Wells Fargo Lied!
Wells Fargo & Co. on Wednesday conceded that it discovered flaws in foreclosure documents and that it plans to refile paperwork in 55,000 foreclosure cases.
The bank had previously stood by its foreclosure paperwork as other major mortgage lenders came under scrutiny.
Wells Fargo proceeded with foreclosures while rivals including Bank of America Corp. and JPMorgan Chase & Co. delayed theirs.
Wells said it had identified possible problems with a final step in its foreclosure process by bank employees and notaries on legal affidavits. It said it has assigned 160 employees in four offices to reviewing documents and supplementing where necessary.
The bank will begin the filings in 23 states — those that require court approval of foreclosures —and hopes to complete them by mid-November.
Read more: Wells Fargo to refile 55,000 foreclosures | San Francisco Business Times
Shawn
Categories: Uncategorized Tags: diy loan modification, diyloanmodkit.com, do it yourself loan modification, forensic audit, forensic loan modifications, forensic loan review, Loan Modification, Wells Fargo, Wells Fargo lawsuits
Banks must start reducing principal for underwater borrowers
It’s increasingly clear that one answer to the foreclosure crisis is the best: Banks must aggressively reduce loan balances for troubled borrowers. It will work not only for homeowners and for the economy but for lenders, who in many cases can recover more of their investment this way than they can in a foreclosure sale.
Moreover, it’s fair to ask the banks whose lending policies caused the Great Recession to do more to end it.
Smaller, temporary modifications, such as interest-rate reductions, do nothing to address the epidemic of borrowers who owe more than their homes now are worth — in part because the foreclosure wave has lowered their value. Without a reduction in principal, these homeowners have no incentive to keep making payments, even when they have an income.
Banks are reluctant to reduce principal, and the federal government has no authority to force them. But the Treasury Department could offer them financial incentives.
It’s hard to understand why more lenders don’t work with borrowers on the principal. Wouldn’t it make more sense to reduce a loan balance by, say, $100,000, avoiding the expense of foreclosing and reselling the home, than to lose twice that amount through such a sale?
The Treasury Department is working to make its programs more effective. It announced last week that California would get $700 million, much of it to aid unemployed borrowers. That will help, but not enough.
The American people were incredibly generous to the nation’s banks. Banks need to return the favor.
read more@http://www.mercurynews.com/opinion/ci_15381140?nclick_check=1
As always,
Shawn
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Program could give homeowners up to 18 month mortgage reprieve
Florida’s struggling homeowners could get an 18-month reprieve on mortgage payments under a state plan to spend $418 million in federal foreclosure prevention aid.
The money is part of $1.5 billion the Obama administration announced in February for five states hardest hit by the real estate crash and unemployment. Other states sharing the $1.5 billion are Nevada, California, Arizona and Michigan.
“I don’t think it will help everyone, but it will make a dent,” said Stan Fitterman, chief operating officer of the Florida Housing Coalition. “We’ve never encountered a housing situation like this before, so something like this has never been tried.”
The Florida Housing Finance Corporation created the proposal. Its three parts include:
$353 million to pay up to nine months of a struggling homeowners’ mortgage if the lender or bank agrees to forgive up to nine months of payments. This is meant to help an unemployed or underemployed homeowner.
$40 million in down payment assistance to eligible home buyers using Florida Housing’s First Time Homebuyers Program. $25 million to pay for legal counsel for homeowners who are in foreclosure but hope to keep their homes through mediation or loan modification or avoid foreclosure with a short sale.
The money will be distributed by housing counseling agencies, which the Florida Housing Finance Corporation will chose through a request for qualifications.
Eligible homeowners also must prove that they have suffered a hardship or unanticipated increases in mortgage payments. To receive money for a down payment on a house, eligible buyers cannot earn more than 120 percent of the area median income, which ranges from $39,240 to $91,080, depending on the county.
read more@ http://www.tcpalm.com/news/2010/jun/17/program-could-give-homeowners-up-to-18-month/
Shawn
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