I have been working on modifying my primary residence since april. I finally called 888-995-HOPE hotline and went through my budget summary to better understand why my mortgage company suntrust was denying me for the making homes affordable act. What the counselor found was that I do indeed qualify. I feel that I am getting the run around for the above reasons. The counselor faxed the supervisor at suntrust now lets see if she will see it our way, or if there will be more stalling

The banks have no intention of helpeing the people that need it. They never have, our government is out of control and the people need to start telling the government and there henchmen (aka police) no! Myself, am wondering how long the people will stand for it?

Of course they aren't being modified. Our whole financial system is a big scam rigged to benefit the rich and keep the rest of us down paying for the cost of our own slavery. It's economic tyranny and people need to start waking up and stop believing all the hype being pumped out of DC, our financial institutions and break out the pitchforks.

Pitchforks? Redmagic you sound more like hammer and sickle than pitchforks.

Anyone who trusts the financial services industry to "do the right thing" is kidding themselves. The ONLY way to deal with this mess is to be represented by qualified counsel, who knows how to stand up to them and to fight back. If you don't, "they" are in control, and as long as they are in control, you are a sitting duck.

We aggressively defend foreclosures in Florida. Not one of our clients has been foreclosed on. I used to be on the other side, and I know their world.

You may be surprised at how defensible many foreclosure cases are, particularly if you get someone good involved at the beginning.

Tony- there is a difference in Capitalism and Democracy. Government isn't really helping. And FInancial Institutions aren't doing anything either. I was offered a loan mod late last year: It was a 5 year balloon paying 1% interest for 2 years, 3% for the 3rd and 4th year, and 5% for the final year with a balloon payment. Interest not paid would obviously be added to the principal debt. What kind of a loan mod is this? We then tried to get the Obama Plan and were denied. We owe $489K for our home. My next door neighbor bought in January for $310K and three houses down just sold for $220K. Banks are not adjusting prinicipal, banks are not helping at all. They do not care. Period. That's why I am against the Government bailing out the banks.

The whole process sucks. WELLS FARGO would not modify my mortgage from a 15 year amort to even a 30 year loan. You just get the run-around. The "negotiator" I finally got was a robot who had no interest in helping me now my income is less than half what it was. All I wanted was to pay less principal every month, my mortgage payment is killing me. When I get back on my feet I will never do business with Wells Fargo again until the day I die.

GMAC helped me. My loan was modified this month.

Ive never missed a payment. Citi told me i have to much equity to qualify, that they(Citi) would rather see me go into foreclosure. "the Citi Rep said it was basic ecomonic and this is how the banks are making money."

Why should they modify your loan. They would rather take over your house and put you out on the street. That's when the government may eventually take care of you. They surely took care of the banks with printed money. Welcome to free market capitalism. Simply bend over and say thank you for helping me live the American dream on credit.

Bending over and taking it is exactly what we are doing. My husband lost his job and our income decreased by 75% but we didn't qualify. The banks just don't care. I had a representative from Washington Mutual actually tell me " that's too bad." The American dream is dead.

I started on my federal loan modification application in march. I sent them every piece of paperwork, they wanted.I'm still waiting for a decision on it. I for one want to know what happened to the hundreds of billions the banks got.

Simon, may I ask what kind of Loan mod were you offered with GMAC?? My mom has a mortgage with them and I was about to start pursuing a loan mod for my mom. How many months did it take for you to finally get an answer from them?? Any info would be appreciative

I've been waiting since January for a modification. It took finally contacting the HOPE hotline to get my mortgage company to respond. I've just finished my 3 month trial period/ forbearance payments, but still no news on the modification.

Find out how to get a easy loan even with bad credit.

gbajwa24:

I think you are confusing Simon's post w/mine. I have a GMAC account. I actually was declined at first because they sent me the approval paper work 7 days before the first payment was due. I told them that was not possible, so they said to apply again, which I did, and a nice rep called and told me I was approved so I had advance notice to make the payment.

The process actually took 8 months, it was very scary, with foreclosure
papers served and all, but looks good now.

From what I understand, the new modification program is a simple formula-app 33% of gross monthly income is your new loan amount, but you have to show you can afford the payments. After 3 months of successful payments, the loan is modified close to the amount of the trial modification for the lifetime of the loan.

