H.R. 4173

Well, the mortgage modification situation is apparently getting worse, if the increased number of desperate emails and letters which continue to pour in are any measure----and we truly have no answers for them.  As long as the lenders are compelled to drag out the process, and clog the courts with individual and class action lawsuits, the entire process is slowed---just what the lenders want.  But why?  Common sense would dictate that a 'clearing of the books' and developing a framework of keeping neighborhoods together, and ensuring the best possible economic results for all involved might be a process to embrace.

The scary part is that we can project the current lender response as unsustainable, and will be only a matter of time before the approach will have to be re-evaluated----likely developing into a huge problem for the average person caught in the mortgage backed swindle of the last decade.  Eventual eviction.

Quite frankly, this is not a fair fight, and any homeowner who has a legitimate mortgage issue which should be solved by modification is going to be fortunate, indeed, to obtain any measure of success.  Certainly not without legal representation.  One can hope that the judges get to a point that their encouragement toward a fair settlement with the homeowner becomes serious enough that those firms representing lenders would begin to measure the long term ramification of their continued efforts to ask for dismissal, then attempt to elude paying attorney fees, and other contrarian behavior, such as chain of title issues, and the creation of the entity MERS, a firm assembled by financial and insurance companies whose main charge is to expedite the paperwork associated with repeated sales of real estate contracts, many times not paying county recording fees, operating in an arena without much legal precedent.

So, how should the judges handle the glut of cases headed directly at them in waves?

A few re-conveyances of title might do the trick.  And continued public information prominently displayed and widely distributed.  Having a negative image in the public's eye must be avoided, as is evidenced by the overwhelming and shameless commercial advertising by financial firms, determined to convince you that all is well----come on in, the water's fine.   And, hey, we might even give you a 1.3% savings account. 

The following email, describes one example  of loan predicaments rampant today.  It was written in response to an article about House Resolution 4173, the  Dodd-Frank Wall Street Reform and Consumer Protection Act.

The Act states as its purpose:  To provide for financial regulatory reform, to protect consumers and investors, to enhance Federal understanding of insurance issues, to regulate the over-the-counter derivatives markets, and for other purposes.

The email:

'We are a couple who are embroiled in a mortgage scheme initiated by Countrywide (various TILA violations) then carried on by BofA, who were temporarily thwarted from foreclosure (through the assignee MERS) by the actions of a non-profit legal firm.   We were very fortunate to receive this help, and wish everyone to know that we are law abiding citizens, who pay their bills, and are socially and environmentally considerate people, who wish only to remain in their home, with a binding loan reflecting 31% of gross income as the mortgage payment amount. 

 

Prior to the loan fiasco with Countrywide, we never missed or were late with any mortgage payment for the three previous years.
 

 

Yet, what is to happen to us?  We are in the Trial Modification program, and will be making the 7th payment of this established 3 month soon.  As you know, the language from Treasury regarding the Making Homes Affordable act, and utilizing HAMP indicates--- after a successful three month time period, a permanent modification will be offered.  Well, the figures simply do not bear out this edict. 

More homeowners who are in extended phases of the Trial program (such as myself) and who have made every payment are being denied a HAMP permanent modification, the main reason being the failure of the elusive and questionable NPV test to assess the choice to either foreclose or modify.  A much better assessment tool can be found here:   http://http://mandelman.ml-implode.com/2010/05/how-why-to-use-the-rest-report-when-applying-for-a-loan-modification/ 

 

As a permanently disabled couple, the stress associated with this nightmare is serious and cumulative.  I have a disabling neurological condition, and have been experiencing psycogenic seizures as a result of stress, and my partner's PTSD is being challenged by the same stress.  Each day goes by, and we do not know for sure what is going to happen to us.  Our main source of income is disability payments.  Would anyone out there like to exchange their condition with mine?  Or my partner's?  Think about your home being auctioned off from the steps of the courthouse.  Ours was scheduled (the first time) for last December 23, 2009.  Merry Christmas! Now get out of your house! 

And it goes on today, as they delay and delay-----who the hell is in charge of this situation?  We cannot live this way much longer.

 

 Any help or sources are appreciated----simply put, would the legislation have any bearing on our situation?

 

Thanks for your time,

 

(name withheld by request)

 

 

 

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