Banks to Face HAMP lawsuits.
Were you one of those homeowners that submitted your loan modification under the Obama administration’s HAMP -Home affordable modification program. Then after making a series of payments told that you don’t qualify? Well a number of banks are now facing class action lawsuits from homeowners who are now finding out that they may have originally qualified for the program
(Reuters)Bank of America among many other banks, had hoped to avoid facing tens of thousands of irate homeowners claiming that they were unreasonably denied mortgage aid through the Home Affordable Modification Program by the lender. However, a judge has denied the bank’s motion to dismiss the case and the bank will be asked to provide permanent loan modifications to those who are eligible and award damages to those who were “wrongfully denied modification”. Attempting to put a positive spin on the situation, BofA announced that it is “pleased that the court dismissed four of the eight counts in the consolidated complaint.” The judge ultimately limited the case to homeowners who entered trial period plans (TPPs) for loan modifications but were then denied permanent HAMP mods. He did allow for homeowners in states where consumer protections are stronger, like California, Illinois, Arizona and Massachusetts, to pursue claims in their own states.
The problem is not so much that the lender refused to modify loans, but rather that it appears to have “willfully failed” to make modifications that were likely to be successful – “either in bad faith or for its own economic benefit,” explained judge Rya Zobel. However, Zobel did reject claims of borrowers who asserted that they were “intended beneficiaries of HAMP” but who never entered the program, and she also refused to block 37 foreclosures on homeowners claiming to be in “imminent danger [of foreclosure]” during the pending lawsuit.
Do some research and find out if it makes sense for you to join a suit in your state if you feel that you might have been affected.
Diyloanmodkit.com
Categories: foreclosure, HAMP, Loan Modification, Obama plan Tags: Bank of America loan modification Bank of America HAMP program, diy loan modification, DIYLoanmodkit, do it yourself loan modification, foreclosure, Loan Modification
Thousands of Borrowers are Staying in their Homes for Free!
Across the U.S. thousands of homeowners are staying in their homes for years without paying their mortgage. Many times if you are going through the process of a loan modification you might wonder how many other people are in the same boat.
The collections departments that are working hard on the lenders behalf would lead you to believe that you are one of a few and that you only have a few days to make that vital mortgage payment or even partial payment before you are evicted form your property and put out by the Sheriff. Judging by the figures below these scare tactics shouldn’t scare anyone. The truth is, you have time to make the decisions that you need and get the right loan modification for you and your family.
According to CNN, four million borrowers are delinquent on their loans and have their cases in the hands of the lenders attorneys.
Two thirds of these borrowers have not made mortgage payments for more than a year and one third have not made payments for more that two years.
It takes 565 days to foreclose on a borrower from beginning of default to the auction sale.
New York takes longer, 800 days and if you are in lucky old Florida it takes 807 days due to the problems with robo-signing scandals.
So once again, take the step to get educated, know what is involved when it comes to a loan modification and have patience!
As Always
DIYLoanModKit.
Categories: foreclosure, Loan Modification Tags: delinquent loans, diy loan modification, DIYLoanmodkit, do it yourself loan modification, foreclosure
Chase Offers Homeowners Help
Chase will open an office in Minnesota to help counsel homeowners on ways to avoid foreclosure.
It’s one of 25 Chase Homeownership Centers the bank plans to open in 19 states this year, targeting “the hardest-hit communities” in the wake of the foreclosure and loan modification crisis. These counseling centers provide struggling homeowners with face-to-face advice and resources to help them stay in their homes, the bank says.
Chase, the consumer and commercial banking business of J.P. Morgan Chase & Co., has 51 homeownership centers now. It plans to open centers for the first time in a dozen states, including Minnesota and Wisconsin, and will add centers in seven others.
The centers are open six days a week. Chase expects to have them operating in 27 states and the District of Columbia this year, and plans nearly three dozen events this year in 25 other cities to expand the reach of the program.
Wells Fargo offers similar face-to-face counseling services at 27 Home Preservation Center offices in Arizona, California, Florida, Georgia, Nevada and Ohio, said spokeswoman Peggy Gunn. These centers serve Wells Fargo Home Mortgage and Wachovia Pick-a-Payment customers facing financial hardships.
Read more @ http://www.startribune.com
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