Send me your foreclosure horror stories! I'm pissed, and I'm going to do something about it!

[demobabe]

You never back a rat into a corner because they will fight ten times harder because they don't have anything to lose.

I've been doing various activism acts over time, but now that I've lost my entire life savings, I'm going to expose corruption going on with foreclosures.

I was told there was no sale date for my house and that it was not in foreclosure, and if I made regular mortgage payments over the next three months, then on the fourth month, they would do a workout.

So the first month's payment was due by the end of this month.

They auctioned my house last Friday.

Merry Frickin' Christmas, GMAC, now that you have hundreds of thousands of dollars from me while I get put out on the street, penniless.

What I want from you: PM me with your stories. I'm going to do a variety of things: compile data and take it to Conyers and anybody else who will listen, deal directly with the Mortgage company itself, and possibly do a documentary.

It isn't going to fly that they get the properties PLUS a huge bailout for the government! They get everything, while we get nothing and the economy goes further south, jobs being sliced left and right.

TOGETHER, WE can fight this. Send me your stories!

Thanks to all here on DU who have been so sympathetic to our plight. It is because of you, we keep going on, and all of you are invaluable. Family.

[grasswire]

1. it appears that homeowners are getting the royal shaft

...from the stories here. Bait and switch. Fraud. It's time to break this story.

[Hekate]

2. KnR, Demobabe, and God's blessing on you this holiday season. May you be safe and warm. nt

[Tangerine LaBamba]

3. Jesus, honey.

God damn those monsters! I have no story for you, but I applaud your project, and if there's anything I can do to help - I'm a writer and a pretty good editor, if I do say so myself - just PM me.

I am so sorry this happened to you. I wish I could help..............

[Stephanie]

4. This is an epidemic

Many horror stories linked below - from various msg boards titled "fraud" and "scam" >

http://www.democraticunderground.com/discuss/duboard.php?az=show_mesg&forum=389&topic_id=4647089&mesg_id=4647089

[Stephanie]

15. Also in the thread above, there are class action suits

n/t

[demobabe]

25. Thanks, Stephanie!

Great posts - very good info. You're one of the best here on DU. Thank you so much! :)

[madrchsod]

5. jesus....

we have been behind one or two payments for over a year...we did get caught up till my wife was sick for two weeks. our savings and loan/bank "reminds" us not to go three months because they do`t want to start the paperwork. so far they have only one or two foreclosures in this area. what helps us is that they will not sell the paper and will work with us if things get worse.

it makes no sense to foreclose on property. lower the payment or interest to keep the property occupied.

[brentspeak]

6. J Ezra Merkin, chairman of GMAC, at least is getting some commuppance

He's one of those who were fleeced by Bernard Madoff.

http://www.bloomberg.com/apps/news?pid=20601103&sid=agpSPRUVvkKQ&refer=us

[Stephanie]

8. He lost $1.8 BILLION?

Dec. 14 (Bloomberg) -- The following is an alphabetical list of investors tied to the firm that founder Bernard Madoff confessed to being a “one big lie,” costing clients $50 billion.

Client                   Total          Source

GMAC LLC Chairman        Most of its    Wall Street Journal
Jacob Ezra Merkin’s      $1.8 billion
Ascot Partners LLC       of assets

[demobabe]

11. If you say so

But he belongs to so many organizations:

Gabriel Capital Group Managing Partner (1985-)
Member of the Board of GMAC (as Chairman)
Beyeler Foundation (Switzerland) Trustee
Carnegie Hall Trustee
Romney for President
UJA/Federation of New York Trustee

Which means he still has plenty of money.

I'm starting from scratch, at 40, with a small child and a disabled husband. Let me switch places with him and experience the horror that is his life.

