Journalism in the Public Interest

Profiles: Shoddy Bank Practices Continue Even After Mortgage Mods

Many homeowners have received a mortgage modification only to find themselves once again at risk of foreclosure because of errors by their mortgage company. ProPublica investigated six of these cases.


Five months after starting her mortgage modification, Carolyn Chaney of Seattle, Wash., received a notice from Bank of America informing her that she owed $1,400 in missed payments and late fees. (Photo courtesy of Carolyn Chaney)

As we reported today, many homeowners have received a mortgage modification only to find themselves once again at risk of foreclosure because of errors by their mortgage company. An informal survey of legal-aid organizations suggests this is a frequent problem.

ProPublica investigated six homeowner cases. The cases involved four different mortgage servicers and a range of problems. All are among the largest servicers: Bank of America, JPMorgan Chase, Citibank and PHH Mortgage.

JPMorgan Chase

Chanel Rosario of Staten Island, N.Y., finally got her modification last year after years of trying. The offer came after a New York judge told Chase's attorneys they "should be ashamed" of their conduct and threatened to hold them in contempt of court. But after months of making payments, Rosario called up Chase and discovered that something was wrong. The payments weren't going toward her mortgage, and Chase was still reporting her as delinquent.

Another Chase homeowner had a similar problem: Her modification had somehow disappeared in the company's computers. The Oregon homeowner, who preferred to remain anonymous, signed and began a modification last July. But she received a letter months later telling her that she'd been rejected for a modification. One month after that, she received a foreclosure notice.

After months of trying to figure out what was happening, she was offered a new modification, the terms of which were identical to the one she'd signed -- except for the addition of over $8,000 to the balance of her loan. Understandably, she turned it down. But after having made every payment on her modification for nearly a year, the foreclosure notices continue to arrive.

Contacted by ProPublica, a spokesperson for Chase said that the bank would honor the modification and had "changed her status to current."

As for Rosario's situation, the spokesperson said the bank would reach out to her and her husband "to discuss their situation."


Michael Skadeland of Chicago, Ill., was among the first homeowners to receive a modification through the government's Home Affordable Modification Program (HAMP) way back in November 2009. After making payments for more than a year, he was puzzled when his account wasn't credited $1,000. One of the main benefits of HAMP for borrowers is up to $5,000 in incentive payments toward the mortgage, applied yearly.

After months of phone calls trying to figure out what was going on, he was recently told by a CitiMortgage employee that he wasn't in fact in a HAMP mod, despite his signed contract. He'd been put into a different modification plan and was never told about it.

Mark Rodgers, a spokesman for Citi, said the bank was looking into the case and hoped "to resolve it promptly."

Skadeland said that he'd spoken to a Citi employee Wednesday who said that the bank had made a mistake and would offer a settlement of $5,000 for the error.

Bank of America

In Nevada, Adil Baeza and Najwa Elbahi of Reno inexplicably received a foreclosure notice three months after starting a modification last year with Bank of America.

Bank of America spokeswoman Jumana Bauwens said that the bank apologized for the error, which happened because "after completing the permanent modification, we found that we did not prepare the documents correctly to show the forbearance they were entitled."

Bank of America rescinded the foreclosure and took "corrective actions to fix their credit reports, delinquency and fees associated with this error" in January of this year, she said.

Geoffrey Giles, the attorney representing the couple, said the bank only corrected the error after he interceded and that the couple was owed other compensation. "Previously [Bank of America] was making generous deals with homeowners they did this to, but the problem is apparently so widespread that they have thought better of the process, so now they are just saying 'sorry.'" Giles said he was handling a number of similar cases.

Carolyn Chaney of Seattle, Wash., had a different problem with Bank of America. Five months after beginning her modification in August of 2010, she received a notice from Bank of America informing her that she owed $1,400 in missed payments and late fees.

Contacted earlier this year by ProPublica, Bauwens of Bank of America said the notice had been sent in error and that all the late fees would be waived.

Bank of America, like the other servicers contacted for this piece, did not respond to questions about whether these problems were widespread or what steps the company was taking to prevent these sorts of errors.

PHH Mortgage

In West Haven, Conn., Anthony Bondi had made three payments of about $850 -- the payments specified in his modification agreement -- when he received a statement from PHH Mortgage asking for over $1,800. "What they did to me was wrong," he said.

