If you think you have your mortgage modification under control – STAY ALERT. Discussions with attorneys have indicated the banks are reneging on their modification agreements and settlements – even after judicial order. Servicers like Ocwen Loan Servicing are refusing Western Union payments and some servicers are peddling properties they have agreed by court order to reinstate to real estate brokers whose agents are spreading false rumors that homes are back in foreclosure. It is hard to understand how anyone in the real estate industry would ever touch a foreclosure – let alone set themselves up for a lawsuit by blatantly trying to sell a home not listed for sale by its legal owner.
Danielle Kelley, Attorneys at Law PLLC posted Bank Induced Defaults….and What the Government Knew – a brilliant synopsis of the modification scam industry.
“For so long, every time a homeowner was told “You need a modification. However, we can’t help you get one because you are current on your payments. You need to get behind payments to show us a hardship so we can modify your loan.” and the homeowner thought they were being considered for HAMP it was a lie. HAMP didn’t require homeowners to miss payments.
From the HAMP page “Administrative Website for Servicers”, “Administered by Fannie Mae” there is a document called the “HAMP Resolution Matrix” apparently for servicers to follow.
In paragraph 26 it states:
“Homeowner Advised to Miss Payment
(1) Confirm with homeowner (or homeowner advocate) that the property is the homeowner’s principal residence.
(a) If no, explain that a homeowner can never be required to miss a payment however, under HAMP Tier 2 there is no risk of imminent default review when the mortgage loan is secured by a rental property. Explain the HAMP Tier 2 eligibility criteria and close case.
(b) If yes, advise homeowner (or homeowner advocate) that they are NOT required to miss a payment. (Advise homeowner that they will be reviewed against imminent default criteria for principal residence.)
(3) Obtain evidence that homeowner was advised to miss payment(s) including name and contact phone number of servicer’s representative.
(4) Confirm with servicer.
(a) If servicer acknowledges error, require servicer to communicate correct status to homeowner (or homeowner advocate).
(b) If servicer denies allegation, communicate misunderstanding to homeowner (or homeowner advocate), discuss next required actions before closing case.”
Forcing a homeowner into default by misrepresenting the HAMP requirements and then dragging them through a fraudulent modification scheme to collect government funds and foreclose instead of modifying (as seen in the BOA affidavits) to profit. And relying on the servicer to admit or deny it? That is a “misunderstanding” to communicate to a homeowner?” [Read more]
Bravo Attorney Kelley! Special thanks to Deb for pointing out this blog.