[Stephanie]

14. Here are his pol contributions >

MERKIN, J E
NEW YORK,NY 10022 GABRIEL CAPITAL CORP./MANAGER 7/7/03 $5,000 Future Leaders PAC (R) 

MERKIN, J E MR
NEW YORK,NY 10022 GABRIEL CAPITAL CORP./PORTFOLIO MGR 4/12/04 $7,500 National Republican Congressional Cmte (R) 

MERKIN, J E MR
NEW YORK,NY 10022 SELF-EMPLOYED 6/25/03 $4,000 Bush, George W (R) 

MERKIN, J E MR
NEW YORK,NY 10022   9/22/03 $-2,000 Bush, George W (R) 

MERKIN, J EZRA
NEW YORK,NY 10021 GABRIEL MGMT 7/26/96 $5,000 New Republican Majority Fund  

MERKIN, J EZRA
NEW YORK,NY 10021 GABRIEL MGMT 12/8/99 $5,000 New Republican Majority Fund (R) 

MERKIN, J EZRA
NEW YORK,NY 10022 SELF-EMPLOYED 10/30/98 $5,000 Independence Party Federal Cmte  

MERKIN, J EZRA
NEW YORK,NY 10022 GABRIEL CAPITAL GROUP/INVESTOR 11/18/05 $3,000 Bennett, Robert F (R) 

MERKIN, J EZRA
NEW YORK,NY 10021 SELF/INVESTOR 7/10/07 $2,300 Saul, Andrew Marshall (R) 

MERKIN, J EZRA
NEW YORK,NY 10021 SELF/INVESTOR 7/10/07 $2,300 Saul, Andrew Marshall (R) 

MERKIN, J EZRA
NEW YORK,NY 10022 SELF EMPLOYED/SELF-EMPLOYED 9/10/07 $2,300 Clinton, Hillary (D) 

MERKIN, J EZRA
NEW YORK,NY 10022 SELF EMPLOYED/SELF-EMPLOYED 9/10/07 $2,300 Clinton, Hillary (D) 

MERKIN, J EZRA
NEW YORK,NY 10021 GABRIEL CAPITOL GROUP/INVESTMENT MA 12/18/03 $2,000 Barrow, John (D) 

MERKIN, J EZRA
NEW YORK,NY 10022 GABRIEL CAPITOL GROUP/INVESTOR 6/23/03 $2,000 Lieberman, Joe (D) 

MERKIN, J EZRA
NEW YORK,NY 10022 GABRIEL CAPITAL GROUP 6/26/03 $2,000 Schumer, Charles E (D) 

MERKIN, J EZRA
NEW YORK,NY 10022 GABRIEL CAPITAL GROUP 2/27/01 $1,000 Schumer, Charles E (D) 

MERKIN, J EZRA
NEW YORK,NY 10022 GABRIEL CAPITAL GROUP 6/28/94 $1,000 Moynihan, Daniel Patrick (D) 

MERKIN, J EZRA
NEW YORK,NY 10022 GABRIEL CAPITAL GROUP 6/28/94 $1,000 Moynihan, Daniel Patrick (D) 

MERKIN, J EZRA
NEW YORK,NY 10022 GABRIEL CAPITAL CORP 10/17/96 $1,000 Levin, Carl (D) 

MERKIN, J EZRA
NEW YORK,NY 10022 GABRIEL CAPITAL CORP 10/24/96 $1,000 Michigan Democratic State Central Cmte  

MERKIN, J EZRA
NEW YORK,NY 10022 GABRIEL CAPITAL GROUP 11/8/00 $1,000 Schumer, Charles E (D) 

MERKIN, J EZRA
NEW YORK,NY 10021 INVESTMENT MANAGEMENT 8/7/00 $1,000 Lazio, Rick A (R) 

MERKIN, J EZRA
NEW YORK,NY 10021 INVESTMENT MANAGEMENT 8/7/00 $1,000 Lazio, Rick A (R) 

MERKIN, J EZRA
NEW YORK,NY 10022 GABRIEL CAPITAL GROUP 6/26/03 $1,000 Schumer, Charles E (D) 

MERKIN, J EZRA
NEW YORK,NY 10022 GABRIEL CAPITAL GROUP 6/26/03 $1,000 Schumer, Charles E (D) 

MERKIN, J EZRA
NEW YORK,NY 10022 GABRIEL CAPITAL GROUP/INVESTOR 11/18/05 $1,000 Bennett, Robert F (R) 

