Payments From Citi

Gee!After all this time without posting any new info, we've got two in two days. Like yesterday's posting, today's announces expected large payment sums from Citi. Yesterday's had the cash coming from Chase. Today's announcement is from Citi to the effect that they're preparing to make a total of $20 million in payments to homeowners who were previously 'overlooked' when 2013's lender settlement-based payments were passed out. How you can 'overlook' $20 million in obligations I don't know, but I guess when your overall obligations top the hundreds of billions, the number $20 million becomes so relatively small that overlooking it is a possibility. Anyway, to get right to the point, Citi is making payments to its present and former mortgage customers of between a few hundred Dollars and $125,000 per borrower. No, you don't get o choose the size of your award--that's based upon exactly what violation was involved in the individual case. Mark Rodgers of Citibank is overseeing the payments. So, two bits of advice here: 1.) if your mortgage was/is with citi, you may want to contact the bank to see if you're on the payment list; and 2.) try directing your call to Rodgers to get immediate attention and deal with someone who is supposed to be aware of the facts in all cases. Hey, you could do worse than calling him. As always, Good Luck!

Chase Settles w/Dept. of Justice

Well, it's been several months since our last item. Not much of interest has happened and I was hospitalized for two months in the fall. Moving forward, now and all is OK! JUst late yesterday, Chase and the DOJ announced a settlement by the bank of $50 million over a wide array of violations in robo-signing and other areas. The proposed settlements will include a mixture of cash payments, loan credits and mortgage loan forgiveness for borrowers in bankruptcy. Equally importsnt, an independent reviewer will keeps regular tabs on Chase to insure the institution's ongoing compliance with settlement terms. The settlement is subject to court approval by the U.S. Bankruptcy Court of the Eastern District of Michigan. As part of the settlement, Chase admitted filing over 50,000 improper robo-signed change of payment notices. Justice's representative, Acting Asst. Atty. General Stuart Delery was quoted as stating, "It is shocking that the conduct admitted to by Chase in this settlement, including the filing of tens of thousands of documents in court that never had been reviewed by the people who attested to their accuracy, continued as long as it did, Such unlawful and abusive banking practices can deprive American homeowners of a fair chance in the bankruptcy system, and we will not tolerate them." Chase's payments, credits, and contributions which total more than $50 million will include: $22.4 million in credits and second lien forgiveness to approximately 400 homeowners who received inaccurate notices of payment increase while they were in bankruptcy; $10.8 million through credits or refunds for payment increases or decreases that were not filed in a timely manner or noticed to more than 12,000 homeowners in bankruptcy ; $4.8 million to more than 18,000 homeowners who did not receive accurate or timely escrow statements; $4.9 million (approximately $600 per loan) to more than 8,000 homeowners whose escrow payments were not applied in a manner consistent with escrow payments Chase provided; and contributing $7.5 million to the American Bankruptcy Institute's endowment for financial education and support for the Credit Abuse Resistance Education Program. The advice from here is that if you have or had a mortgage with Chase, call them immediaqtely to discover your status nder the settlement's terms. Failing thst, get it touch with the Department of Jutsice, or Amy Walsh of the law firm, Morvillo LLP, that is theplanned overseer of the settlement. As always, Good Luck.

New Massachusetts Law Pending Limits Foreclosure Challenges

Well, my home state, Massachusetts, is considering a bill to limit time available to homeowners to challenge the foreclosure of their homes. It is intended to do so to make a final determination on title validity easier to allow future sale of said properties by avoiding potential foreclosure-related clouds on title. It would also shorten the time a homeowner about to be foreclosed on has to challenge the validity of the pending action, although it would not preclude foreclosed homeowners from suing for recovery damages related to the value of the foreclosed home. If you live in the Bay State and are facing possible foreclosure, you may want to contact your legislator and oppose this bill before it becomes law. As always, Good Luck.

JP Morgan Chase Offers Help

As part of their recent settlement with the Justice Department, JP Morgan Chase Bank is offering assistance to homeowners, including forgiveness of debt and other mortgage relief for homeowners. The relief comes in a number of areas, including loan modifications, interest rate reductions, low income and disaster lending and blight relief lending. As Chase makes various types of loans, it gets credit under the JD settlement, but not all relief gets the bank dollar for dollar relief. So, obviously, they are happier doing one form than some of the others. ultimately, assistance under the terms of the settlement will total $4 Billion, and the bank has until 2017 to get it all completed and disbursed. The first 100 cases are now underway, and are regarded by both government and bank officials as a 'test' of how the settlement will work. If you have a home loan with Chase and think you may qualify under the terms of the settlement, or if you're not certain if you qualify, get in touch with Chase as soon as possible and get the discussion going. As always, Good Luck.

Good News for Current & Former Citibank Borrowers

Well, if you are or were a Citibank borrower, yesterday's news is potentially good for you. As part of a $7 Billion settlement with the Department of Justice. Of that $7 Billion figure, $2.5 Billion will go to provide financing for construction of low income multi-family rental housing. Part of the $2.5 Billion reportedly will also go toward helping home owners who financed their homes with Citi. This part of the settlement will provide loan mods and principal reductions of existing loans. If you have questions, contact Citibank or the Department of Justice in Washington, D. C. As always, good luck.

More Help to Avoid Foreclosure in NY

The New York state Atty. General, Schneiderman, has announced a new plan to grant targeted small loans to help families remain current on their mortgages by qualifying for a loan mod they might not otherwise be approved for, thus avoiding foreclosure. The program is called New York State Mortgage Assistance Program (NYMAP). Loans will be for a max of $40,000, and be used to pay off other financial obligations that might be preventing the homeowner from qualifying for a loan mod on his/her mortgage. For more info, contact the NY State Atty. General's office. As always, good luck.

REO Properties Increasing Again

For the first time in several months, the total number of homes lost to foreclosure has shown a marked increase. Rising 15% since last August, there are now 430,000 foreclosed homes nationally, up from August's 375,000. Now, even the increased number is far below the totals at the worst of the Great Recession, but an increase such as this is troubling, and not only to home owners. What is more troubling is that the increase was felt across most of the nation, with 46 out of the 50 states showing increases. Leading the rise was Idaho, which nearly doubled its REO inventory. Other states with large increases included Maryland, Oregon, Nevada, and North Dakota. There are likely many reasons for the increase, but one thing it tells me here is that people who are trying hard to keep their heads above water are having trouble for any of a variety of reasons. It also tells me that it is time to remind folks in this situation that there is a book that can recommend ways to avoid having this specter creep up on you. The book is a short one, less than 80 pages total (let's face it--if you're facing foreclosure, you're not interested din reading War and Peace), and not very expensive. It can be ordered on Amazon.com . OK< so you're wondering what the name of this book is. It's called, "Save Your House From Foreclosure" , and is written by yours truly. Basically, it has a number of bits of advice that I have gleaned from my careers in lending and real estate over the years. There are no guarantees in life, but the small cost of this book can possibly make a difference if you're one of the unfortunate folks again facing the terrible prospect of default and foreclosure. As always, good luck.