HARP Refinance Option for Homeowners in San Jose and Sunnyvale

Posted on April 29, 2013 by CustomerBullHorn

A recent announcement from the “Know Your Options” website (sponsored by Fannie Mae) highlights the Home Affordable Refinance Program, (HARP) as an option for homeowners who are struggling to pay their mortgages.

The announcement includes the example of a retired Air Force officer who bought a home in 2007 in Sacramento, but who was reassigned to the East Coast. Unable to sell his home in a sluggish market, the homeowner found a renter, but was still losing about $1,000 a month.

While his original mortgage company wouldn’t refinance because he owed more than the house was worth (known as being “upside down”), he also spoke with a lender who offers the HARP loan, and was able to refinance his mortgage (at a rate that was almost 3% lower), saving about $760 a month.

The release explains that over 400,000 people obtained HARP loans during the first six months of 2012, making up about a third of the 1.5 million homeowners who have used HARP since the program began.

The loan needs to be owned by Fannie Mae or Freddie Mac to qualify for a refinance. You can see if they own your loan using these two websites:

Fannie Mae loan look up

Freddie Mac loan look up

To read the original announcement, visit: “How Much Could HARP Save You?”

You may also find our earlier post about the differences between a modification and a refinance helpful:

Refinance vs. Modification: What are the differences?

HARP gets 2-year extension (bankrate.com)

Foreclosure Help is a program funded by the city of San Jose through a HUD Community Development Block Grant and the city of Sunnyvale, and we can directly assist homeowners and tenants in San Jose and Sunnyvale who are facing foreclosure. However, we are unable to assist homeowners/former homeowners in other cities and states. If you need housing counseling, we suggest using the interactive map on HUD’s website.

If you are a homeowner living in San Jose or Sunnyvale and are struggling with your mortgage, please contact ForeclosureHelpSCC, a program funded by the City of San Jose through a HUD Community Development Block Grant and the City of Sunnyvale at (408)-293-6000 or visit us: www.foreclosurehelpscc.org

Our housing counselors can help you evaluate your options, learn more about federal and state programs that may help you with your mortgage issues, and will help you create a plan forward.

Please note: All content included in the ForeclosureHelpSCC blog is provided for information only and should NOT be considered legal or tax advice. If you have any questions, please feel free to contact us on our hotline: (408)-293-6000, or visit our website: www.foreclosurehelpscc.org or send us an email: help@foreclosurehelpscc.org.

Si usted es dueño de una casa en San José o en Sunnyvale y están luchando con su hipoteca, por favor póngase en contacto con ForeclosureHelpSCC, un programa financiado por la ciudad de San José y la ciudad de Sunnyvale, al (408) -293- 6000, o visite nuestro sitio: www.foreclosurehelpscc.org.Nuestros consejeros puede ayudarle a evaluar sus opciones, aprender más acerca de los programas federales y estatales que pueden ayudarle con sus problemas de hipoteca, y le ayudará a crear un plan para seguir.

Por favor, tenga en cuenta: Todos los contenidos incluidos en el blog ForeclosureHelpSCC se proporciona únicamente a título informativo y no debe ser considerada como consejo legal o fiscal. Si usted tiene alguna pregunta, por favor no dude en contactarnos a nuestra línea directa: (408) -293-6000, o visite nuestro sitio:www.foreclosurehelpscc.org o envíenos un correo electrónico: help@foreclosurehelpscc.org.

Nếu bạn là một sinh hoạt chủ sở hữu nhà ở San Jose hoặc Sunnyvale và đang đấu tranh với nợ nhà, xin vui lòng liên ForeclosureHelpSCC, một chương trình được tài trợ bởi thành phố San Jose và thành phố của Sunnyvale ở (408) -293-6000 hoặc truy cập trang web của chúng tôi: www.foreclosurehelpscc.org.

Nhân viên tư vấn của chúng tôi đã được HUD chấp thuận có thể giúp bạn đánh giá các lựa chọn của bạn, tìm hiểu thêm về các chương trình của liên bang và tiểu bang có thể giúp bạn với các vấn đề thế chấp của bạn, và sẽ giúp bạn tạo ra một kế hoạch phía trước.Xin lưu ý: Tất cả các nội dung trên Blog ForeclosureHelpSCC được cung cấp thông tin duy nhất và không nên coi là hợp pháp hoặc tư vấn thuế. Nếu bạn có bất cứ câu hỏi , xin vui lòng liên hệ với chúng tôi qua đường dây nóng: (408) -293-6000, hoặc truy cập vào trang của chúng tôi: http://www.foreclosurehelpscc.org hoặc gửi email cho chúng tôi:help@foreclosurehelpscc.org.

FAIR HOUSING AND ANTI-DISCRIMINATION POLICY

It is the policy of ForeclosureHelp not to discriminate against any person because of that person’s race, color, religious creed, sex (gender), sexual orientation, marital status, national origin, ancestry, familial status (households with children under the age of 18), source of income, disability, medical condition or age. Color or “ethnic group identification” means the possession of the racial, cultural or linguistic characteristics common to a racial, cultural or ethnic group, or the country or ethnic group from which a person or his or her forebears originated. As required by law, we agree to take the affirmative steps needed to further fair housing.