MERKIN, J EZRA
NEW YORK,NY 10022 INFO. REQ./INFO. REQ. 6/3/08 $1,000 Coleman, Norm (R) 

MERKIN, J EZRA
NEW YORK,NY 10022 SELF-EMPLOYED 5/4/98 $500 Schumer, Charles E (D) 

MERKIN, J EZRA
NEW YORK,NY 10022 SELF-EMPLOYED 6/30/97 $500 Schumer, Charles E (D) 

MERKIN, J EZRA
NEW YORK,NY 10021 GABRIEL CAPITOL GROUP/INVESTMENT MA 2/7/06 $250 Barrow, John (D) 

MERKIN, J EZRA
NEW YORK,NY 10022 GABRIEL CAPITAL GROUP/INVESTOR 11/18/05 $-1,000 Bennett, Robert F (R) 

MERKIN, J EZRA
NEW YORK,NY 10022   12/20/05 $-1,000 Bennett, Robert F (R) 

MERKIN, J EZRA
NEW YORK,NY 10022   7/8/03 $-2,000 Schumer, Charles E (D) 

MERKIN, J EZRA
NEW YORK,NY 10022   8/28/08 $-2,300 Clinton, Hillary (D) 

MERKIN, J EZRA
NEW YORK,NY 10021   12/4/07 $-2,300 Saul, Andrew Marshall (R) 

MERKIN, J EZRA
NEW YORK,NY 10021   12/5/07 $-2,300 Saul, Andrew Marshall (R) 

MERKIN, J EZRA MR
NEW YORK,NY 10021 GABRIEL CAPITAL/EXECUTIVE 2/1/08 $2,300 Romney, Mitt (R) 

MERKIN, J EZRA MR
NEW YORK,NY 10021 SELF/ATTORNEY 6/4/08 $1,000 Republican County Cmte of New York (R) 

MERKIN, J EZRA MR
NEW YORK,NY 10021 INFO REQUESTED 10/19/99 $1,000 Bush, George W (R) 

MERKIN, J MR
NEW YORK,NY 10022 GABRIEL CAPITAL GROUP 6/24/99 $1,000 Bradley, Bill (D) 

http://www.opensecrets.org/indivs/search.php?name=merkin&state=NY&zip=&employ=&cand=&all=Y&sort=N&capcode=fvr57&submit=Submit

[nichomachus]

29. How much do you want to bet

the government will jump through any hoop necessary to make sure these ultra-wealthy crooks get all their money back?

[Sanity Claws]

7. Not a story but maybe an idea that'll help

I'm an attorney and doing some pro bono work at a foreclosure clinic in NYC. I think other bar associations are also doing some pro bono work in this area. I suggest you try calling your state and county bar association to see if someone can help.
Good luck!

[20score]

9. K&R. I hope you can do something about this.

[Gore1FL]

10. I don't now if this will help

but it might be fun to point out that according to Jesus, they suck:

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=389x4653073

[Stephanie]

12. GMAC is trying to get in on the bailout

They've set a deadline for themselves to raise funds. I wonder if this has anything to do with both you and symbolman losing your homes on Friday. Are they auctioning homes to raise emergency cash?''

Would someone please explain if there is a possible link here?

http://money.cnn.com/2008/12/12/news/companies/GMAC/

New hope for GMAC to raise capital
GMAC says deal with debt holders has revived its efforts to raise capital it needs to become bank holding company, key to accessing Treasury and Fed dollars.

NEW YORK (CNNMoney.com) -- GMAC's hopes of being able to tap into much needed federal dollars got a lift after the financing company announced late Friday that it has reached an agreement in principal with the holders of a significant portion of its debt.

This is also good news for General Motors, even though it does not directly affect the automaker's own cash crisis and appeal for federal dollars. GMAC is 49%-owned by General Motors and 51%-owned by private equity firm Cerberus Capital Management.

GMAC extended an offer to holders of $38 billion of its current notes to swap them for a combination of new notes, preferred stock in the company and a limited amount of cash until 5 p.m. Tuesday. This was the second extension in the past week.

