Using Recission to Stop Foreclosure
Christine explains the concept of recission and how it relates to foreclosure and loan modifications.
Foreclosures Are More Profitable Than Loan Modifications?
The Washington Post printed an article today stating that in many cases, it’s more profitable for the lender to foreclose rather than work out a loan modification with the homeowner.
Finally, we have someone telling the REAL truth about why lenders aren’t modifying more loans!
A lot of people have been scratching their head trying to understand why lenders aren’t modifying more loans, especially given the government’s financial incentives to lenders to modify more loans.
As usual, the lenders are acting in their own self interests because they can. Remember, your taxpayer dollars are shoring up their bottom lines and now they don’t have to negotiate with you because they already have your bailout money.
It’s hard for me to imagine how it could be more profitable for a lender to foreclose rather than working out a loan modification given the falling home prices.
Of course, there are other reasons why modifications supposedly aren’t working. I keep hearing a lot about how lenders are woefully understaffed and underequipped to handle the sheer volume of homeowners who are asking for help right now.
This is just a weak excuse for the lender’s failure to act. Unemployment is at a record high in this country. CitiMortgage, Wells Fargo and Bank of America have a talented pool of unemployed workers who need jobs. Why aren’t they hiring more people?
So how can you fight foreclosure and save your home?
First, get a loan audit before you do anything else! Go here to learn more about how you can get a loan audit. If you can’t afford to have a professional auditor perform the audit, I’ve written a Do It Yourself Audit eBook that you can purchase.
Modifying a loan without a loan audit is a bad idea for several reasons.
First, if there are predatory lending patterns in your documents and you don’t know about them, and you modify the loan, you waive your rights to pursue the lender in court for the bad loan you originally received.
Second, if the lender lied to you by failing to disclose all the details of the loan, this is leverage against the lender to get a better loan modification instead of just accepting the standard loan modification they give everyone else.
Third, follow up with a competent professional who will aggressively represent your interests in forcing the lender to modify your loan fairly. I suggest you use an attorney for this – a good one will almost always get you a better result than you can get on your own.
I know, it sucks to have to hire an attorney. Many people got into this mess because they didn’t understand the documents they were signing, and a home is the biggest investment most people will make in their lifetimes. It’s worth it to pay someone to do it right.
Finally, consider filing a lawsuit against your lender if your loan stinks of predatory lending. When more people stand up to the banks, this nonsense of the banks not helping people will stop. We’re all held accountable for our actions as individuals; why shouldn’t the banks be called out for screwing homeowners and refusing to help them? I am working hard on finding attorneys who will be good partners for homeowners, so contact me for a referral if you need one.
If you have questions, post them in the forum or send me an e-mail: Christine@DesertEdgeLegal.com.
A Letter to Congressman Shadegg of the Third District of Arizona
The Honorable John Shadegg
2400 E. Arizona Biltmore Circle, Suite 1290
Phoenix, Arizona 85016
Re: Foreclosure Crisis in Arizona
Dear Congressman Shadegg:
My name is Christine Springer. I am a freelance paralegal specializing in mortgage loan audits. I live in Scottsdale, Arizona and am one of your constituents.
As I’m sure you know, many of your constituents, myself included, have lost or are losing their homes to foreclosure. I have studied your record on this issue and I’m angry that you that you and the rest of our leaders in Arizona and the United States are standing by while people are losing their homes due to the devastating economic crisis.
I have audited quite a few loan documents, and I’m convinced the banks, lenders, mortgage brokers and other parties to the transactions in the last seven years were consistently predatory. It’s easy to say that the borrowers were at fault too; I agree that there is some personal responsibility involved. However, as I’m sure you understand from your legal background, most people don’t fully understand many of the documents they signed at closing.
The bottom line is that the lenders in this country have preyed upon borrowers. I see it all the time in the loan documents I audit on behalf of homeowners who are desperately looking for a way to save their home.
To make matters worse, our government authorized an unprecedented bailout of some of the largest lenders, many of whom are some of the worst offenders of predatory lending! As soon as these lenders received our taxpayer money, they stopped negotiating in good faith with borrowers who were in trouble.
Essentially, the TARP funds financed by our taxpayer dollars incentivized lenders to stop helping homeowners. Right now, very few people are qualifying for loan audits because they have lost their jobs. In many cases, it takes months to get a short sale approved. This is ridiculous!
The bottom line is that I’m tired of my elected officials standing by and doing nothing, and I’m going to start holding my elected officials publicly accountable. I’m going to call you out on Twitter, Facebook and my blog until you all do what you’re supposed to do – represent the interests of your constituents.
You can do this by helping me reach homeowners who need my help. I plan to hold a free event where I will personally conduct FREE mini-loan audits for people who are trying to save their homes. There seems to be no other way to get the lenders to work with people. I intend to have attorneys on hand who can give people legal advice and help them save their homes.
If you would like to partner with me in this effort, I welcome your input and assistance with spreading the word about the event to the people who need my help the most. Please have a representative from your office contact me directly at 602-350-2151 to discuss the details if you’re interested.
Thank you in advance for your attention to this matter. I look forward to your response.
Very truly yours,
Christine E. Springer, MA
Desert Edge Legal Services, LLC
Hidden Victims of the Foreclosure Crisis – Video
Fresno, CA (KFSN) — Hundreds of Valley families are paying their rent on time, and still getting evicted. It’s all due to a foreclosure crisis they say they did nothing to create.
Wells Fargo Sues Itself To Foreclosue On A Property?
Wells Fargo is now suing itself in order to foreclose on a property in Tampa, FL. They do this so they can push the homes through the Foreclosure process faster so they can sell it and make more money!
How a $35 Dollar Mistake Could Help Fight Foreclosure
Foreclosure Trackers Launches Real Estate Agent network
Foreclosure Trackers is a data aggregator and educational company.
Robert Lee, CEO of Foreclosure Trackers. “The launch of our Real Estate Agent Network provides real estate professionals with fundamental tools necessary to succeed in this shifting market. We are equally excited to announce the appointment of Sean Stanfield, a well-respected leader who will be instrumental in identifying practical solutions that Foreclosure Trackers can offer to professionals throughout the state and potentially the nation.”
How SB 1137 Stopped Foreclosures
What is SB 1137? It’s a California law that requires lenders to make a series of attempts to contact borrows before the foreclosure process can start. Once completed, banks still have to wait another 30 days before they can start the foreclosure process. So what has this done to the California housing market? It has dropped the number of foreclosure from August to September by 68%.
However, this law does nothing to stop foreclosures; it just delays the process and delays the much needed housing recover in Bubble Land (California.)
Click here to read more about SB 1137 and other Foreclosure news.
Sheriff Halts Renter Foreclosure Evictions
As reported in the Consumerist.com.
A Chicago Sheriff stops evictions of Renters caught up in the Foreclosure process (at least for the time being.)
The banks are not happy with Sheriff Tom Dart’s decision.
Read the full story as reported by Reuters.
90 year old woman shoots herself during a Foreclosure eviction
This is getting out of hand. A 90 year old woman in Ohio is given a 30 year mortgage on her home in 2007. Yes, you heard me right and it gets even stranger. She bought the home in 1970!!! What company would think this is a good loan? Country Wide, of course!
After missing several payments Fannie Mae assumed the mortgage and started the foreclosure process. Sheriffs attempted to evict her 30 times with no luck. In the latest attempt the women shot herself twice in the upper torso. She survived.
The after math. Fannie Mae decided to cancel the foreclosure, forgive her loan and let her keep the house.
This whole thing is a national shame.
Read the full story here: CNN
