Detroit Free Press request: Share your story on mortgage modification. A reporter may contact you.

[Bozita]

If you've got a story to tell, send it to the DFP.

BTW, the Freep had two of its reporters pick up Pulitzers this year.


http://www.freep.com/article/20091210/NEWS06/91210024/S...

POSTED: 10:50 A.M. DEC. 10, 2009
Share your story on mortgage modification
FREE PRESS STAFF

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The Free Press wants to hear from Michiganders who have tried to have their home mortgagesmodified — whether you were successful or not — under President Barack Obama’s Making Home Affordable program to forestall foreclosure. Specifically, we’re looking for people who have received trial mortgage modifications and are awaiting a decision on permanent changes, as well as those who already have received permanent ones.

Please e-mail us with your story today at [e-mail] . Please include your name, hometown and a phone number where a reporter could reach you today.

Some of your stories may be used in the Free Press, and a reporter may contact you about yours.

[annm4peace]

1. I hope you know about this

http://iamfacingforeclosure.com/blog/2009/12/01/anatomy-of-a-government-abetteded-fraud-why-indymaconewest-always-forecloses/



When OneWest took over Indymac, the FDIC and OneWest executed a “Shared-Loss Agreement” covering the sale. This Agreement covered the terms of what the FDIC would reimburse OneWest for any losses from foreclosure on a property. It is at this point that the details get very confusing, so I shall try to simplify the terms. Some of the major details are:

* OneWest would purchase all first mortgages at 70% of the current balance
* OneWest would purchase Line of Equity Loans at 58% of the current balance.
* In the event of foreclosure, the FDIC would cover from 80%-95% of losses, using the original loan amount, and not the current balance.

How does this translate to the “Real World”? Let us take a hypothetical situation. A homeowner has just lost his home in default. OneWest sells the property. Here are the details of the transaction:

* The original loan amount was $500,000. Missed payments and other foreclosure costs bring the amount up to $550,000. At 70%, OneWest bought the loan for $385,000
* The home is located in Stockton, CA, so its current value is likely about $185,000 and OneWest sells the home for that amount. Total loss for OneWest is $200,000. But this is not how FDIC determines the loss.
* ‘FDIC takes the $500,000 and subtracts the $185,000 Purchase Price. Total loss according to the FDIC is $315,000. If the FDIC is covering “ONLY” 80% of the loss, then the FDIC would reimburse OneWest to the tune of $252,000.
* Add the $252,000 to the Purchase Price of $185,000, and you have One West recovering $437,000 for an “investment” of $385,000. Therefore, OneWest makes $52,000 in additional income above the actual Purchase Price loan amount after the FDIC reimbursement.

At this point, it becomes readily apparent why OneWest Bank has no intention of conducting loan modifications. Any modification means that OneWest would lose out on all this additional profit.

Note: It is not readily apparent as to whether this agreement applies to loans that IndyMac made and Securitized but still Services today. However, I believe that the Agreement does apply to Securitized loans. In that event, OneWest would make even more money through foreclosure because OneWest would keep the “excess” and not pay it to the investor!

[Bozita]

2. Wow! ... That's a new one for me.