The issuance of the preferred stock would allow GMAC to reach the $30 billion in capital in needs to be approved as a bank holding company, which would enable GMAC to access money from the $700 billion bank bailout fund. It had only $9 billion in capital on hand at the end of the third quarter.

GMAC did not say how much closer it was to reaching the $30 billion capital level. It said the agreement "represents substantial progress" but that "significant additional participation will also be required" to meet the target.

As of Friday, only about $9.2 billion in old GMAC notes had been tendered to the company. But that was nearly $1 billion more than had been tendered before a warning from the company Wednesday morning.

If GMAC becomes a bank holding company, it would also be able to borrow money directly from the Federal Reserve.

(more)

[sellitman]

13. Instant message Symbolman

He just lost his home this way too.

Sorry to hear of your woe.

[demobabe]

16. It's the same home.

[Waiting For Everyman]

17. omg, I was told the same thing, first payment due the end of this month too

I haven't received any notice of a sale (not that that means anything) and my bank is different, but I'm wondering if I was auctioned too.

Thank you for posting this. Back to you if that happened, when I know more.

They "offer" you a workout and then shaft you while they're stalling. Incredible. I'm so sorry demobabe (times 1000), bookmarking and will let you know if I have some material for you.

Sounds like you had a lot of equity and so do I - that's what has worried me for a long time (I've been waiting for a decision from them since August). People who say the banks don't want to foreclose are JUST WRONG! And their law firms tack on a ton of fees to it, as do the banks too.

And the FHFA announced a foreclosure moratorium back on Nov. 20th!
http://www.fhfa.gov/webfiles/178/statement112008.pdf

Yeah, they paid a lot of attention to that, didn't they? Just like the "voluntary" modifications they're (NOT) doing. Here's what's supposed to be happening, but isn't - the mass "streamlined modification" program, officially starting tomorrow but banks were supposed to be doing preliminary processing on it for the last month...

http://www.fhfa.gov/webfiles/169/newFHFASTATEMENT111108.pdf

I was told by my bank and the VA, that VA mortgages can't be streamlined - which is a much better modification than banks' own in-house versions which don't change any of the terms. The streamlined does change them, to a max of 38% of the borrower's income. I was told that VA rules PROHIBIT the bank from changing the terms. Then two days ago I find this VA press released statement on the internet from last June which specifically gives approval IN ADVANCE to change the terms...

http://www.homeloans.va.gov/circulars/26_08_8.pdf

Plus VA told me that it's paying the bank $1000 per loan to make such decisions FOR the VA. And also, the Federal Government is paying banks $800 per workout. (I'll bet the banks are collecting and still foreclosing too.)

If the Feds had just done a MANDATORY modification program, almost all of these current foreclosures now (and the past ones) could've been stopped for a lot less money than they're giving the banks to further screw it up and do nothing.

Liars.

[barbtries]

18. they lied to you

that should qualify as a criminal offense. you go. bookmarking and putting you on my friend list. how can i help? i've never been a homeowner in my life, but i feel for so many people at this time going through this absurd unfair tragedy. and i feel it isn't necessary, it's greed as always.

greed will ruin the human race.

[eilen]

19. I am so sorry for your trouble. Are you alright-- do you have a place to stay?

I think that your anger is well understandable and I am certain that there are many others in your same situation feeling the same way. I am pissed off for you as well. I don't have a story like this, not yet as we are current and have our original mortgage holder. However, I know that the majority of people are waiting for Barack Obama to get sworn in and are waiting to see what he will do, they are expecting some kind of bailout from him for us, the People. If he does not or if the Republican Congress blocks his efforts, I am concerned that there will be more banks getting blown up. Fight Club revisited.

[demobabe]

27. We're figuring things out

In some states, you get to stay in the house for 6 months before they can make you leave. Here, they can file the papers any time and then evict us (I guess it takes about 10 days), so we're just playing it day by day and trying to scrape together money to move. Going to sell everything we can, next.

Thing that pisses me off: I can't sell my house and lose my money because banks are no longer lending because of their predatory lending practices which the government knew was going on, but ignored, to keep the economy going. Banks are getting bailouts. CEOs of the banks still will get their enormous salaries, stock options, and bonuses.

