Journalism in the Public Interest

Loan Mod Profiles: The Runaround

Many who are facing foreclosure say that paperwork errors and other problems are bogging down mortgage modifications.

Based on stories from hundreds of homeowners, we're showing what it has been like to seek a mortgage modification through the government's program. Earlier, we detailed what 373 homeowners told us about their experiences. To put a face on those numbers, we're also profiling homeowners who represent common situations. This is the first of five.

Suzanna Wertheim, of Oakland, Calif., has been in ‘loan modification limbo’ for more than a year. (Photo by Armand Emamdjomeh/ProPublica)

It all started shortly after Suzanna lost her job as a Hospice nurse and learned that she has terminal cancer. (Photo by Armand Emamdjomeh /ProPublica)

On working with Wells Fargo, Suzanna says, ‘I’ve faxed things into them five times one month, seven times the next month.’ (Photo by Armand Emamdjomeh/ProPublica)

Suzanna says the government’s loan modification process is ‘completely demoralizing.’ (Photo by Armand Emamdjomeh/ProPublica)

‘It’s just between you and the bank,’ Suzanna says. ‘There’s no watchdog for all of this.’ (Photo by Armand Emamdjomeh/ProPublica)

Suzanna also likened the process to ‘the Kremlin,’ and says, ‘I don’t think this is something we should be proud of.’ (Photo by Armand Emamdjomeh/ProPublica)

Download the audio.

Listen to Suzanna Wertheim talk about trying to get a loan mod.

For Suzanna Wertheim, the problems came like a flash flood. First, she lost her job as a hospice nurse on the same day she learned she had terminal cancer. Then she was scammed by a company that said it could lower her property tax rate. Since that time in early 2009, Wertheim has spent hours making phone calls, writing letters and submitting financial statements in an effort to get Wells Fargo to modify her mortgage, but to no avail.

On average, homeowners who answered a ProPublica questionnaire had been seeking a modification for more than 14 months. Servicers are supposed to make a decision on whether to grant a trial modification within 30 days of receiving complete information from homeowners, according to program guidelines [PDF], and trials are supposed to last three months before borrowers are granted or denied a permanent change.

Wertheim says the process has taken so long because Wells Fargo keeps making mistakes. For example, Wells Fargo told her that she had no income, even though she says she has faxed proof of income over and over. Errors in calculating income are common, homeowners say.

After ProPublica contacted Wells Fargo for this story, Wertheim received a call saying she was denied a modification through the government program because she had insufficient income. Wertheim is now trying to regroup and determine if the denial was justified under the program's guidelines.

"We continue our efforts to help Ms. Wertheim find an option, and we regret any previous miscommunication," said Wells Fargo spokesman Jason Menke. "Depending on the complexities of any homeowner's situation, it can take some time to ensure that we have fully exhausted every option to help them avoid foreclosure."

In California, Kai Schmoll says he first contacted Bank of America last February, when his partner lost his job in the film industry and they were quickly working through their savings. Like many homeowners who responded to our questionnaire, Schmoll was current on his mortgage when he started the process but eventually couldn't make his payments as the modification dragged on.

Schmoll says he has submitted his documents five or six times, but Bank of America hasn't given him an answer either way. Many homeowners tell us they've submitted the same documents several times.

"We have never officially been denied," Schmoll said. Out of desperation, in the fall Schmoll paid a lawyer $1,600 to help with the modification process, but it was a scam. Soon after, the lawyer resigned from the California Bar after an investigation into his loan modification activities. The majority of the homeowners who told us they paid for help said they felt that they had been ripped off. (We've reported that foreclosure rescue scams are booming.)

Schmoll declined Bank of America's offer of an in-house modification that would have increased his payments. "We recently sent him a package requesting new updated financial information in hopes that his circumstances have changed to allow him to make a reasonable mortgage payment," Bank of America spokeswoman Jumana Bauwens said.

Meanwhile, housing problems persist around the nation, as almost 10 percent of mortgages in the U.S. are delinquent.

ProPublica's Paul Kiel and Olga Pierce contributed to this story.

Have you been waiting to get an answer from your mortgage servicer? Please use the comments section below to discuss with other homeowners. And if you haven't already filled out our questionnaire, please tell us your story.

It appears the the banks totally disregard the request of President Obama to work with homeowners as well as the policy and procedures for granting a loan modification. How can Bank of America deny somebody a loan mofication stating that they don’t have enough income? I thought the modification is based on having the homeowner pay 31% of whatever income they have? I don’t recall reading that you had to have a certain amount of income? The only stipulation is a if you are collecting unemployment then you wouldn’t qualify, but would qualify for another type of program

I was with Wells Fargo and I got the same run around the above people got.  I finally had to move out of the house and move my mother out of her home.  She is in the final days of her life and this move has caused her much distress.  It was only two weeks after the move and we had to take her to the hospital.  She is out now, but is very unhappy.  It is a shame to have been treated like this.  Is there any sort of class action suit or any other action that I can take at this time????





Geanette:  That’s why I’ve moved ALL my money to a credit union….I will NEVER deal with a regular bank ever again.  I advise EVERYONE to move their accounts to a member-owned credit union and boycott the major banks like Wells Fargo, Bank of America, Citibank, etc., they are all crooks!!!

I have been working with IndyMac for a modification with unemployment income since September 2009.  It is through no fault of our own that we lost our income.  It is due to thieving by politicians, corporations, mortgage companies and banks which collapsed the economy.  I have submitted the same paperwork dozens of times to IndyMac, over and over, only to be told to submit more of the same.  Then paperwork I submitted months ago would be challenged and I’d have to submit it again or change it, because they said they had just looked at it.  Afer 5-6 months go by, you think that paperwork must be okay, but that’s not the case.  I was finally given a three-month trial modification after questioning whether they were scamming me as stated in some news articles.  The trial modification stated that after three months it would be permanent.  But I have been in a trial modification for five months now, and pending.  I was told that despite what the trial modification letter saud, it didn’t mean I would get the modification, it was simply giving me an opportunity to stay in my house until they made a final decision.  The trial modification only lowered my payments less than $200 a month, and we struggle to meet that.  But we must meet it or we’ll be living in the streets with an 2-year-old special needs grandchild.  We live in Nevada.  When I tell you there are NO jobs, I mean it.  The newspaper does not even offer low income jobs.  There is nothing available here.  My husband and I have applied for more than 200 posiitons each.  We apply for EVERYTHING and ANYTHING and we DO have skills, but another 200-500 people are applying for every job that opens up.  I believe IndyMac is waiting for the unemployment to be cut off so they can make us submit income papers again since it will be a change in our income.  Then the damn paperwork process will start all over and either go on for another year or more with us never being secure in our home again, or just put us in the streets.  It’s sad that we have to pay for the rich ripping off the government and consumers.  We have nowhere to turn and no one left to trust.  This is not a recession, it is a government-rich depression that effects only the lower classes.  Gee, what’s new!

Well, I guess I’ll say it again. This is the new America - or the old America with no one bothering to hide how dirty it’s become.