ForeclosureHelp will consider any and all requests for reasonable accommodation in the application of its rules, policies, practices, and services, and in the use of its physical structures, in accordance with the requirements of state and federal laws. You can ask ForeclosureHelp to consider any reasonable accommodation you may have. Please consult with the Program Manager to request this accommodation.

New Federal Bill Introduced to Create Independent Monitor to Oversee Independent Foreclosure Review

Posted on April 25, 2013 by CustomerBullHorn

On April 25, 2013, Representative Elijah E. Cummings, the Ranking Member of the House Committee on Oversight and Government Reform, introduced HR 1706, “The Mortgage Settlement Monitoring Act of 2013” that would oversee the distribution of funds from the Independent Foreclosure Review.

Our blog readers know that ForeclosureHelp has followed the Independent Foreclosure Review closely and we think some additional sunshine into how decisions were made to end the program would benefit Congress and the hundreds of thousands of Americans who have either lost their homes to foreclosure or who have experienced the mortgage modification process with their bank or servicer. (To see our concerns with the Independent Foreclosure Review, visit our earlier post: “Seven Reasons to Postpone the Independent Foreclosure Review“)

As Senator Elizabeth Warren (D-MA) commented at a congressional hearing earlier this month, it seems contradictory to pay consultants hundreds of millions of dollars to review errors the bank made, then not use that information, and instead, have the banks and servicers decide which category of error the homeowners should be placed into. The majority of homeowners have already received or will receive a payment of $300 under the revised settlement.

The bill is being co-sponsored by Ranking Members Maxine Waters, George Miller, John Conyers, and Henry Waxman, and Representatives John F. Tierney, Zoe Lofgren, and Jan Schakowsky.

National supporters include the Center for Responsible Lending, the National Consumer Law Center, the National Fair Housing Alliance, the National Association of Consumer Advocates, Americans for Financial Reform, National People’s Action, The Connecticut Fair Housing Center and Consumer Action.

In a press release, Representative Cummings explained: “Mortgage servicers have now admitted that they broke the law by illegally foreclosing on American families and committing numerous other abuses, but regulators refuse to provide even the most basic information about the extent of the abuses that were uncovered,” said Cummings. “Since federal regulators now plan to rely on these same banks to determine payouts and deliver settlement funds to borrowers, we need an Independent Monitor to bring transparency and accountability to this process.”

According to the same press release, the Act would create a Monitor (appointed by President Obama) to review compliance by all parties, including not only the banks and servicers, but also the Federal Reserve and the OCC. As a reminder, both the Federal Reserve and the OCC have rebuffed earlier requests from Representative Cummings and Senator Elizabeth Warren (D-MA) to release information about illegal procedures at the bank (like robosigning), suggesting that they are “trade secrets.”

The Monitor would also issue quarterly reports with the following information:

A description of the criteria and methodology used to determine eligibility for direct and indirect relief, as well as a description of due process protections for recipients;

Information on borrowers who receive relief, broken down by mortgage servicer and including demographic information, the level of direct compensation for similarly situated borrowers, and the number and amounts of principal reduction loan modifications and other types of borrower assistance;

Information on the credit given to mortgage servicers for direct and indirect compensation provided to borrowers; and

A list of instances in which mortgage servicers or regulators fail to comply with the terms of the settlement, and a list of actions taken by the Federal Reserve or the OCC to compel compliance.

If it’s not in the bill, we imagine that homeowners across the U.S. would also like this new monitor to ask a few questions of the Federal Reserve and the Office of the Comptroller Currency, such as:

1) Was there any thought during 2012 about possibly ending the program sooner? Who ultimately made the decision to end the program in January?

2) What are the financial differences for banks and servicers if the Independent Foreclosure Review had continued as planned and the consultants had decided which category the borrowers should go in? In other words, was it cheaper for the banks and servicers to discontinue the Independent Foreclosure Review? If so, how much money did they save?

3) Is there any thought given to clawing back some of the hundreds of millions of dollars spent on consultants, considering most of their work isn’t being used, there were conflicts of interest between the consultants and the banks, there were media reports of some consultants not doing any real work while they were on the clock, and the results of their reviews are apparently “trade secrets” that can’t be made public?

4) What was the rational to only use the 2009-2010 time period for the eligibility qualifications? Do federal regulators have proof that there was no robo-signing or illegal foreclosures before 2009 or after 2010?

5) Given the evidence that is already public about robo-signing issues and the disorganization at many servicers and banks, why isn’t there a built-in appeal process with the current program, especially for homeowners who have documented the errors that their bank committed against them?

6) Can you explain the exact process for assigning homeowners to a “category of harm?” On what grounds are banks and servicers confident that they are assigning a homeowner to the correct category?

7) Have there been any conversations about the damage done to credit reports and scores because of improper foreclosures, and what this means for those people and their increased costs for borrowing money?

8) Were any homeowners, housing counselors, or housing advocates asked to join the conversations about this settlement when it was originally designed? If not, why weren’t they involved in the process since they have the most direct first-hand knowledge of the issues the settlement was designed to address?

We’d love to hear other questions our readers may have for federal regulators, and if readers have experience with the Independent Foreclosure Review, they may want to call their Representative and ask them about this new legislation.

Our housing counselors can help you evaluate your options, learn more about federal and state programs that may help you with your mortgage issues, and will help you create a plan forward.

