Mortgage loan modifications may lead to foreclosure !

[Better Believe It]

Mortgage modifications may lead to foreclosure
Owners thought banks were helping with terms, only to lose their homes
By JACOB ADELMAN
Associated Press
November 7, 2010

LOS ANGELES — Grocery store owners William and Esperanza Casco were making enough money to stay current on their mortgage, but when JPMorgan Chase & Co. offered a plan that reduced their payments, they figured they could use the extra cash and signed up.

The Cascos say they never missed a subsequent payment, so they were horrified when the bank decided the smaller payments weren't enough and foreclosed on their modest Long Beach home.

Their story is echoed across the country by people who claim — some in lawsuits — that banks didn't live up to their end of the deal when they agreed to trial mortgage modifications.

The suits add to a feeling among many struggling homeowners that they're getting little help from the part of the government's $700 billion Wall Street rescue that aimed to help them directly.


Esperanza Casco who's home in Long Beach was recently foreclosed, speaks at a "Faces of LA's Foreclosure Crisis'' rally in Los Angeles in late October.

Please read the full article at:

http://www.msnbc.msn.com/id/40056344/ns/business-personal_finance

[midnight]

1. Why is this issue not considered a National Security issue.... How can anyone

turn their head and say time will work this out.... Or that we will look into it.....

[Brickbat]

6. I've been calling this domestic economic terrorism for years, and people have laughed at me.

[DJ13]

2. If the banks show a pattern of foreclosure after agreeing to modifications

Thats a willful attempt to commit fraud, and the DOJ should be investigating it.

[glinda]

4. K & R that comment forward

[prolesunited]

5. Yep, just another scam to make money

It really needs to be investigated.

[EFerrari]

11. The pattern has been evident for some time.

It's predatory loan servicing, bad faith and illegal. These stories are all over he net. They used the president's modification program as a honey pot to lure people in.

And he refuses to call for a foreclosure moratorium.

[and-justice-for-all]

3. PNC Mortgage will NOT give me a modification...

they will not do jack shit for and I have been unemployed since October of 2009. Those modification funds should have come from the HOPE program, and the gate keepers (Mortgage Companies) will not grant access to those funds/programs.

[flvegan]

7. Congress, Obama...mandate a rate ceiling of 4% and be fucking done with it.

These multi-faceted modifications aren't helping.

DO SOMETHING!

[Eric J in MN]

9. 4 percent of what? NT

NT

[flvegan]

12. Interest rate on the Note.

At the absolute max.

[dixiegrrrrl]

8. HAMP is a scam, also.

The servicer of your loan gets PAID money IF they foreclose.

So as a condition of a modification, people are told they have to stop paying the loan, which triggers a foreclosure process in one dept of the servicer, while another dept. tries to get fees from the homeowner for doing the long drawn out mod procedure. Meanwhile, the foreclosure goes thru.
The servicer gets paid by the Gov't for signing people up for the mod, and gets paid for doing a foreclosure!
So they try to do both.

Meanwhile, it is highly probable that the servicer does not even own the loan and is foreclosing illegally.

DO NOT DO A MOD!!
And, if you are being foreclosed on, find a good bankruptcy or real estate attorney and demand to see the proof that the servicer even has the right to foreclose, demand the note!

[Better Believe It]

13. I think you explained it clearly. Thank you. And the gov't does nothing to stop this scam.

[dixiegrrrrl]

14. And the gov't does nothing to stop this scam.

There is a BIG clue in that, don't ya think?

[Bluebear]

10. Chase modifications = SCAM. nt