Big banks were GIVEN hundreds of billions for their greed and lawlessness - thanks Congress! The “people” (that’s you & me) were given nothing to help us because we don’t have millions to contribute to political “campaigns” (which are actually personal bank accounts). So there you have it! All this time regular people work, pay taxes and obey the law because we believe we have to while the super-rich ARE the law - and they have all the rights in this country - they hold all the cards and the people they use to make them even more richer are the people smiling, smiling, smiling running for office telling us what they’ll do for US but all they really need is votes to get their foot in the door of power so they can hurry and enrich themselves. Things have been so bad for so long it’s amazing we didn’t figure this out sooner. Notice that NOT ONE campaign promise is EVER kept? Not one of those smiling, smiling, smiling (& doing whatever it takes to destroy the competition) perfect swept back hair politicians give a damn about the people they convince with lies to vote for them - because we don’t matter. Otherwise - laws would apply to everyone, corporations included and if federal law says you are obligated to do something -you do it - no questions.

Notice that’s NOT happening here? The big bank guys show up at Senate hearings in their thousand dollar suits (sometimes on private jets) and try to appear adequately contrite while explaining to Senate faces that they don’t understand why everyone is so mad because all they did was . . .   
“nothing”. Or they smirk and lie and say “We’re doing everything we can . . . Scouts honor”! And they smirk and smirk and look confused in their thousand dollar suits or look entirely exasperated because their time is worth a million dollars a minute but instead they’re wasting time sitting up on Capitol Hill thinking up lies for the people they pay not to ask them any questions.

Get it yet? The HAMP modification program is horsetwinkers! Except some people (us) are getting suspicious (frown) and beginning to think something is mighty wrong here. Yes - very, very wrong because they “banks” are not playing fair when the truth is the “banks” are actually the government and the people playing government are actually not the ones who make any decisions. The “banks” do.

And they said “NO WAY HOSEA”!

Seeya under the bridge.

I am still in the process of a modification- it has been over a year.I finally got a banker that really cares,has not lost my documents and calls me and writes me a letter when the bank needs more information.
The one thing i learned from him is this;
If you are 1 day late you will NOT qualify,and that was probably your last chance so do not be late .It is like you are on probation…
The banker i got before told me"NO DO NOT MAKE ANY PAYMENTS until you get on the new program!”
Can you believe what would of happened to me if I would of listened to him! I would NOT be in my house today…
I am with Chase Bank the nightmare of all banks.I have worked with about 15 different bankers that have no idea what to do themselves or are overworked or just do not care.. I am VERY fortunate to be working with a honest person,that explains everything in detail and is pretty nice.
I have prayed on this and will report back with the terms & outcome.

You only want to go through this if you can afford to still make your payments.You may get a reduction in payment you may not.I know one lady that got only a $50.00 reduction.Myself I can make the same payments as before.I got behind because of Hurricane Ike and being out of work because of that!

I wish you all the best of luck!

N. DiMaggio (Nevada)

Aug. 16, 2010, 11:35 a.m.

I agree with Geanette’s comment. I was told that I was denied due to my income. I thought the payment should be reduced 31% of whatever income. I also seeked legal advice and was told that the bank’s are paid through insurances and write offs so they benefit from “not” providing the homeowner with a modification. For however the loan is sliced, THE BANKS AND LENDERS COME OUT AHEAD and WE THE HOMEOWNER ARE SUFFERING AND IS BATTLING TO STAY IN THE HOME.  IS THE GOVERNMENT AWARE OF OUR ISSUES?????

31% of your GROSS income is what you have to be over to qualify for the Loan Mod.  so if you make 3000.00 a month GROSS (nevermind taxes insurance) GROSS your house payment MUST be over 900.00 a month.  Im sorry but my Gross income is much higher than my NET income.  And I dont get to keep my GROSS income. Ive been dealing with this for over 2 years and now are just wiating for them to foreclose CHASE.  They took all my money put it in a account and state that I havent made payments in 2 years. Ruined my credit luckily my credit union knows the situation.  I am now NOT PAYING ANOTHER DIME.  TAKE IT TAKE MY HOME OF 30 YEARS.  LESS THAN 30000.00 LEFT !!! SOB

The first piece of advice that I can give you is NOT TO GIVE UP because this is what the banks want you to do.  I went thru the same 14 mos. of filing and refiling the same paperwork over and over again.  I kept a copy of the 1st package of docs and everytime Chase requested them, I made copies rather than rewriting the same docs over and over.  I finally sent the docs via Fedex, which I made my Chase Bank branch pay for, and had proof of receipt by Chase.  Only then did they admit receipt, they tried to deny it but I told them I had proof from Fedex.  I finally got my trial modification but am now on my 5th month, which should only have lasted 3 mos.  I just received a letter from Chase denying my permanent modification (even though I am eligible per every govt. requirement.  Chase is trying to say we have no income (my husband still has his job, I lost mine), and we have made each mod payment on time).  I called and were told that Chase will send us the calculations they used and we can check it for errors and appeal.  They also lied and said that FreddieMac (who owns my mortgage, Chase only services it) was the one who denied me.  I have emailed FreddieMac and advised them to contact me because I know that Chase is a LIAR!  I am NOT giving up, I continue to make the reduced payments on time.  Why is the govt. not doing anything to help homeowners from these foreclosures???  All they ever do is verbally advise the banks and mortgage cos. to follow the govt. guidelines and the liars promise they will, but they don’t.  And everyone on the planet knows this.

Hmmm, do not miss a payment? Um, no. Miss them, starting now.
The extend and pretend scam the banks run specifically relies on your running thru your savings while they ‘evaluate’ your app.
Money that could be used to help you start over is drained by bloodsucking banks that declare you ineligible once you have tapped out reserves.
Do not listen. Trying for a loan mod trashes your credit anyway - why let them do that, AND take all your dough and THEN boot you out on the street with empty pockets.
Stop paying. Screw ‘em.

Andrea Dareing

Aug. 16, 2010, 9:33 p.m.

This is all fine and good but the big question here is what can we do about it. Can a lawsuit be started where all these different people file under their specific bank?

Washington Mutual lost my paperwork twice and the third time I gave the information over the phone. I was approved, given the monthly payment amount and then told to sign the packet i was to receive and return immediately. On one of the phone conversations, a man from Washington Mutual told me that he was sorry but it looked like someone there had “dropped the ball” They then tried to find another plan that they could put me on and at the last minute my house went for auction. The one hitch here is a developer who was going to build around me wanted my property and was in talks with the bank trying to purchase it.I found this out purely by accident. They had tried to purchase it earlier (two years earlier) and I had told them no
They had made promises to me and then backed out of them. When I went to the Oakland city hall steps to see my house possibly be sold I saw what I suspected all along. There was the developers attorney waiting like a see how much it was going to sell for..

Of course the bank was not too eager to work with me even though I had already paid them $244,000. Of course the changing of bank names from Washington Mutual to Chase after they acquirred it did not help. .I tried to reverse my real estate owned property and Chase said they couldn’t because they had a bid on the property..
The bid was later withdrawn and I asked again as to whether i could have a chance to set up a loan modification since they screwed it up the first time. Again I was refused.

I called the executive offices and asked if I could have a copy of all recordings on my case since the banks do not allow you to record any conversations. I surely can understand why. To say the least, Chase refused. Said I would have to ask for it through the court system.

There is alot of politics involved in these matters and I am sick of the whole thing.There is so much more to my story.

I have been approached by someone who wants to do a documentary on all I have gone through.

By the way, I am 64 years old and live with my daughter. We are both disabled. This home was our family home and I have lived here for 40+ yers.

