Corona Foreclosure Story - Michelle & David's Fight Against Predatory Lending & Countrywide

[Moe Bedard]

I had the pleasure to travel to a beautiful area of Corona yesterday and it has been sometime since I have been over on that side of town. Eagle Glen sits off the 15 Freeway and Calajco Road near a beautiful golf course that I used to play a lot back in 2002-2003.

Yesterday, I wouldn't be playing golf, but visiting a Loan Safe member who had reached out to me for help and had graciously agreed to have their story documented for the media and my website.

[IMG]http://i252.photobucket.com/albums/hh40/MoeBedard/FAMILYPICSFROM07204-1.jpg[/IMG]Meet Michelle who I had the pleasure to meet yesterday in her home that she had purchased a few years ago with her husband. A place they call home and love very much. A home that they thought they would be able to maybe retire in.

[IMG]http://i252.photobucket.com/albums/hh40/MoeBedard/FAMILYPICSFROM07197.jpg[/IMG] They bought in the boom times and saw rapid appreciation on their Eagle Glen home as did everyone in the city of Corona. With the golf course and awesome schools, Eagle Glen was a hot spot for well to do families that wanted a slice of the American Dream.

[B]The tell of the toxic negative amortization loan............[/B]

Taking advantage of the market and not denying one bit, they had refinanced back in February of 2005 and made improvements to the home that they had been longing to do and 3 years later the toxic loan has eaten away at every fabric of their financial means and they realize that the only way out is to cut this cancerous loan out or abandon it forever.

She had called me in response to [URL="http://www.pe.com/business/local/stories/PE_Biz_D_loansafe12.288354d.html"]an article[/URL] in the Press Enterprise that a great reporter, Leslie Berkman, had done. Michelle just thought she would give me a shot since most of her other attempts to reach out for help have fallen on deaf ears and or has received the complete run around.

Michelle has called Countrywide and also the Hope line to no avail. When she calls Countrywide. They say to call 995-HOPE. When she calls the Hope line, they tell her that she needs to be late in order for them to help her.

[B]This month, Michelle and her husband have decided to be late.[/B]

They have also decided that if Countrywide will not work with them on modifying their mortgage into a good loan, that they will have no other option but to walk from her dream home. But there is one catch, she wants Countrywide to forgive $100-150 of her mortgage balance.

I know what you are all thinking, fat chance, right? Well me too. I was thinking the same thing as I drove over to her home on the 91 freeway getting on to the 15. No way will Countrywide forgive $100-150k. They barely are modifying mortgages right now as it is.

[IMG]http://i252.photobucket.com/albums/hh40/MoeBedard/FAMILYPICSFROM07200.jpg[/IMG] Well that was until I took a look at her loan documents that you see here on the island in her beautiful kitchen.

to be continued........

[mreedlaw]

Can't wait to hear the next episode. It just dawned on me, Moe, that my sister is named Michelle and her husband is named David too (they live in Virginia).

Anyway, I think that we're about to hear a story about a nice couple with a bad neg am loan...

[faith]

Can you tell me how and what you did, I also want CW to forgive my $160k balance once they approve the short salen of my house.

Thanks,
Faith

[JacMac]

Oooooohhhh the suspense! No fair!

I can't wait the hear the end of this story!

[Moe Bedard]

I know Sabine I agree.......it's like a really good novel only you can't jump to the back and read the happy ending.........
I can't wait for more.....

[suzseaside]

I want to know how this works out too - I have a CW 2nd of $90,000 which they will never see a penny on if we go into foreclosure/BK - but we could maintain the 1st with EMC. My husband has moved out and is granting me the house - I think I can maintain the first of 2167 PITI but can't possibly handle the 2nd of another $800. It just seems like if CW isn't going to end up with anything - they might as well write it off.

I am curious as to why my earlier post on 2-14-2008 was deleted by one of the mods.

I am very familiar with the area of the story because I live a block or 2 from Michelle's house. My goal here is to learn about the processes you all are experiencing. My job as a mortgage professional is continually requiring more education to remain competitive and to provide my clients with sound advice.

Why was my post deleted, it certainly was not negative in any way.

[faith]

Because they own the site and if it's offending or it's like advertising they can't have them, maybe they are charge more for it.

What I am so curious about is why Michelle and David kept saying they fought Cw and won but will not share to us what they did, maybe they are just making it up. Nobody, I mean nobody fight CW and get away with it.

I always remember what my friend told me NOTHING IS FREE IN AMERICA.

Steve, is your last name Calder?

OK here is the situation I did not edit or remove a post and I can appreciate as a professional that you want to seek additional information, however our members are in a world of hurt and the "professionals" of the world did that hurt to them in most cases.