Why should I have to pay for the recklessness of the banking industry?

[Jim__]

20. Sorry to hear about your foreclosure.

If you can make a documentary, that would be great. Michael Moore made a documentary about the effect of closing an auto plant in Flint Michingan - Roger and Me. The documentary was great. I don't think enough people got it, because it was 1 city. This foreclosure mess is now nationwide. People get it! They need to get riled up and united. We need to take our country back.

[John Q. Citizen]

21. Demobabe, did they lie to you in writing, or on the phone?

[demobabe]

23. They lied to me on the phone

And that's the worst part - I believed them.

We've been in financial troubles for a while, and received foreclosure notices, brought payments current, received more foreclosure notices... had the house in escrow 4 times (and then that is when we really fell behind because we weren't renting part of it out) and it fell out of escrow because nobody could qualify for a loan.

I filed for bankruptcy, but didn't have the rest of the money to pay for the bankruptcy filing fee, and my case was dismissed.

No notice was sent to me stating there was any new sale date. I called GMAC about a workout. They told me my house was not in foreclosure and that there was no sale date. They told me to make three normal payments and then they would do a workout on the fourth month.

And then they auctioned it off last Friday. Wouldn't let me speak to a supervisor at they were doing the auction on the courthouse steps.

The house went back to GMAC, so I'm going to do whatever I can do to fight. I know my chances are slim, but it's worth a shot.

If nothing else, maybe I can save others from experiencing the same nightmare and expose these practices.

[John Q. Citizen]

26. I found out too. The only communication that matters in the slightest is written communications.

Everything else is just hot air and a waste of time.

The number one thing you need to tell people is don't believe ANYTHING that isn't in writing. Good, bad, neutral it doesn't matter, they can and will lie to you all day and night and you can't do squat. Unless it's in writing.

Customer service has no power at all to change your situation. They have no power to make a decision. They cannot tell you what is going on.

A person must write to an officer in the company and clearly state that they want a reply. If that officer calls, remember, what they say means nothing. The only thing that means anything is what is written. And they won't have anybody in customer service write you. All written communications will come from management, not customer service.

People need to know this.

[nichomachus]

30. A verbal agreement isn't worth the paper it's printed on

Get everything in writing and rely on nothing that isn't. These are not honorable people. They are crooks and liars.

[anigbrowl]

33. Duh - you should have got it in writing. But what you can do...

(with the help of a lawyer) is a process called 'discovery'. Companies like this generally record all their phone calls and keep backups thereof for several months. Your priority is to file suit and then request copies of any and all records the mortgage company has to do with your case, including any and all phone records. It will help if you made a note of who you spoke to and the date of the call in question.

I'm really sorry you lost your house - but you were also a sucker for not getting it on paper. They make you sign a piece of paper when you get the mortgage or suchlike, and the reason why is that paper is evidence.

[demobabe]

34. Yep, yep, yep

I know - I was stupid. I've just been going through a lot for a long time - very worn down, depressed, and wanted to believe there was hope - I bought right into it.

[anigbrowl]

36. I know, been there. Anyway, don't wait on following up the phone convo.

You'll save the lawyer time and thus make more time to actually work on your case if you make up a little spreadsheet or so with a tidy listing of all your contacts or conversations with the mortgage company. Lotsa luck.

[slackmaster]

22. Have you consulted with a lawyer about this?

Obviously they lied to you at some point. Maybe it's actionable.

[demobabe]

24. Not yet, but that is on the list for today

I'm doubtful they'll be able to help - and it's not like I could afford one at this point (roof over the head is number one priority, and I am simply amazed by the outpouring of love and offers for free housing here on the DU - it's astounding). But I'll talk to them anyway. I'm hoping to raise a big stink with the District Attorney, my Representative, Conyers, BBB, GMAC Corporate, and anybody else who will listen.

Wish me luck!

