Archive for December 19th, 2010

Foreclosure Crisis? Recession? Don’t Tell the Banks!

I guess I’ve been wrong all this time.  You see, I’ve been thinking our economy is struggling in the midst of an unprecedented foreclosure crisis.  Apparently, though, nobody has told this to the banks, who are continuing to record record profits and pay out obscene bonuses to high-level executives

I’m not sure who to be more upset with – the banks, for this unconscionable greed (while the rest of America suffers), or our government, for handing out bailout money with no strings attached then sitting by as the banks hoard profits, keep foreclosing, and continually refuse loan modifications. 

It’s ironic, actually.  A little more than two years ago, Obama was accused of being a socialist – of trying to redistribute wealth from the rich to the poor.  Now, Obama is doing nothing as the banks engage in the largest re-distribution of wealth – from the poor/middle class to the rich – in the history of mankind.  That’s what the foreclosure crisis is, folks – the largest re-distribution of wealth in recorded history. 

If that sounds extreme, read the article.  Most telling:  if Wall Street pumped the bonus money given to bank executives into the economy, it would create 3.6 million new jobs and lower the unemployment rate 2.6 percent. 

Where did the banks get all this money again?  Oh, yeah – from you and me and our bailout money. 

Apparently, when they needed help, the big banks were “too big to fail,” but now that they’re back on their feet, the banks are “too greedy to share.”  What a heart-warming thought this holiday season.

Mark Stopa

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Mortgage Modifications CAUSE foreclosure – a first-hand account

In response to my blog entitled “How Loan Modifications Cause Foreclosure,” I received the following comment.  I’m posting it here because I want everyone to see that the issues I blog about are real problems that happen to real people.  So without further ado…

I have a mortgage with Litton Loan Servicing. About 1 1/2 years ago I was having some difficulty paying all my bills. So I called all my creditors and to my surprise they all had options to help me, including my mortgage company, Litton. I never told Litton that I could not pay their bill. I was just looking to see who could help. They encouraged me to apply for a HAMP modification. After several months I got accepted into the trial modification period. I asked them what that was. They said it was the final step that takes no more than 4 months, just make your payments on time and you will be fine. I thought all was well. I made on-time payments. I stayed in touch like they asked. After 7 months of timely payments I called them as I often did to check in. Finally, after 7 months, they said I was denied for some unexplainable reason and owed them $3000 and that my home was in default!

What kind of help is this?

I could have paid my full mortgage and not ended up in this debt. I do not understand how this is considered help. I have been paying hundreds each month in credit card bills. Meanwhile, my mortgage company is reporting me delinquent. I was worried about my credit when I should have been worried about my house. I could have easily paid my full mortgage. I cant live in a little plastic credit card. Who came up with this plan to help people?

I have spoken to dozens of people, mostly couselors and loss mitigation reps, some nice, some not. None of them suggested that I consider saving my house and not my credit cards! I don’t know who to trust anymore.

The best part… The loss mitigation side of Litton is promising to resolve the mistakes and get me a modification BUT the original mortgage department side of Litton has been pursuing foreclosure and has now told me that my loan is being sold to Green Tree Servicing on January 1st. Green Tree is the company that’s being sued for killing someone with harrassing phone calls. I don’t expect they will work with me and make it all better.

Here was my response:   If you’re facing foreclosure and credit card debt, you are a good candidate for a foreclosure defense/bankruptcy consultation. Give us a call for a free consult.  888-450-1549.  Whatever you do, please don’t give up.  Mark

Mark Stopa

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