Tag Archives: HAMO

Does this sound about right….


Does this sound about right….

This following is one of the most common stories throughout the United States that you will hear when discussing someone's personal foreclosure story .

“… all of this started with the servicer telling us to stop making payments in order to make sure we would be in a better position for a modification.  They couldn’t assist us if we were current on our mortgage.  But, we were current on our mortgage, however, were discussing our personal financial issues that we saw coming up on the horizon for us, and that concerned us.  We were trying to be proactive in our approach and we thought it prudent and were trying to make arrangements.”  The servicer tells a homeowner to get behind in their payment if they wish to obtain any government sponsored relief.  A homeowner goes behind, as to the advice of the HAMP program rules and thinds themselve in default.  They were current on their mortgage and were trying to help a situation like this happen.  Being proactive.

A judicial foreclosure or a non-judicial foreclosure begins.

The Servicer immediately cashes a credit default swap for some percentage of the mortgage balance and has some split with the investor.  Then they send 10 or 15 sets of mortgage modification applications to the homeowner and collect payments of $300 ea under their HAMP servicing agreement with the fed.  Then they offer a trial modification to the homeowner and promise that it will convert to a permanent mod if the homeowner makes all of their payments on time.  The bank loses the paperwork 3 or 4 times and charges the fed each time they process a new application. Then, charges the fed again for sending 3 new applications to the homeowner over the next three to six months.  Less than 3% of the time is the homeowner ever approved for a temporary modification.  Less than 1%, in some studies, ever start paying the narrowly reduced payments of the HAMP or TARP program while the servicer dual tracks the homeowner.  Soon, as many of the stories do, then the servicer hires LPS, the parent company to LSI Title, to file some fraudulent assignments in the name of the deceased bank the servicer bought the servicing rights from (Countrywide, World Savings, Indymac, you get the idea).

The servicer conveviently rarely sends and subsequently shoplifts the temporary payments the homeowner is making for the modification program.  If the homeowner were to know and if things were legit, they might think that the payments are going to the MBS towards P&I as agreed in the contract.  Though, they aren’t.  An illegal financial institution is keeping the payments.  The MBS has no idea that any payments are being withheld, or that there is anything wrong with any payments at all.  You see, as the homeowner gets further behind their own MBS investor has no idea. This is due to the fact that the government has guaranteed a return on their investment.  In other words, the government is covering the spread if a homeowner fails.  But, the government is the taxpayer.

The servicer gets paid a fee by the fed for servicing the temporary loan modification under their HAMP servicing agreement. The servicer denies the modification and forecloses on the property and collects a fee from the investor for servicing the foreclosure and collects an 80% FDIC loss share payment from the FDIC which it splits with the investor.  The FDIC is the taxpayer.

The house is sold, and as in our case, to a company that buys foreclosure properties in bulk for less than the retail value.  This is systemic and is done in a very large scale in order to manipulate the real estate market.  The investor recovers the REO value less, the bank’s REO sale fee.  The company that buys the foreclosed property, studies have found, work with the servicers in order to manipulate the market as a whole.  The Non-Judicial foreclosure process is simply a fast food style of law where the Unlawful Detainers get stream lined and rubber stamped by the Judges.  In FL, it has become common knowledge that the Judges are making a profit on each property in the process as a percentage to look away.

The only reason any of this could take place is due to the fact that the Legislation changed the Servicing powers and the ability to transfer the Trusteeship of the Deed of Trust.  The Registrars and everyone else mistook this legislation to mean that the Trustees can be reassigned by the Beneficiary or Servicer and possess the rights of the primary Trustee named on the Deed of Trust that was originally signed by all parties.

This is e illegal government rubber-stamped dismantling of the middle class. How can you ever stop a ruling class from doing something that is this lucrative???

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