On the one year anniversary of the Lehman Brothers collapse, Assemblymember Ted Lieu (D-Torrance) today announced the introduction of AB 1588, the Monitored Mortgage Workout Program, which would provide for state-appointed monitors to ensure homeowners have a chance to work out with their lenders a plan to prevent home foreclosure. Such monitors are critical to the Obama Administration’s Home Affordable Modification Program.
This short news clip accurately demonstrates some of the many problems common to the loan modification experience today. I have seen all of these problems and can tell you they are prevalent. Lost paperwork, poor training, lack of knowledge about the Making Home Affordable Plan, dropped calls , all are common.
Are banks deliberately giving homeowners the runaraound? That’s a question that is very difficult to answer. However, there is no doubt in my mind that the departments which handle loan modifications for the banks are experiencing severe growing pains. Staff are being hired at record pace with very little training and screening. Documents are being received and processed in a severe rush, often times missing pages.
It is up to you to be vigilant, persistent and knowledgeable. YOU must educate THEM on the criteria for the Plan and DEMONSTRATE THAT YOU QUALIFY. You can do this yourself, but be prepared to allot the time and the emotional stamina.
You are not alone.
A federal bankruptcy judge has had enough. After countless complaints of Wells Fargo giving homeowners the runaround and driving them into bankruptcy court, the Honorable Randolph Haines has ordered Wells Fargo to testify as to their loss mitigation policies.
I can tell you from personal experience that Wells Fargo is by far the most difficult lender to deal with when asking for co-operation with a distressed homeowner. My personal experience is directly reflected in the experience reported by this desperate homeowner. Wells Fargo’s loss mitigation staff have told me the very same things of which this poor homeowner complains. Hopefully, Judge Haines’ approach will make a difference for this homeowner and for others.
This recent bit of news comports with my personal experience on the ground. Citigroup has been one of the most receptive and better organized banks in terms of assisting homeowners with loan modifications. Citigroup’s people tend to be better trained and their support systems more efficient.
If a client comes to me for help with a loan, I am always pleased if I find out that their mortgage loan is with Citigroup.
Avvo.com is the nation’s fastest growing online directory for attorneys. Avvo.com surpasses Martindale-Hubble in growth and is set to soon displace them as the most visited online lawyer directory. People may ask legal questions and get some straight answers from legal practitioners in the relative area of law.
Today, Avvo.com chose Mr. Boulgourjian’s article, “The Top Seven Myths About Loan Modifications” as it’s Editor’s pick and Featured Guide. See Avvo.com’s homepage at www.avvo.com
Must history be destined to repeat itself? Less than five years ago, mortgage powerhouses FannieMae and FreddieMac, at the urging of the Bush Administration, agreed to support the writing of no money down, no documentatation, stated income mortgage loans to buyers with mediocre to poor credit. One of the most problematic features of such loans was the adjustable interest rate. The interest rate on these loans would adjust upward after a couple of years or more, ensnaring the unsophisticated home buyer and ejecting them from their American Dream.
The fallout from these frivolous practices was a mortgage meltdown that brought the world’s most vibrant economy to its knees and an implosion of our banking system, with the ripple effects being felt across the globe. The U.S taxpayer has been saddled with the price tag, left to pay the check along with all of its other debts.
How on earth could we make the same mistake again and so soon? Well, read this article. Banks are beginning to revert to their old ways and issuing bad loans destined for failure. We’re not out of the woods yet…
Rep. Maxine Waters recently attempted to assist two of her constituents who were in trouble.
Tragically, Rep. Waters’ experience is more the rule than the exception. Poorly trained personnel, overloaded staff and systems, a general reluctance to compromise. Be prepared, educated and tenacious or find someone who deals with this situation every day to help you.
Raffy Boulgourjian is a Los Angeles based real estate attorney.
By this point most of you are probably wondering if loan modifications even exist or whether they are simply a fiction created by banks and unscrupulous scam artists.
I have been practicing law for many years and in the last several months have completed many loan modifications for clients. Do they exist? They certainly do. Are there scammers out there trying to take your money? Clearly, there are. Must you proceed with caution? Yes.
After doing dozens of modifications, I have compiled a list of the seven most commonly misunderstood facts (and fictions) about loan modifications. I can only encourage you to educate yourself as much as possible, hire help that comes recommended if you feel you need assistance, and always keep in touch with your lender directly.
The worst thing that you could possibly do is run away from a looming foreclosure. Contact your bank, try to work something out, hire help but don’t squander precious time by ignoring the problem just because it scares you half to death. You can get help to guide you through a foreclosure situation if you feel that you need it. Begin by reading my most recently published article, “The Top Seven Myths about Loan Modifications.” and other helpful information on our website, www.boulgourjianlaw.com
Raffy Boulgourjian, Esq.