Under terms of a settlement with Banks and NY attorney general, Banks are supposed to do more to help homeowners.
They are are actually doing not too much in principal reduction which was supposed to be the main benefit. They are leaning heavily towards short sales and write downs of 2nds. Big deal- 2nds will go away in foreclosure anyhow.
Wells ( the worst in my opinion)uses almost short sales exclusively. Chase discounts 2nds, Citi does more 2nd mortgage discounts and short sales than write downs of first mortgages.
The banks are not abiding by the other rules of the game and the NY attorney general plans to go to court to force them.
We have heard stories of banks still going to sale while loan modifications were taking place- a no-no under the new laws.
Is anyone surprised?
Banks are up to their usual tricks. It seems as if nothing has changed. We pass laws and they laugh at us. Here is more proof.
The IFR settlement gives loan modifications—which keeps people in their homes—and short sales “equal footing” by providing dollar for dollar credit for both foreclosure alternatives So it’s possible for servicers to meet their required goal of providing $5.7 billion in mortgage assistance by offering only short sales and deeds-in-lieu since there are no limits on what types of relief must be provided. That does not bode well for loan mods. The amount actually approved is ridiculous.
Read more on Loan mods- the joke of the decade….
Last year the 5 biggest banks cut a deal with 49 attorney generals.They were B of A, Chase, Wells Fargo, Citigroup and Ally financial. In return for not being sued, they agreed to certain practices.
Read more on Banks are not paying attention to the law….
When talking to sellers who are in trouble, the topic of loan modification will always come up. You need to have some basic information to give to them.
First of all, there are very tight qualifications for this process and it ain’t easy. If you make too much, you are turned down. If you make too little, you are turned down. You have to learn all the ins and outs so you can help the homeowner face reality if they don’t fit.
Read more on Loan Modifications- what you need to know….
So what’s new? 3 years ago Wells Fargo entered into an agreement with the federal govt that they would provide at least $50 million and as much as $200 million in loan mods.
Read more on Wells Fargo is not playing fair…