Bush-appointed Supreme Court justices).

Stephanie Palmer

June 2, 2011, 3:18 p.m.

Gee, what a surprise - Chase, one of those banks that took Rosario’s tax money and mine, isn’t abiding by their own agreement. And why is this possible? Because they don’t have to.  They are backed by the best Congress their money (AKA our tax money)  can buy.

@ Lori, Andrew, etc. - allow me to respectfully disagree with you all. If I may say so, anyone at this point who buys into the temp mod payment scheme gets what they ask for - effed over.
The low percentage of temp mods that transfer over to successful mods is a red flag. The OCC’s impotent, flaccid response to the tsunami of consumer complaints and legal and journalistic investigation is an affront to every living taxpayer.
Stop writing checks, folks. Just say no. Stop fooling yourselves about this. Save the money you don’t pay for a move. There is plenty of rental inventory our there in many communities, or see if you can sublet or room in with a friend who could use some dough.
Banks use the co-opted regulation system, lousy with Goldman Sachs louts, to simply vacuum up what remaining money you have. They can see from your paperwork what your assets are and they wait to f.c. until they estimate you have paid them what you could get your hands on.
No home is worth the stress, distress sales, missed work time on the phone, lawyer bills etc.
I like my house but I am throwing in the towel. The banks won this one, call the game. Geithner even said a while ago that the housing “assistance” programs were designed to smooth out the flow of f.c. property into banks. It was never intended for you.
Take the hint. No more checks. Money for your family, not a bailed-out bank.

Richard Schmidt

June 2, 2011, 3:48 p.m.

I really think we need to start jailing our banking CEO’s, who seem to care ONLY about their next bonus. They have ceased regular banking and now focus almost exclusively on gambling . . . with our money.

Robert Huddleston

June 2, 2011, 3:57 p.m.

Once upon a time when we did banking with our local bank, the bankers were responsive to their customers/neighbors and scrupulous in managing the bank’s business. Today, corporate bankers don’t deal with people, they deal with process and far too often the “process” has   interest only in the bank’s bottom line and banker bonus’s.  As for bringing these corporate bankers into line don’t bet on it. The money-lenders have legions of lobbyists to descend on Congress (whose member’s often receive special treatment on loans) yelling about “over regulation.”

This kind of outrage will not stop until there are real, personal consequences for these banksters.

We should start with jail time, and if that doesn’t work, parade some of them in orange jumpsuits and chains on the floor of the NYSE. They could be made to wear signs denoting their crimes.

Its time to re-engineer the system to work for the people again instead of the other way around.

The budget problems of this country, will not fix, until the crooks who caused it are prosecuted. Then we will have to extend the budget ceiling to pay for the hundreds of prisons we will have to build to hold these crooks. Is our AG on the gulf coarse also?

Victoria Olson

June 2, 2011, 5:42 p.m.

Who are these mortgage servicer’s who are doing this???
Could one of them be Aurora Loan Service? Who is a holding company of Lehman Brothers?

Victoria Olson

June 2, 2011, 5:45 p.m.

Who are these mortgage servicer’s who are doing this? Could this be Aurora Loan service? Who is owned by Lehman Brothers?

When I lost my well paying job, my (now) wife and I just walked away, after we had bought a new house.  We got the phonecalls and the letters for about three months, we ignored them.  One bank lowered her rating, but not that much.  Mine was not touched, probably since I had over 1/2 million with them, I was still a good risk.  Fortunately we had (have) a friend in the loan business who walked us through everything.  We did not even have to consider legal action.
The house, that I had bought before we were married, for $460K, most recently sold for $166K and it is empty.  (We at least had renters for about 6 months.)

Tom O, hope your not in a recourse state.

OCC is part of the reason of the housing crisis for not regulating Wells Fargo.  We filed complaints against Wells Fargo for loan origination fraud in 2006.  Instead of holding Wells Fargo accountable, OCC spent the last 5 years aiding Wells Fargo to continue defrauding homeowners.