I do not like feeling angry and resentful all the time but that is the way it is most days.  Just trying to get someone on the phone at Bank of America to take your payment (I’m going on month 7 of my 3 MONTH TRIAL MOD) is frustratring as hell because i write down all the phone numbers that worked before but then when i call back they are oftentimes just a recording saying this is not a working number.  Before you even get to try to talk to anyone you have to enter your loan number blah blah and then when you (assuming you do) get someone they ask you all that all over again and then they say well I see you are being serviced by another department so they transfer you and then you get cut off or disconnected or like last time i couldn’t hear the person I finally got who could take my payment so he said I’d have to call back and when I did I went through entering my account number all over again and then I heard a bunch of clicks after an anouncement and then the line went dead…. On and on it goes calling back until i will tell you the truth I was nearly frothing at the mouth when someone answered and started to ask for all the same info, my phone, address, account and I said i’ve provided this ten times already if I’ve given it once.  I JUST WANT TO MAKE MY DAMN PAYMENT.  And then he said “well unless you calm down and stop using that kind of language I’m going to disconnect which about sent me through the fcking roof.  I said look (by this time I think every other word was the old expletive deleted sorry to say but please) you torture people make them spend hours on the phone just for the chance to hopefully get someone to take your payment info and get diconnected over and over or wrong number, how the F do you expect me to be after all that.  I don’t like cussing but you know what, you push people to the limit and then you criticize when they lose it…. It shouldn’t take hours and hours of frustration and being insulted and losing it just to make a payment.  After I finally got it made I was a basket case the rest of the day, angry and irritable and alternately just feeling like crying or screaming but like the lady on the video said there is no one to scream to, no one hears, no one cares, the only one who hears is yourself.  Then to top it all off (I have NEVER been late or missed a payment since starting the trial modification, it hasn’t been easy but I scrape it together, so they ask me after bleeding all over myself and the phone when would I like that credited to my account?  WEll, duh, today of course.  So they say okay and then you know what, a week or two later I get an email telling me it was credited but it was 7 days or 10 days late so i know they are going to say I paid late.  That’s been going on ever since entering the trial.  They stress you out to be sure not to be late so once i drove through a snowstorm to get a money order and fed ex it, paying $20 or so, and then after all that they held it for 2 months before crediting my account.  And yeah, you never get the same person or the story changes.

i got interviewed on my local TV and it was nice of them to try to help but nothing has changed except someone called a couple of times to say that “its with the underwriters and so within 45 days we’ll have an answer.”  Well guess what, 45 days is up and NO ANSWER.  i had one person call and leave a message for me that he was calling from BOA presidents office and to call back asap so i did and he wasnt available but the phone number (I called the same day) had someone elses name on the voice mail.  so i left a message and even though he said I should call back asap he didn’t.  So i tried periodically to call and all I got was voice mail and then finally a recording saying that number was changed so I called the new number and it was someone other than who called me but he said that the one who called me was out but would be back tomorrow and he would BE SURE TO HAVE HIM CALL ME.  No surprise,, he didn’t call, no one calls, its just one big stupid April Fool’s joke.  I’m really alternating between being mad (geez I sound like a lunatic mad all the time) and worried because of the delay in crediting my account and I’m sure meanwhile the interest is racking up too when i already paid. 

So my worthless Congressman (Cleaver) keeps sending emails telling about what he did for the week and mostly its that they attended a ceremony honoring so and so for so many years of nothing, or dedicating something or anything but actually doing something and he’s like a kid coming home with his report card that he thinks has all gold stars but its not gold stars its F’s in my book.  So finally twice he sent emails (form ones of course to everyone on his list) saying, most sincerely, PLEASE, WRITE ME IF I CAN HELP YOU AT ALL.  so I email him and once the response i got back was a form letter thanking me for writing about something else that wasn’t why I wrote and the second time he didn’t reply at all so the next time he sent me his stupid email I wrote back (I’m sure it will be ignored too) and told him to take me off his frgn email list because I’m tired of his lies.  his staff was supposed to help me last summer and all I got was the last day the lady working called me and gave me a phone number to try to call and maybe they can help me.

its a good thing i don’t have high blood pressure because i’d be dead, I’m sure.  As it is I am depressed and alternate between feeling like just giving up, or maybe commiting suicide or maybe going on one of those shooting rampages (but I don’t own a gun so don’t worry) or something.

tHE BANKERS didn’t have to grovel when they waltzed in and got their bailout, they just sashayed by, picked up their checks and went to a fancy hotel on some foreign island for a fancy multimillion dollar “retreat” or “reward” or a meeting to inspire them to sell lots of JUNK AND LIES and they are having a good laugh I’m sure.

i can barely contain my anger,  i read anger is a negative energy drain and takes years off your life and I bet thats right but no one cares, nothing changes and I bet at the end of all this i find out i don’t qualify One person who called me after the TV show said “don’t worry if you don’t qualify for this we have other program s in house you can try”.  I’ll tell you what, if I dont get it I don’t think I have what it takes to go through this whole stupid game show again.  Sometimes I feel like burning this house down (the house I spent years turning into something nice, I put new energy efficient windows in before i went on disability and didn’t know I would be living on reduced pay, i planted a garden that i love and its the one thing that brings me any peace and if I lose all the time, the work, the money and the blood sweat and tears i put into this place I will be damned if i let some greedy slimey bank be the beneficiary of all i’ve done while i get the boot.  I had about $40,000 equity in my home once but then the bottom fell out and if I’m lucky I’d walk away even, after all the years working on this place that was dark and gloomy and not very clean when i got it, no garden, no grass, no trees, just one scraggly rose bush and weeds.  And now its beautiful and I have birds that come everyday to sing and for the seed I buy for the feeder and to bathe and drink from the fountains, and its probably all for nothing because of these selfish, arrogant banks and walls street crooks.  And i’ll also say I think Obama’s lips move when he says he wants things at the banks to move faster because there are sanctions in place but no one gets sanctioned, its just a smokescreeen and more lies from a man i don’t even believe can be president because yes, i’m a crazy birther, why not?  I am crazy after all so whats to lose.

When i was making my trial payments I naively had an optimistic moment making my 3rd trial payment and then the person who took the payment said basically, oh hey we just suddenly got swamped with applications so we need you to make ONE MORE EXTRA trial payment like before and we’ll be caught up and yada yada yada.  Funny how they waited till the last payment and JUST THEN THEY GOT too busy what a coincidence.
This is the scam of the century financed by the taxpayers of which i am one but all we are getting out of it is the shaft.  And the few times i’ve written on a forum (not here) like Consumer Complaints or one of those, the only thing comes of that is one of “us” presumably a taxpayer comments with a couple of their friends how I’m just a whining deadbeat who bought more house than I could afford and so i should just shut up and pay or get out.
i’ve really just about reached the end of my rope.  I’ve been thinking lately about the movie from the 80s i think FALLING DOWN with Michael Douglas where this man who appears reasonable enough at the beginning of the movie, his car gets stuck in a city traffic jam, he abandons in and goes in search of a phone (Pre cell-phone era) to call his child and all he gets is the runaround from the hamburger joint to the oriental guy at the 7-11 type store and he finally ends up dead at the end of the movie.  But before that he’s fed up at the hamburger joint who tells him he’s one minute past cutoff for a breakfast sandwich and they are smirking at him one minute late, NOPE no breakfast sandwich, too bad.  So he pulls out a gun and oh my gosh they can’t get his sandwich fast enough and thats what it takes to get anything done.  Same deal with the oriental grocer (never get away with that today it would be racial profiling), he just wantsa change but the guy screws him over and finally he ends up smashing half the store just to get change for the phone and everyone is looking at him like “whats wrong with you”?
People push and push someone not knowing what else is going on in his life (he’s getting a divorce and he wants to see his child but not much luck) and someday like with him something snaps and after he’s dead he’s nothing but a headline “loser loses his marbles and gets dead” and people cluck their tongues over the dinner table and say “some people just don’t know how to behave anymore.
SO YEAH, i’m upset and I’ve just about had it too.  I don’t want to go anywhere, don’t want to see anyone, because the way I feel, I have nothing positive to add and just might end up blowing my cool, who knows and I might end up in jail or dead too because the stupid banks are crooks and so is obama.  And oh yeah, my worthless congressman who spends his days observing holidays and honoring so and so.

