Wells Fargo Accused Of Fabricating Foreclosure Documents

Wells Fargo Accused Of Fabricating Foreclosure Documents

Will Someone Go To Jail This Time?

With foreclosures not exactly making front page news anymore, a recent internal report states the Justice Department massively overstated its successes in targeting mortgage fraud while in fact ranking it as a low priority for investigation. Sound familiar? Our government overstating successes?

And talk about mortgage fraud, this report comes at a time when a recently revealed internal Wells Fargo document appears to guide lawyers step by step on how to fabricate missing documents to foreclose on homeowners. Wasn’t it bad enough to falsify signatures with robosigning? Imagine a bank creating missing documents in order to foreclose on homeowners.

The Justice Department’s inspector general says despite playing a key role in the nation’s financial crisis, mortgage fraud was deemed either a low priority or not a priority at all.

Sounds Like An Inside Job

This attitude seems eerily familiar to what documentary filmmakers Charles Ferguson highlighted in the Academy Award winning documentary Inside Job. He spotlighted how during and after the serious mortgage scandal and meltdown that no one lending executive has gone to jail.

Now with this recent Wells Fargo scandal we shall see is that fact remains true.

For those who wish to read the whole report and transcript then click on the link –

http://www.democracynow.org/2014/3/21/as_wells_fargo_is_accused_of

Money For Underwater Homeowners Languishing In Bank Accounts – TV Interview

Keith Rockmael of Bay Area Resource

Tom Vacar, KTVU/Fox 2’s Consumer Editor, interviewed Keith Rockmael one one of the Bay Area Resource coalition members.

See link for video which aired yesterday on the 5 o’clock news here in the San Francisco Bay Area.

http://m.ktvu.com/videos/news/berkeley-money-for-underwater-homeowners/vCG4Qm/

CA Homeowners Have More Power Against Banks Thanks To Homeowner Bill Of Rights

CA Homeowners Have More Power Against Banks Thanks To Homeowners Bill Of Rights

Homeowner Take On Banks In Court For Dual Tracking And Foreclosing

When the California Homeowner Bill of Rights came into effect in January of this year, many advocates cheered, and of course the banks were not so pleased. Even though the law took effect few people saw any immediate effects. We heard from several non-profit counselors and homeowners that banks continued to dual track homeowners, offer multiple points of contact and break the terms of the law.

The California Homeowner Bill of Rights offers protection for the homeowners but what options do homeowners have if the banks don’t comply? Take it to the courts. In the past, homeowners didn’t have many options if banks dual tracked then foreclosed. Even if you could find an attorney to take the case, many judges would throw the case out. One of our attorney colleagues mentioned recently that in the past Contra Costa judges had been particularly reticent to halt foreclosures or entertain dual tracking cases but with the new law things have changed.

One story (see link) tells the story of a San Luis Obispo County couple who came out victorious in a million-dollar-plus settlement against OneWest Bank, IndyMac Mortgage Services, U.S. Bank and GSR Loan Mortgage Trust after the servicer foreclosed on their home and a rental property while the couple negotiated a loan settlement with the servicer. People often refer to this practice as “dual tracking”.

Attorney Specializing in CA Homeowner Bill of Rights Will Speak at the San Francisco Housing Expo

This case and a few others will now doubt offer homeowners a better opportunity to take on the banks for wrongdoings as part of the Homeowner Bill of Rights.

One attorney specializing in the California Homeowner Bill of Rights will be speaking at the San Francisco Housing Expo October 26.

2013 San Francisco Housing Expo Coming In October

For anyone out there who thinks:

A: It’s impossible to buy a home in San Francisco unless you work at Google or Facebook or

B: That foreclosures and foreclosure prevention does not exist anymore in San Francisco,

might consider attending the HomeownershipSF FREE RESOURCE FAIR FOR CURRENT AND FUTURE HOME BUYERS

For those wishing to purchase a home in San Francisco we have listed a number of items that will be included in the free event
•
Find out about down-payment assistance programs
•
Tour available Below Market Rate (BMR) properties
•
Learn about special products and services for Veterans, persons with disabilities, and Union members

For CURRENT HOMEOWNERS who may be having difficulty dealing with their servicer, making mortgage payments, trying to save their home or finding out of the box solutions may wish to attend as well.

