WARNING! Fine print in Obama's mortgage modification program contains a booby trap

[Bluebear]

Signer beware! Turns out the forms homeowners fill out to apply for lower monthly mortgage payments for three months while waiting for more permanent relief contain a potentially lethal booby trap courtesy of the U.S. Treasury Department.

According to a report in the Miami Herald, the forms require borrowers to "waive important notification rights."

The result, says the paper, is that more and more homeowners who thought their enrollment in the trial modification period would lead to a more long lasting roof over their heads, find, instead, the rug pulled out from under them by lenders who at the last minute sell the property without even bothering to notify the homeowner....

The biggest concern raised by the newspaper, however, is the fine print that basically allows the lender, at the very last minute, to yank the house away from the homeowner and sell it to someone else, even though the homeowner had been diligently paying the agreed upon, temporary loan modification rate.

http://www.walletpop.com/blog/2009/12/19/fine-print-in-mortgage-modification-forms-contain-booby-trap/

[debbierlus]

1. Nothing surprises me with this administration anymore....NOTHING

[atreides1]

5. Me Neither

We all make mistakes. To bad we can't go back and fix this one.

[aquart]

8. Why can't we?

[SammyWinstonJack]

36. Nothing shocks me either, sadly.

[xchrom]

2. Recommend

[sakabatou]

3. ...

GAH!

[Deja Q]

4. Not good.

I've seen a lot of vandalized homes long before any reform took place.

The banks will ultimately suffer and Lord only knows if the banks will be bailed out again.

As usual, the corporations set up the system they blame their workers with.

[Joe Chi Minh]

35. I don't think the bans will be bailed out again in Europe. European leaders

want to ensure that it never happens again. The banksters overstepped the mark, good and proper this time.

[dkf]

6. This comes out only now?

Wow. Just wow.

[sandnsea]

7. It's a 3 month trial modification. That's the purpose

to make sure the borrower can make the payments on time and that they have disclosed their financial situation accurately. If they haven't, they don't get the permanent relief.

Sick. People are just frothing to find anything to distort against this President. Just sick.

[AndyA]

10. And buyers, who are desperately trying to keep their homes, would

agree to let the lender just sell the house out from under them with no notice whatsoever?

People don't need to froth to find something against this President. All they have to do is just look at what's going on under his "leadership."

[Bluebear]

11. Ah, "ignored" says we are "looking" to "find something", I take it. Who needs to look?

As somebody who is trying to consider a loan modification, this disgraceful story fell into my lap.

[AndyA]

12. That's pretty much it.

What a sneaky thing to do. We'll work with you so you can keep your house, you just keep making payments to us. (P.S., But if we can sell the house out from under you, your sorry non-mortgage paying butt is out on the sidewalk, deadbeat.)

Love,
Your Mortgage Company and President Obama :(

[Bluebear]

14. Translation: we don't want to miss 3 month's payment, so you keep on paying...

while we "work with you". But on day 87, oooooh sorry! Your house has been sold. Surprise! How did that hope work for you?

[sandnsea]

15. It's a 3 month trial, they're already losing their homes

They don't get their home sold out from under them. If they don't meet the requirements, they don't get the permanent modification. The OP is a complete distortion of the program. Not surprising.

[AndyA]

21. I think you might want to do a little more research on this.

It appears you are incorrect. A quick search of the internet shows there are lots of people who are finding their houses are being sold out from under them without their knowledge, while they thought they were well into the process of getting a loan modification.

In the fine print of the form homeowners fill out to apply for Obama's program, which lowers monthly payments for three months while the lender decides whether to provide permanent relief, borrowers must waive important notification rights.

This clause allows banks to reject borrowers without any written notification and move straight to auctioning off their homes without any warning.

Flores, 58, a self-employed child care worker, wired her December payment to Central Mortgage Company on Nov. 30, thinking that her prayers had been answered. A day later, there was a loud, aggressive knock on her door.

Thinking a relative was playing a prank, she opened her front door to find two strangers handing her an eviction notice.

"They arrived real demanding, saying that they were the owners," recalled Flores. "I have high blood pressure, and I felt awful."