Please sign the petition at and join the fight for break up ‘too big to fail’ banks.


June 2, 2011, 11:23 p.m.

Question, Who in their right mind is going to be willing to buy a house when they have to be dealing with these Banksters Gangsters Servicers? Who in their right mind would want to be dealing with these people for 30 years of your life with your 30 year mortgage? What about Junk fees, Force Insurance, Escrow fraud, outrageous late fees, etc, etc, Think About it…It would come to a point when nobody will be willing to buy a house and then what???
(tranquillity and peace of mind has no price)


June 2, 2011, 11:40 p.m.

Andrew King, I should not tell you this but I hate what WF is doing with you, I going to give you a bad advise, stop giving your money to these Mafia Banksters, Robbers, stop paying and stay in your home for the longest you can and save, apply for a loan modification, to stay even longer, keep saving and its even possible that with your new less income may be easier for you to qualify now, you can also get a REST Report which will improve substantially your chances of the appoval, go to the process for the longest that you can and in the mean time save your money (and you may even get your mod approved) but if not, fight it, push back, stay the longest, then if you can’t do any more go for the short sale and stay even longer, save more money, fight foreclosure, stay longer and keep saving, then buy a house cross street for half price or rent for cheaper without the mortgage stress

Many of our members around the USA are complaining that they have been trying to get a HAMP Loan Modification for over 1 year only to find that their home was foreclosed upon and sold by MERS without knowing who really owned the note. AXJ ® has filed complaints with the OCC and Attorney Generals around the country and soon to be preparing class action lawsuits.

There is no need to spend the money on a REST report.  You can determine if you qualify for HAMP without it.  Should you fail the NPV test, then it might be something you want to consider, but I personally would not spend money on a REST report.  You are entitled to get the results of the NPV test, inputs used, Free.  Most homeowners are struggling to make their payments and do not have the money for a REST report.  If you decide to apply for a loan modification, be sure to research (1) any company who claims they can get your loan modified, there is no need to pay any company, attorney, etc., you can do this on your own; and (2) do not pay for any REST report, computer program, etc.  Do your research.

Enough is enough!! Somebody need to start serving jail time!! Thank God actions are being taken to correct actions taken by banks causing undue suffering and lost to homeowners. Banks just refuse to help out the American people!! The operate like a entity unto themselves above the law of the land! I wonder when jail time is handed out, how many of the employees, from the CEOs on down to the rank and file..will remain greedily loyal??!!!

The bank like all other corporations and businesses are entities whose purpose is to create jobs, serve the public and…make some people rich, but now they act like they are only about making somebody rich!!


It’s disheatening to say the least to hear all of your stories.  I feel for all of you who are stuck trying to battle Goliath.  Perhaps my story might make you feel a little better. 

When the housing crisis hit and I realized that our home was worth less than the mortgage, we were already struggling to make the payments, and that an ARM would kick in about two years later which would push the interest rate into the double-digits, I did my best to work with the bank to get a modification.  Months and months of phone calls, sending and resending all of the financial info they asked for, etc. produced no tangible results.  Eight months later I was informed that they couldn’t do anything for me and that someone should have told me that right away.  So I decided to take matters into my own hands.

I decided then to make a strategic default and soak the bank (Bank of America) for every last penny I possibly could.  I have no moral hazard as this is not an issue of morality (unless you consider the immoral treatment the banks met out to all of us because they know that they can get away with it and make a pretty penny in the process!).

