Foreclosure-assistance pipeline clogged for Bank of America

Once again there is not positive information to report regarding Bank of America who are still making excuses.
Two years after swallowing the troubled mortgage giant Countrywide Financial, Bank of America trails other major U.S. lenders in resolving troubled home loans through short sales or modified loan terms.

The lender, one of the nation's biggest banks, holds more than a million mortgages that are months behind on their payments — twice as many defaulting home loans as any other lender in the country. But it has given permanent mortgage modifications to only about 1 percent of those borrowers — one of the lowest rates among lenders nationally, according to a report released last month on the federal government's Home Affordable Modification Program.

read more@http://www.orlandosentinel.com/business/os-troublesome-banks-20100304,0,3758633.story

Shawn
http://www.diyloanmodkit.com/

lawsuits filed against Bank of America and Wells Fargo

Two lawsuits filed yesterday in US District Court in Boston claim Wells Fargo and Bank of America have not followed federal rules for mortgage loan modifications, leaving some homeowners stuck in foreclosure “limbo.’’

According to one of the lawsuits, Wells Fargo Bank North America did not honor agreements with Wilfredo and Odalid Bosque of Leominster and Germano DePina of Roxbury that would have made their temporary loan modifications permanent through the US Treasury’s Home Affordable Modification Program.

According to one of the lawsuits, Wells Fargo Bank North America did not honor agreements with Wilfredo and Odalid Bosque of Leominster and Germano DePina of Roxbury that would have made their temporary loan modifications permanent through the US Treasury’s Home Affordable Modification Program.

In a second suit, Patricia Johnson of Salem alleged Bank of America Corp. did not abide by a similar arrangement that was intended to reduce her mortgage payments.

“When a large financial institution promises to modify an eligible loan to prevent foreclosure, homeowners who live up to their end of the bargain expect that promise to be kept,’’ lawyer Gary Klein wrote in the complaints.

read more@ http://www.boston.com/business/articles/2010/02/24/banks_broke_mortgage_modification_rules_2_lawsuits_say/

As always..

Shawn
http://www.diyloanmodkit.com/

Proposed Changes to Mortgage-Relief Program

The U.S. Treasury is considering new guidelines to mortgage lenders that would give distressed borrowers more time to try to qualify for a federal program aimed at averting foreclosures.

Under the proposals, loan-servicing companies, which collect payments and handle foreclosures, would have to give borrowers 30 days to respond after being denied a modification of their loan terms under the Home Affordable Modification Program, known as HAMP. During that period, which would allow borrowers to appeal against the decision, the servicer couldn't put the home up for sale at a foreclosure auction.

The proposals are outlined in a draft presentation obtained by The Wall Street Journal and other news organizations.

A Treasury spokeswoman said the proposals are among "many ideas under consideration in the administration's ongoing housing stabilization efforts." She added: "This proposal has not been approved and there are no immediate planned announcements on the issue."

Servicers also would be required to provide a "written certification" that a borrower isn't eligible for HAMP before a foreclosure sale can be held.

The proposal calls for servicers to seek contact with all borrowers who are 60 days or more delinquent on their loans and meet the "eligibility profile" for HAMP in an effort to determine whether they qualify. The effort to reach borrowers would have to include at least four telephone calls and two written notices, including at least one by certified mail.

Servicers could deny a new application for HAMP received within six days of a scheduled foreclosure sale. But borrowers would have to be notified of the deadline for seeking a HAMP loan modification.

read more @http://online.wsj.com/article/SB10001424052748704454304575081841444972582.html?mod=googlenews_wsj


As always,
Shawn