Yep, I sound just about crazy but I bet if I lost it they’d find maybe temporary insanity but still knew the cosequences, yada yada.  Life in Prison.  But at least I would’nt need to worry about my mortgage payment LOL

Sorry to take up so much space and so many comments but hey I’m looney so what can i say?

I got my modification by never letting them deny me. If they tried I made them explain it to me and called them on there mistakes. EDUCATE YOURSELVES and know how to respond. And they can’t win. They are not smart about it at all. Tell them your local congress person asked for a written explanation form your bank.  After 12 months and three calls saying I was not qualified for this or that when this this and that was not accurate. They just keep shooting wrong answers until you give up
THE SECRETE TO GETTING THEIR ATTENTION. SEND A CHECK EARLY BY 1 WEEK. WHEN IT IS BEING PROCESSED OR SLIGHTLY BEFORE CANCEL IT WITH YOUR BANK!  Have another check sent out to arrive on time on the almost last day of being late but not past the 15th of the month.  They will default you but by the time they realize they cashed your check on time they have VIOLATED the rules of default.  They wanted to throw me out of the program but when I pointed out they had cashed my replacement check before my late date all they could do was talk about my mod.

They denied me because I had too much in my savings. I had 15k. I told them it was first last and deposit on my new place once they gave me a written denial. THE NEXT WORDS WERE -We are giving you the Modification you requested.
  I have no income but my wife has a job and our mortgage was 46% of our gross pay. I now pay 2% interest and save $1000 per month.  You are welcome to e mial me for help at .(JavaScript must be enabled to view this email address). I do not charge I am jsut a guy who got a mod.

CHASE, by far, is the absolute worst.  I’ve been trying to get a mod from them for over 18 months (Jan. 09) and was JUST told yesterday that “FHA Loans were only included in HAMP a few weeks ago.”  WHAT?????  NO ONE knew this before now???  Come on.

I found this out when I received a call from Carol Masterson of the Chase Exec. Offices (in FL?) after sending letters of complaint to EVERY entity in the US - OCC, SIGTARP, BBB, FTC, GAO, AGO, MHA/HAMP, RESPA, name the org. and I’ve sent a letter of complaint.  SUPPOSEDLY, “the notes on your account are all positive and it’s under review.”  Again.

The forbearance pmts I sent (50% of my monthly gross income ) “is in a suspense account but will be credited.”  Really??  WHEN???  Meanwhile - I continue to send and resend and resend again ( I think I’m up to the 11th or 12th submission of “,mispaced docs” on my end) “misplaced docs.”  “My, your file is thick,”  THANKS, CPTN. OBVIOUS!!!!  That’s because I’ve sent the SAME docs 11 times!!!  UGH!!!

As I recall, the modification should be 31% of your gross income,whatever amount that is (it may have risen to 33%, not sure), and I recall President Obama asking the banks to work with us in reducing our monthly payment to that percentage, even if it meant extending the lenghth of the morgage from 30 yrs to 40 yrs, however, nothing like that is being done for anyone!!

The problem is also the Treasury Dept is doing nothing to enforce the fair administratin of the HAMP program. The HAMP program may be called a failure, but that is due to the inappropriate and dishonest administration of the program!! The banks not folloiwing the policies and guidelines!

Some of the TARP funds held to administer the HAMP program should be used to hire and train people for the translational phrase of the program. The unemployed considerd the “99ers” can be employed to do this. The can take a paid 4 week training course and be employed temporarily for 18 months! Training can be conducted at the State’s employment offices. Many of the unemployed 99ers are mature experienced workers from the banking industry as well as other financial indurstires! These thoroughly trained workers can be deployed to the banks to facilitate the HAMP program!  The major problem I have encountered are bank workers who are unqualified and untrained to facilitate the HAMP program, thus contributing to the delays, misinformation and lost paperwork as well as inappropriate foreclosing…HERE COULD BE ECONOMIC STIMULATION IN ACTION!!

All states should take the lead from NYS, by making the HAMP program have legal ramifications for administering it dishonestly and/or inappropriately. Also the “person” or “body of people” in banking who make policies to lie, deceive and mislead the public should have criminal charges brought against them! Somebody came up with the idea of telling the consumer “the investors are the ones who denied your modification application”

If things don’t improve, each state should start it own class action suit against the banking industry and while waiting for a court ruling, no foreclosure can move forward

Just my 2 cents!

The failure lies ultimately with Obama.  No matter how much he chooses to obfuscate and makes statements about holding the banks accountable and how he expects them to step up to the plate, he’s not.  The sanctions and penalties are in place, if they are not being applied its because he isn’t pushing it.  Its just like these issues around border control and ILLEGAL immigrants (I’m still amazed some people seem to not integrate the ILLEGAL part of the equation into the whole ball of wax.  They talk about reforming immigration law so that there is a means to penalize businesses and so forth who hire illegals.  ALL THOSE LAWS are already there.  WE DON’T NEED NEW LAWS.  We have laws coming out our ears (and elsewhere) it isn’t laws or regulations we need it is ENFORCEMENT.

And you know the whole thing with home modifications even if it means EXTENDING THE LENGTH OF THE LOAN, I have to think that isn’t even any big FCKN favor.  I can only address my circumstances and I believe that lots of people have similar ones, I had $40,000 or more equity in my house when the irresponsible banks and realtors etc blew the economy out of the water.  Where is the $40,000 I lost because of them?  If they just string me along and “let” me pay them interest for an extra ten years, how does that help me?  I’ll be dead before this house is ever paid off.  I’d like to leave my two children something because the way this world is going I worry about future generations at least the ones minus the silver spoons.  It used to be if you worked really really hard you might get ahead.  The way it is now, the deck is stacked and you are born porn (aka not wealthy) and you will die poor and those are the cold hard facts. 

They talk about the caste system in India and how you can’t get out of it, you are what you are born as.  Unless you hit the lottery here or come up with a new scam to rip others off, its the same story here.  Born poor die poor.

I respect those of us and our ancestors who fought and some died for this country but as for this country itself, if you want to equate it to the self-serving manipulators/powers running it, I have nothing but contempt.

We the taxpayers of this great nation are being hoodwinked by the banks under the auspices of Tim Geithner, Secretary of the Treasury, who has not fully reined in the banks.

I call what’s happening “Bank Welfare” because the banks are rewarded by the US Treasury for foreclosing.  We the taxpayers are paying out our hard earned money to make up the difference between the foreclosure sale price and the loan.  In fact in most instances it is more profitable for the bank to foreclose.  They have no incentive to do a workout with anyone.

JPMorgan Chase did not record a Substitution of Trustee on the majority of properties on which they are foreclosing thus stealing much needed dollars from the coffers of our local county governments that are struggling to make ends meet.  Again they are thumbing their noses at every American citizen and no one seems to care in the higher echelons of our government.