FAIR HOUSING AND ANTI-DISCRIMINATION POLICY

Cash Payments for Independent Foreclosure Review Will Begin Being Mailed April 12, Senate Banking Committee Will Hold Hearing about the Independent Foreclosure Reviews (foreclosurehelpscc.wordpress.com)
Foreclosure Help’s Update on the Independent Foreclosure Review, Debt Collectors, Making Home Affordable, Hispanic Homeownership,and “Zombie Foreclosures” (foreclosurehelpscc.wordpress.com)
Second Wave of Independent Foreclosure Review Checks Mailed Out on April 19, 2013 (foreclosurehelpscc.wordpress.com)

New Analysis of 2009-2011 Census Data: For Wealthiest 7%, Assets Increased 28%, but for Remaining 93%, Assets Decreased 4%

Posted on April 24, 2013 by CustomerBullHorn

By Sean Coffey, MPA, Program Manager at ForeclosureHelp

A new analysis of Census Data by the Pew Research Center reveals that the wealth gap in the United States continues to grow, and that the “economic recovery” is mostly benefiting wealthy people.

For example, the mean net worth of the eight million households in the upper 7% increased by an estimated 28%, from $2.4 million in 2009 to $3.1 million in 2011. In comparison, people in the lower 93% (111 million households) saw their mean net worth decrease 4%, from $139,896 in 2009 down to $133,817 in 2011.

This large difference is due mostly to the differences in assets. For example, for households with a net worth of more than $500,000, 65% of their wealth is from financial holdings like stocks, bonds, and retirement accounts, while only 17% of their wealth is based on their home value.

In contrast, for household with a net worth of less than $500,000, half of their net worth is from their home, and only 33% is from financial holdings like retirement accounts.

The analysis also examined the time period from 2005 to 2009 (when the housing market crashed), and found that mean net worth declined by 12% for “households as a whole but remained unchanged for households with a net worth of $500,000 and over.” For the over $500,000 group, they had a mean net worth of $1,590,075 in 2005; $1,585,441 in 2009, and $1,920,956 in 2011.

This data was interesting in light of the work we do at ForeclosureHelp- for many homeowners who live here in San Jose and Sunnyvale and who contact our program, they have already attempted at least once to ask their bank to modify their mortgages. Unfortunately, modification requests don’t always go smoothly the first time (paperwork gets lost, etc), and many homeowners cite a list of reasons they don’t want to apply again (it’s been referred to as “modification fatigue”).

However, the analysis above clearly demonstrates that a house is the largest asset for most Americans, and that’s why we encourage homeowners to meet with one of our housing counselors who is certified in foreclosure prevention counseling.

The counselors know the programs like HAMP, HARP, or Keep Your Home California, and can work with you to understand your eligibility for these programs and to submit a modification request- even if you’ve asked for a modification before and were unsuccessful.

For more reasons working with a housing counselor makes sense, visit our earlier blog post: Five Reasons Working With A Housing Counselor is Better Than “Going Alone”

En Espanol: ¿Por Qué Trabajar Con Un Consejero de Casa?

This post has also been popular with our blog visitors: Helpful Resources if You’re Facing Foreclosure By Foreclosure Help SCC

To read the full Pew analysis, visit: A Rise in Wealth for the Wealthy; Declines for the Lower 93%

Our housing counselors can help you evaluate your options, learn more about federal and state programs that may help you with your mortgage issues, and will help you create a plan forward.

FAIR HOUSING AND ANTI-DISCRIMINATION POLICY

Event Focuses on Stabilizing Homeownership after Foreclosures in California (foreclosurehelpscc.wordpress.com)
Loan Modification and Debt Elimination Scams in Santa Clara County: Scammers Keep Trying, But District Attorney is Watching (foreclosurehelpscc.wordpress.com)
A Rise in Wealth for the Wealthy; Declines for the Lower 93% (pewsocialtrends.org)

Second Wave of Independent Foreclosure Review Checks Mailed Out on April 19, 2013

Posted on April 19, 2013 by CustomerBullHorn

The Office of the Comptroller Currency announced today that a second wave of 1.4 million checks (totaling $1.2 billion) is being mailed out today to homeowners and former homeowners as compensation under the Independent Foreclosure Review. A total of 2.8 million checks have been sent out, worth $2.4 billion total. According to the press release, 90% of the 4.2 million checks will be sent out by the end of April. However, some borrowers will have to provide additional information and their checks will not be sent out until later this summer.

ForeclosureHelp reported last week about Congressional hearings on the many, many mistakes made throughout the Independent Foreclosure Review, including a poor outreach campaign, $2 billion being spent on “independent” consultants, and a decision in January to scrap the reviews for most of the original 14 banks and servicers. This was replaced with a “program” of the banks deciding how badly they had injured a homeowner, and then the banks or servicers assigning a homeowner or former homeowner to a category, which would then determine their amount of compensation.

As we reported earlier this week, when homeowners first attempted to cash their checks, some of the checks were returned because of insufficient funds.

Senator Elizabeth Warren (D-MA) and other senators sharply questioned the consultants during a hearing on April 11th (Outsourcing Accountability? Examining the Role of Independent Consultants) and another hearing about the reviews took place on April 17th (Helping Homeowners Harmed by Foreclosures: Ensuring Accountability and Transparency in Foreclosure Reviews, Part II). Senator Warren questioned whether it made sense to pay $2 billion for consultant’s work that was never actually used to determine compensation for the homeowners and former homeowners.

