Foreclosure Errors in San Francisco

According to an audit of foreclosure cases by the San Francisco assessor, errors were found in 84% of all foreclosures from January 2009 to October 2011. This was of 382 homes foreclosed upon in San Francisco county. Errors ranged from failure to notify the homeowner of the fact that they were in default, usually the first step in the process leading to foreclosure,to transfers of loans from one holding or servicing entity to another, to errors in the MERS process now commonly used by lenders.
Think you were wrongly foreclosed during this period in the San Francisco county area? Call the SF county assessor and ask for info on your property's foreclosure history.
Good luck.

Homes For Military Personnel/Vets

In a move to help current and former active military personnel and their families, Chase Bank has partnered with Operation Homefront to provide homes for at least 100 Wounded Warriors, military and veterans' families into permanent housing. Acting through the Homes on the Home Front program, Chase provides the homes from its foreclosed inventory, and Operation Homefront handles all of the detail work prior to actual deed transfer to the service member. Eligibility is based on one being on active duty, Reserves or Guard, or having been honorably discharged. The individual also cannot already own a home, and must demonstrate the ability to handle the financial responsibility of home ownership.
Check with Chase or Operation Homefront. Online application is possible: go to www.OH.net . Good Luck!

Two Bits of Good News

Well, today brings us a couple of items to help you out. One relates to foreclosure review rights, and the other proposes to extend the period available to do a short sale without owing the IRS a bundle as well.
In the former item, consumers who feel they have been wronged by the foreclosure process have had the opportunity to have federal reviewers examine their individual situations to see if errors were made, and if, because of those errors, the homeowners have suffered financially. This process has a deadline, but the Federal Reserve and Office of the Controller of the Currency (OCC) have jointly announced an extension of the deadline. Under this announcement, homeowners now have until July 31, 2012 to request such a review of their cases. This covers perceived errors in 2009 or 2010. A large number of servicers have agreed to participate in the program. If you want more info, check with your lender or servicer, or, failing any help there, talk with the Fed or the OCC.

The latter bit of good news relates to short sales. Under existing tax law, short sales can create a tax obligation for the seller as tax codes stipulate that forgiveness of debt is taxable income in the year forgiven. However, in order to reduce the additional burden of homeowners having to pay income tax on the amount forgiven, in addition to having to sell their homes to get out from under, Congress previously passed an exception to this part of the tax code, depending on when the mortgage debt was incurred. This was called the Mortgage Forgiveness Debt Relief Act of 2007. Now, President Obama has proposed as a part of his 2013 budget an extension of this exception. The proposed extension would forgive any tax obligation on forgiven debt that occurred any time before January 1, 2015. Also, the Government would be allowed to periodically reassess the market and make further extensions as it then felt necessary. Now, this is just a proposal. It will certainly be one of the many items negotiated over and discussed ad infinitum as part of the final budget, and that will likely take months. However, this is one of those situations when a call, letter or email to your Congressman and Senators would be a good idea.
Good Luck!

Good News for Military Foreclosure Victims

Everybody has heard by now of the settlement between the five largest lenders and the states that was reached last week. The news has been full of details of how borrowers who're trying to avoid foreclosure, as well as some of those who have already lost their homes may obtain some relief from the settlement.
What hasn't received much coverage at all is the benefits in the settlement for military active duty individuals who may have been foreclosed upon. Let's rectify that omission right now! Four of the five lenders involved, JP Morgan Chase, Citi, Wells and Ally, have agreed to review foreclosures of active duty military personnel that were made since January 2006. This is to determine if any of these were in violation of the Servicemembers Civil Relief Act, a federal law to protect active duty mil personnel during time of service from certain financial issues/problems they may confront.Wells, Citi and Ally have agreed to compensate those who wrongfully lost homes a minimum of $116,785, as well as to reimburse the service member for lost equity. In the case of Chase, the bank will either allow the service member to return to the home with all debt on it erased, or, failing that, reimburse the full value to the service member as of the time of sale.
If all of this isn't enough for you, Citi, Wells and Ally have also agreed to compensate all service personnel with interest rates over 6% who have wrongfully been denied refinancing to lower interest rates. BofA isn't mentioned in this deal as it had previously agreed to an assistance plan for mil personnel in May, 2011.
So, the message here is: if you or a family member or friend is an active service member and have/has been having difficulties with any of these lenders over a mortgage on your personnel home, call the lender IMMEDIATELY and get them to discuss your situation in view of this info and the Servicemembers Civil Relief Act. That's an order!
Good luck!