Dico Akseraylian, a spokesman for PHH, said the company was "ready to honor the loan modification agreement as accepted by Mr. Bondi," and that it had attempted to reach him "to address this matter," but wouldn't say whether the company had made a mistake or not.

Jeff Gentes, an attorney with the Connecticut Fair Housing Center who worked with Bondi, said the jump in the payments was likely due to an accounting error by PHH and said such demands for extra money often pop up in the early months of a modification.

Of course!  Because there are no teeth, no penalty for bad behavior.  Why wouldn’t banks try once again to get away with fraudulent practices if they haven’t been held accountable for previous examples?  This is not rocket science!  Even a kid knows that he runs the house if the parents consistently look the other way.


Good investigating and keep up the good research.

My heart goes out to the families that the banks affected.

Maurice Welsh

June 2, 2011, 2:16 p.m.

You have not reported on Deutsche Bank allthough they have a helleous record particulary in S. California.  They are one of the largest banks - is it that they are a German Bank that they have managed to fly beyond your radar?  Maurice

Mike Callahan

June 2, 2011, 3 p.m.

Let’s finally face it people.  Show me a large successful (Too big to fail) American bank, and I’ll show you a criminal organization, who bribes congressman to steal money from American taxpayers to maintain their business and continue to cheat the American.  The facts of the last financial meltdown don’t lie.

The only way to beat a game that is rigged against you is to not play.  Americans need to reach out to each other, support each other and not buy into the BS about an American dream.  Live as simply as possible and be grateful for every day.  Do as much as you can to stay outside the trap.

Bank of America denied my modification bec they stated I didn’t submit requested info. Here’s the kicker, all documents were faxed twice from my local Bank of America To BAC Home Loan processing showing they were received by the adjuster that was handling my modification. Still to this day, nothing has been achieved. It is a travesty bec BofA received too much of taxpayers monies and taxpayers aren’t able to even get a rep on the phone that knows what’s going on. I think they are too big for their britches.

nathaniel bostwick

June 2, 2011, 5:58 p.m.

shoddy treatment is a mild way of putting it! Chase took my home of over 50 yrs telling me I hadn’t sent in docs, Bull S**t, I sent everything they asked for, sent 4 months of $550 and still they took my home.
I’m 67 years old, have Multiple Sclerosis, a now live in a s**t hole overpriced rental.
Chase and Jaime Dimon suck!

clarence swinney

June 2, 2011, 6:11 p.m.

What is difference between a few owning majority in a Dictatorship—Monarchy or Corpocracy?
America is close to top in Inequality
20% own 93% all Financial Wealth
120,000,000 Les Miserables own 7%.
Dumb is just Dumb.

Huge Tax Cut for Top 2%
2% own 50% all Financial Wealth and get 30% all individual Income.

Bush borrowed 6000 Billion much of which aided their enrichment

Are we not Dumb? I am.
olduglymeanhonest madmadmad at Inequality in America.
.(JavaScript must be enabled to view this email address).


June 2, 2011, 7:11 p.m.

Chase refused my loan modification after being unemployed for over a year. I was diagnosed with a chronic disease and was well qualified for the loan modification program. The church helped me make my payments during the application wait yet Chase denied my application because “I was NOT behind on payments”. However, if I was behind, they would have begun foreclosure proceedings. Chase has overcharged me for taxes by not appling a homestead exemption for 6 months, have made errors on escrow analysis’, tax payments and statements. Apparently, these banks can do anything, regardless of the governing rules and regulations. When I reminded them the Making Homes Affordable Program was established by our President, they responded, “that is not a requirement, it is only a suggestion”. Nothing like thumbing your nose at our President. Way to go Chase.


1. The mortgages created in the last 10 years are NOT REAL MORTGAGES…that is why your paperwork says “This is a debt collector”. They were default debt FROM THE START.  MORTGAGE-BACKED SECURITIES and CREDIT DEFAULT SWAPS caused the economic collapse…A GIANT PONZI SCHEME.  The mortgages are all UNSECURED DEBT…

2. The government does not want you to figure this out.  That is why the foreclosures are being pushed through as fast as they can…that is why the banks PRETEND to give you a loan mod…THEY KNOW THEY HAVE NO CLEAR TITLE TO YOUR HOUSE. Look in your county records…educate yourself!!!  They are trying to get you to sign a waiver
(if you get a “loan mod”—-which is really just a modification of “false default debt”), so you can’t SUE THEM in the future when you find out about the FRAUD.

