Obama HAM program failure

In a report out last week, the number of final modifications completed by the major banks under the main Obama HAM program are ridiculous. Some 31,382 homeowners have entered into final modifications through the end of November under that specific program. That is out of millions of eligible homeowners, of which 759,000 have entered into trial plans. Here is a breakdown:

According to the report, through the end of November, J.P. Morgan Chase & Co. /quotes/comstock/13*!jpm/quotes/nls/jpm (JPM 41.32, +0.46, +1.13%) has 143,027 three-month trial modifications started under the program. It has made 4,302 modifications permanent. Wells Fargo Bank /quotes/comstock/13*!wfc/quotes/nls/wfc (WFC 25.81, +0.15, +0.57%) has 104,808 trial modifications started and 3,537 permanent modifications using the program.

But Bank of America Corp. /quotes/comstock/13*!bac/quotes/nls/bac (BAC 15.31, +0.12, +0.79%) has started 158,462 three month trial modifications with the program and has made just 98 permanent. Citigroup Inc. /quotes/comstock/13*!c/quotes/nls/c (C 3.47, -0.09, -2.53%) has started 103,478 three-month modifications under the plan. Of those only 271 have become permanent.

There are other programs that have resulted in modification for homeowners, but clearly the banks are more willing to foreclose on properties than modify loans. Most major banks have announced in the last week their intent or completion of paying back their TARP bailout money. They obviously want to be out from under public scrutiny and restrictions on payment of excessive salaries and bonuses.

The president met with 10 major bank CEO's this week to push several issues, including speeding up modifications, but we will see if it actually makes any difference.

Chris Barsness, Esq.

http://www.loanlawyermodification.com

Loan Modifications Slow - Bankruptcy Better Option to Save Your Home

The Obama administration released figures at the end of last week indicating that only 32,000 homeowners have entered into final loan modifications under the HAM program this year. That is out of the several million homeowners that are likely eligible. These results show that lenders are slow or unwilling to finalize modifications to save homeowners. Lenders are putting homeowners in 3 month trial plans that are lasting 6 months and not leading to final modifications.

A Chapter 13 bankruptcy can result in elimination of 2nd mortgages and other debts and allowing homeowners to keep their homes. A Chapter 7 can still allow homeowners to keep their homes as well through reaffirmation agreements. The additional bonus is that the bankruptcy puts a stop on foreclosure or eviction proceedings, resulting in additional time for the banks to get their acts together and start finalizing modifications. Homeowners without this protection are relying on lenders telling them they will hold off on selling the home, but that is not a legally binding agreement. I get new clients who tell me their lender said they were working with them and not to worry, only to get an eviction notice stating their home has already been sold.

Now is the time to take action. Do not rely on a customer service rep telling you not to worry, they won't sell your house, because they will. You will never hear from that person again and they are not about to help you find a new place to live.

For a free consultation with an actual attorney and not a paralegal or assistant, call us today. 888-881-6591.

http://www.loanlawyermodification.com

Obama HAM program still not effective

The following was reported by the Associated Press and reveals the lack of progress from the banks. The home is not safe until the permanent modification takes place, so there is significant risk of a trustee sale until that happens. A short sale or bankruptcy filing are alternatives to the long and unknown modification time frames and stressful postponement of trustee sales pending modification review.

Only about 10,000 homeowners have received permanent loan modifications under the Obama administration's mortgage relief plan, evidence of continuing woes for the government's effort to stem the foreclosure crisis.

That means fewer than 2 percent of the 650,000 homeowners enrolled in the program as of October had their mortgage payments permanently lowered to more affordable levels. The results spotlight the limited success lenders are having in getting borrowers through the trial period, according to an oversight panel report released Wednesday.

The Treasury Department is expected to release updated numbers through November on Thursday.

Loan Mod Delays - Trial Plans

Many homeowners have been put into what the banks call trial plans or forbearance plans. They are usually setup as a 3 month trial plan under the HAMP program; however, most homeowners end up being told to keep paying months after the initial 3 months. Remember that banks are under no obligation to provide final loan modifications. They may be doing certain unfair business practices, fraud, or other misdeeds in their interactions with you, but without taking them to court, homeowners will have no real way to put any pressure on the lender or servicing company.