Outrage By Walker in Wisconsin!!

Yesterday, you read details of the just-concluded foreclosure settlement completed among the largest banks, the OCC and the attorneys general of 49 of the 50 states. While far from perfect, it did provide a number of benefits to suffering homeowners--EXCEPT THOSE IN WISCONSIN!! Was Wisconsin supposed to be an exception to the deal? NOOooooooo!! However, in a decision supported by his Atty Gen, Governor walker has announced that he'll take (a very accurate word in this case)over 81% (that's more than four fifths) of the $31.6 million coming directly to the state for the crisis and place it in the state general fund to reduce the state's overall deficit, rather than put it to the use intended--helping suffering desperate homeowners avoid foreclosure or get at least a pittance to help get back on track if they've already lost their homes. Walker uses the lame (try, limp; better yet, try RIDICULOUS) excuse that the foreclosure crisis has so damaged Wisconsin and its budget, that it's OK for him to derail these funds and use them to try to balance his state budget. For those of you reading this in Wisconsin, or who know suffering homeowners in the Badger state, it's time to get on the phone, email, US Mail or any other way you communicate and let those owners AND the governor know that this is totally unsatisfactory and about as good a reason to be removed from office by recall as any I could have thought up were I a Wisconsin resident/taxpayer. Historically, I have tried and managed pretty well to remain out of politics and just helped out those of you suffering from the foreclosure situation. But this action by the Wisconsin governor is so beyond the pale, I cannot just stand by.
Good luck!

Mortgage Settlement Details!

Well, as I'm certain many of you have heard by now, the huge settlement between most of the states and the largest mortgage lenders/servicers in the nation is now a done deal! Only one state did not ratify it, leaving 49 who did. Most observers had expected about 40-45 states would initially join, so this is a plus. An even bigger plus: both California and New York joined in, something that hadn't been expected since their attorneys general had rejected the original settlement terms early on. As it turned out, with some tough negotiating, both states got a larger settlement for their constituents than originally proposed.
The terms, in general, follow:
Total amount is $26 Billion, and is among the 49 states, the federal government and the five largest mortgage banks, AS FAR AS THEIR LOANS NOT BACKED BY FREDDIE MAC OR FANNIE MAE; these five are Ally (formerly called GMAC), BofA, Citigroup, JP Morgan Chase and Wells Fargo.
Reductions in loan principal, refis, help in short sales and foreclosure forbearance will be offered to homeowners, the specifics varying with each homeowner and loan. Those who have already lost their homes to foreclosure may be eligible for up to $2,000 apiece.
The settlement will be spread over three years as follows. In the next 2 months, an administrator will appointed to oversee the execution of the deal's terms. In six to nine months, homeowners eligible under the plan will receive notification letters. Anyone not wanting to sit back and wait can be proactive and contact their lender directly.
Finally, for more info, you can call your state's attorney general or either of the following two web sites: oag.ca.gov or nationalmortgagesettlement.com .
Some of the terms may not be great, but it finally is a start to help many who have been severely under the gun.
Good luck!

Banks Hit w/Robosigning Penalties

Today, there will be two posts, one now and one in a couple of hours. The first is to announce that the Office of the Controller of the Currency (OCC) has assessed the five largest mortgage servicers with financial penalties totalling $765 Million. These firms are JP Morgan Chase, BofA, Wells, Citi and Ally (formerly known as GMAC). These penalties are for "unsafe and unsound mortgage servicing and foreclosure practices" by these firms. Now three quarters of a billion taken against the total assets of these five firms is not a lot of money, but it's still a pretty large piece of change, and you can bet the institutions aren't happy having to pay it. Perhaps it will cause them to avoid such practices as robo-signing in the future.
The second posting today, come back later today, will detail the massive settlement between the major lenders and 49 of the 50 states.

Cash For Short Sales

In a recent, but largely unannounced move, some major lenders are not only agreeing to do short sales as a way of ending troubled homeowners' mortgage problems, but also paying cash bonuses to those homeowners as an incentive to the homeowner to proceed. Ranging from $2,000 to as much as $35,000 per deal, the bonuses are not discussed as an available program by the banks, but are awarded on what appears to be a random basis to homeowners as part of their deal on close of escrow. The qualifications thta make one owner able to receive a bonus, and not another, as well as how much of any bonus will be paid have not been announced either. Clearly, paying banks have started a program, and do have a list of qualifications, but, for obvious reasons, they are not making broad announcements of either. Banks known to have such incentive bonus programs so far include Wells Fargo and Chase. Thinking of a short? Curious if your bank hasd such a program & if you qualify, check your lender. But be prepared to be denied on both questions, at least initially. Remember--it's only been very recently that lenders have gradually begun to make getting a short sale approved easier than it had been.
Good luck!