In July 2009, I stopped making payments and called BofA to give them my “offer”.  A 30-year fixed rate for the current value of the home (probably about $180k rather than the $300k we owed them).  They of course were “unable” to help.  I said fine, you’ve received my last payment.  Now almost two years later I have lived in this house for free and BofA has had to pay the property taxes to boot. In all I’ve saved myself about $70k which basically covered my cost of getting the loan and has paid for all of the money we sunk into the place.  Sure my credit is trashed, but we don’t need credit.  Credit (aka debt) is what gets most of us into trouble in the first place.  Now even if I wanted one of those shiny platinum Visas with a $25k limit I couldn’t get one which is great because it removes the temptation to turn to credit when the inevitable financial curve balls come our way.  We just have to tough it out and pay as we go.

I imagine that by the time they actually forclose we’ll have saved about $80k and there’s NOTHING that they can do except take back the crappy little two-bedroom ranch that they will never ever recoup their costs on.  So, I’m feeling pretty good and enjoying the letters and phone calls that they still make in a vain attempt to get me to do something.

Hope this brightens some folks days out there.  I just wish a HUGE portion of the citizens of this coutry would join me and then really stick it to the banks… God knows they deserve every last bit of it!

Best wishes to all of you and I hope that you all can get through this mess and come out on the other side with your sanity and health in tact.

I guess I could consider myself one of the lucky ones….we applied for a loan modification with America’s Servicing Co (which, I believe, is a subsidiary of Wells Fargo).  We sent, resent, sent some more, and kept sending updated documents for over a year.  Constant weekly phone calls (I wisely kept a log of who I talked to, what was said, and the date and time).  I was given all sorts of stupid advice; i.e., stop paying for 90 days (didn’t do that), you don’t qualify for a HAMP (but later, they recanted on that one); if “we” can’t get you a HAMP modification, we have “in-house” modifications we can do for you (yeah, fat chance of that).  Anyway, we continued to pay our higher mortgage for the entire time (after having to file Chapter 13 bankruptcy on our other creditors….luckily, my husband and I both have fairly stable jobs making decent money).  Finally, we got a letter from Wells Fargo stating that they would “refinance” our current balance at a lower interest rate…..4.65% down from 6.25%.  This brought our payment down about $750/month.  It wasn’t much, but it was better than nothing.  When I called them to see if this was a “permanent” modification, I was told that it was.  Apparently, because we kept paying the higher payment, they ascertained that we would have no problems paying the lower payment.  We’ve been paying the lower payment for almost a year now….haven’t heard anything from either ASC or Wells Fargo.  I do call every other month or so to make sure we’re still okay and payments are being posted and made on time.  As a note, I ALWAYS send my payment via FEDEX with signature required.  I make a copy of both the FEDEX waybill AND the return which shows who signed for the payment.  If they ever come back at me for not paying….I have proof.  I also send them a cashier’s check from my credit union…..I prefer to pay the $5 bank charge to make sure I have a valid copy of the check.  It’s a little more hassle, but I’m covering my A$$$, if you know what I mean.  I really feel bad about everyone who is having problems….it wasn’t an easy thing for us.  Again, it was constant phone calls; constant re-faxing, etc., but it worked.  Just keep a log of everything; it’s better than nothing.

@Didi: As another homeowner going thru hell - I’m glad things appear to be working out for you. But can’t tell why you needed “help” in the 1st place as both “you and your husband have stable, good-paying jobs”. Many, many people do not & it’s those people that are suffering because the modification program is a shambles - probably due to the fact Congress knew that those not intended for the program would take advantage of it and make efforts to help those who do worthless- much like yourselves.

I’m not jumping on you but - your story is the exact reason the servicers and politicians have resisted improving the loan mod program - because it would be perverted by those jumping on the bandwagon who didn’t actually need help. A pity that people don’t consider others more & believe they are entitled to whatever they want because they “deserve” it. Maybe it’s just me - but your story sounds more sickening than uplifting.

@ Noel - BOA pays your prop tax? Who pays the insurance & HOA?
If you don’t mind saying…
I agree that stopping payments to banks is the way to go. They can wait. Hope you get another two years, or more. Maybe they will lose your file, lol.
But you still bear slip & fall liability, etc.