Editor’s note: Foreclosure Help is a program funded by the city of San Jose through a HUD Community Development Block Grant and the city of Sunnyvale, and we can directly assist homeowners and tenants in San Jose and Sunnyvale who are facing foreclosure. However, we are unable to assist homeowners/former homeowners in other cities and states. If you need housing counseling, we suggest using the interactive map on HUD’s website and if you have questions about the information below, please contact Rust Consulting (1-888-952-9105).

If you are a homeowner living in San Jose or Sunnyvale and are struggling with your mortgage, please contact ForeclosureHelpSCC, a program funded by the City of San Josethrough a HUD Community Development Block Grant and the City of Sunnyvale at (408)-293-6000 or visit us: www.foreclosurehelpscc.org

Our housing counselors can help you evaluate your options, learn more about federal and state programs that may help you with your mortgage issues, and will help you create a plan forward.

FAIR HOUSING AND ANTI-DISCRIMINATION POLICY

Federal Reserve Issues Update about Independent Foreclosure Review Checks (foreclosurehelpscc.wordpress.com)
Cash Payments for Independent Foreclosure Review Will Begin Being Mailed April 12, Senate Banking Committee Will Hold Hearing about the Independent Foreclosure Reviews (foreclosurehelpscc.wordpress.com)
Independent Foreclosure Review: Update on $3.6 Billion in Cash Payments and $5.7 Billion in Modification Assistance. (foreclosurehelpscc.wordpress.com)

Federal Reserve Issues Update about Independent Foreclosure Review Checks

Posted on April 17, 2013 by CustomerBullHorn

The Federal Reserve issued this Press Release this morning:

Release Date: April 17, 2013

For immediate release

The paying agent for checks being sent to borrowers under the Independent Foreclosure Review has assured the Federal Reserve Board that early problems with some checks have been corrected and that funds are available to cash all checks.

Some early recipients of checks informed the Federal Reserve’s consumer helpline on Tuesday that they were told their checks could not be cashed. Members of the Board staff contacted the paying agent, Rust Consulting, Inc., and the paying bank, The Huntington National Bank. Rust subsequently corrected problems that led to some checks being rejected.

The Board will continue to monitor the payments closely and encourages borrowers who have concerns or experience difficulties cashing their checks to call Rust at 1-888-952-9105.

As previously announced, on April 12, payments began to 4.2 million borrowers following an agreement reached by federal bank regulatory agencies and 13 mortgage servicers. More than 50,000 people have already cashed or deposited checks.

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If you are a homeowner living in San Jose or Sunnyvale and are struggling with your mortgage, please contact ForeclosureHelpSCC, a program funded by the City of San Josethrough a HUD Community Development Block Grant and the City of Sunnyvale at (408)-293-6000 or visit us: www.foreclosurehelpscc.org

Our housing counselors can help you evaluate your options, learn more about federal and state programs that may help you with your mortgage issues, and will help you create a plan forward.

FAIR HOUSING AND ANTI-DISCRIMINATION POLICY

Cash Payments for Independent Foreclosure Review Will Begin Being Mailed April 12, Senate Banking Committee Will Hold Hearing about the Independent Foreclosure Reviews (foreclosurehelpscc.wordpress.com)
Loan Modification and Debt Elimination Scams in Santa Clara County: Scammers Keep Trying, But District Attorney is Watching (foreclosurehelpscc.wordpress.com)
California Homeowners have Received $16.8 Billion in Relief from National Attorney General Settlement (foreclosurehelpscc.wordpress.com)

Thanh toán tiền mặt được gửi ra Tuần này (Independent Foreclosure Review Update)

Posted on April 16, 2013 by CustomerBullHorn

(English version: Cash Payments for Independent Foreclosure Review Will Begin Being Mailed April 12, Senate Banking Committee Will Hold Hearing about the Independent Foreclosure Reviews)

ForeclosureHelpSCC đã chặt chẽ theo dõi đánh giá Tịch thu nhà độc lập, vì vậy chúng tôi rất vui mừng để xem công bố báo chí của Cục Dự trữ Liên bang nói rằng thanh toán bằng tiền mặt cho 4.2 triệu chủ nhà bao gồm bởi các chương trình đánh giá độc lập được cập nhật Tịch thu nhà sẽ bắt đầu được gửi đi vào ngày 12 tháng 4. Bạn có thể thấy một biểu đồ trong các hình phạt và số tiền phán quyết (mỗi hình phạt), và có bao nhiêu người nhận được bồi thường cho mỗi hình phạt bằng cách sử dụng biểu đồ này trên trang mạng của Cục Dự trữ Liên bang (Federal Reserve’s) website: Independent Foreclosure Review Payment Agreement Details.