There is no oversight!  There is corruption and deception enough to go around.

The banks prosper while we real human beings suffer.  It is a moral and ethical blight on our nation.


“Anne”: You may hate President Obama, or others who are different from you simply because you don’t fundamentally believe they have as much right to exist. But that’s not your real problem. It is in some to lash out at others when they feel threatened - but it rarely helps the situation any and just makes your life worse. Maybe you grew up during a time when it was “OK” to blindly hate and disrespect people who had absolutely done nothing to you based on what they were rather than who they were - but that’s irrational and unhealthy. The first thing you should do now that you’re under so much stress is try to get yourself emotionally healthy - either again or for the first time.

Begin by counting all the good things in your life. Take one day at a time and begin each day with a prayer immediately when you awaken each morning. Thank God for all that you have today and for His blessings in your life - your family, your friends, the food in your pantry, the roof over your head, etc.

You will not lose your home. Regardless of the frustration you are experiencing now it will get better. But first you must calm yourself and try to think clearly. Give up some of the ugly aspects you’ve been living with 1) hatred of the nation’s first black president - whether you admit it or not is because of the color of his skin. Nature does not have a preference for potential, worthiness or intelligence, 2) the Birthers are feeding your dysfunctional existence and you need to focus on reality to remove the threat of losing your home, 3) be calm and rational when you speak with your bank - reps tend to tune you out and will not help you if insulted or shouted at, 4) if your bank is not cooperating contact a housing counselor at - alot of times they have the names + ext. #s of people who can help break through the redtape, 5) don’t give up.

Take a few days and just focus on getting yourself to a mental state of calm - don’t make calls about the house or to people who are complaining or focusing on things they have no power to alter. Upsetting yourself is doing you extreme harm and altering your mental state - do not allow that to continue.

Happiness is a state of mind. I wish the best for you.

Ending bank welfare if a fine goal.  Problem is its not going to happen. The Banks have bought and paid for the people who are supposed to be there FOR US.  They hold the strings and all the cards.  My Congressman will not only not do anything, he won’t even acknowledge when I write to him.  Why should he, he’s in for life, got his retirement plan, his health care plan, he has no worries after all he is on easy street.

The two party system doesn’t work, all they ever do is argue with each other and nothing ever changes.

Oh, geez, I was stupid until I got Tutt’s information here.  Well, I’m glad somebody here has the opinion that is right and not just his own individual opinion of which, may I say, he is clearly confusing me with someone who cares what his opinion is.

You don’t like my opinion/attitude and here we have something sort of in common because I don’t like YOUR OPINION AND ATTITUDE.

Short and Sweet, thanks a bunch for reading.

Mr. Tutt Tutt clucking hen is one of those people who really amaze me.  My experience doesn’t count for anything with loons like him.

I got my opinion without his help.  I’ve suffered all along the way without his help.  I’ll keep on going without his help.

People like him can’t stand someone having a different opinion, oh no, they’ve got the right way and they are going to “educate me”.

Well save it tutt tutt, I can’t help it if you are the idiot.  And I really wouldn’t have bothered to tell you so but since you’ve taken it upon yourself to tell me where I went wrong and where my problems are not that I’m being screwed over by obama, the government, the banks yada yada, oh no, none of that would be happening if I just had a better attitude.

YOU ARE CLEARLY CRAZY TUTT TUTT.  Not that I care, but you are.  Get help.

Terry Vonderhoff

Aug. 17, 2010, 6:19 p.m.

Oh my gosh.  Anne, sweetie.  I feel your pain, trust me.  You, all of us have been seriously misused and used time and again.

Don’t pay any attention to the misguided who deny what we’ve been through.

People with the message about our bad attitudes are the same ones who would have told the slaves they really didn’t have it so bad and they’d see that if they just put on a happy face and smiled for a change.  Life ain’t bad, its what you make of it.  Now everybody say CHEESE!

Oh, I never made it far enough through Tutt Tutt’s lecture far enough to figure out he is a mindreader.

Let me tell you something Tutt there’s one thing you don’t know.  I’m Black, black as the ace of spaces as a matter of fact.  So I’m rolling on the floor reading that I don’t like Obama because of the color of his skin?

Where do you get off with your arrogance?  Please, save your opinion for somebody the same color you are; STUPID.

Ok, people let’s not get off track here and remember who the real “enemy” is and why we are here! We are here to make the banking industry accountable by administering the HAMP program fairly, honestly and appropriately! The banks acts like rogue thugs with total disregard and respect for us.  the citizens of the US, their customer and consumers!  “what happened to the policy “the customer is always right” or “come first”..what happen to integrity and honesty in doing business??? This attitude of greed and disception is something that must be stopped now! If it contiues to catch on we as a country will not be able to survive..we are heading towards anarchy and lawlessness!!

We must make our government accountable and protective of us, the citizens..this is what they were elected to do and sworn to uphold…our best interest!!

The banking industry must be brought down and now..and we, the citizens collectively have to power to do it!!

Let’s first get the Treasury Dept to do it’s job by enforcing the appropriate administrering of the HAMP program!! Let’s present ourselves as a united front! Right now, we all have a common battle to fight! This forum and others are here to help us do that!


LOL!!  Tutt, Tutt, looks like rain? I also believe in being grateful for what I already have, however, Tutt, I also thnk you need to realize thousands of people of all colors, ethnic backgrounds, religions, etc. have been going through loan mod hell for a LONG time.  Most of us have gone through HUD Counselors, who either put us on endless hold (just like the lenders) only to be disconnected or told to contact the lender and request a modification. 

Being a Math teacher, I firmly believe there’s always more than one solution to every problem.  However, when the problem becomes one based upon the incompetence of servicers’ employees who are “poorly trained” according TO the higher ups at these servicing institutions, the consumers are the ones who suffer and are forced to send, resend, resend again, etc. documents that are being “misplaced” or “not received.”

I’ve been going through this process myself since Jan. 09 only to JUST find out NO ONE was aware my loan is FHA, even though I’ve been telling everyone at Chase (at least the 50 or so reps with whom I’ve spoken) it is in fact an FHA loan.  That’s beside the point FHA is written all over my original docs.

Bottom line is this - positive thinkng/being thankful - definitely.  But, one must also deal with reality and do what needs to be done to get the job completed the right way.  Most of the time, that requires the consumer to be more on top of things than the lenders/servicers, we have to make noise by filing complaints with every possible entity in order to keep our homes for our families. Many of us came upon hardships that were out of our control and went to the servcers for help as they encouraged us to do so.  PROBLEM:  they don’t want to help.  NUMEROUS reps. from Chase told me, “we don’t follow gov. guidelines because we have our own programs.  Your loan can’t be FHA because we don’t deal with those. Sorry ma’am - 31% of your monthly gross income is wishful thinking.”  They even thought the other person, my ex, on the loan was my brother.  NO CLUE where that piece of information came from!!

In any case, we need to fight the banks together - united we stand, divided we fall. The forums, and have been invaluable to me with regard to resources, support from members, great advice, etc.  We help each other in any way we can and some of us are even making progress with lenders. 

Tutt Tutt, this has NOTHING to do with skin color or anything else of that nature.  It has EVERYTHING to do with the survival of the people of our country.