[Stephanie]

28. Legal Aid

http://www.legalaidhawaii.org/HOUSING_LAW.htm

Services provided through the HUD Housing Counseling Program are broken down into 4 main categories:

1) Renter’s Assistance, 2) Homeownership Counseling & Pre-purchase Issues, 3) Default & Foreclosure, 4) Predatory Lending Scams, and 5) Reverse Morgages



1) THE RENTER'S ASSISTANCE PROGRAM - provides renters with a broad range of legal assistance (from advice only to full representation) about tenants’ legal rights and responsibilities.



2) THE HOMEOWNERSHIP COUNSELLING & PRE-

PURCHASE ISSUES - provides basic pre-purchase counseling or default counseling coupled with negotiation assistance with lenders when necessary. Pre-purchase counseling provides clients interested in purchasing a home with individual assistance with financial issues and were given information about the home buying process. A client’s current budget is analyzed recommendations are made to improve their budget based on their needs. Clients are assisted with loan estimates, credit reports, loan products, tax credits and a variety of self-help programs.



3) DEFAULT & FORECLOSURE - Default and Foreclosure counseling provides clients who are in default or in the foreclosure process with individualized assistance in analysis of each client’s situation, status of delinquency, amount delinquent, past and current financial situations, expected future financial situation, goals and realistic goals. Advice is provided on client’s loss mitigation options, how to proceed in terms of the option they choose, and consequences that may follow. In some cases additional assistance is provided by contactin their lenders, assisting with workout packages, assisting with writing letters on their behalf, referrals to private attorneys, and various other services to help clients achieve their goals.



4) PREDATORY LENDING SCAMS - Predatory lending counseling provides clients with a comprehensive review of loan documents whenever possible if predatory lending is suspected. As appropriate for each individual case, the clients are assisted in negotiations with the lender to restructure the loan, assist in facilitating refinancing, and/or refer the case to legal staff or a private attorney for legal representation. Finally, individuals may receive counseling to determine if loans they are considering are predatory.



5) REVERSE MORTGAGES - Reverse Mortgage Counseling provides clients with individual counseling either in our office through home visits when necessary. Clients are given information and were counseled about the various aspects of the reverse mortgage, other options that may be available to them, and the consequences of a reverse mortgage. Upon completion of the counseling, a certificate of HECM counseling is provided allowing clients to go forward with reverse mortgage financing.



To speak with an advocate about a housing issue, call:


O`ahu: 536-4302

Maui: 242-0724

Moloka`i: 553-3251

Lana`i: 565-6089
Kaua`i: 245-7580

Hilo: 934-0678

Kona: 329-8331

[demobabe]

32. Thank you, Stephanie!

Thanks for researching that for me. Been so overwhelmed. I will call them right away.

[slackmaster]

41. Good luck to both of you!

I hate it when people lie.

[Trailrider1951]

31. Demobabe, it occurs to me that had your house been located in

Backwater, Texas (like mine) instead of Hawaii, they might have worked with you. Perhaps they saw a chance to seize an asset they could make money on, and keep all you've paid them. What bullshit!!!

[dajoki]

35. They are turning good people...

into criminals or not, look what this man did and tell me who is the victim?

http://journals.democraticunderground.com/dajoki/67

[demobabe]

37. Did things work out for you?

Did you get foreclosed?

[dajoki]

39. I got lucky...

but they drove me crazy and made me sicker than I already am. I had a date and was fighting, begging and borrowing for eight months and they would not give an inch. Then THREE DAYS before the sale they made an agreement to put everything on the back of the loan. Now I'm behind with the taxes and they are threatening me.

But I feel so bad for you because you had no warning, what they did to you is reprehensible and I hope you can get them for everything they are worth. I wish I knew of a way to help, but I will pray for you and you will be in my thoughts. Good luck!!

If you want details of my story PM me and I'll be happy to help.

Dajoki

[earth mom]

38. I'm really sorry that this happened to you!

And I'm also concerned because my mortgage was taken over/bought by GMAC this past year. :yoiks:

[gorfle]

40. Who needs the real bailout.

CNN reports today that collectively, home values have decreased some 2 trillion dollars in value.

If they are giving out free money for bailouts, they should bail out the homeowners. All the money they are giving to the banks that money should be applied to people's mortgages to offset their decline in value.

[sarcasmo]

42. Kick.