@ Tutt - ah, a bankster was ambled in. FYI - regardless of net worth or income, Didi is entitled to seek and pay the lowest available mtg. interest for which she qualifies. That was in the bailout language, old news.
I hope she has the arrangement in writing. Banksters will “forget” the terms of any deal they didn’t put in wet ink.
Good on Didi. Hope others get their deals worked this way. Prevailing rates would keep many people in homes and that is what is offered to the vultures currently gutting many communities with lowball sales prices and rock bottom prop taxes that follow.
Didi’s prop tax was probably not impacted much and she thus pulls her weight in the locality, enriching vulture speculators who receive unjust benefits.

Oh I forgot to mention… they pay my homeowners insurance too!!  Forgot that little gem!

Oh, forgot to mention that BofA also pays the homeowners insurance!  We don’t have to pay PMI.

My loan was with Suntrust and I actually got a permanent modification in June 2010 and had made all trial and modified payments according to schedule.  However, Suntrust never “booked” the loan and each time I would call they would tell me everything will be done in a few weeks.  This went on until Nov. 2010 when my servicing was transferred to Nationstar.  Nationstar immediately put my in default and accelerated the loan.  I got a signed/countersigned copy of my Modification Agreement from Suntrust and sent it to Nationstar.  Nationstar sent me an email telling me that they would not honor the modification and I would need to start over or prepare for foreclosure.  Screw that!!  I am an attorney and filed a lawsuit against both Suntrust and Nationstar. I am having the case handled by another lawyer in my office. I filed the lawsuit as my only way to stop them from screwing me even more.  Suntrust is basically saying it is not their problem and the case should be dismissed and I should have to pay their attorneys.  Nationstar didnt even bother to answer the Complaint and only answered 60 days late when I asked for a default judgment for 3x the loan amount!  There was supposed to be a pre-trial hearing and hearing on the request for default this week.  The lazy piece of garbage judge allowed Nationstar to answer late and wont even hear the default request.  Both mortgage companies and the pretty much told my attorney that my case is a joke because I was “not harmed and have no damages.”  According to Nationstar at some point after I filed the lawsuit they went ahead and accepted my modified loan, but I never got any notice of that.  I am furious and absolutely disgusted with the court, the judge, the banks and mortgage servicing companies.  They are going to get away with this and the judge is going to not only allow it to happen but blame me for it!!!  My credit is screwed, the payments are all wrong, the escrow is incorrect, they threatened me and my family with foreclosure and lawsuit, and the only reason they stopped is because I filed a lawsuit.  At this point I don’t even want to be an attorney any more because the law means nothing these days.  I feel truely dejected.

brian t bayer

June 4, 2011, 8:19 a.m.

to drew i read your story and its tragic as they all are.there is something
the government can do at any second that obama feels to. simply
call up the treasury and pull their banking licenses leaving them
dead in the water! they would have to stop doing business in a matter
of days. obama needs no help or any interference by the house or senate
as they have no say in this! but of course he says he will need a billion dollars to be re elected and could anybody here care to elaborate
where the moneys going to come from? he could close the stock market
in seconds just because he can if he wishes but he is a liar a coward
and couldn’t give a damn about anyone but the mega rich because
they are paying for this!


from livinglies(dot)wordpress(dot)com site (by Neil Garfield):


“...the asset on the books of the securitizers related to mortgage “interests” is an illusion. And the failure of the auditors to make a statement regarding the questionable nature of these assets is actionable. But more importantly, the assets claimed on the securitizers balance sheets constitutes a large portion of their total assets. Wipe those out and the bank is suddenly smaller and out of compliance with the reserve requirements of the Federal Reserve and any other agency regulating the activities of a lending institution. Unless they suddenly repatriate the hidden fees from the mortgage meltdown which I estimate to be around $2 trillion, the bank is in the state of undeclared failure. And if they do repatriate the money all at once, they will have a lot of questions to answer including why they needed a bailout…”