Court documents show that her house had been sold that very morning to a recently created company, Shark Investments. The men told Flores she had to be out within three days. The eviction notice had a scribbled signature, and under the signature was the name of attorney John Bouzane.

http://www.miamiherald.com/news/politics/AP/story/1387954.html

[Bluebear]

22. :crickets:

[sandnsea]

23. Let's look at the language

"may be immediately resumed from the point at which it was suspended if this plan terminates, and no new notice of default, notice of intent to accelerate, notice of acceleration, or similar notice will be necessary to continue the foreclosure action, all rights to such notices being hereby waived to the extent permitted by applicable law."

This means that if the 3 month modification does not work out, the borrower needs to move, gee, duh. Now, if the borrower doesn't understand that, it's not really the banks fault. However, I suspect we'll find the mortgage modification services are ILLEGALLY manipulating this language and will have to be sued to stop. Is Obama now personally responsible for every crook in the country?

SICK. People are just rabidly sick going after this man.

[AndyA]

28. But that isn't the case.

The loan modification didn't fail in many instances, it was still in process. These people, in good faith, were paying the agreed sum not knowing that their homes had been sold out from under them.

What's sick is being lied to by someone who makes promises of change, takes your money to get what they want, then let the powers that be--the ones who created so many problems to start with--continue on doing the same thing.

THAT'S SICK. The aftermath is the result of what happens when you're caught with your pants down.

Sneaky disclaimers should not have been allowed in the modification documents. It just opens the door to abuse by lenders, who we KNOW cannot be trusted at this point.

[sandnsea]

29. Then They Are Breaking The Law.

The language is quite clear. If they didn't legally terminate the trial period, then they are breaking the law and I would bet we will find that is what unscrupulous "mortgage modifiers" are doing. Have you not read the warnings about these people?

People have just lost their damned minds.

[Hannah Bell]

24. "Shark Investments"? jesus.

[Bluebear]

25. 'a recently created company', yet. Opportunity strikes!

[sandnsea]

30. Yep. Fly By Night crook, sounds like to me.

I guess the President is responsible for every crook in the country now. They can just go to court and say "Obama made me do it, he's the Black Devil!".

[Bluebear]

34. whoever is answering.

sorry, can't see ya!

[inna]

13. "People are just frothing to find anything to distort against this President."

What are you even babbling about?...

What a ridiculous joke of a "comment".

You should be embarrassed of yourself.

[sandnsea]

16. This site has become SICK n/t

[Bluebear]

33. +1

[AndyA]

9. This is something I would expect from the Bush Administration, had it even cared

to try to do anything to protect the average American. At least with Bush, you knew to be cautious.

From Obama, this is even worse because it's down right sneaky.

Of course, Barack does like his Wall Street buds. :eyes:

Everybody enjoying all this change? (Different faces, new promises, same old crap.) :(

[McCamy Taylor]

17. Feeding the Vulture Funds, like Carlyle, who snatch up people's homes for a song.

This bill allows the banks to collect payments---and keep a tenant in the home to maintain it---while they are peddling it to their friends.

[Missy Vixen]

18. We are in this program

We are still waiting for our final loan docs.

We'll be calling the lender (AGAIN) on Monday morning, and I'm wondering if we should conference in Senator Patty Murray's office on the call.

There comes a moment when this shit ceases being "a mistake", and turns into something more. I can hardly wait to hear the Obama administration's excuse for this...

:eyes:

[Shagbark Hickory]

19. Sickening.

[hvn_nbr_2]

20. All your everything are belong to us. Don't even prepare to be assimilated because...

you've already been gobbled.

[FLAprogressive]

26. Bend Over, Here it Comes Again

[Phoebe Loosinhouse]

27. Then the modification program is a scam. I read the article

The people think they have an agreement and they are making payments. Meanwhile the bank is going ahead with foreclosure that they know nothing about and the house is pulled out from under them.

There is NO reason for language like that to be in an agreement. It is simply a way for banks to get extra dollars from desparate and distraught homeowners. If they knew foreclosure was proceeding anyway, they would save those dollars for deposits and a few months rent in their new shelter.

Total evil without question.

[Bluebear]

31. WHO would have signed off on this?

:wtf:

[Historic NY]

32. sure sounds like one of them internet Obama scam loans programs...

http://makinghomeaffordable.gov/

[Stinky The Clown]

37. YOU"RE WRONG. WHY DO YOU POST THIS CRAP???????

I'm sure someone will be along shortly with basically that line.

This is just so in keeping with all that we're watching happen.