This is the e-mail I have sent to media, Senators, regulators etc. I haven't updated in the last few weeks. Realizing the problem of not getting the Trial Modification Agreements Treasury as of 10/6/09 says it is no longer required. But otherwise this might give you some ideas which is related to my long battle since March and approved in May and than approval lost and foreclosed on:
Many More Homeowners to Lose Homes - the story not reported yet
As an attorney at a major Phoenix law firm explained to me, there is NO ENFORCEMENT provision in the Treasury/Fannie/HFA "directives" or "mandates" for the Home Affordability Program. While folks are getting trial modifications few are being given permanent modifications even when timely trial payments made and qualify under the Net Present Value (NPV) test.
The banks can ignore all the guidelines and there is nothing we can do about it. We are totally at the mercy of the servicers per the law firm I talked with.
It is reported that they get more fees when they sell the property. It is especially bad in non judicial states like AZ.
More details that Washington Needs to hear and media report on:
Folks all over the U.S. who qualify are being rejected and homes have even reportedly been sold even within days after being told foreclosure sales would be delayed. Foreclosure notices are being sent at the same time the homeowner is told their modifications are being worked on. In my case, and many others we submit required documents for the HAMP Plan (and mortgage owned by Fannie Mae) and being told not to worry and wait until contacted by a "processor." Instead they sent a foreclosure notice.
If the servicer determines you are not eligible for a modification, it does not have to give any reason and can the next day sell your home with no notice, no time to take any action in a non-judicial foreclosure like typical in AZ, once the original 90 days has past.
On 9/11/09 National Consumer Law center said ""Participating servicers violate the HAMP guidelines by selling homes at foreclosure while homeowners are negotiating loan modifications, requiring waivers of homeowner rights, and refusing to offer HAMP modifications to qualified borrowers. Lack of transparency in the application, review and turn down process exacerbates these problems."
Attorney Jeff Barens warns about this in article of 9/11/09 “BEWARE THE “END-RUN” (SNEAK) FORECLOSURE” article at
Foreclosure Defense Nationwide - Mortgage Foreclosure Help - Free Advice It reports the widespread practice of servers telling customers not to worry about the foreclosure notice, messes up the paper work and trustee sale is completed!
I have had a six month battle with CitiMortgage with lies, screwed up paperwork and at their mercy to not do a no notice instant sale upon their whim, when I should easily quality for a HAMP modification and have been told it was approved twice. There are many frantic people like me that will do anything to keep our homes. We are not even looking for principle reduction just the 31% of income mortgage under HAMP where we pass the Net Present Value test showing it is better to modify than a foreclosure sale. But some servicers are selling our homes without notice anyway.
I have 9 pages of documented notes call by call in my six month battle with CitiMortgage to save my home showing the lies and failure to meet the Fannie Mae and HAMP directives. Even my Hope Now escalation team person is running into the same problems when she tried to set up a conference call but unable to get the right responsible person or call backs from supervisors. And CitiMortgage is reported as much easier to work with than many of the other servicers.
That is why the great in design, HAMP program is not working in real life. Servicers are starting mods but not approving them in the end. They are hiring lots of staff to contact folks to get them into mods, but not enough people to actually solve problems and get those that successfully complete the trial period approved.
The forum at
Home Loan Forum - LoanSafe.org often has 2000 visitors at once. Anyone can read on the
Home Loan Forum - LoanSafe.org forum details of so many frustrated home owners having so many problems with most servicers.The loansafe.org forum shows in the "real world" why the well designed HAMP program is failing due to massive servicer problems not the plan itself.
NEW NEWS FROM FANNIE MAE YOU WON’T BELIEVE THIS
Many of the reasons modifications are not going through it seems is not the servicers fault but Fannie/Freddie.
Anyone that has had a foreclosure notice has to RESTART FROM SCRATCH the HAMP program per CitiMortage Thomas ID17742. He himself says he has to notify and redo HAMPS for 4000-5000 customers that just he as one person is assigned to.
There is a post on loansafe.org about a week ago that seemed unbelievable that FANNIE was not authorizing any modifications. That seemed impossible but it turns out it may have been true.
While at least a dozen times I have been told the Modification Agreement would be sent (was on the HAMP trial as of July) I never received any. The reason is FANNIE MAE (and also told Freddie Mac) will not set up mods if you are in foreclosure status.
I am in foreclosure status since I was lied to being told not to send in updated financial info until I was contacted by a "processor" and everything looked in order. Than I got foreclosure notice.
FANNIE MAE according to CitiMortgage will not allow you to get off of foreclosure status until the HAMP Mod is finalized. But they won't send the paperwork to get on the HAMP Trial if you are in foreclosure status. Huh? Yep, if you’re in foreclosure it seems there is no way out.
This despite many directives not to put anyone in foreclosure status before trying to qualify you for HAMP or other foreclosure alternatives.
NOW supposedly Fannie Mae/Freddie just last week figured out this problem.
Again according to the CitiMorgage person, I now am not on the HAMP Trial. This despite all the confirmations for last two months that I am and have made 2 trial payments. Being on the HAMP was confirmed to my Hope Now escalation team member on a conference call about a week ago. Now that has all changed for me and zillions of others with all servicers supposedly if loan owned by Fannie or Freddie (about 85% of all 1st mortgages are)
In late September Fannie/Freddie figured out the mess and is saying HAMP's can be restarted for those they would not start on HAMP because they were in foreclosure. I find no info on this on any public site or the efannie site but this is what Citi says.
So now I am told I am restarted on a NEW HAMP TRIAL. What about my two prior trial payments? Checks with a supervisor and is told they will be credited to new just started HAMP trial.
What about the foreclosure sale 10/26 which is my biggest concern?
It seems it’s now a race. For about the 12th time, request to send me the Trial Mod paperwork is being sent to Fannie and within "up to 10 business days" (about 2 weeks) it will then be overnighted by UPS to me (as I've been told the same for months)
I was told to get the forms back to them as fast as possible and they will try and race the clock to get it through all their review and verification process before the home is sold. How is this possible when you have to start the 3-month trial all over again?
If they give credit for the prior 2 months in the trial the final date for me is 10/24, two days before my home is scheduled to be sold and I am totally at their mercy not to sell it
This is totally incredible.
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