We are very protective of our members and regardless of whether it is overeagerness or over reaction we will always error to the side of member safety from the ills that plague the industry today.

There are acceptable and unacceptable things that we see and we will either edit or ban parties that do not respect those issues. That is why people can feel safe and secure in this forum and venue of expressing themselves in all of their vulnerability at this time in their lives.

[Moe Bedard]

[QUOTE=Coronasteve;10442]I am curious as to why my earlier post on 2-14-2008 was deleted by one of the mods.

I am very familiar with the area of the story because I live a block or 2 from Michelle's house. My goal here is to learn about the processes you all are experiencing. My job as a mortgage professional is continually requiring more education to remain competitive and to provide my clients with sound advice.




Why was my post deleted, it certainly was not negative in any way.[/QUOTE]

Steve you said it best right here.....first of all we are not here to educate mortgage people on how to remain competitive helping your clients. We are professionals here that volunteer our time and expertise to help people that join this forum FOR FREE, we don't charge for this service as you do......
Same as Moe helping Michelle out with his expertise, again it is for free... this forum in a non profit and as such I am sure you understand when we are a bit sceptical as to the real reasons that mortgage lenders and loss mit people join this forum. They are not distressed homeowners looking for help and they do not offer help for free........so please excuse us when we do keep the guard up.......and keep in mind that any one person on this board that gets contacted by anyone for any services will let us know and we will ban that person from the forum.....please keep this in mind.......



I don't know which post you are referring to here, but a post doesn't have to necessarily be negative in your case you might have mentioned that you were as you say a "mortgage professional" and that might have caused the delete........though I am not sure...
I am sure you understand that we do not want people trolling this forum for clients.......

Faith...they may not answer cause they are not on the forum at this time, they have to be on the forum to respond and see the questions, often when people are successful they do not come back and respond, they move on with their lives.

There have been people successful with Country Wide, it is a case by case situation and unfortunately you case was not one that had the success that you would have hoped for.

However with a Short Sale you will dodge the bullet of credit issues and other issues that could damage you long term. The property that you have, the loan and the income and expense issues just did not result in a favorable outcome for modification. I am sorry, but they are allowing a short sale, sometimes and particularly in the past they would have just foreclosed, so you have managed a portion of the battle in your story. There is small victory in some sad things.

*** & Poppy, I know you are a regular posters here, and maybe trying to be "protective" of the persons who post here who are in distress. That being said, ***, you have a lot of gall to automatically assume because I am in the mortgage business that I am here purely motivated by profit derived from all ready beaten down homeowners.

You should also know, that probably many of the homeowners here can not be re-financed at this juncture because of their situations. Therefore, "trolling" here like someone else posted would be a lousy place to pick up potential clients wouldn't you agree?

As to you remark about "my competitive" drive, that can mean a lot of things. I often meet distressed homeowners during my days as a mortgage broker. Frequently they have no idea of what to do. They are paralyzed with fear, just looking for someone to point them in the right direction. The more I know about the burgeoning foreclosure mess that the country is in, the better advice I can provide. This website is right at the "grassroots" level---exactly the best place to offer help & direction to confused homeowners. This knowledge make me MORE competitive than the other schlub broker because maybe I can not help this particular homeowner, but they might remember a guy who listened, helped and seemed legit.

Now that I am finished being all defensive , let me tell you a little about me. I am a 51 y/o father & grandfather, and in the mortgage biz since 1998, BEFORE all the get rich punks started selling option ARMS to cleaning ladies. I live literally around the block from Michelle & David, although I do not know them. I have another 2 investment properties here in Corona as well.

I could NEVER face my kids and family after knowingly placing a homeowner in a ticking time bomb. Back in 2004 & 2005 I can't tell you the number of loans I didn't do for people because all they wanted was a 1% loan like their neighbor who had the boat & the Yukon parked in the driveway.

With respect to the loss mitigation scams proliferating right now, I think it is an abomination. I have been contacted by several companies wanting me to do these applications for a referral of $600-&800 when I encounter someone I can not help. Instead I refer them to CCCS in their area, or Springboard if they are in the Inland Empire.

Although I don't have the text of my original post, it went something like this:

"I too am interested in knowing about how Michelle & David's situation plays out. I live around the block from them in Belcourt Estates and I see values dropping rapidly in the Eagle Glen area due to foreclosure activity attempted short sales and homeowners just walking away. The values are now in the $600,000-$1,000,000 range from a 2006 high of $800,000 -$1,600,000. I hope we can all get this under control as soon as possible."