Xin nhắc lại, 13 các ngân hàng và dịch vụ được tham gia vào chương trình sửa đổi. Tuy nhiên, GMAC Mortgage, Financial Freedom (một phần của IndyMac), Everbank / Công ty EverHome Mortgage Company, và thế chấp OneWest Ngân hàng / IndyMac dịch vụ được tiếp tục với việc xem xét ban đầu, trong đó có thời hạn chót áp dụng vào ngày 31 Tháng mười hai năm 2012. Để biết thêm thông tin, xem bài trước đó của chúng tôi: Để biết thêm thông tin về các đánh giá Tịch thu nhà độc lập, hãy truy cập vào bài viết trên blog trước đó của chúng tôi: Đánh giá Tịch thu nhà độc lập: Cập nhật $ 3.6 tỷ USD trong thanh toán bằng tiền mặt và $ 5.7 tỷ USD trong hỗ trợ Sửa đổi “(tiếng Tây Ban Nha phiên bản và phiên bản tiếng Việt). Independent Foreclosure Review: Update on $3.6 Billion in Cash Payments and $5.7 Billion in Modification Assistance.” (Spanish version and Vietnamese version)

If you are a homeowner living in San Jose or Sunnyvale and are struggling with your mortgage, please contact ForeclosureHelpSCC, a program funded by the City of San Josethrough a HUD Community Development Block Grant and the City of Sunnyvale at (408)-293-6000 or visit us: www.foreclosurehelpscc.org

Our housing counselors can help you evaluate your options, learn more about federal and state programs that may help you with your mortgage issues, and will help you create a plan forward.

FAIR HOUSING AND ANTI-DISCRIMINATION POLICY

Cash Payments for Independent Foreclosure Review Will Begin Being Mailed April 12, Senate Banking Committee Will Hold Hearing about the Independent Foreclosure Reviews (foreclosurehelpscc.wordpress.com)
Loan Modification and Debt Elimination Scams in Santa Clara County: Scammers Keep Trying, But District Attorney is Watching (foreclosurehelpscc.wordpress.com)
California Homeowners have Received $16.8 Billion in Relief from National Attorney General Settlement (foreclosurehelpscc.wordpress.com)

Cash Payments for Independent Foreclosure Review Will Begin Being Mailed April 12, Senate Banking Committee Will Hold Hearing about the Independent Foreclosure Reviews

Posted on April 9, 2013 by CustomerBullHorn

1) Cash Payments Being Sent Out This Week ForeclosureHelpSCC has closely followed the Independent Foreclosure Review, so we are glad to see the press release from the Federal Reserve stating that cash payments to 4.2 million homeowners covered by the updated Independent Foreclosure Review program will start being mailed out on April 12^th. You can see a chart of the penalties and the award amounts (per penalty), and how many people are receiving compensation for each penalty using this chart on the Federal Reserve’s website: Independent Foreclosure Review Payment Agreement Details.

As a reminder, 13 of the banks and servicers are participating in the revised program. However, GMAC Mortgage, Financial Freedom (part of IndyMac), Everbank/EverHome Mortgage Company, and OneWest Bank/IndyMac Mortgage Services are continuing with the original review, which had a deadline to apply of December 31, 2012. For more information about the Independent Foreclosure Review, visit our earlier blog posts: Independent Foreclosure Review: Update on $3.6 Billion in Cash Payments and $5.7 Billion in Modification Assistance.” (Spanish version and Vietnamese version)

2) ResCap Tries to Get out of its Independent Foreclosure Review Obligations: In related news, Andrew R. Johnson reports in Fox Business News “Ally, ResCap Spar Over Federal Foreclosure-Review Program” that Ally Financial and ResCap (its mortgage subsidiary) are having issues around ResCap’s attempt to exit the Independent Foreclosure Review. GMAC Mortgage, which is part of ResCap, is one of the banks that did not agree to the updated Independent Foreclosure Review program back in January. According to the article, ResCap asked a bankruptcy judge to stop the Federal Reserve from enforcing the lender’s obligations that it agreed to under the Independent Foreclosure Review. Instead, ResCap suggests that these obligations should be treated as other unsecured creditors in the bankruptcy process. However, the Federal Reserve filed a court filing suggesting that Ally’s liability is limited to the reimbursement to the harmed homeowners.

3) Former SEC Chairwoman Joins Former Independent Foreclosure Review Consultant Company Gregory Mott reported for Bloomberg “Promontory Adds SEC’s Schapiro to Roster of Ex-Regulators” (April 2, 2013) that Mary Schapiro, who was chairwoman of the US Securities and Exchange Commission until December 2012, has joined Promontory. As a refresher, Promontory was one of several high-priced consulting companies that was hired to do the Independent Foreclosure Reviews. Yves Smith, founder of the Naked Capitalism blog, wrote a scathing account of Pomontory on a February blog post entitled “Bank of America Foreclosure Reviews: Why the OCC Overlooked “Independent” Reviewer Promontory’s Keystone Cops Act (Part VB).”

She quotes Doug Smith, a former partner at McKinsey, who reviewed accounts from contractors who worked on the reviews. He said:

“It’s hard to imagine a more unprofessional, atrociously managed effort. In my more than three decades of working with, observing and advising teams and projects, I cannot identify a single worse example.”

Smith continues:

But the surprise was how inept Promontory proved to be in its efforts to hide how much damage was done to borrowers. The scale of the exercise, combined with the pervasive reliance on contractors and temps who were told only the official story that their mission was to find evidence of damage done to borrowers, meant they went down that path, often surprisingly far.

