Your stories, your neighbor's stories, your family's stories. Stories from homeowners and anyone who has been a victim of mortgage and foreclosure fraud.
Politicians have been irresponsible in that they blame each other for the cause of the housing bubble and they are pulling strings with no clue on real solutions. Amazingly to me, the reason for the housing bubble and the solution to prevent more catastrophes in the future is easy to understand and solve, ‘er unless you are a politician. To me, the obvious reason this happened is that “comp” (comparable) value estimations got completely out of control, cheap money from the fed allowed horrendous “housing-only” inflation, and lenders were allowed to make loans to people that wouldn’t otherwise qualify using a 31% debt to income ratio. The end result is that thousands upon thousands of good credit no money down investor loans were made by our ridiculous financial institutions while “flippers” were making humongous returns and tying up real estate while “real” homebuyers were forced to buy highly overpriced homes “if” they were lucky enough to “win” a lottery to even buy a home (whew…).
My story is not unlike many that have been sold an unaffordable mortgage. We bought our first house in 2006 we were smart enough to avoid an adjustable rate mortgage but we didn’t avoid being sold an unaffordable mortgage.
Our mortgage broker (USA Financial) and our original lender (Equifirst sold us an unaffordable mortgage. Within a month and a half they quickly sold our loan to Saxon Mortgage/Deutsche Bank. With our expenses being what they were at the time we should have never been sold the loan. I believe the loan was sold to avoid any legal liability, classic predatory lending practices, socially and economically acceptable fraud in the
I've been trying to get a home modification for 6 months. I've had to send them the same papers 3 times. They were quick to give me a home modification with a HIGHER payment, same high interest rate and fees tacked on to the interest only loan. I declined and my modification had to be restarted all over again. All I wanted was a loan with a lower interest rate. Instead I got a letter of foreclosure.
There was never any question about owing the Bank of America the debt that we had incurred. Unfortunately, the mortgage payment on the primary mortgage was well within the 31% of my income. At no time was the Bank of America even willing to consider my other financial obligations or willing to restructure my loans. Neither cancer nor loss of family income, were ever considered in our quest for assistance. To the Bank of America we were just another phone call to deal with. In a way I can understand the employee’s frustration dealing with frustrated and discouraged customers all day long. After a while it’s easier to transfer the call than hear the pain in someone’s heart!
I started having problems making my mortgage payments to Wells Fargo back in Feb, 2009 due to having my hours cut at work. I contacted my local office to ask them to lower my interest rate @ 9.375; no new money, just lower it to standard market rates. I initially received a response thru email, but was then told "they couldn't do anything" since I was going to be 3 months delinquent. They never offered any kind of help nor did they mention the modification program, which I learned about from news media. I started the modification process in May, 2009. At this point, I will try to condense 8 months of pure hell.
In March of 2009 I lost a second job that I had which made it inpossible for me to keep up with the mortgage payment at it's current amount, They say when you know you are going to have trouble making your payments to contact your lender right away, I DID THIS! (March 2009) I faxed and mailed all of my documentation to see if I would qualify for a loan modification under President Obama' MHA, The only thing I kept getting from them (B of A) were form letters telling me "You may qualify for a loan modification" Do this Do that, I faxed and mailed and faxed and mailed continuously all year long, I called and called and called, the left hand at the bank doesn't know what the right had is doing, they have so many offices in different states, that one office doesn't know what the other one is doing! After all that time of doing everything they asked me to do and send and calling to find out if they needed any more paperwork from me, I get a letter of foreclosure!
The only thing left to complete this Norman Rockwell painting was a single family home to accommodate our growing family. Business in early 2009 was off from 2008, but nothing to upset the dream. We closed on our home in July of 2009; proud new homeowners ready to take on the future. The future came in the form of sales falling by 50% in the last half of 2009, along with my commission based income also falling by 50%. If you were fortunate enough, or stupid enough to buy a home in 2009 prior to November, there is NO HELP for you anywhere.
My story started back in April 2009, when my boyfriend and I lived together for a number of years, he got laid off in April, back then I was current with my mortgage payment of $1874. In May 2009 I called Citimortgage and told them my situation about my partner losing his job and I would not be able to pay the total amount with my salary, so I would like to apply for a temporary modification, until the situation got better. Well they agreed to put me on the 3 months trial modification.
I have been dealing with Litton Loan Servicing for over a year now. Back in January of 2009 We began to have trouble paying our mortgage due to medical bills and a loss of income. I talked to the servicer of our loan, Litton Loan Servicing and told them of our problems and made payment arrangements to catch up on the payments in April of 2009. We were to make double payments until August of 2009 and we would have been caught up. However, in July of 2009 we received a notice from Western Union stating that Litton Loan Servicing had refused our payment. When I called them they informed me that they had decided to foreclose on our home instead of accepting the agreed upon payments as the loan had been sold to Goldman Sachs.
First mistake we ever made was going 15 years on our mortgage when we refied. I started calling in April of 2008 explaining our fin. situation changes. In Sept. it was getting harder to make the payment. Asking them could we refi. for 30 years or did they have any solution they could help me with. We offered partial payment. They would not except. that. The only help they could offer was if we were behind more than 90 days, we may qual. for the modification program. Thats when the paper work started.