3. They (the bank) IS NOT A TRUE CREDITOR.  LOOK AT YOUR PAPERWORK AND DOCS VERY CAREFULLY.  If they try to foreclose, make them PROVE STANDING—-which means they have to PROVE OWNERSHIP OF A LOAN—-something they CAN’T DO.

I have learned about all this from this site:


I put the dots where the periods are because they don’t let you post a link here—-go to that site and start reading—-don’t let them take your home—-you don’t have to—-they (the banks and the government) are counting on you giving up because what they did with the “fake loans” is so complicated and hard to understand…but you must educate yourself if you want to save your home—-I know it sounds unbelievable, but there are NO REAL LOANS—-not like in the “old” days, before “securitization…GOOD LUCK!!

PS—-I AM NOT A LAWYER—-just a mom and an artist, who can’t stand to see all these people suffering needlessly—-PLEASE watch the movie “INSIDE JOB”—-it will get you outraged enough to really fight the banks!!!


June 2, 2011, 8:32 p.m.

FRAUD on top of FRAUD… on top of FRAUD… on top of FRAUD.. on top of FRAUD… it never stops with these criminal banksters. and when it does, they commit more FRAUD…in top of FRAUD….


See if you can relate my story with your “loan”:

I got my re-financed “loan” back in 2006.  I thought it was a “regular” loan.  They never told me that it was going to go into a “mortgage-backed securities” situation…which is fraud, for one thing…I went into default last year because I had been told that I could get help with a “modification”...I of course had no idea—-like everyone—-that my “loan” was actually not a “real” loan…so, I sent paperwork a MILLION TIMES—-because, like everyone else, they were PURPOSELY PRETENDING to not “get” my paperwork…more fraud…
Then, because I was so angry and frustrated, I started searching online for answers to the reasons why this horror story was happening to everyone—-it just didn’t make sense…
AND I started looking at my documents much more carefully.
I found out about MERS.
I found out that my original loan number is NOT the same as the one on my current statement…quite a clue there…
I found out that I had been paying a “servicer” all these years—NOT a “Lender”...because there is no real “lender”...
I found out that the fake “mortgage” was “bundled” into a default debt situation and sold and resold and resold again and again and again…THANK YOU WALL STREET/BANKSTER CRIMINALS…they created the giant ponzi scheme WITH THE HAPLESS HOMEOWNER AS THEIR VICTIMS…made billions…and all the homeowners are paying for it…with the collapse of the economy…ans total devastation…
I found out this happened all because of DEREGULATION…encouraged by THE GOVERNMENT…who is doing NOTHING to help the homeowners!!!!!!!!!!!!!!
Things will begin to get a little clearer…

See the Oregon SB628 which is trying to put some teeth into enforcement against lenders, who lean on the little people bullying home-owners. Also ,see the Oregon Business Journal June 3 issues hitting the stands tomorrow. My personal as well other Oregonian are dealing with the same problem. Modification Reneging was the topic at the legislative hearing last month and the bill is looking good at this time for passage. Maybe Propublica could have a look into the legislative process and see who lobbies on-behalf of the lenders, and what is that all about?

David Jones
Portland Oregon

Gregory Lemke

June 3, 2011, 7:28 a.m.

Learn more about abuses in home foreclosures at and help us protest for you by fighting back with us !

@ David Jones, correction: SB 826!
here is a link to let others know what’s cookin’ on Oregon - plus a shout out too for Brent Hunsberger @ The Oregonian, a reporter who really GETS it!:

@Carie - you could have written my story - I’m in Baltimore, Maryland.  This is exactly what happened to me.  She’s right people - EDUCATE YOURSELF.  The TBTF institutions took our money and did what with it?  Yes that’s right - they paid themselves.

@ Elaine—-Unfortunately, my story is sadly the same for MILLIONS…

The GIANT CASINO that is Wall Street/Banksters/Government has killed homeowners and are now hiding the TRUTH and throwing them under the bus—-have been for years—-BUT THEIR ARE NO LOANS!!!  IT’S ONLY FALSE DEFAULT DEBT—-THEY DON’T WANT YOU TO FIGURE IT OUT!!!
The fraud perpetrated with regards to the “mortgage-backed securities” (study your mortgage paperwork!)  means that you owe no one…

Thanks so much for the info

Archie Williams

June 4, 2011, 5:39 p.m.