4) GAO Releases Critical Report about Independent Foreclosure Review. The New York Times has a summary Blame Abounds Over a Flawed Foreclosure Review (April 3, 2013) of the GAO’s recently released report Foreclosure Review: Lessons Learned Could Enhance Continuing Reviews and Activities under Amended Consent Orders about the Independent Foreclosure Review. Our favorite quote in the article is from New York’s Banking Regulator, Benjamin M. Lawksy, who was quoted in a recent speech as saying:“It is worth considering the monitors’ lack of independence…The monitors are hired by the banks, paid by the banks, and depend on the banks for future engagements.” The Senate Banking Committee has a hearing scheduled for April 11 “Outsourcing Accountability? Examining the Role of Independent Consultants” (this Thursday) about the Independent Foreclosure Reviews, and it will be interesting to watch.

5) Cash Floods into Silicon Valley Neighborhoods: Part Two? Here in Silicon Valley, Pete Carey recently reported in the San Jose Mercury News Bay Area’s average homebuyers shut out by cash offers, (April 3, 2013) about the bidding wars that have taken on what many would consider a bubble like quality. Carey discusses a recent “fixer upper” in Santa Clara that needed $100,000 in repairs. It was listed at $419,000 and later sold for $629,500. Of the 69 offers, 65 of them were “cash offers.” This trend of Wall Street cash flooding into neighborhoods has happened before, and some advocates are concerned about the effect this has on pushing out first time homebuyers and on having so many homes not owner-occupied. CNBC reports that large amounts of student debt may be another large obstacle for first-time homebuyers in their recent article: “Student Loan Debt Hurts Housing”

Our housing counselors can help you evaluate your options, learn more about federal and state programs that may help you with your mortgage issues, and will help you create a plan forward.

April Fools: Independent Foreclosure Review Program is Re-Designed By Homeowners and Housing Counselors (foreclosurehelpscc.wordpress.com)
Foreclosure Help’s March Update on the Independent Foreclosure Review, Debt Collectors, Making Home Affordable, Hispanic Homeownership,and “Zombie Foreclosures” (foreclosurehelpscc.wordpress.com)
Foreclosure Help’s Update on the Independent Foreclosure Review, Debt Collectors, Making Home Affordable, Hispanic Homeownership,and “Zombie Foreclosures” (foreclosurehelpscc.wordpress.com)
David Dayen: OCC, Fed Stonewalling Congressional Oversight of Independent Foreclosure Reviews (nakedcapitalism.com)

Loan Modification and Debt Elimination Scams in Santa Clara County: Scammers Keep Trying, But District Attorney is Watching

Posted on April 4, 2013 by CustomerBullHorn

The Santa Clara County District Attorney’s office recently charged a man with a felony fraud charge for running a debt elimination scheme in Campbell. According to Central Coast News, (Update: Convicted Debt Scammer Charged After Another Scheme Revealed Apr 03, 2013) the man, Robert Childs, has already been convicted twice of mortgage and debt fraud schemes.

This story is an important reminder for all homeowners in San Jose, Sunnyvale, and throughout California who are facing foreclosure. As part of the foreclosure process, your bank or servicer will file a Notice of Default with the County Recorders Office. To see examples of what loan scams look like, you can visit the website Loan Modification Scam Alert, which is run by Neighborworks and seeks to warn homeowners about loan scams.

The Notice of Default is public record, and there are companies (like Foreclosure Radar) that also allow people to access this information. Homeowners who call ForeclosureHelp tell us that they are inundated with mail, phone calls, and even home visits when they become late on their mortgage. The notices are often very official looking, and may list the amount of money you owe on your mortgage, who your bank is, when you defaulted on the mortgage, etc. ForeclosureHelp also sends out mail to homeowners who are having trouble paying their mortgage because we want to arm them with information about their options as early as possible.

While not all of these folks who contact homeowners are necessarily running a scam, people should be very, very cautious about any person or company that contacts them, especially if they are promising results that they can’t control- like guaranteeing a loan modification, or promising to eliminate your debt. In addition, charging an upfront fee is illegal in California, so this is another red flag.

Homeowners should also know that they may have options other than a short sale, like seeking a loan modification, or using the state program, Keep Your Home California. So far, over 600 homeowners in Santa Clara County have benefited from the Keep Your Home California program, (Spanish Website: Conserva Tu Casa), receiving a total of over $10 million in assistance, and the majority of them have used the Unemployment Mortgage Assistance Program, that will pay your mortgage for up to nine months if you are receiving unemployment.

A certified foreclosure prevention counselor at ForeclosureHelp can assist you in navigating your options, help you understand your eligibility for these programs, and can also work with you to submit a loan modification to your bank or servicer.

Our housing counselors can help you evaluate your options, learn more about federal and state programs that may help you with your mortgage issues, and will help you create a plan forward.

April Fools: Independent Foreclosure Review Program is Re-Designed By Homeowners and Housing Counselors

Posted on April 1, 2013 by CustomerBullHorn

Dear readers: It’s April Fools, and while foreclosures, short-sales, bankruptcy, and dual tracking are no laughing matter, we did want to have a little bit of fun for April Fool’s Day while also incorporating the feedback we’ve received from homeowners about their experiences trying to get a modification and their thoughts about the Independent Foreclosure Review.

This blog post is 100% fictional if you have questions about the real version of the Independent Foreclosure Review, visit our earlier blog post: Independent Foreclosure Review: Update on $3.6 Billion in Cash Payments and $5.7 Billion in Modification Assistance.” (Spanish version and Vietnamese version)

Newsflash: Bank Regulators Ask Former Homeowners to Redesign Independent Foreclosure Review.

