Homeowners receiving loan modifications for their primary residence (and noted on their credit report); are now being treated as short sellers by Fannie Mae…even if the homeowner was never late on their mortgage.
Read more on New short sale and loan mod rules…
When you are dealing with a seller and taking over the property subject to the existing loan, you are going to transfer the property to a trust, with you as trustee.
Read more on Questions to ask the bank after you fax in authorization to release information…
Foreclosures are Up
It’s about time these crooks were caught. Ca. law makes it illegal to take money upfront to do a loan modification but these attorneys get around it by calling it a retainer. The poor homeowners think its a fee. They don’t understand that a retainer is only the first payment. When the money is used up in hourly work, you get billed again. It’s a bottomless pit.
Read more on Real Estate Scams…
Why am i not surprised? We regulate and banks ignore. Same old story. New laws in Ca. say that dual tracking is illegal. That is when banks continue the foreclosure process while you are negotiating a loan modification. They are not supposed to do it. Still doing it.
You are also supposed to have a single point of contact through the whole process instead of being jerked around from person to person. Guess what- not abiding by that law also.
What do we have to do to get the banks to obey the law. Anyone got any ideas?
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?