I just got very bad news from my discussions with a major law firm, a Senator and my Congressperson.
We need Congress involved fast.
There is NO ENFORCEMENT provision in the Treasury/Fannie/HFA "directives" or "mandates"
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 law firm.
Senator and Congress office agrees only more legislation or another moratorium on foreclose sales can help some of us if the servicers choose not to modify since they get more fees when they sell the property. It is especially bad in non judicial states like AZ.
I am doing all I can at local and national congress / Senator offices but we need as many folks as possible calling to point out the problem and try and get something done by someone.
More details which Washington Needs us to complain about
:
Many folks all over the U.S. who qualify are being rejected and homes sold even within days after being told foreclosure sales would be delayed. Foreclosure notices are being sent at the same time the homeowner is frantically been trying to stop it with in my case, and many others submitting 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 send 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
www.foreclosureDefensenationwide.com 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 approved twice.
There are many frantic people like me that will do anything to keep our homes, 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 many 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 for Homeowners escalation team person is running into the same brick walls and going around in circles with them trying to help me.
That is why the great HAMP program is not working. 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.
Remember the servicers do not own the mortgages, they get fees for foreclosure sales more than the modification incentive.
Many mortgage holders are getting back the properties but holding them off the market so they don't have to recognize the loss on sale and delay these losses as long as possible.
See all the problems from thosands of frantic owners for example at the forum at
www.loansafe.org and many other forums and blogs.
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