I started a Home affordable modification in Oct. 2009, and was turned down three times after each trial period which was each three months, with an excuse of you are unemployed then they turned around and gave it to me because they did have a plan for the unemployed then they told me if i became employed they would reconsider which they did when i started my own business at the end of the trial period and then they said i didnt make enough money to qualify, then i showed proof through a profit and loss statement and then i was eligiable and completed the modification.  I excepted it being that i waited almost two years.  The problem that i have is that i paid all my trial period payments on time and still my credit is affected, and they are saying this is because my original payment was not being met.  I thought this modification was suppose to help not hinder, my becons have gone way down.  What can a person do .

lets put a good class together, who is up for it?

Class actions don’t get much, unfortunately…unless it’s for billions…

PLEASE GO TO WEBSITE:  livinglies(dot)wordpress(dot)com  

(sorry, they don’t let you put links here…)

Start reading there…LEARN THE TRUTH…because you ‘aint gonna see it on the 6 O’CLOCK NEWS!!!!!

I’m in the same situation as almost all of you!!! What can we do? I’ve been through a lot in the last several years and was sooo happy when I bought my own home in 2008. It has become a nightmare causing health problems and severe anxiety. I feel used, taken advantage of and powerless. PLEASE, someone, find a solution!!

Shari, your house doesn’t define you, nor can any fraud or corruption change who you are.  These jerks only have the power we give them.  There is no solution other than not playing the game.  Do what you have to rise above it.  You are much more important than this nonsense.


June 5, 2011, 12:40 p.m.

Compare a house to car and people will get it, If the bank is trying to fraudclose, and don’t have the NOTE because they destroyed it in their PONZI SCHEME, Its the same as with a car. No one argues that if you can’t produce the title to a car you want to sell proving its yours, you don’t have legal ownership or the right to sell it.
Who would buy a car if you couldn’t get clear, no question, title stating the person you are paying money to is the legal owner transferring an original, recorded, title to you?
The point is the same, the law is the same, the only difference is the amount of money involved between title (note) of a house and car.
Why this is made so complicated is the banks or lenders trying their hardest to confuse the issue? (yes they are)
It is really quite simple. Don’t let them draw you into a complicated case or laws hoping to confuse a jury.
Keep it simple, use examples of buying anything else, and everyone will understand.
Fight the good Fight against the Ponzi Schemme
I would like to add, Sell someone a car, take their money or sign a payment agreement ( a note in ahouse) and not give them a clear title. Go to court and see if the judge will excuse You for just sloppy bookkeeping or sloppy work, Not a chance I guarantee you’ll have to produce the original note or else !.


June 5, 2011, 12:54 p.m.

If the bank is trying to fraudclose, and odnt have the NOTE because they destroyed it in their PONZI SCHEME
Its the same as with a car. No one argues that if you can’t produce the title to a car you want to sell proving its yours, you don’t have legal ownership or the right to sell it.
Who would buy a car if you couldn’t get clear, no question, title stating the person you are paying money to is the legal owner transferring an original, recorded, title to you?
The point is the same, the law is the same, the only difference is the amount of money involved between title of a house and car.
Why this is made so complicated is the banks or lenders trying their hardest to confuse the issue? (yes they are)
It is really quite simple. Don’t let them draw you into a complicated case or laws hoping to confuse a jury.
Keep it simple, use examples of buying anything else, and everyone will understand.
Fight the good Fight againnst the Ponzi Schemme
I would like to add, Sell someone a car, take their money or sign a payment agreement and not give them a clear title, Go to court and see if the judge will excuse You for just sloppy bookkeeping or sloppy work.
Not a chance I guarantee you’ll have to produce the original note or else! why is not the same with the banks? that is the quaestion

This is President Obama’s administration to manage as Chief Executive, and it seems like this story gives him sufficient reason to step in. Helping homeowners was one of his signature strategies for jumpstarting the economy. Iif it isn’t functioning properly perhaps he should find out why government agencies are failing to get lenders to cooperate.  Americans who are trying to do the right thing should not have to struggle to secure loan modifications. This is a foundational industry, building, buying and selling homes! If the log jam frees up, the economy might start to flow and growth could begin—good for homeowners and great for the President.