FYI—-I defaulted on EVERYTHING!!  Hell, a FICO score is just an “I love debt score”...screw the banks/wall street—-they screwed America with their mortgage ponzi scheme…and the government continues to coddle them…while the TARGET of the fraud—-homeowners—-continue to be thrown under the bus…I know what I’m talking about, people…please educate yourselves…even the judges and lawyers are being paid off to push illegal foreclosures through…but it’s all coming crashing down…please don’t let them steal your house…

start reading and looking at your documents—-and don’t give the banks/servicers ONE MORE PENNY!!!

sorry…I’m on a roll…check it out:

I got a “loan” refinance” in 2006…

defaulted last year…

screamed, fought for a loan mod like CRAZY…

got a trial plan…

made one payment…then discovered the giant FRAUD (it’s in yours, too!), in my original and subsequent paperwork—-re. mortgage-based securities…( discovered the truth on livinglies(dot)wordpress(dot)com website..)

told servicer “WHY would I make ONE MORE PAYMENT TO YOU, unless you PROVE that a “REAL LOAN” even exists, and who the hell am I paying?  And why is the loan number different than my original loan? And why is the securitized trust that you say my loan is in EMPTY?  And why does Deutsche Bank say they don’t own any loans, yet you are telling me that they own my loan? And why is there no mortgage assignment? And where is my original promissory note?  And how come I keep hearing about MERS fraud? How can a database be a beneficiary????”

THESE ARE THE QUESTIONS YOU NEED TO BE ASKING…I guarantee they can’t answer them adequately, not to mention LEGALLY.

So, I am now filing for Chapter 7 BK, and I am treating my “fake mortgage” like the UNSECURED DEBT that it is…and staying in my house till I die…I know it sounds unbelievable, but people are doing this.


Forgot to say WATCH THE ACADEMY AWARD-WINNING MOVIE “INSIDE JOB”—-then watch it again…AND AGAIN…you will get mad enough to fight and do whatever it takes to stay in your home and stick it to the banks, for what they did to the American people…and what they will continue to do…until we ALL start FIGHTING BACK with the LAW…which IS ON OUR SIDE.  The problem is the situation is so unprecedented and unfamiliar with judges and even lawyers, that we literally have to SHOW them how various laws were violated…I know it sucks, but WE HAVE TO DO IT FOR OUR FUTURE AND OUR CHILDREN’S FUTURE.


June 4, 2011, 7:23 p.m.

Carie is right, but I would add that also please read : The Great American Stick Up, 13 Bankers, All The Devils Are Here, The Big Short, Educate yourselves, Information is Power ! : )

Gary InSouthChicago

June 5, 2011, 12:45 p.m.

I suspect that this mess is a symptom of something else - that the banking system is falling apart. Changing the terms of loans requires the mechanisms to track and act on the changes made. Unfortunately, this requires additional personnel putting in the additional time, e.g., changes to billing systems, updates to the the database, etc. The banks are trying to hold on to every dollar that comes through their system. Why? Because truth be known, they’re insolvent and they’re cutting corners to try to maintain the illusion of solvency. That’s what you’re seeing in this article.

The major banks (through which 77% of banking transactions flow) are trillions of dollars out of balance - that is, “T” not “B.” It all comes down to the real estate market. It’s complicated but it suffices to say that every day that passes, the value of real estate goes lower and the difference between that the outstanding value of the loans and value of the real estate assets becomes greater.

No one wants to nationalize the banks - especially this President who appears to be concerned about being called a “socialist.” But soon the banks just won’t have the assets to maintain the illusion solvency as much as they try to cut corners. I’m pretty sure that things will soon come crashing down. It will likely start out as what seems to be something small. But since we’re on the edge, even something small can push you over.


June 5, 2011, 2:47 p.m.