According to Federal Reserve spokesperson, Sally Smith, the Federal Reserve has been holding secret meetings with homeowners and their housing counselors who dealt with foreclosures, robo-signing, and lost paperwork, and as a result of these meetings, the Federal Reserve announced changes today to the Independent Foreclosure Review.

Ms. Smith explained: “We realized this program is set out to help homeowners and yet we didn’t have them at the table when we originally designed the program, so we’re excited that their input has now been included.”

The first big change was that the consultants who originally worked on the Independent Foreclosure Review have all agreed to return the hundreds of millions of dollars they “earned,” which will increase the amount of money available for homeowners. The second big change is that the original timeframe for eligibility (1/2009 to 12/2010) has been expanded to include anybody who had difficulty with their bank or servicer from 2006 through now. By making the penalties continue, this will provide a large incentive for banks and servicers to improve their customer service now.

Other Changes to the Independent Foreclosure Review:

Compensation:

1) ) $1,000 per point of contact: For each different bank or servicer representative that the homeowner spoke to while seeking a modification, they can add $1,000 onto their bill to their former bank/servicer. There’s an extra $500 bonus for any homeowner who had to share messages between different departments at the bank that weren’t communicating with each other. Maximum payout is $50,000, though we recognize some homeowners may have spoken to more than 50 representatives.

2) “Lost” Packages: Any homeowner who sent in multiple copies of the same package to their bank will be happy to learn that each lost package is worth $5,000. This $5,000 will be assessed for the number of times a homeowner or housing counselor had to re-send in the same modification request. There is a maximum of 10 times, or $50,000.

3) Improper Credit Reporting: Any homeowner whose credit was incorrectly damaged because of mistakes made by a bank or servicer will receive $5,000 for every 25 point drop they had in their credit score. Homeowners will also receive a pro-rated refund if any subsequent credit products (like credit cards, car loans, student loans) were more expensive as a result of incorrect credit reporting information being reported by a bank or servicer.

4) Eight Hours Or More on a File? Any housing counselor who spent more than 8 hours working on an individual homeowner’s case will be allowed to request a special one- time bonus of $1,000 from that bank or servicer.

5) CEO apologies: The heads of all of the banks and servicers have collectively signed an apology to homeowners for the treatment they received when trying to request a modification.

6) “Time Penalties”: Banks will be assessed time penalties in the following fashion:

A) Endless HAMP trial modification: For each homeowner who was in a HAMP trial modification for more than 3 months, the bank will pay $5,000 per month, with a maximum of 10 months, or $50,000.

B) Long Modifications: For any modification request that took longer than 3 months, the bank will have to pay a late fee of $1,000 per month, with a maximum of 24 months, or $24,000.

C) Lost Short Sales: Each short-sale request that was not given a timely decision by a bank or servicer will result in a $5,000 penalty.

Reminder: This blog post is 100% MADE-UP, and is not true. You can see the real version of the Independent Foreclosure Review on its website.

What would you add if you were re-designing the Independent Foreclosure Review?

Foreclosure Help’s Update on the Independent Foreclosure Review, Debt Collectors, Making Home Affordable, Hispanic Homeownership,and “Zombie Foreclosures”

Posted on March 29, 2013 by CustomerBullHorn

1) UPDATE: DEADLINE EXTENDED TO APRIL 26th, more information here. Today is the final day for homeowners to mail their registration forms for the Lending Discrimination Settlement between the Department of Justice and Countrywide Financial Corporation. Borrowers must mail their forms in by TODAY (MARCH 29, 2013). Individuals with questions about the United States v. Countrywide Financial Corporation lending discrimination settlement may contact Rust, in English or Spanish, by telephone at 1-800-843-5148 or by email at info@CWFLSettlement.com, or visit the DOJ’s website.

2) The OCC just released a report on loan modifications in the fourth quarter of 2012. A few interesting facts about the Making Home Affordable Program (HAMP):

Among HAMP modifications, servicers reduced interest rates in 81% of those modifications, deferred principal in 29.2%, and reduced principal in 24.9%
HAMP modifications reduced payments by an average of 35.4%.

As a reminder, HAMP is currently set to expire in December 2013. While it isn’t a perfect program, it has helped hundreds of thousands of Americans to remain in their homes, and housing counselors and advocates have already begun efforts to extend the program.

3) On March 18, 2013, Rust Consulting began mailing postcards to 4.2 million homeowners about the Independent Foreclosure Review, notifying them that they will receive payments. According to a recording on the Rust Consulting phone number (1-888-952-9105), payments are supposed to start mailing out in the next four to eight weeks. For more information about the Independent Foreclosure Review, visit our earlier blog post: Independent Foreclosure Review: Update on $3.6 Billion in Cash Payments and $5.7 Billion in Modification Assistance.” (Spanish version and Vietnamese version)

Financial Freedom, which is an affiliate of One West (formerly IndyMac) bank has been added to the Indepedent Foreclosure Review website as one of the four banks that are NOT participating in the review. ForeclosureHelp has watched the Indepdent Foreclosure review process closely, and it seems strange that Financial Freedom would be added to the website AFTER the deadline has already passed for homeowners to apply- the deadline was December 31, 2012. To see our other concerns with the Independent Foreclosure Review, visit: Seven Reasons to Postpone the Independent Foreclosure Review.