@ Carie & @ acmod - please stop nuking these board with massive comments, laced with all-caps. Summarize, and link to a blog or twitter feed if there is more.

very surprised to see all these comments concerning loan modifications… im worried.  i got mine about 9 months ago and have been paying my reduced amount since then with no problems so far.  BUT I KEEP NOTICING that my lender keeps charging me late charges and fees which were to be dropped when i received my modification.  after many calls and letters to them, i still cannot get a reply either good or bad, they just ignore my letters amd calls…...dont know how to get their attention????????  they have never notified me concerning this matter.  i keep paying my regular payment but each month these charges keep showing.

Mr Kiel…You need to folowup with ALL of the banks and their procedures.
If you will check GMAC Mortgage you will find that their website and
mail correspondence shows no contact names or phone numbers for followup discussions. Further investigation wil reveal that the Customer Service Dept will not transfer calls to supervisors or Managers. Furthermore, no documentation is provided for Declined Loan Modification. No Names…No Phone Numbers…No Documentation.
What’s wrong with this picture? e-mail me if yoou need evidence.
Ken Nygaard

I can’t believe I’m reading all these stories just like mine. We bought our house back in 2007. The mortgage was secured by my husband through Wamu. The story is too long so I’ll stick to the highlights. We’ve been approved for two modifications that we signed and made all payments on that never stuck. Magically our payments weren’t credited to our new loan properly, etc etc. We are now working on our third…for the past year and a half! Countless hours on the phone, hundreds of documents faxed, no one we talked to on the phone could even understand what was happening with our loan, we attended an event Chase put on at a hotel to be able to speak to a live person, which we did, and she promised to help us. That was nine months ago. Twice she has told us we were ready to be approved, she just needed one more thing. We would send it in, not hear anything for a couple months, then back to filling out the same papers and faxing the same doc’s. Just last week they said I had to sign a credit report form so they can run my credit even though I was never on the mortgage. When I questioned why I had to do this I was told by my Chase rep that it was all part of the new guidelines. We are still waiting to hear back and that was a week and a half ago. I don’t even know what the loan amount is for until I get modification papers and the kicker is that when we went to the thing at the hotel, they had our loan, which was originally $455,000, up to $497,000. That’s after having paid on the loan for the first two years and all the loan mod payments, which included a $3,000 escrow on the first loan mod. I told the woman that made no sense and she said she would look into it but we haven’t even gotten past the filing out forms/sending in doc’s faze. I don’t know how much longer I can live with this stress. At least I see this is not an isolated case. I kept thinking I must be doing something wrong. Now that I read all of this I’m going to get more educated online and go watch Inside Job. What a bunch of crap this all is.

This is fraud, plain and simple.  Homeowners have been left to the sharks and to add insult to injury, have been offered false help that in many cases turns out to make things worse.  Don’t expect the govt to do anything.  They are now just agents of the banks and financials.  If Obama and the Treasury had wanted to help in the first place, they would have put teeth into HAMP.  Instead, HAMP was just a “suggestion” as banks have openly admitted.  Taxpayers have no idea how much revenue has been given to banks and financials in the opaque economic rescue plan, but my guess it is in the trillions of dollars.  Rescue for homeowners?  It’s not coming.  I’m in the opposite position.  My wife and I want to buy a house.  We saw the bubble and waited, knowing that it would burst.  Now as homes have come back to a price we can afford, we can’t get a loan!


June 7, 2011, 6:35 p.m.

Willhaper, Even if you get a loan, and you get a great deal on a house how do you know you safe? we are already hearing about clouded titles and wrongful foreclosures, forged affidavits to foreclose, robosigning, etc how do you know that the previous owner will not go after your house if it was wrongfully and fraudulently foreclosed?  Banks are foreclosing on properties they don’t own

Once again,  everyone please WAKE UP and FOCUS
on what I am telling you:

First, go to:  livinglies(dot)wordpress(dot)com

(sorry, they don’t allow links here, obviously you just put a period where I wrote the word “dot”.)

Read articles and comments on that blog’s upper right corner…I know it’s a lot of info, but trust me…you need to learn the truth about what is happening…no one will tell you on the news, because the banks and the government don’t want the truth out there because of the chaos that they believe will ensue.