Often times a bankruptcy filing is also another way to save the home and put pressure on the lender to work something out; however, the legislation that would have given judges the power to force modifications was defeated this last summer, so they don't have cram down powers at this point.

Our office can review your situation to determine if you have enough evidence to support filing a lawsuit against the lender or servicing company or if a bankruptcy filing would benefit you and help save your home.

Contact us to have a consultation with a licensed attorney.

http://www.loanlawyermodification.com

California Homeowners - Beware Loan Mod Advance Fees

No matter how a company or lawyer tries to justify some up front fee to help with a loan modification, whether they call it a progress payment, or break up their "services" into sections, it still is going to get them into legal hot water.

The law is very clear and was intended to make sure homeowners do not pay anything until the service has been performed. Many people charge a large fee to do a forensic loan audit or compile documents and review possible qualification for modification programs. They then claim they will do the loan modification for free or low cost (to avoid being guilty of Civil Code Section 2944.7, subjecting them to up to 6 months in jail).

Do not pay large fees for a loan audit or other alleged services or education about modification/foreclosure. The claims that they have some special knowledge or that they will find legal violations that will make the lender roll over and give you what you want are completely false!

The process is not that complicated and there are free services through HUD and others that can help guide a homeowner through the process. Our firm put together a do it yourself guide for $99 that can help homeowners try to save their home through a modification without huge fees.

There are times when certain laws are violated or homeowners have legal rights and claims against lenders and servicing companies; however, this requires a licensed attorney to review and without an actual lawsuit pending, most lenders will pay no attention to claiming they violated TILA, RESPA, or any other laws.

For more information on our do it yourself loan modification 101 guide, visit our website.
http://www.loanlawyermodification.com

Bankruptcy Or Short Sale Better Options Than Modifications

It seems that banks are continuing to be extremely slow and difficult to deal with on modifications, even though the HAMP guidelines were published almost 9 months ago. I see many clients come in that may have tried a modification on their own or through a company, only to obtain no real relief. Many banks will give a denial, but then tell the homeowner to resubmit the exact same paperwork to be re-reviewed. This is only going to result in yet another denial unless something has changed in terms of financial ratios and the homeowner is kept is more months of frustration and delays.

The problem, as discussed in my do it yourself guide, is that homeowners often do not give the banks what they want to see. The other problem is that many homeowners are in over their heads and the terms a bank might give them will still not help, even if they can actually get approved.

In many cases, homeowners can keep their home through a Chapter 7 or 13 bankruptcy filing. This also helps the homeowner reduce other debts at the same time. The homeowner can still keep certain property and vehicles, so unless the homeowner was planning on buying a major item in the next 2 years, a bankruptcy filing can be the most effective way to get a fresh start.

A short sale (where the bank allows you to sell your home for less than what is owed) is also a good alternative. The banks will take tremendous losses in the process and the homeowner is no longer liable for a huge mortgage. It will take a few years to get bank into a position to purchase, but with the large number of vacant properties available for rent at a reasonable price, it shouldn't be that much of a concern.

For more information, contact us at
http://www.loanlawyermodification.com
Chris Barsness

Wrongful Foreclosure Class Action Lawsuits

Our firm is currently examining potential claims for certain unfair business practices involved when home lenders or servicing companies foreclose and sell a house while they were telling the homeowners they were going to work with them to save their homes.

Countrywide already settled with the California Attorney General for almost $30 million for some of its lending practices and wrongful foreclosures. Unless the homeowner takes the settlement money offered to them and signs the release of claims, they can still pursue their own independent lawsuit. Most homeowners do not have the funds to spend thousands of dollars and the next year of their time suing a lender.

Our firm is in the process of analyzing claims in a class action lawsuit against some of the major lenders for their wrongful business practices. If the cases are strong enough, we will be taking these cases on a contingency basis, which means at no initial cost to the homeowner. We only get paid based upon a percentage of whatever we either win at trial or obtain in a settlement.

Shortly, we will be announcing an online portal where homeowners can submit their story to see if they may be eligible to be included in the class action lawsuit.

Chris Barsness, Esq.

http://www.loanlawyermodification.com