Class Action Law Suit for Bank Of America
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The lawsuit that was filed on 12/27/10 in St.Louis, Conneticut, claims that although Bank of America took $25 billion in TARP money (Troubled Asset Relief Program) it broke faith with the U.S treasury by letting mortgage holders down. The suit is similar to others filed by Attorneys general in Arizona and Nevada.
Plaintiffs in the suits claim that “by accepting TARP money, Bank of America agreed to participate in at least one TARP-authorized program to minimize foreclosures” and agreed via contract with the U.S. Treasury to comply with HAMP (Home Affordable Modification Program) regulations to “perform loan modifications and other foreclosure prevention services.” The plaintiffs allege that the bank has done neither.
Bank of America reported that it had completely paid back all TARP funds on December 9, 2009. It has consistently reported the lowest completion rates on loan modifications of any lender and has repeatedly “streamlined” the time frame and modification process in an effort to maintain a good public image and good rapport with consumers. However, the lender has complained on record – along with others – that the processes required by HAMP place too much strain on lenders, requiring them to “collect too much paperwork” and not placing enough responsibility for timely submission and accuracy on borrowers themselves.
Yeah right!
Find out more @
Shawn
Categories: Loan Modification, Obama plan Tags: Bank of America lawsuits, Bank of America loan modification, Bank of America loan modification Bank of America HAMP program, diy loan modification, diyloanmodkit.com, do it yourself loan modification, foreclosure, Loan Modification, Obama plan
500,000 helped by Obama mortgage rescue
The administration reaches its goal a few weeks early. But it remains to be seen how many of these trial modifications will work.
NEW YORK (CNNMoney.com) — Loan servicing companies have put 500,000 troubled borrowers into trial mortgage modifications, the Obama administration said Thursday.
The administration set that target in late July after it came under fire for not helping homeowners fast enough.
Officials have increased the pressure on servicers to speed up their implementation of the president’s foreclosure prevention plan, which calls for reducing eligible borrowers’ monthly payments to no more than 31% of their pre-tax income. Servicers had until Nov. 1 to hit the half-a-million mark.
The administration also released a related report Thursday showing that 16% of eligible troubled borrowers at least 60 days delinquent were placed into trial modifications as of the end of September. This is up from 12% a month earlier.
Consumer advocates have said that the president’s initiative has prompted servicers to help more people than ever before. But, there is still a long way to go.
The administration’s efforts are only “chipping away” at the problem, said Barry Zigas, director of housing policy for the Consumer Federation of America
“It’s very, very frustrating that so many borrowers are on track to lose their homes,” Zigas said. Thursday’s report “is not a cause to rest.”
For more on this story visit:http://money.cnn.com/2009/10/08/news/economy/Mortgage_modifications/index.htm?postversion=2009100816
Good Luck,
Shawn
http://www.diyloanmodkit.com/
Categories: Loan Modification Tags: DIYLoanmodkit, Loan Modification, Obama plan, trial loan modifications
New Loan Modification Figures Are In!
Many of you are wondering if the banks and lenders are truly modifying loans or just leading you on a wild goose chase! After all, a lot of what you are doing is just faxing documents to different departments, and sometimes being told that the documents were…lost.
Here is proof positive that loans are being modified and your good work is paying off! Keep going, and remember that for some banks and lenders you will have to fax different documents to qualify for different programs:
This article is taken from Money.cnn.com on 3/31/09
Lenders have helped an increasing number of mortgage borrowers to get current on payments and stay in their homes, but the tide of foreclosures is still rising.
In February, nearly 250,000 homeowners received either mortgage modifications or repayment plans from their lenders, according to Hope Now, the coalition of lenders, investors and community advocacy groups put together to combat the foreclosure plague.
About 134,000 of the workouts completed were mortgage modifications, which typically lower the interest rate on loans, lengthen mortgage terms or reduce principal owed to make loans more affordable. Modifications are considered more comprehensive and effective than repayment plans, which simply tack the late payments on to the end of the loan but don’t reduce payments.
“The mortgage lending industry is responding to the needs of its customers and offering solutions that are appropriate to the current market and economic conditions,” said Hope Now’s director Faith Schwartz.
But in spite of these efforts, the number of foreclosures started in February rose to 243,000 from 217,000 in January. About 87,000 homes were repossessed by banks during February, a 28% jump from the 68,000 foreclosures completed in January. Since the mortgage meltdown hit in July 2007, 1,395,044 homes have been lost.
February was the second straight month of sharply higher foreclosures; prior to January, the problem appeared to be easing. Foreclosures declined to 69,000 in November from 77,000 in October and then dropped again to 56,000 in December.
But the report could have been much worse, considering the nation’s deteriorating economic picture, Schwartz said. “We’re shedding 650,000 jobs a week,” she said. “But there’s more flexibility [by the lenders]. They’re offering more forbearance in response to job losses.”
The Obama administration’s foreclosure prevention initiative could send mortgage modification numbers higher in the coming months, but it will take time. “We won’t see a spike right away,” said Schwartz. “[Under the program] It takes 90 days to complete a modification. Over the next three months we’ll start to see some pull-through.”
April will be “the month to get all the implementation details done on the new plan so that everything is crystal clear when they start using it,” she added.
Read the full article at: http://money.cnn.com/2009/03/30/real_estate/February_Hope_Now/index.htm?postversion=2009033010
Shawn St. Prix
http://www.diyloanmodkit.com
Categories: Loan Modification Tags: DIYLoanmodkit, Loan Modification, loan modification figures, Obama plan