This is the truth:  A “loan modification” is simply a payment plan on “default debt”.  NOT a REAL LOAN. THERE ARE NO REAL LOANS.
I know you think I’m crazy, but it’s the truth…think about it everyone…the absolute chaos that you are seeing with regards to the mortgage industry—-regarding paperwork, documents, calling people back, getting or not getting faxes, fraudulent foreclosures, fraudulent titles on properties, and on and on…If you talk to someone at a bank for answers, YOU DO NOT GET THE TRUTH. Most of them don’t even know the whole truth.

Wall Street and the Banks created NEW RULES for themselves when deregulation took effect—-which they pushed for with lots of money, and the promise of lots more money…
They created a “fake mortgage” industry—-no one has a “real loan”, and they are covering it up…It’s all unsecured debt, that has been either sold and resold for collection rights, or effectively “paid off” by insurance…believe it or not.  Your original loan docs are fraudulent—-you signed on the dotted line and they put your “false note” into the “securitization machine”—-my loan NEVER when to a “bogus trust”—-it’s all a lie—-a shell game which made a few people very, very, rich…and none of them are in jail…and some of them work in the government.

I guarantee if you stop paying what you think is a “mortgage”, the banks CANNOT PROVE they own anything…they LACK STANDING to foreclose…that’s why people have been staying in their houses for 3 years without paying anyone—-BECAUSE THEY ARE FIGHTING BACK!!!  They are saying “Prove that you own a “loan”...or my “note’...

My servicer IndyMac sent me a bogus “substitution of trustee”, saying Deutsche Bank owns my “loan”...well, guess what Deutsche Bank doesn’t OWN ANY LOANS.  That is a direct quote from John Gallagher, a spokesman for Deutsche.  And the “securitized trust” that my loan is supposedly in is EMPTY.

Welcome to the mortgage industry of the 21st Century…a giant PONZI scheme followed by an even bigger COVER_UP.

The MEGABANKS will be failing very soon—-stock up on food and water, people, and get out the lawn chairs, ‘cause the spectacle is coming…


June 9, 2011, 2:06 p.m.

Carie you are 100% right, the problem is that even when the homeowners request to know who owns his mortgage or ask for the original Loan, or proof,  they just go ahead and foreclose in the homeowner anyway, So even if the homeowners demands the truth they get foreclosed anyways, I heard many stories of homeowners demanding the original docs and then they get foreclosed, They key is to know how the homeowner successfully can defend himself and what about non-judicial states? there is even worse

I sent a CEASE AND DESIST to EVERYONE…every single address available—-the servicer, the forecloser, the bank, the trustee, EVERYONE.


Then you file a LIS PENDENS…(pendency of action), and a TRO
(temporary restraining order)


“Pendency of action” (lis pendens) is what allows for the possessory rights and your interests to the usefulness and necessity of your property to be protected and sustained by way of the legal process. This process and “pendency of action” will further allow for other discoverable remedial avenues to be revealed, and the process itself will allow you to benefit from your possession and occupation of the property.


They are hiding the REAL TRUTH about the systemic mortgage industry FRAUD.

It’s ALL connected to the WALL STREET RAPE OF AMERICA…while the government helped it happen by turning the other way…and deregulating…

The government is OVERWHELMED with the pervasiveness of the problem…so they DO NOTHING…because if they revealed the TRUTH, they would have to give everyone their house with NO MORTGAGE, and then have to deal with all of the people thet they foreclosed on ILLEGALLY. 

You MUST help yourself.

Judges are FINALLY—-here and there, declaring “fraud on the court”, with regards to all the fraudulent mortgage paperwork.


from livinglies(.)wordpress(.)com :

“So here is the current situation: Many if not not a majority of people who have passing knowledge of the housing crisis and the attendant credit crisis which has brought our economy to a crawl, assume that the mortgages were valid; they assume that somehow, as if my magic, the obligations, notes and mortgages are owned by pools that never received any documents of transfer, delivery, assignments or evidence of recording the instruments in the title records; they assume that the documents of transfer exist in recordable form when they don’t exist at all. They assume that the problem is fixable and just a paperwork mess when in fact there was NO DEAL, NO VALID NOTE and NO VALID MORTGAGE.
Investors advanced money on the premise that the mortgages already existed when they advanced the money. They were wrong. The investors assumed that the transfer documents existed. They were wrong. And they assumed that the law which requires the transfers be properly made and documented within 90 days would be followed. They were wrong. And most importantly, they assumed that they were buying valid performing loans when in fact the notes and mortgages describe a transaction that never took place and the real transaction went undocumented. Instead, the only documents for transfer are those involving loans that have been declared in default but which are not in default because the servicers are continuing to make payments to cover up the fraud at the inception of the false securitization scheme.
Thus the only thing the pools have are some documentation that was not and could not be accepted. The transfers are contrary to the two basic restrictions that one would expect in any such pooling arrangements: that the mortgages were valid and properly transferred and that they were transferred in a timely manner. By transferring improperly documented and non-performing loans into the pools the investors were screwed. And still the logical extension of that fact has not been made; if the investors were screwed and the their deal was improperly documented and obtained by false pretense, then it follows that the same holds true for the only other real party in interest — the homeowner.
As long as we continue this myth the economy will drag along the ground, while the people who have capital and wealth — homeowners who do NOT have a mortgage encumbrance but think they do, or who have been (illegally), evicted from their homes when they still owned those homes — are prevented from spending, capitalizing new businesses and all the other good things that would stimulate the economy and turn the markets around — all of them — in a 180 degree turn from bad to good.”