The only snafu I may have is the escrow account, which is now short. They require one in the modification. So I think they add the shortfall into your permanent payments.

If I can offer any advice, it would be this:

Be patient, give them everything they request, and document every phone call, fax, etc.

Remember, foreclosure, or lis pendens, is an administrative process that can be stopped at any time. Be worried, of course, but not so paranoid that you don't communicate with your lender.

I did this without an attorney, but you may want to hire one if you feel you need to.

Hope this helps, and remember most of us are in the same boat.

My 68 yr old Mother is getting the royal run around from Indy Mac...Her employer of 18 years folded up shop and left Florida 4 months ago citing economic conditions...She called Indy Mac and explained she just lost her job and there is no way she could find another job at her age paying a salary high enough to continue her current mtg payment...She asked for a loan mod, they said no, you are current. Having only a small amount of money left, she quit paying and was prepared to go into a lower priced rental unit of $700 a month. She had been paying $1300 a month....Indy Mac finally sent her an offer to mod the loan after she missed her second payment...She agreed as she would be able to pay it...She sent them a check along with all the paperwork...It has now been well over a month...They haven't cashed the check and yesterday she received a notice they are foreclosing on her house...It's amazing they can even stay in business with their piss poor tactics...Who knows where it will end up now...To those of you holding on hoping for a miracle...Walk away! These banks aren't worth a pile of steaming crap!

with the exception of banks suck!(whos mother seems to have a legit beef altho she could just sell the place) you are all a bunch of cry babies. You bought the place and agreeded to the terms of the the loan so quit crying like a little child. pay your bills like the rest of us and keep you hands in your own pokets.

Interesting!

The loan modification process can be frustrating and confusing for many distressed homeowners. But you have to know what exactly is loan modification. A loan modification is a permanent change in one or more terms of a borrower's home loan.

Important to note, some of this folks may have obtained homes that they
could not afford to begin with, and probably their income was stated
(whatever amount could satisfy the loan approval), instead of documented
(proven with a 4506-T, IRS verified). Also, in some cases the bank has
placed them in a forbearance instead of taking their homes away.

If the lenders were to approve everyone's loan that is scheduled for
modification or in trouble just by a "verbal review with a HUD approved
counselor," we will be in the same place we were at the beginning of the
Obama administration.

The stated income, stated asset, the no income no asset loans (lier
loans) are a thing of the past. Millions of these loans were approved
under those standards, now everyone "must" prove their income, and if
you cannot afford your PITI, then the home will be taken away. It is all
about business.

The bailout money was put in place to help the banks\lenders from going
over the edge and to preclude a financial debacle worldwide, not so much
to make sure you stay in your home. No different that the "cars for
clunkers" pogram, it was put in place not to make sure you bought a new
car. It was put in place to bailout the car industry.

However, I do think that the banks have taken the tax payers money
(bailout money) to clean the bad debts on their books. If you walk away
from your home it does not really matter to them since they can pay the
investor with your tax-money, they keep the asset which is your home,
sit and wait until the market recovers, then sell the home and make the
profit.

There is really no loss to the banks/lenders, since your own tax dollars
are being used to kick you out of your home, pay the investor, and sell
your home to someone else, instead of helping you keep it.

Think about it, if you own, say, a car dealer with 20 cars, 10 of which
owners have financed and cannot pay but want their car payments
negotiated/lowered, and you just received federal funds to cover for the
financial losses of those 10 cars. Would you really negotiate with those
car owners and lower their payments? Or would you rather have the asset
back so you could sell it again and make more money? It is simple math.

There is no TARP or bailout money oversight. This is why if the lender
is acting predatory, it needs to be escalated to HUD. Also, when someone
is in conference with the bank/lender and/or they realized that there is
a third party (attorney, counselor) they will probably behave
differently and make better decisions.

WELLS FARGO is full of crap. They have no intention of modifying loans, other then what’s being forced down there throat through the government. After spending months faxing hardship letters, income sources and expenses I believe it’s all for show. The end run is the investor is not willing to accept a modification, because that investor is you and me. Think about all the 401k’s, 529’s, IRA’s, and mutual funds that have invested into lenders like Wells Fargo and Bank of America. They are trying to protect there investors, while telling us to go jump in the lake. Remember, we gave our home up as collateral, the ole deed of trust. For Wells Fargo and others I would like to rename that deed “Lost of Trust”, meaning, tough luck Charlie, you’ve lost your home. I’m in the same boat that a lot of us are in, more like a life raft, loss of income, can’t afford the monthly payments, the home will not sell in my area (to expensive), and I need to find some way to hold on and preserve the remaining equity in my home. I agreed with other writers in the same predicament, when I get my feet back under me, there will be praise for the helpers and skin and bones for the greedy.