Ok - I’m off my soap box.  :)

I believe it is time to organize, protest, and put pressure on politicians. Wall Street has been bailed out. Wall Street has done nothing to help Main Street. When people make 80-100 million dollar a year they have no concern of the little people.(Maybe that is why these people should be in a 90%taxbracket)Could you be happy with $8million/year after taxes? Well these people just never can have enough.
To them we are in a different class. In there eyes we have to be exploited as long as they can get our last penny. This is why we hear when many people making the modified payments but banks are foreclosing on their homes anyway.
The Banks have no intention of helping struggling homeowners. If the Banks would
want to help they could because the money
is there the government already gave it to them.
As long as our government won’t see angry homeowners protesting on the street this government will do nothing to help save our home.
I am not talking about 50 people at a time I am talking hundreds of thousands cross country.
So people if you want to save your home it is time to get organized and make your voice heard. It is time for our government to make Home Loan Modification Mandatory by these banks.

Gotta love it - we applied Oct 22, 2009 & were in UNDERWRITING until a couple days ago after all the nonsense, loss of paperwork, confusion, lies from employees at Bank of America or miscomunication and lack of knowledge or computer problems at their end, etc., Finally after being told we were approved and waiting on our TRIAL $ which they will have by or before Aug 12th to avoid foreclosure as we haven’t (As instructed by bank to get a quick escalded trial amount) paid our mortgage or been able to afford it for 3 months, needless to say we filed bankruptcy to clear our other debts while waiting so we could afford to keep our house and car and omitted them from Chapter 7 as we ARE KEEPING & PAYING FOR OUR HOUSE…low and behold they told us today they canceled the modification “WHAT” CANCLED? Are you kidding me, they said it went into our legal dept because you guys claimed bankruptcy, I explained it had nothing to do with YOU PEOPLE AT B.O.A. we did it cause our bills got so far behind waiting and paying wrong amts on mortgage etc., waiting for the damn trial since last year/also had HOPE’s help supposedly - and they said sorry you need to start the modification over and re-send all your info and financial stats. ARE YOU KIDDING ME OR WHAT today is 8/7/2010 we already got an ACT 91 letter, this is coming from a couple who worked their butts off to buy this house 4 yrs ago and relocated here in PA with my husbands job which he lost employment last year causing us to fall behind in bills and I recently became disabled with spinal problems and possible MS. WE ARE DISGUSTED, confused, upset, physically & mentally sick over all this and am one step away from both of us driving off the George Washington Bridge because they have ruined our lives. WE HAVE NOTHING TO LIVE FOR WITHOUT OUR HOME now as we wouldn’t have ever claimed bankruptcy because now if we foreclose because of them, we can’t even rent an apartment no credit HELLO??? Are you kidding me, My husband and I are both going to counceling and are medications now and I am on tranquilizers because I can’t deal with this. Lynn Athans, Long Pond, PA 18334

I am a woman and black. I bought my home in 1998 and totally remodeled it before I had an accident that cost me my health, my job and my income. I’m now on disability and I totally agree with all comments on this subject because I know exactly what everyone is going through - I’ve been going through it myself for over 18 months. I’ve had three “trial” modifications and at the end of the trial my loan mod is denied for a different reason each time. If anyone thought I meant anything else I didn’t. T

I’ve tried to get a HAMP modification through my servicer since January ‘09. I’ve faxed the same documents so many times I’ve lost count. I spent months going through agony believing I wasn’t doing something right. I’ve literally thrown the phone across the room after hanging up from my loan servicer. I didn’t sleep for days at a time and when I called WFHM I could barely talk because my mind would just go blank because I had repeated the same things over and over so many times. I had no risk factors for hypertension but my blood pressure went up to 200/100. I decided to back away from the stress for awhile, otherwise I would’ve died.

I finally realized the bank wasn’t making a mistake with my loan mod - most of us will not be getting a loan mod. The bank employees sound untrained because they are untrained - they are unable to answer specific questions about HAMP, and when a homeowner calls they speak with a different rep who says something different from the last rep.

I advised “Anne” to change her routine because it’s clear she is very stressed (numerous long ramblng posts) - and that can be dangerous. Her posts are full of anger and she needs help. I know everyone is angry - we can’t help but be but the last thing a person needs to do is allow stress to take over because it will kill you. There are many stories of people going through this and doing very drastic things like taking their lives, burning their houses down, etc. Stress can keep you from thinking straight and finding solutions.

If a person is going through this and the bank will not grant a modification, and there’s no way that person can keep their home because they can’t afford it - they need to find another place to live and try to go on. A friend told me not long ago “there is no one coming to save you” - meaning I would have to save myself. Sometimes it’s a fact of life that when circumstances change financially people suffer but have to make the best of it. People lose their jobs and must give up their homes sometimes. Although it’s a sad fact of life it happens all day every day in this country. Some of us may have to accept that if it happens, even though we’ve been promised help - it’s not exactly been forthcoming and may not come for some of us at all.

When I first realized I was in this position I couldn’t talk for a couple of months - I couldn’t make a sentence without crying. My uncle called one day - and he had never called me in my life until that point. I wasn’t making any sense and I started to cry. My uncle told me to call him back when I could talk. I called him the next day and tried to explain what was happening with my job and being in foreclosure, etc. Before I could finish he stopped me. He said baby - I want you to start praying first thing every morning. He said I should get on my knees the moment I woke up and pray - and thank God every day for something and for what I did have - the clothes on my back, food to eat, a roof over my head, shoes on my feet - everything I had. Then he said that God didn’t bring me this far to let me down. The next morning I did exactly what my uncle said - I got out of bed and got on my knees and started praying and thanking God. I focused on doing that. I didn’t tell my uncle but when he called me that day I had been thinking of suicide for weeks because I didn’t see a way out - no job, cheated out of LTD after 18 years at the same company, no $$ for doctors or medicine, single and no income, denied food stamps and Medicaid after paying taxes for 30 years, and in severe pain 24 hours a day from a spinal cord injury. I thought my life was over. Checkmate.

After a few days of praying every morning my circumstances did not change. But my outlook changed. I stopped crying and feeling intense anxiety - I was able to think more clearly and I needed to do that. I was so busy giving up I had stopped trying to figure out how I was going to survive.

I don’t want to lose my home and I know no one does - but if that happens I will survive.

Anne - you are not only a lunatic, you’re also a liar - you’re not “black as the ace of spades”. There are no black members of the “Birthers” movement because it is an organization of racists incensed that a black man was elected president of the U.S. He won the election - get over it already.

If a housing counselor has been unable to help you out of the crisis of losing your home (provided you’re not just looking for a forum to vent your ridiculous badly spelled racist rants) then you’re probably beyond help.

Exactly whose fault is that?

So, Mr Tutt, you know everything.  You can’t believe that Black people, none of us, are able to intelligently and objectively see whats going on.  So I have to be a liar.

Those are the choices.  Because YOU SAY Black people are to ignorant to be objective then I’m a liar.

What hubris you exhibit.

What arrogant behavior to presume to call me a liar and to say that we are all stupid according to you.  Is that some backhanded compliment to suggest that we are uneducated and that we need you to represent us since we are incapable.

Would you say that to my face or are you only this bold when you are safely behind your computer.

“Birthers” is not an organization if you were not the egotistical hipocrite you are you would know that “Birthers” is a coined term made up by those (including Obama) who have no answer to the demand to see his Birth Records and so they very cleverly seek to dismiss all questions by labeling those asking them as “Birthers”.

Some very fine politicians in the past have had their careers come to an untimely end because of people like you.  For certain undesirables there is always some unknown and private truth that you can dig up and distort into something that will cast doubt on their character.