Just a quick word-2nd Post-I am seeing a lot of B.S. on this blog and would like too make a few points. 1..Your bank financed your loan based on your credit or abIlity to pay. 2…The bank sent the loan to a servicer and the servicer sent it to Freddie Mac.(hopefully) 3…The servicer received reimbursement for the amount of your loan. 4…The Servicer/Lender sent YOU a contract which YOU signed. .5…In return the servicer fied your Deed of Trust in your name at rthe county courthouse. 5…If you can’t make payments, they own the contract. The terms for Non-Payment are in the contract and YOU signed the contract—PERIOD. If you are behind or getting behind call your lawyer imediately. THE LENDER IS NOT YOUR FRIEND. 6….Your state may have Judicial Review or Non-Judicial Review regulations. Non- Judicial Review laws state that the servicer/ Lender can go into court and TAKE your property without your input or any court hearing.

Mr Kiel should have checked all of his facts before writing this article.
Bad journalists are everywhere—BEWARE.

Same thing happened to us with Citimortgage they basically told us in order to qualify for a remodification we had to be behind on payments for 90 days , per that advice we did that only to be told we did not qualify , we then had to proceed withg a short sale as my spouse was being relocated to a new office out of town. and again on the advice of the realtor in order for the bank to accept a short sale we had to not make paymnets. long story short they reported this as deliquent BUT accepted the short sale as paid?? messing up my spouses credit. FRAUD and CROOKS CITI mortgage should be ASHAMED. They got a free hand out only to pay it off with telling people to mnot pay and when they did pay was socked with outragous late fees.

I fought 20 months endlessly with Indy/mac One West to get a loan modification, and finally got it. Long story short, They put me in HAMP trial which lasted 10 months, instead of 3, then denied me for “contribution letters” not received when no one contributed to our income. I had documented everything and 3 supervisors had told me that they were not needed, and have been dismissed, yet it ended up being the reason I was denied.
When I went to dispute the denial through MHA (Making Home Affordable hotline) they informed me I should have never been placed in the program to begin with because I did not meet the basic guidelines (regarding loan amount cap) to even apply! Therefore to dispute the HAMP denial was pointless. At this point, BECAUSE of the HAMP trial I was over $50,000 in arrears, and put immediately in foreclosure.
Then the fight began..
I fought, got escalated, had a congressional inquiry done, and had the date postponed three months. They made me appy all over again. As I did, I also communicated daily with escalations. I argued that I could easily sue for unfair debt collection and false promissary because they put me a program and collected money when I never even had a chance at HAMP.
There ridiculous response was, “you were actually never in HAMP, but a HAMP, “like” trial, and the failure to distinguish the 2 are immaterial because they mirror each other)
I fought that it was a violation of truth and lending. They couldn’t legally have me sign a HAMP trial when it had nothing to do with the government program. Every document request I receved for the 10 months I was in it all said HAMP right on it, with the Making Home affordable logo.
Now they offered me a loan mod, which has good economical terms. It is what I fought tiredlessly for 20 months, NOW I AM SCARED TO SIGN IT BECAUSE OF EVERYTHING I AM READING HERE!!

June 29, 2011, 1:33 p.m.

Again, the REST Report eliminates all this treachery.
It uses the bank’s own software to calculate a mortgage mod.
There’s nowhere for the bank to run.

4000 out of 4000 REST Report successes - absolutely zero failures
How much better do you want the odds?

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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