The expo will include:
•
Negotiate directly with servicers to modify your home loan
•
Meet with a certified Keep Your Home CA counselor
•
Find out about grants and low interest loans for needed home repairs
•
Connect with resources to support your financial well being

Those wishing info before the event can feel free to contact us for assistance and information.

Have You Had Bad Experiences With Any Of These Loan Servicers?

Have You Had Bad Experiences With This List Of Loan Servicers?

Have you had any bad experiences with one or more of these loan servicers?

• Sun Trust
• HSBC
• Litton (owned by Goldman Sachs)
• Saxon (owned by Morgan Stanley)
• GMAC
• EMC (owned by JP Morgan Chase)

If you have had bad experiences with one or more of the servicers listed above, please let us know which servicer, how many cases you have had, and what the issues are. There may be an opportunity to communicate concerns directly with federal examiners who are examining bank compliance with foreclosure laws and rules.

HOW TO KEEP AUCTION.com out of your Short Sale

Richmond May Use Eminent Domain To Help Upside Down Homeowners

Richmond May Use Eminent Domain To Help Upside Down Homeowners

Richmond Seeking Proactive Solution For Distressed Homeowners

Anyone in the San Francisco Bay Area who thinks that the real estate crises and underwater homes are “so 2012” might consider a trip over to nearby Richmond. Just across the Bay, Richmond city officials have taken a serious step toward actually using the eminent domain tactic to rescue underwater homeowners from their distressed homes.

While homeowners in San Francisco, San Mateo and many other nearby cities enjoy healthy appreciation in their homes, Richmond residents continue to struggle with options to fix their situations.

This week the city of Richmond sent letters to 32 banks and other mortgage holders offering to buy 624 underwater mortgages at discounts to their homes’ current value. If the banks fail to cooperate with the city, then Richmond may use what some cities have threatened in the past, to use their power of eminent domain to condemn the mortgages, and seize them using court determined fair market value.

Them the city would assist homeowners to refinance info the mortgages in line with their current value.

Richmond’s goal is to help stabilize the community by eliminating the numerous distressed homes that remain.

Of course the banks and Wall Street investors don’t think highly of this idea. They claim that the tactic is unconstitutional and if the city does move forward you can bet your mortgage that lawsuits will be flying around the city of Richmond.

Richmond Underwater Homes By The Numbers

624 Loans Richmond has made offers on

444 Loans current on payments

180 Loans delinquent on payments

32 Servicers for those loans

$241.98 million Total face value of those 624 mortgages

$177.16 million Total current market value of the 624 homes

$68.82 million Negative equity in the homes

Mortgage Debt Forgiveness Relief Act Set To Expire December 31, 2013

Mortgage Debt Forgiveness Relief Act Set To Expire December 31, 2013

 

Homeowners On The Fence About A Short Sale Should Consider The Year End Expiration Of Tax Break

It seemed like just yesterday that underwater homeowners faced a conundrum to either short sale or wait things out to see if the market would improve. For many homeowners the market improved so much that they now sit right side up with actual equity in their home. Short sales have become equity (or what many people refer to as “normal”) sales.

Even with the hot sellers market, some Bay Area homeowners remain underwater. Because we passed the halfway point in 2013, homeowners have that same decision as before. With the Mortgage Debt Forgiveness Relief Act set to expire at the end of this year, homeowners on the fence must choose whether to short sale and take advantage of the tax break or try another option.

What would those other options be?

1- Although banks have been downplaying the loan modification option for some time, homeowners can still apply for either a HAMP (government guidelines) or one of the in-house lender modification programs. Usually the banks mirror the HAMP guidelines but some differences often exist. Either way, those choosing this option should consider using a non-profit counselor to advocate on your behalf, instead of dealing directly with the bank.

2- Refinance through HARP (Home Affordable Refinance Program). Homeowners with no late payments in the past 12 months who are underwater may be eligible to refinance through the HARP loan. Many guidelines exist including that the loan be owned by Fannie Mae or Freddie Mac. Those interested might consider working with a knowledgeable loan officer who doesn’t necessarily need to work with your current servicer.

3- If the above options don’t work, then a short sale may be the best bet. A short sale, handled correctly, will allow the seller to exit the home without any debts. The short sale can be particularly handy for homeowners with multiple liens and/or HOA liens. Depending on the status of your loans, a foreclosure may leave homeowners open to financial liabilities, while a short sale many times allows a cleaner break.