WELLS FARGO is full of crap. They have no intention of modifying loans, other then what’s being forced down there throat through the government. After spending months faxing hardship letters, income sources and expenses I believe it’s all for show. The end run is the investor is not willing to accept a modification, because that investor is you and me. Think about all the 401k’s, 529’s, IRA’s, and mutual funds that have invested into lenders like Wells Fargo and Bank of America. They are trying to protect there investors, while telling us to go jump in the lake. Remember, we gave our home up as collateral, the ole deed of trust. For Wells Fargo and others I would like to rename that deed “Lost of Trust”, meaning, tough luck Charlie, you’ve lost your home. I’m in the same boat that a lot of us are in, more like a life raft, loss of income, can’t afford the monthly payments, the home will not sell in my area (to expensive), and I need to find some way to hold on and preserve the remaining equity in my home. I agreed with other writers in the same predicament, when I get my feet back under me, there will be praise for the helpers and skin and bones for the greedy.

I agree with most of the comments made my all the bloggers. The banks are not interested in helping their clients. They will do the bare minimum to gain from the process because whether or not you get a loan modification, they will still recieve federal monies. Flagstar Bank have been giving me the runaround for several months. With every individual within the Loss Mitigation Department ther is a 90 day delay. It also appears that they themselves are not fully informed that there is more than one solution under the "home affordable program" They are refusing to look at the property value of other properties in the are and are telling customers that they do not do principal reduction. I was served with foreclosure papers after only being three months behind.

It is better to receive help from an attorney when it comes to your loan modification. They can significantly lower your monthly payments by renegotiating the terms with your lender.

They bailed out wall street but kicked homeowners to the curb with no place to live.

I am trapped in an interest only loan with America's Servicing Company (Wells Fargo in sheep's clothing) who obstinately won't even send me the paperwork. If you are behind on payments they foreclose even IF they agree to a loan modification. They are unprofessional and unscrupulous. The government is doing NOTHING BUT....

They bailed out wall street and kicked homeowners to the curb with no place to live. They are taxing the middle class to death. We have been abandoned.

It is obvious this administration will do ANYTHING to help big business but will not help hard working Americans who want to stay in their homes and make their payments. For one thing the 31% of gross rule is absurd. For those in trouble, especially singles, payments may already be at 31%. This is the case for me. But the catch is I'm single so I get taxed to the max eroding my gross salary. MY PAYMENT IS 55% OF MY NET but they don't take that into consideration.

The servicing companies get kickbacks for loan mods. The banks get bailed out. The TARP benefited everyone but the homeowner. President Obama has let us down and now he wants us to pay for healthcare.I would consider it as a good idea but with facing homelessnes how can I consider a new tax boondoggle?

Obama could have used TARP funds to bailout homeowners but stiff armed us away with complicated rules and regulations that no one can qualify for. And, now I read this article about the FICO score ding for a loan mod. I'm crying my eyes out. I'm too old to start over and the stress is killing me.

I started a blog to collect stories to print out and mail to Obama. I figure with a big pile, he would pay attention.

Go to:

obamaloanmod.blogspot.com

and post your story.

Thank you.

People seem to be confusing capital injections by the U.S. Government (both administrations in the White House with blessings from the Fed) into large companies that make up the U.S. financial services industry with "handouts".
Most financial institutions had no choice but to participate to eliminate the stain of need from those who needed the capital.
From what I have seen reported, some financial institutions have paid back this capital and even bought back the warrants giving the U.S. government a "profit" from their (our) investment (on top of the dividends earned).

We really have not solved the "too big to fail" problem in this country, and nobody wants to be the ruler of Iceland when all of the banks cease to be solvent. FYI- Glass-Steagall was repealed during the Clinton administration in 1999.