Now that wasn't too threatening was it?

Oh, and thanks for the warm reception. I feel all warm & fuzzy now.

[QUOTE=*** Damiano;10457]Steve you said it best right here.....first of all we are not here to educate mortgage people on how to remain competitive helping your clients. We are professionals here that volunteer our time and expertise to help people that join this forum FOR FREE, we don't charge for this service as you do......
Same as Moe helping Michelle out with his expertise, again it is for free... this forum in a non profit and as such I am sure you understand when we are a bit sceptical as to the real reasons that mortgage lenders and loss mit people join this forum. They are not distressed homeowners looking for help and they do not offer help for free........so please excuse us when we do keep the guard up.......and keep in mind that any one person on this board that gets contacted by anyone for any services will let us know and we will ban that person from the forum.....please keep this in mind.......



I don't know which post you are referring to here, but a post doesn't have to necessarily be negative in your case you might have mentioned that you were as you say a "mortgage professional" and that might have caused the delete........though I am not sure...
I am sure you understand that we do not want people trolling this forum for clients.......[/QUOTE]

[QUOTE=faith;10454]Because they own the site and if it's offending or it's like advertising they can't have them, maybe they are charge more for it.

What I am so curious about is why Michelle and David kept saying they fought Cw and won but will not share to us what they did, maybe they are just making it up. Nobody, I mean nobody fight CW and get away with it.

I always remember what my friend told me NOTHING IS FREE IN AMERICA.

Steve, is your last name Calder?[/QUOTE]

No, not Calder. I don't know who that is. Someone from Corona?

[Moe Bedard]

Steve,
I wasn't singling you out in particular, my range was much broader than just you........
Poppy and I are not just regular posters here, we are the moderators on this board and therefore are protective of what goes on here. On that much more broad scale of things there are alot of mortgage people that are turning to doing loan modifications for profit and praying on the homeowners that are beaten down, and on this board, believe it or not. We have banned five of those type this past week alone. So forgive me that I don't know you and your intentions, so thank you for clarifying them. I just wanted you to know that we do keep an eye on people in the businesses that put homeowners in these postitions in the first place. I am sure you noticed that we didn't ban you...just forewarning of what is or isn't acceptable on the board......I just wanted you to be aware of what we face here everyday by people in the industry that do take advantage.........
As you professed, and that being said, I am glad you are not one of them..........

[Andrew]

*** is right, we are very cautious of what we allow to be posted on here because people are vulnerable to the state they are in. I have also Banned 3 people this past two weeks for advertising.

[Moe Bedard]

Hey Steve!

I am sorry I deleted that thread because I misspelled their names and I couldn't figure how to edit a title and the URL also. So, it was just because of my mistake and not any other reason.

As far as business on [URL="http://www.loansafe.org"]Loan Safe[/URL]. That is a touchy subject with me and one I hold close to my heart because I want Loan Safe to be the #1 destination for borrowers to get real and accurate information in a community "they" control.

You see, I do not want to run this place. I want homeowners to be the holders of the way this place operates. I want them to feel that this is their community and not Loan Safe's forum.

I feel everyone in the industry has failed the American people and the old way of doing mortgages and real estate has changed forever. I want Loan Safe to change the way loans are offered to consumers. More on that later.

But as far as their being opportunities for mortgage business on Loan Safe, I would have to say that there are homeowners that can and will refinance that visit this forum on a daily basis. The numbers are low, but they are there and all I need to do is build out the Home Loan section like I have the Foreclosure and [URL="http://www.loanworkout.org"]loan modification[/URL] sections. But, all information will be free and people can then decide if they want to do business with the Loan Safe recommended "lenders" or not. Let's start another thread on that later because this is Michelle and David's thread.

I have a lot more to add here and will be adding video to. So stay tuned. That's where I have been, learning the video side, so I can start adding video to the forum and my blogs to teach homeowners some great stuff!

Thanks for everybody's replies.

Just to be clear...I did not post any advertisement information or suggest anyone contact me. Nor do I intend to do this.

My goal here is to gain first hand information from homeowners to attempt to understand what they are going through. I am like a sponge for information and details on subjects that interest me. This foreclosure problem and all the ancillary troubles that arise from it are not going away anytime soon. The more I know, the better I am to serve others.

Moe, you and I talked on the phone about 6 months ago, you might remember because I asked about the Bedard Automotive family. Anyway, I am very committed to this industry and I agree wholeheartedly that it needs some serious reform. At least now, we are reverting back to the lending standards of pre-2001. Probably an over-correction, but going in the right direction.



[QUOTE=Moe;10557]Hey Steve!