The Importance Of the Mortgage Debt Forgiveness Relief Act

In a short sale, the Mortgage Debt Forgiveness Relief Act plays an important part of the loan forgiveness. The bank essentially “pays” the delinquent borrower the amount of debt forgiven, which is why creditors send Form 1099-C to the borrow showing the amount of “income” that he or she received as forgiven debt.

We conferred with CPA Robert Caplan about the Mortgage Debt Forgiveness Relief Act.
Mr. Caplan mentioned, “Homeowners should keep in mind that they can only apply this provision if it was to purchase or improve the property. The advantage is particularly important if they have not re-financed the hell out the house.”

If considering a short sale, a homeowner might worry about being a target for an audit but Mr. Caplan mentioned, “It appears that there is not a lot of auditing for relief indebtedness if you do your tax planning carefully.

To many people, it would seem logical to once again extend the Act but with the Congress scoring a 14 percent approval rating who knows if they will use logic to extend this program.

This sellers market will not last forever. Interest rates should climb. At some point, real estate inventory will probably rise. Those on the fence should consult with their financial planner, accountant or other professional who can look at the big picture to decide if now if the time to hold on or sell and take advantage of the Mortgage Debt Forgiveness Relief Act.

Application Deadline for the Making Home Affordable Program Extended

Application Deadline for the Making Home Affordable Program Extended

Extension through December 2015 Will Provide Struggling Homeowners Additional Time to Access Sustainable Mortgage Relief

Like so many of the other homeowner programs (e.g. The Mortgage Debt Forgiveness Relief Act) the HAMP program recently got the green light for an extension. The HAMP extension runs until December 31, 2015. The program was set to expire on December 31, 2013.

The good aspect of the extension is that the extension includes Fannie and Freddie, not just Treasury, and that they set the extension for more than one year.

Despite the fact that banks continue to push away from loan modifications and more toward short sales and deed-in-lieus, homeowners in distress can take some solace in the fact that this opportunity still exists for them to save their home and create a more sustainable situation.

Re-default Rates On Loan Modification Decline

Since its launch in March 2009, about 1.6 people have gone through the loan modification program and nearly 1.3 million homeowners have been helped directly by the program.

Consider that the re-default rate on loan modification looms high.

Some of the loans that never should have been made saw high re-default rates of modifications. Look at the re-default rates for loan mods made in the first quarter of 2009, and those numbers show re-default rates in the range of 85 percent to 90 percent.

However, things continue to improve. Modifications made more recently, such as in early 2011, show improved performance with average re-defaults after 12 months approaching 40 percent to 45 percent.

The $25 Billion AG Foreclosure Settlement Was A Big Dud

The $25 Billion AG Foreclosure Settlement Was A Big Dud

New Reports Conclude That The Banks Continue To Break The Terms Of The Settlement

Remember several months ago when people made a big deal about the $25 billion AG Bank Settlement for homeowners?

We’re talking about the National Mortgage Settlement, the $25 billion deal agreed upon a year ago between 49 state attorneys general, federal agencies like the Justice Department and the Department of Housing and Urban Development, and the five largest mortgage servicers: Bank of America, JPMorgan Chase, Wells Fargo, Citi and GMAC/Ally Bank.

Many homeowners and the general public had the impression that foreclosed and distressed homeowners would reap the benefits of the settlement. Homeowners would receive checks. The banks would chop away large amounts of principle. Banks would stop robo-signing. And money would grow on trees. As it turns out it may be more likely that money will grow on trees rather than the other items occurring.

What Happened To The Settlement Money?

It takes talent to make $25 billion seemingly disappear away from the homeowners who need it but that appears to be what has happened. One non profit counselor in San Francisco mentioned how the banks apply their principle reduction for the second lien which counts toward their settlement requirements however it does little to help the homeowner. It essence the banks are cherry picking in order to full their obligations.

According to new evidence disclosed by the Center for Investigative Reporting and NBC Bay Area and another recent article the banks continue to break the terms of the settlement without being punished. The story highlights brave county recoding clerks who have examined mortgage documents in their offices and found massive fraud. The story also mention one case of  a mechanical engineer who made a last-ditch effort to save his home, as he delivered a cashier’s check for $27,777.85 to Bank of America, which promptly lost the payment, and foreclosed anyway.

When the AGs made this settlement, they along wit numerous politicians stood up and said how this settlement would stop the abusive practices that have taken place against homeowners. Unfortunately, that doesn’t seem to be the case.