Somehow this all means we should give handouts to people who bought houses they can't afford or choose not to pay their mortgage.
Yes, housing prices have dropped in South Florida, and eventually they will go up. The fact that your house is worth less than what you paid for it does not mean the bank who loaned you money to buy it should take the loss.
Rick Santelli of CNBC hit a nerve:
http://www.youtube.com/watch?v=bEZB4taSEoA

If the bank thinks they will lose less by allowing you to restructure rather than selling after foreclosure then you might get a loan mod...Lets hope Washington does not make all profits and common sense illegal.

If your reason for needing a loan mod is that you lost your job, than you are living in a house you can't afford. Savings are meant to bridge the gap in income loss for a period of time on top of unemployment benefits.
If you have no savings than you are living beyond your means...i.e. living in a house you can't afford.
FYI - Indy Mac was seized by the FDIC in July 2008, this wonderful institution was founded by the people who brought you Countrywide.
They have a new gig, Penny Mac. Making money undoing some of the same loans they originated and getting paid to do it!

Let's not forget, there was supposed to be help for homeowners in good standing who wanted to take advantage of the low interest rates, in the form of a refinance. WaMu/Chase told me for months that I didn't "qualify" for a loan modification, but never told me about the Refi program until I no longer met the LTV requirements anyway. How nice. By the way, they determined my home's value, based off a computer program. An appraiser came out in April and said my home was worth $190k. When I called Chase three months later for the Refi, the value of my home, according to them, was only $114k. I went to Zillow, and the median was $185k. How many brand new mid-size homes are worth $114?? Not even including my upgrades...Does that make any sense???

www.naca.com they can save your home!

Here is the formula for modification. If you are on time and doing the MHA program, your payment has to be 50% or greater currently to qualify. They will bring your new payment ot 31% if your income. Now, when they give you the application where you put all your bills down, make sure they don't total more than what you make considering the new monthly paymetn.

I am completely dissapointed in the whole modification program. It is not being handled correctly and the lenders are not equipt to handle the volume of calls regarding the program. They also do not have the people trained to get this done. I have been passed around and diconnected and sent my financials into to EMC 3 time and still do not have a sufficient answer as to where we stand.

As anyone who has tried to get assistance on their toxic predatory loan from Indymac knows, since the takeover by two former Goldman Sachs Blue Bloods the bank has been stonewalling and pulling out all the stops to prevent loan modifications.

While under the supervision of Sheila Baird and the FDIC the modification flow was impressive and the corporate philosophy was geared towards actually help the borrowers.

In January 2009, the FDIC sold off the mortgage portfolio to a company called IMB Management Holdings, LP. After the sale Indymac emerged as One West Bank.

The deal included the purchase of $16 Billion in mortgages for $13.9 billion. The Goldman Blue Bloods from Dunes Capital were also able to get some other sweeteners for their efforts $7 Billion in assorted securities and more than 30 banking branches.

This sale is probably one of the most destructive moves against homeowners suffering from the burden of trying to make payments on their predatory subprime loans since the beginning of the mortgage meltdown. Any homeowners hoping to get help from the characters who bought this company are in serious trouble.

Now that the robber Barrons from Dunes Capital Dan Neidich and Steve Mnuchin are at the helm they have recruited Terry Laughlin, former Chairman and CEO of Merrill Lynch Bank who masterfully makes public statements loaded with qualifiers such as this one on August 11, 2009 "Going forward, One West will apply HAMP to all of the eligible loans that it owns as well as all eligible loans that it services for third parties. He didn't tell you that have figured out how to internally tweak the numbers to recude the number of "eligible" loans. They have also taken a hard line on telling borrowers looking for assistance that their "investor" doesn't allow for modification.

I am reminded of the scene in the movie Wall Street when Gordon Gecco buys Bluestar Airlines and reveals his plan to crush the union and sell of the pieces. Welcome to a real life version of that story, starring the robber Barrons from Dunes Capital Dan Neidich and Steve Mnuchin.

They purchased Indymac for 40 cents on the dollar, now when they foreclose on a property if they can recover half of the loan amount, they will still make a 20% profit. This is why they are stonewalling, lying to customers and foreclosing on properties faster than bureaucrats waste money.

Immediately after taking over Indymac the slime at the top instituted a deceptive program where they offered up phony modifications to troubled homeowners. They duped thousands of homeowners with this scam, the modification terms appeared to be fantastic and the distressed homeowner's believed that they had saved their homes. They signed the documents and sent along the required initial payment. Indymac then cashed the check, and promptly issued denial letters. What a great way to fill the coffers with cash immediately after buying the company. These guys got a better education at Goldman Sachs than they offer at Harvard Business School.