People like you are what is destroying this country.  I was born and raised here.  I am a citizen of the United States.  I am Black and you “sir” are the liar.

nissim Sasson

Aug. 18, 2010, 1:31 a.m.

Banks do all of all this (delay, ask for docs again and again,etc) to make it frustrated and to discorage people from asking for a loan modification, they also do it to force you in to a short sale as your only option because is better for them to collect 300K 400K at once than wait 30 years on mod to collect, they already had there bail out so why should they care? they just want to ride the time and then take your home by sometimes giving you what it supose ti be a 3 month trial period they keep you in trial period for months sometimes even 6-12 months collecting the trial period payment but at the end they tell you that you did not qualify and they forclose on your home or force you in to short sale somebody should investigate dipply in to this it is very fishy maybe they bought foreclosure insurance in all tjhese mortages and they collect 80% of the debt from the insurance when they foreclose plus the money from the sale? mmmmm

I’ve learned a lot by reading the comments here. First of all, people are getting more illiterate all the time. Secondly, the “loan modification” program is a huge scam and is a win-win for the banks. They can’t lose and actually gain from your misery. Thirdly, I noticed very few people holding Obama responsible for anything. I remember the black female interviewed after Obama’s inauguration who said it was great having him as president and that she would no longer have to worry about car payments or buying gas. Well, the Obama fan club will defend him to the very end, but in all actuality, Obama was a big talker but things are worse than ever. Look at all the pitiful fools that were so easily fooled by him.


Can you elaborate on all the people and organizations you contacted?  I am about to do the same… send certified letters to each member of the CHASE board of directors, Obama, Bernanke and Geithner, all the TV stations, and newspapers, but it sounds like you have a bunch of other organizations, agencies, and people, I should include.




Everyone, see the recent Chase advertisements:


Another CHASE BANK Loan Modification Saga:

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.)

Isn’t it ironic, that a refinance at current rates would make it easy for us to keep our home, but we could never qualify, since I am unemployed, and CHASE bank seems determined to make sure we never get a permanent loan modification.


One of the CHASE web sites states:


“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!

frank sparacino

Aug. 18, 2010, 8:35 a.m.

well, i can’t add much than what these posts say. i’ve been thru the SAME thing with bank of america.
one time i don’t make enough, then i make too much, then they would lower my payment $56 month (i’m SERIOUS! that was their ‘own’ loan mod program) & lower % to 5.85 still above average. they’ve lost paperwork, etc.  i’ve been trying since 7/2008 w/ C’Wide.

and WE BAILED them out?! we’ve been sold out again by the pols.

very disappointed in Obama. can’t see him getting reelected.

good luck all…

JS makes good points.  I sent a barrage of certified letters to every Chase board member, Jamie Dimon, and federal agencies to include US Treasury, my 2 US Senators and my Congressional Representative.  I even bought shares in JPMorgan Chase so I could write to them as a shareholder.  I received one response from the Secretary of the Board stating they would look into things and get back to me.  They have not and my Senators and Congresswoman here in California have done pitifully little to help.  Perhaps if everyone flooded their offices and picketed the banks on a daily basis something would get done.

It has been 17 months of “Modification Hell” for me while the “Bank Corporate Welfare System” thrives.  I am now living from month to month waiting for the next shoe to drop as the foreclosure process is in play and has been since late April 2010. 

I just completed Chapter 7 bankruptcy and my credit card debts were discharged.  My attorney will file Chapter 13 shortly before my next foreclosure sale date at the end of September.

Though I have an excellent law suit against Chase for numerous violations, I cannot afford to hire an attorney to take them on—as is the case for 99.9% of the rest of us.  HERA won’t represent me because they are too busy and my mortgage too big. 

I have heard that there may be a class action suit against Chase through the Sturdevant Law Firm in San Francisco.

I had an interesting email yesterday that states the following:

Next month will mark two years since federal regulators seized Washington Mutual and sold it to JPMorgan Chase for $1.9 billion. Now a document that appears to be from the Federal Deposit Insurance Corporation suggests the deal still hasn’t closed.

“Everyone is saying the sale is finalized,” said the shareholder, Farokh Lam, of Woburn, Mass. “It is not.”

Lam noticed that on pages 7 and 9, the original WaMu purchase and sale agreement allows the FDIC to extend the settlement date. He says he asked about it, and the FDIC confirmed in phone calls and emails that the settlement date was set for Aug. 30, 2010, and could be extended further.
“Settlement Date” means the first Business Day immediately prior to the day which is one hundred eighty (180) days after Ban Closing, or such other date prior thereto as may be agreed upon by the Receiver and the Assuming Bank. The Receiver, in its discretion, may extend the Settlement Date.
It says: “The purpose of this amendment is to extend the time period for Final Settlement to August. 30, 2010.”

WaMu’s final days were chronicled in depth by Puget Sound Business Journal Staff Writer Kirsten Grind in an award-winning series.
Read more: WaMu sale hasn’t closed, document suggests – Puget Sound Business Journal (Seattle)
Does this mean that all the WAMU foreclosures being pushed through the courts by JPMorgan Chase using the FDIC Purchase and Sale Agreement are invalid?

Does it mean if they haven’t closed the deal THEY DO NOT OWN THE LOANS OR THEIR SERVICING RIGHTS?
Where are the windfall profits going after the foreclosure sale?
What if the agreement changes before it is finalized?
So many questions…
Pipe up in the comments and let me know what you think.
The way I see it is, if they haven’t finalized the deal, how can they foreclose on the homes?

Here are a few facts.
If anyone look up these codes you will realize that Banks have no intention of helping homeowners.

Creation of the Home Affordable Modification Program

1. Congress passed the Emergency Economic Stabilization Act of 2008 on October 3, 2008 and amended it with the American Recovery and Reinvestment Act of 2009 on February 17, 2009 (together, the “Act”).  12 U.S.C.A. §5201 et. seq. (2009).

2. The purpose of the Act is to grant the Secretary of the Treasury the authority to restore liquidity and stability to the financial system, and ensure that such authority is used in a manner that “protects home values” and “preserves homeownership.”12 U.S.C.A. §5201.

3. The Act grants the Secretary of the Treasury the authority to establish the Troubled Asset Relief Program, or TARP. 12 U.S.C. § 5211.  Under TARP, the Secretary may purchase or make commitments to purchase troubled assets from financial institutions. Id.

4. Congress allocated up to $700 billion to the United States Department of the Treasury for TARP. 12 U.S.C. § 5225.

5. In exercising its authority to administer TARP, the Act mandates that the Secretary “shall” take into consideration the “need to help families keep their homes and to stabilize communities.” 12 U.S.C. § 5213(3).

6. The Act further mandates, with regard to any assets acquired by the Secretary that are backed by residential real estate, that the Secretary “shall implement a plan that seeks to maximize assistance for homeowners” and use the Secretary’s authority over servicers to encourage them to take advantage of programs to “minimize foreclosures.”  12 U.S.C.A. §5219.

7. The Act grants authority to the Secretary of the Treasury to use credit enhancement and loan guarantees to “facilitate loan modifications to prevent avoidable foreclosures.” 
20. The Act imposes parallel mandates to implement plans to maximize assistance to homeowners and to minimize foreclosures. 12 U.S.C.A. §5220.

Thank you all for giving me a since of belonging. 
I’m 58 years old and took early retirement from the construction field due to a lack of work and my unemployment was creeping to an end.