A law firm in Washington DC has filed a Freedom of Information Act request related to the Independent Foreclosure Review to determine how the Office of the Comptroller of the Currency defined “independent” in the context of the “independent consultants” that conducted the reviews. More information: Thomson Reuters: Washington law firm sues bank regulator over foreclosure reviews

4) Has Medical debt affected your credit report or score? At ForeclosureHelp, some of the homeowners we assist are struggling with their mortgage because of their own medical issues, or a family member may have medical issues that have either prevented a person form working, or forced them to reduce their hours. The Consumerist website is featuring stories about people whose credit scores have been tarnished because of Medical Debt. Federal legislation that was introduced last year didn’t advance, so Consumerist is asking for stories from people dealing with medical debt so that Congress and lawmakers can see how this problem affects everyday Americans. To read a few of their stories, visit: Consumerist Readers Make The Case For Wiping Paid Medical Debt From Credit Reports

5) Speaking of debt collection, Dave Ramsey, a staunch advocate of getting out of debt, is trying a new approach to attacking debt collectors who engage in illegal debt collection practices. Ramsey is using his bully platform (with his radio show and website) to not only educate people about their rights under federal law, but also to connect borrowers with attorneys who will sue debt collectors for violating federal debt collection laws. The lawyers will be working on a contingency fee, meaning they don’t charge up front, but they do take a percentage of any settlement money if they are successful in their lawsuit. ForeclosureHelp is not endorsing Dave Ramsey or these attorneys, but we do think this may put some collection agencies on notices that violating laws like the Fair Debt Collection Practices Act may be very expensive if you are sued by a lawyer, and we’re happy to see more attention drawn to abusive collection practices. We earlier re-blogged a post from the Consumerist that is helpful for consumers and we recommend reviewing it if you’re dealing with debt collectors: 23 Things Debt Collectors Are Not Allowed To Do.

6) The National Association of Hispanic Real Estate Professionals recently released their 2012 State of Hispanic Homeownership Report. A few interesting points:

While the Hispanic homeownership rate has decreased from 47.5% down to 46.1% since 2010, the total number of owner households has increased by almost 500,000, due to a net increase of more than 1 million total Hispanic households during the same two-year period. (The homeownership rate is the number of owner households divided by the total number of households).
In 2012, Hispanics accounted for 355,000 or 51% of the total net increase of 693,000 owner households in the U.S.
Hispanics strongly believe in homeownership, “Fifty-six percent of Hispanics said that a major reason to buy a home was because it represents a symbol of success or achievement compared to only 32 percent of all Americans”

7. RealtyTrac released a report on 3/28/13: “Q1 2013 Foreclosure Inventory Update.” Some interesting stats about foreclosures and foreclosure inventory:

28,821 homes in the foreclosure process in California are now vacant- meaning the homeowner abandoned the home or moved during the 1^st quarter in 2013. California has the 3^rd largest inventory of these homes (which have not yet been foreclosed on), only Florida and Illinois have more. RealtyTrac was able to assess this by comparing foreclosure records against post office records.
Foreclosure Inventory is still strong: Fannie Mae, Freddie Mac and FHA/HUD have the largest percent of foreclosure inventory, representing 12% of the national total. Bank of America is in second place with 11%, Wells Fargo represented 10%, and Chase is 7%.
There was a 58% increase in Chase being listed as the foreclosing entity as compared to a year ago, other large increases (as compared to a year ago) include Nationstar Mortgage (101%); Green Tree Servicing (89%), OneWest Bank (67%), and EverBank (61%).

If you are a homeowner living in San Jose or Sunnyvale and are struggling with your mortgage, please contact ForeclosureHelpSCC, a program funded by the City of San Jose and the City of Sunnyvale at (408)-293-6000 or visit us: www.foreclosurehelpscc.org

Our housing counselors can help you evaluate your options, learn more about federal and state programs that may help you with your mortgage issues, and will help you create a plan forward.Please note: All content included in the ForeclosureHelpSCC blog is provided for information only and should NOT be considered legal or tax advice. If you have any questions, please feel free to contact us on our hotline: (408)-293-6000, or visit our website: www.foreclosurehelpscc.org or send us an email: help@foreclosurehelpscc.org.

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Category Archives: Foreclosure Prevention Services

HARP Refinance Option for Homeowners in San Jose and Sunnyvale

New Federal Bill Introduced to Create Independent Monitor to Oversee Independent Foreclosure Review

New Analysis of 2009-2011 Census Data: For Wealthiest 7%, Assets Increased 28%, but for Remaining 93%, Assets Decreased 4%

Second Wave of Independent Foreclosure Review Checks Mailed Out on April 19, 2013

Federal Reserve Issues Update about Independent Foreclosure Review Checks

The Federal Reserve issued this Press Release this morning:

For immediate release

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Loan Modification and Debt Elimination Scams in Santa Clara County: Scammers Keep Trying, But District Attorney is Watching

April Fools: Independent Foreclosure Review Program is Re-Designed By Homeowners and Housing Counselors

Newsflash: Bank Regulators Ask Former Homeowners to Redesign Independent Foreclosure Review.

Foreclosure Help’s Update on the Independent Foreclosure Review, Debt Collectors, Making Home Affordable, Hispanic Homeownership,and “Zombie Foreclosures”