I am sorry I deleted that thread because I misspelled their names and I couldn't figure how to edit a title and the URL also. So, it was just because of my mistake and not any other reason.

As far as business on [URL="http://www.loansafe.org"]Loan Safe[/URL]. That is a touchy subject with me and one I hold close to my heart because I want Loan Safe to be the #1 destination for borrowers to get real and accurate information in a community "they" control.

You see, I do not want to run this place. I want homeowners to be the holders of the way this place operates. I want them to feel that this is their community and not Loan Safe's forum.

I feel everyone in the industry has failed the American people and they old way of doing mortgages and real estate has changes forever. I want Loan Safe to change the way loans are offered to consumers. More on that later.

But as far as their being opportunities for mortgage business on Loan Safe, I would have to say that there are homeowners that can and will refinance that visit this forum on a daily basis. The numbers are low, but they are there and all I need to do is build out the Home Loan section like I have the Foreclosure and [URL="http://www.loanworkout.org"]loan modification[/URL] sections. But, all information will be free and people can then decide if they want to do business with the Loan Safe recommended "lenders" or not. Let's start another thread on that later because this is Michelle and David's thread.

I have a lot more to add here and will be adding video to. So stay tuned. That's where I have been, learning the video side, so I can start adding video to the forum and my blogs to teach homeowners some great stuff![/QUOTE]

Steve......I am all for the return of the "bad" old days, the reality of full doc loans, fully documented and these days unfortunately due diligenced to hell and back. I have had in the last year well over 50 files submitted to me with false documentation.....i.e. paycheck stubs, written VOE's, W-2's, Tax Returns, you name it, it has all been fabricated. Now while we are on the issue, how about document alteration or "self help".....rafts of that and I have lost count in my logs. Next for all intents and purposes, the Appraisals, those are in the 100's that I have required field reviews from other than LARA (no integrity there) and everyone of them has come back as I assumed, inflated and worse in some cases, purely fraudulent.

I am an underwriter, not appreciated for stemming the tide of confirmed material misrepresentation......but this is the era we live in. I am all for the return of the underwriting and documentation standards of the 1980's and 1990's...we need to go there and weed out all of the bad players in this industry, NOW. I am all for the return of integrity and accountability to the industry and the clients we serve.

If we do not the problem is just going to overwhelm us who are honest and in the industry, we can not compete with those folks who will preform these acts, how many times were you in a position as a front end production person where you were out bid by the dishonest party? That is why I got out of front end production, management, etc.....could not and did not want to compete utterly disgusted after awhile.

I am all for accountability....the Bad Player that has material misrep in the file confirmed.....SAR's 'em, and let the Treasury Boys or the FBI go after the whole lot of them. Put them where they belong, in orange. Then at the same time do that like action with the Bad Players that fomented this market that we are dealing with today, up and down the ladder at Lender, Investor, Due Diligence, Builder and Wall Street levels. I for one am disgusted after devoting over 30 years of my professional career to this business in how it has degraded into the most reviled profession that there is, rightfully so.

We are a community service, and we have recently done no service to our community.

[Cowgirl]

***
I am so glad to hear all the moderators are very protective of us. I know there are so many homes in our area that are in foreclosure I went on Realtytrac to look for my own, for a while it was listed. How embarassing and even one of my neighbors told another neighbor our home was in foreclosure. I felt sad at the street names I recognized near by. But I did not want to open any of the postings to see what house it was. I told my husband we have a sad enough story of our own. No one understands the circumstances unless you walk in that persons shoes for a while. I am sad for myself and others too. But I will work hard and follow the advice I get from this website to save my home. I feel there is hope now that I have found this website. Thank you all for looking out for us.
Cowgirl

[Moe Bedard]

Cowgirl,
Thank you so much for your sentiments......I am so happy you found us here.....
We really are very protective of our members on this forum and keeping them safe from the slimebags that got them here in the first place........
So you can feel Safe here and post your story and we will listen and not judge and help you as much as we can....and keep the bad guys out...
Read the success stories from their beginnings if you want a good dose of comfort and will to fight..........you will certainly get some renewed energy from those that have been exactly where you are at now and came out the other side victorious.........

Just be proactive and listen to our advise and follow it, and it will happen for you too
Thank you again....
Best of Luck to you........fight the good fight and we will be behind you all the way.....

[NOD w/Countrywide Feb20th]

I am new to the site. Want to know if there is an "ending" to the Corona Foreclosure Story.

I live in the Inland Empire (Moreno Valley) and am despirately trying to save my home. looking for as much info as possible.

I want to be "armed with information"....Fighting against Countrywide & HSBC