These Banksters want you looking at yourself, because they don’t want you looking at them.  Home owner advocates fall prey to the proclivity of discussing primarily the circumstances of the debtor rather than that of the creditor.  However, the question IS NOT how good is your claim to the security interest in the real property you call home.  The real question is how good is the security interest of those who seek to take it from you?  And how did something so simple and mundane as a mortgage become so irreparably harmed?  Could it really have been mere incompetence?
Possession is an important part of the law.  If there is a serious and legitimate dispute over ownership, which has now been well established for about 60 million properties and some 7 trillion in securitized mortgages, why would you give up your legitimate claims?  Perhaps you would do this only if you did not realize just how legitimate your claims are (default or not), and how ILLEGITIMATE theirs are, because after all it is not the topic of the many phone conversations with your servicer.
In fact, given the gravity of the question over clear title, the only seemingly prudent thing to do is to suspend mortgage payments, weather you can afford them or not, and I would advise to instead place those funds into a private escrow account.
That is why they want you to be highly circumspect of your condition in life, because you will be TOO DISTRACTED TO NOTICE THE THIEF IN FRONT OF YOU.
These thieves Bankstsers and Services will try to help you undervalue yourself.  DON"T !
If you don’t have a Ph.D in finance from Harvard, you probably couldn’t design this Ponzischeme if you’re life depended on it.
Your servicer wants to see if it is to be sold in the near term, they will want the fastest sale, not the highest sale, remember they are crooks.
Information you give them it is not primarily, as you may be told, to determine qualification for a modification is to determine how can they get and sale your property faster. that is why you have to push back if you get denied challenge their decision if you get denied, don’t give up and fight it, don’t believe anything they tell you, they just want to screw you one more time by taking your home, they are only the counterparty in interest to a loan that was taken out as part of our (unknowing) participation in a global pyramid SCHEME.
I will like to add that we now know much about predatory lending.  We know about LIAR LOANS that were wholly executed by highly compensations by banksers.  We know that the more CDO’s and synthetic CDO’s that were sold with AAA ratings (despite being jam-packed with junk sub-prime paper), the more billions investment banks made.  We know that banks understand that their security interest to the real property used in the MBS trusts IS NOT THERE, and that they are WILLING TO USE FORGERIES, and PERJURY as their means.  Basically, the lesson of the last few years is that the engineers of this HYPER-PYRAMID SCHEME will do anything to get what they want.
Fight the good fight

People who took on loans they could not afford are responsible, not the banks that gave them these loans.


June 6, 2011, 3:12 p.m.

Mr. theOtherSide, you are out touch, your comment is so 2008, I suggest you educate yourself and get inform, I will recommend you a Few ways to do that Watch the Movie “inside Job” read the Books The Great American Stick Up, 13 Bankers, All The Devils Are Here, The Big Short, The Monster, go to the following websites,,, and read all of the articles that Propublica has published in this website in regard to this matter
Educate yourself Man!

Carrie; acmod - pls. stop nuking these boards with massive, caps-locked posts. Can you summarize to one post, and link to a blog instead?

If I’m not mistaken Pro Publica is a left wing news org financed by George Soros and his buddies Herb and Marion Sandler of World Savings fame.  You know the ones that created the Ajustable Rate Mortgage that helped lead to this mess?  Although I agree with most of what is written here, it just seems funny to me that this bunch who is every bit as culpable in the Sub Prime Meltdown as the banks would be pointing fingers.  A misdirection ploy maybe?  I hear the SEC maybe looking at them recently.

BoA’s new ploy is to transfer servicing rights from BoA Home Loans Servicing,LP to BoA N.A. I truly hope I live to see the day they go under due to all of their lies and greed. They are now also calling at 6 a.m. and saying they are sorry they didn’t realize the difference in time zones. Now instead of person calling they have automated voice recordings do it for them at way too early an hour. With their false credit reporting and now these tactics it is next to impossible to deal with these reprobates. They are absolutely disgusting!

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.

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