Missouri Chases Robosigner

The attorney general of Missouri has filed charges in a criminal prosecution against DocX, LLC and its founder, Lorraine Brown, alleging forgery and false declarations on mortgage documents. This action is based on a 136 count criminal indictment against the firm and Brown that was recently handed down by a grand jury.The claims of forgery are the usual ones one sees in such a case: the named individual on various deeds submitted for recordation were not signed by that person. Brown can face up to seven years imprisonment on each of the more serious charges, and fines for the others, as can Doc X.

If you have been foreclosed upon in Missouri, and feel, or know, that DocX was involved, I suggest you contact the attorney general, as well as your own attorney.
Good luck!

Fraud & Settlements

Well, there are a pair of items to discuss today, and while they don't specifically link to each other, the subject matter seems appropriate to cover simultaneously. First, we'll discuss fraud. In this case, it's NOT fraud by a lending institution trying to take away your home in some egregious manner. No, here it's a case of someone claiming to be a "housing counselor", someone who claimed she would be able to help the suffering homeowner avoid the devastation of losing a home to foreclosure. What she actually did was to take up front fees from troubled homeowners, guarantee she'd help them avoid foreclosure, often by getting a loan modification, and then in actual fact use the funds lifted from victimized homeowners' wallets to both pay her own mortgage and cover her gambling debts. The gambling debts were apparently fairly substantial. When all was said and done, she'd burned through nearly $300 grand of her unsuspecting clients' money and about $2,000 of Federal grants obtained through the Buffalo Urban Renewal Agency. The results: well, according to authorities quoted at her sentencing, "some" ,no number was mentioned, of her 136 clients' homes were lost to foreclosure due at least in part to her actions. If there is any good from this story, it's the fact that she now has the next six years in a much smaller residence with bars on the windows (no mortgage, though) to contemplate her nefarious deeds. After she gets out, she also has three years court supervision to oversee her court ordered restitution of $298,639 to her clients.
A lesson from this? If you're in trouble with your mortgage and the person you consult to 'help' you requests an up front fee and/or 'guarantees' they'll be able to help you avoid foreclosure, run....AWAY FAST! The only thing they'll be saving is your money that you paid as a fee --in their bank account. If they claim this is normal, ask for references , check the Better Business Bureau, call your lender to see f the 'consultant' is known to them, and call the police to see if the consultant has a record for doing this (not the record he or she wants you to see). While I'm at it, if this situation seems to fit anything you've been subjected to over the last few years, you may want to check with the authorities. This perp is named Lori J. Macakanja.

Okay! Now for the second item: Settlement.The much trumpeted nationwide state by state settlement with most of the country's major servicers and lenders was to be settled and signed by last night. So far, there isn't any final figure on exactly how many states actually jumped on the bandwagon. However, best estimates are that about 40 of the 50 states joined in and their attys. general had signed. New York and California were among the conspicuous absentees, both stating that they didn't feel the financial institutions were being punished enough for their actions by the terms of the settlement. There has been some discussion that either or both may join in later after further negotiation, but that is speculative for now. Final details: keep your eyes peeled in the press, the broadcast media or HERE!
As always, good luck.

Bank Foreclosure Settlement Deal Status

Well, today is the supposed deadline for the 50 states (or as many as want to jump on board) to sign off on a deal providing some relief to victims of foreclosure, while simultaneously providing the major mortgage lenders in the country some shielding from further legal liability. So far, both the Atty Gens of NY and California have indicated they will reject the deal, noting that they feel it's not consumer-protective enough. However, even here, late reports have come out that they are willing to be persuaded to reconsider in return for more assistance to foreclosurees and/or future liability for the lenders involved. Final decision yet to be made. There is also a feeling that the overall deal may not actually close today, but could, based on late negotiations, finally get settled and in force later this week. Stay tuned.
Good luck.

NY Atty Gen Sues Banks

The NY state Atty General has filed suit against a number of large banks, alleging fraud in the robo-signing scandal of this past year. His suit alleges that many homeowners who lost their homes to foreclosure were defrauded by the participating banks due to the methodology and procedures used by the robo-signing process. For more, and to see if you are in any way possibly benefited by this suit, contact the NY state Atty General,Eric Schneidermann.
Good luck!