Suffice it to say that the newly emerged One West Bank does not operate in good faith when borrowers ask for assistance. Instead they use every trick in the book to screw their customers so that the Robber Barrons can continue to raid the corporation.

If you are an Indymac customer search for one of the many class actions that are beginning to pop up against Indymac and join the class.

Come Tell Us Your Indymac Horror Stories

OPEN LETTER TO MICHAEL DELL:

Dell's investment firm, MSD Capital is involved in a partnership known as IMB Management Holdings.

Mr. Dell,
Please help….

The Michael and Susan Dell Foundation have done some fabulous work.

It is a shame that some of the same people Michael & Susan are trying to help are being tossed out of their homes by IMB Management Holdings a partnership that includes MSD Capital, the investment business led by Michael S. Dell.

The post above highlights some of the activities being engaged in by the company.

Does Michael Dell really want to be associated with these guys?

There is trouble brewing and Mr. Dell should apply pressure to make sure that the homeowners who’s loans he has purchased are being given a fair shake.

I know MANY homeowners who need help and are being stonewalled by Indymac. Across the country there are tens of thousands.

Calls to the Blue Bloods at Dunes Capital - Dan Neidich and Steve Mnuchin fall on deaf ears.

The author of this article is Dan Harris - LoanModMan

As anyone who has tried to get assistance on their toxic predatory loan from Indymac knows, since the takeover by two former Goldman Sachs Blue Bloods the bank has been stonewalling and pulling out all the stops to prevent loan modifications.

While under the supervision of Sheila Baird and the FDIC the modification flow was impressive and the corporate philosophy was geared towards actually help the borrowers.

In January 2009, the FDIC sold off the mortgage portfolio to a company called IMB Management Holdings, LP. After the sale Indymac emerged as One West Bank.

The deal included the purchase of $16 Billion in mortgages for $13.9 billion. The Goldman Blue Bloods from Dunes Capital were also able to get some other sweeteners for their efforts $7 Billion in assorted securities and more than 30 banking branches.

This sale is probably one of the most destructive moves against homeowners suffering from the burden of trying to make payments on their predatory subprime loans since the beginning of the mortgage meltdown. Any homeowners hoping to get help from the characters who bought this company are in serious trouble.

Now that the robber Barrons from Dunes Capital Dan Neidich and Steve Mnuchin are at the helm they have recruited Terry Laughlin, former Chairman and CEO of Merrill Lynch Bank who masterfully makes public statements loaded with qualifiers such as this one on August 11, 2009 "Going forward, One West will apply HAMP to all of the eligible loans that it owns as well as all eligible loans that it services for third parties. He didn't tell you that have figured out how to internally tweak the numbers to recude the number of "eligible" loans. They have also taken a hard line on telling borrowers looking for assistance that their "investor" doesn't allow for modification.

I am reminded of the scene in the movie Wall Street when Gordon Gecco buys Bluestar Airlines and reveals his plan to crush the union and sell of the pieces. Welcome to a real life version of that story, starring the robber Barrons from Dunes Capital Dan Neidich and Steve Mnuchin.

They purchased Indymac for 40 cents on the dollar, now when they foreclose on a property if they can recover half of the loan amount, they will still make a 20% profit. This is why they are stonewalling, lying to customers and foreclosing on properties faster than bureaucrats waste money.

Immediately after taking over Indymac the slime at the top instituted a deceptive program where they offered up phony modifications to troubled homeowners. They duped thousands of homeowners with this scam, the modification terms appeared to be fantastic and the distressed homeowner's believed that they had saved their homes. They signed the documents and sent along the required initial payment. Indymac then cashed the check, and promptly issued denial letters. What a great way to fill the coffers with cash immediately after buying the company. These guys got a better education at Goldman Sachs than they offer at Harvard Business School.

Suffice it to say that the newly emerged One West Bank does not operate in good faith when borrowers ask for assistance. Instead they use every trick in the book to screw their customers so that the Robber Barrons can continue to raid the corporation.

If you are an Indymac customer search for one of the many class actions that are beginning to pop up against Indymac and join the class.

Come Tell Dan Harris Your Indymac Horror Stories At LoanModMan.com