… it goals.  According to a Treasury Department report, 27 percent of homeowners taking part in mortgage modification trails are delinquent on their mortgage payments.  And while the foreclosure prevention plan was designed to help millions of homeowners facing foreclosure, only about 650,000 borrowers are currently participating in the trail phase of the loan modification program.  A pithy 1,711 homeowners battling to avoid foreclosure have converted their loan modifications to a …

Tags: foreclosure Loan Making Home Affordable Mortgage modification

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… article in Reuters, the National Consumer Law Center (NCLC) just released a report finding that mortgage servicers have favored foreclosure over loan modification because it’s cheaper and even more profitable to the servicer.

The article said:

“Loan modifications inevitably cost the servicer something. A servicer deciding between a foreclosure and a loan modification faces the prospect of near certain loss if the loan is modified, and no penalty, but potential profit, if the …

Tags: foreclosure Loan Mortgage Profits

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… has failed to deliver and many homeowners and legislators are ready to get more aggressive with mortgage lenders.  Last year it seemed almost certain that legislation would pass allowing homeowners to modify their toxic mortgages during bankruptcy; but the measure fell 15 votes short of passage in the Senate.  The bankruptcy bill had strong support amongst ordinary Americans; but banking giants and their supporters strongly opposed the measure claiming that it would lead to high interest …

Comment by Jim Ince: … to the mortgage companies!

Tags: Bankruptcy foreclosure Mortgage

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… the Comptroller of the Currency and the Office of Thrift Supervision reported that the number of loan modifications increased 17 percent but that 37 percent of modified mortgages were 30 or more days delinquent within just three months and that 55 percent of the modified mortgages were 30 or more days delinquent within six months. Obviously these modifications aren’t putting the brakes on foreclosures and we need to do something different. If this many homeowners are delinquent in paying …

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A Loan Modification is a permanent change in one or more of the terms of a homeowner’s loan. It allows the loan to be reinstated, and results in a payment the homeowner can afford.

The homeowner must reach an agreement with the lender to modify the loan. Generally the lender will be a little reluctant to agree for a loan modification as modification typically results in less interest.

The …

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A former loan officer in the Dallas- Fort Worth area has been sentenced to over 3 years in a federal prison and ordered to $751,075 for falsifying mortgage documents sent to the U.S. Department of Housing and Urban Development.

Lynn Anne Ingle, 36, of Burleson is the second person to admit guilt in a scheme that cost HUD $964,814 after 21 mortgages defaulted, according to HUD and court documents. …

Tags: Foreclosures Fraud Mortgage

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… out home equity lines of credit (HELOC) and are now struggling to repay those loans plus their mortgage.  Can a debtor discharge their HELOC in Chapter 7 bankruptcy and keep their home?  The short answer is no.  A debtor can discharge the home equity loan in Chapter 7 bankruptcy but they cannot discharge it AND keep their home.  However, if a debtor would like to keep their home, they may be able to file Chapter 13 bankruptcy and repay both their HELOC and their mortgage over a 3 …

Tags: Bankruptcy Chapter 7 Bankruptcy HELOC Home Equity Loan

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… County grand jury indicted five people, including a home builder, for allegedly engaging in mortgage fraud involving loans worth $13 million.  Chekeelah Phelps, 45, of Mansfield; Clayton Bennett, 66, of DeSoto; Munzer Kawasmi, 30, of Arlington; Deborah Fernie, 48, of Keller; and Kelvin Kidd, 50, of Mansfield are all charged with hatching an elaborate scheme that mostly involved falsified loan documents originating in the subprime mortgage market.

The case stems from an anonymous …

Tags: Chekeelah Phelps Fraud Mortgage Subprime Loans

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… facing foreclosure and considering bankruptcy are significantly delinquent on their mortgage payments.  But whether you’re 1 month behind on your mortgage payment or 6 months behind, Chapter 13 bankruptcy can help you catch up with your payments and return your mortgage to good standing. Here’s how it works:

When you file bankruptcy you will include your mortgage lender’s information and tell your bankruptcy attorney how far behind you are on payments. …

Tags: Chapter 13 Bankruptcy Loan Payments Mortgage

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… of the worse pieces of advice given to debtors considering bankruptcy is to get a home equity loan.  That could be a big mistake.  Here a few reasons why getting a home equity loan to avoid bankruptcy might not be the right move for you:

Typically, you can’t use debt to get out of debt. Anyone who has filed bankruptcy can attest to that truth.  For most debtors considering bankruptcy, their financial troubles are caused by two problems, 1) lack of income and 2) too …

Tags: Bankruptcy Debt Home Equity Loan loans

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When a debtor fighting foreclosure receives a loan modification there is a possibility that it may have a negative impact on their credit report.  Mortgage modifications are reported to the credit bureaus in one of two ways:

Settled or charged off. If you were fighting foreclosure and received a mortgage modification that decreased the principal of your original mortgage, the lender will probably report the original …

Tags: Credit Report Debt Mortgage modification

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… hoping that this time legislators will give American homeowners a fighting chance to battle mortgage lenders who are not responsive under the voluntary modification programs.

UPDATE: Take Action Now!!

Contact Your Representative to Support this Legislation!

To contact your representative:

1. Phone toll free at: 877.354.4958

2. Put in your zip code

3. When you reach the receptionist:

State your name

Say that you are a constituent

Ask the …

Tags: Bankruptcy foreclosure Law Mortgage modification The Wall Street Reform and Consumer Protection Act United States

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