But, my retirement is a quarter of normal salary put me in the category that i can’t afford my home per CITIMORT.  My interest rate of 7.6% needed to be lowered.  CITIMORT. took me though a year plus of HELL to say NO.  And now they are saying I’m a month behind and applying FEES and LATE CHARGES,.... mind you I’ve NEVER missed a payment ever. 

(going postal is short from happening)...very stressful.

It’s become very clear to me that a remodification is not going to happen.  After a year of paperwork run around and a continuing three month trial modification that is in its fifth month, I can see the writing on the wall.

My husband was in construction in Las Vegas.  There are NO jobs AT ALL here.  We have applied for more than two hundred positions, along with thousands of other people at each same job, with no luck – this includes McDonald’s, cable installation, literally anything.  The local newspaper lists about 50 jobs in the paper daily, and most of those are expert managers, call center scams, taxi driver commissions, and truck driver positions if you pay for schooling first.  My husband has been unemployed a year and it doesn’t look like he will have a job any time soon.

Another problem, under unemployment we cannot apply to rent an apartment.  So we have no options at all until my husband is working again.  If he were working, a loan modification might be possible, but then again, that is the point of all this – no one is working due to thieving of banks, mortgage, companies, CEOs, Wall Street, and the very rich in general. 

Under HAMP they are suppose to consider your unemployment as income, and yet the remodification supposedly wants proof that you will receive the income for up to three years.  Can anyone provide guaranteed proof or a letter from unemployment or an employer stating their job is guaranteed for three years?  It’s a Catch-22 that will never work for any of us. 

So, I am in the spot where I am playing their game. 
(1)  If they turn me down for the remodification, then suddenly my income will change and I will make them go through all the paperwork again.  I figure I can drag that out for at least another 8-12 months. 
(2)  Every time I send paperwork, I send it certified mail so I get a receipt saying they received it.  I also mark on the front of the envelope and on the receipt, the exact papers enclosed.  I enclose a letter reiterating everything they told me in the last phone call. 
(3)  In the paperwork and letters packets, I also enclose news articles about any new legislation by the president stating the unemployed are allowed to refinance, and new programs for us, etc.  I also enclose and restate within my letters that accompany the paperwork any online or news articles about the mortgage companies scamming us.  I pointedly ask them if they are scamming me, and to please let me know so I can just give up and kill myself now, because this extended agony is making me hopeless.  I recently sent in one about the wrongfulness of extended trial modification payments, and again, in capital letters, asked them if they are scamming me and to just say so, so we can both quit wasting our time.  They dare not say it’s a scam, so this may drag it out longer.
(4)  I make a follow up call to be sure they received it and hold on the line until they find it – I simply use a portable phone and headset and walk around the house doing my usual chores while on hold.  I’ve been on hold as long as 90 minutes while they searched for papers I sent it, sometimes to find them and sometimes to not.  If they don’t find them, and I have the receipt, I call back every day with the same “on hold” arrangement.  Hey, it’s their 800 line and their dime, and I have nothing but time on my hands.
(5)  If I get a representative that seems a bit understanding and not a total jerk, then I cry and cry and tell them about my seizure prone grandbaby who will be living in a van with me if they don’t comply with HAMP rules for remodification.
(6)  I make sure the trial modification payments are on time and I don’t let much time go by before writing them again, certified mailing, and asking if this is a scam or are they really trying to work with me.  Each of these letters are tear filled (which is sincere, believe me), and express how stressed and very depressed I am at just hanging in here without resolution, and how a denial will probably push over the edge.  I believe we need to use every bit of ammunition we can to fight this.

Sadly, in the end I know I will lose just like every one else.  But my hope is to be able to stay in the house until my husband gets work, so we can at least rent some shack somewhere.  My husband’s unemployment may run out in late September, and then we are just sunk.  We cannot get an answer from unemployment about whether he will be eligible for continued benefits.  It’s not because they don’t want to tell us, it’s because they don’t know.  All I can say is *push the gun closer* because hope is gone and there is no where to turn.  Nothing we do will change this.  It’s simply true that the rich run the country and no one cares about us.

Valerie and all - Please do not give up, do not leave your home, make them call the fff*ing sheriffs department. Submit a new request every month. I have been living in my home without paying the mortgage since Oct of 2008. I asked for a modification before I couldn’t pay and they told me flat out “NO” on the phone. They have been telling me NO for 2 years.
Now write your congresspeople and President, to their local and Washington DC addresses, write the Speaker fo the House. Write your bank President, write the VP of your bank. Write to HUD, RESPA. Send all your letters certified. State your case and fill the letter with anxiety ridden rhetoric, just no expletives. Once you have exercised your 1st amendment rights,  exercise your 2nd amendment rights and get ready for the next revolution.


Adriana Cordero

Aug. 18, 2010, 5:58 p.m.

I started helping homeowners in 2007 after I almost lost my home because HOMEQ refused to offer me a Loan Modification after our income decreased.  I have seen so many families destroyed and I am still helping over 50 families get their Loan Modifications.  It has been my experience that it all depends on who gets your file at the Loan Servicing Co. or Bank.  Some people really want to help and some have no interest,  I will advise you to never give up.  If you are denied for HAMP, get in writing the reason for the denial and appeal it.  Apply as many times as required to get your situation solved. Send letters to the CEO, Attorney General, your local government officials.  If you dont have those addresses email me and I will gladly send a list to you.


This really is up to the media at this point to expose these lenders.Let us all not forget that WASHINGTON
is allowing this to take place.This program has been nothing more than the biggest scam ever.

Ms. Adriana Cordero, I would love to have that list of addresses.  Your email does not show in your post so here’s mine ...

Thanks for the encouragement Darrell, but I’m just being realistic.  I’ve spoken to hundreds of people in my area, and even asked the Consumer Counseling Center, if they have one success story of someone getting a remodification here in Nevada.  Anyone!  And no one could say yes, not even the government help center.  In essence, the Help Center said all HUD or they do is help you with the paperwork.  Well, I can do the paperwork, and have - many times!  I’m sure I am now a pro at it.  But it’s not going to work out for me to keep my home because the government is going to stop the extended unemployment benefits and when that stops, so does our income.  And then, IndyMac wins, because they don’t have to work with me wihtout an income.  That’s what they wait for.  They wait for your unemployment benefits to end so they can call you a deadbeat and kick you out.  But the joke will be on them, because I will not notify them of ending unemployment and I will drag this out with whatever tiny aluminum-can-pickup or house-cleaning or dishwashing-cash-under-table incomes I can con them with, so we all have to do ALL the paperwork all over again.  I will drag this out for as long as I can.  And then, yes, sign me up for the revolution.  I am certainly a second amendment rights person - I want another tea party revolution.  The government has stolen our life work from us and we need to get it back.  But, sadly, we all know, there will not be a revolution.  There will just be a bunch of whining (by us, like now) followed by the government doing exactly what they want, and not what we want.  Government out grew us and over powered us, and it’s too late to fix it or survive it.

I spent over a year fighting Wells Fargo without any success. 

Then, I got help through NACA.  A counselor interviewed me in detail and re-submitted my paperwork.  After it was declined again, they started escalating. 

NACA is traveling around the country doing “Save the Dream” events.  The mortgage companies have agreed to make modifications in person for those who qualify.  First, NACA ensures that your paperwork has been submitted and you fulfill guidelines.  Then you actually meet with reps from the mortgage companies. 

They were staging an event in my city, so I registered.  All of my paperwork was already in NACA’s system.  In one day, I was given a permanent modification.

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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