Hat tip to KK for sending this along, from the Huffington Post - a story that follows people through the loan-mod maze, and highlights how the servicers are making the walk-away problem worse: While walking away is a frightening and dangerous step into the unknown,...
From HW: A California appeals court ruled that a former homeowner's lawsuit against U.S. Bank for fraud may continue after the bank allegedly reneged on a promise to negotiate a mortgage modification, opening the door for claims from potentially thousands of similarly...
She doesn't say it specifically, but this should be the first step in resolving the MERS/robo-signing debacle with well-rounded settlements for all - from MND: Federal Deposit Insurance Corporation (FDIC) Chairman Sheila C. Bair called today for a "foreclosure claims...
Hat tip to Trisha for sending along this article by Lynnley Browning in the nytimes.com: Homeowners looking to lower their monthly mortgage payments and also save some on interest may be able to do so without all the hefty fees and daunting credit requirements of...
From the Boston Globe: Even when faltering homeowners and their banks would both benefit by modifying mortgage terms or arranging a so-called “graceful exit’’ from an unsustainable loan, such negotiations haven’t become standard practice — and the arduous foreclosure...
From Diana Olick at cnbc.com: I have argued many times that just because a loan is underwater (value of loan is higher than value of home) it doesn't necessarily mean that the borrower will stop making timely payments. Yes, the incentive to abandon the home is there,...
Hat tip to David for sending this along, from USA Today: Steven and Tamara Gewecke are three years behind on their mortgage payments, but they've fought off foreclosure. The Minnesota couple refinanced in 2006 to start a business. It failed. Debts mounted. The...
Hat tip to both SM and RE for sending along the Wells Fargo announcement of neg-am bailouts. If principal reductions gain momentum (which is doubtful), the moral hazard would be hard to imagine - and it could start a revolution in the streets. From Eric...
Excerpts regarding the fed/state plan for principal reductions, from latimes.com: The most controversial part of the program, and the one most difficult for banks and investors to sign on to, dedicates $790 million to principal reduction. This would write down the...
Hat tip to Susie for sending in this latimes.com article: For example, Jean C. Wilcox of Irvine has sued EMC Mortgage Corp., accusing it of stringing her along for three years while making several offers to modify her nearly $800,000 loan, losing documents repeatedly...
