Posts Tagged ‘do it yourself loan modification’

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

$50,000 free from the government!

The government is trying (again) to help homeowners if they are at risk of foreclosure. This plan is called the Emergency Homeowners’ Loan Program (EHLP) and if you have lost your job, the $1 billion program offers loans of up to $50,000 that don’t need to be repaid, if applicants meet certain requirements.

Rolled out by HUD and the nonprofit housing advocacy group NeighborWorks America, the program is making loans that are interest-free. Payments go directly to the lender for a portion of the borrower’s monthly mortgage, including missed payments or past due charges. And when the assistance period -which runs for up to two years ends, 20% of the loan is forgiven with each passing year. So, for qualified borrowers who stay in their home for at least five years after the assistance period and who don’t fall behind on their mortgage againor need a loan modification, this money doesn’t have to be paid back.

Homeowners interested in applying must first complete a Pre-Applicant Screening Worksheet (see link). To find out if you qualify and till fill out the forms visit the website at www.findehlp.org. Do long as you stay in you property the loan is free, if you default on your loan or sell your home you are reponsible for the full amount of the loan. If you plan to stay where you are the money is free and free is always a good thing!

Good luck

 Diyloanmodkit.com

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.