Why Struggle For Years To Save A Property With No Equity? Forecasts for Underwater Owners

Many homeowners have no equity as a result of over-leveraging their properties and depressed values. The question they must ask is whether it is worth it to struggle to make the payments, even if they are lowered through modification, if in the end they will still have no return on their investment – meaning, that when they go to sell one day in the future, they will get nothing back in their own pocket at the closing. Only the mortgage lender and broker will get paid. If that is the case, why struggle? One answer may be that the owner is trying to recover the money he put into the property as a down payment or for renovations. This raises the issue – how long will the owner have to wait to recover this money? Will the market ever go up again? The NY Times has just written an article which refers to a report on this issue. It states that homeowners may have to wait until 2017 to see positive equity. Of course this is only a guess. No one has a crystal ball. Read more

NCLC Class Action Litigation To Challenge Lender’s Failure To Convert Trial HAMP Loan Modifications To Permanent Ones

The question is this: can you sue to enforce a trial loan modification? Until now, the answer has been no. You can’t. A contract is a contract. It’s binding. And banks have no legal obligation to change your mortgage terms. Yes, they do it all the time for qualified homeowners and to avoid taking back foreclosed property the lenders don’t really want. But legally the lenders cannot be compelled to modify in state or bankruptcy court.

But what happens if they offer you a trial mod? They lower your payments for 3 months. Does that obligate them to offer you a permanent mod? I don’t think so. But the National Consumer Law Center in Massachusetts is trying to find out in several class actions designed to test this theory under that State’s common law . . . Read more

New Deadline For Suspension Of Foreclosure Sales After Submission Of A HAMP Request For Loan Modification

New Supplemental Directive 10-02 which takes effect 6/1/10 states that if you submit a HAMP loan mod request at least 7 days before the foreclosure sale date, the loan servicer must suspend the sale to evaluate the papers. There are some exceptions to the suspension rule including failure to make trial mod payments after receiving a HAMP offer and borrowers already determined to be ineligible.

The bottom line is this – if you are facing a possible foreclosure sale and are considering applying for a loan modification, do not delay even for a day. My firm is currently representing many homeowners and borrowers in this situation. We have sent out many requests to lenders to postpone sales pending review of a loan modification. Nearly every lender has been cooperative when we have made the request at least a few days before the sale with a full loan mod package already submitted. Call or email us today if you are concerned about your mortgage and want to discuss your options.

HAMP, Loan Modifications And Bankruptcy Seminar

Here are the materials I received at the HAMP seminar in the Southern District of New York on 2/18/10. Bankruptcy Judges Glenn, Drain, Morris and Craig spoke on a panel with attorneys from the Treasury Department and Legal Aid. The seminar was very thorough and covered many of the issues homeowners face in dealing with mortgage troubles.

HAMP Seminar Materials

If you would like to discuss your mortgage situation, please email, call or fill out our free consult form on this site.

Brooklyn Man Pleads Guilty In Mortgage Rescue Scam (Home Savers Consulting Corp)

A Brooklyn man has pleaded guilty in federal court in New Jersey to running a scheme that falsely promised to help homeowners facing foreclosure keep their homes and repair their credit. Here is the latest.

NACBA Issues Memo To Members Re New HAMP guidelines

I received this email today that will be of interest to anyone with mortgage troubles or concerns. Please contact us by email or mail for a free telephone consult if you are seeking help with your situation. Here’s the memo: Read more