Foreclosure Victims’ Blog — Foreclosure Law

April 22, 2011

BLACK: There Was “Massive Illegality” In Mortgage Lending

Filed under: Uncategorized — fvbadmin @ 10:54 am

WaMu, and others motivated by greed, financial crisis probe concludes

Filed under: Uncategorized — fvbadmin @ 10:39 am

WaMu, other banks motivated by greed, financial crisis probe concludes

Ted S. Warren/The Associated Press

Sen. Levin calls Goldman Sachs tactics “disgraceful”

By David Heath 10:41 pm, April 13, 2011

WaMu bank executives aware of rampant fraud

By David Heath April 12, 2010

One of the central unanswered questions of the financial crisis is whether bank executives knew fraud was rampant within their mortgage loans.

A new U.S. Senate investigation offers yet more evidence that the financial crisis was an inside job.

A 639-page report and a two-year investigation by the Senate Permanent Committee on Investigations offers example after example of bankers and others deliberately packaging and selling lousy mortgage loans. Sen. Carl Levin, the Michigan Democrat who oversaw the bipartisan inquiry, says they sold the loans to anyone, motivated by sheer greed.

In one 2007 case, executives at Washington Mutual Bank were urgently trying to sell risky loans likely to go delinquent to get them off its own books and pass the expected losses on to investors, the committee report concludes.

“The performance of newly minted option arm loans is causing us problems,” wrote WaMu loan risk officer Cheryl Feltgen to the head of bank’s mortgage loan division, David Schneider, in February 2007. “We should address selling [in the first quarter] as soon as we can before we lose the oppty.”

The Senate panel investigators found that WaMu pooled 1,900 loans worth more than $1 billion in a security in March 2007. Within 9 months, the ratings on the loans were downgraded and by February 2010, more than half the loans were delinquent.

Washington Mutual became the largest bank in U.S. history to fail. Last month, the Federal Deposit Insurance Corp. filed a civil lawsuit accusing former top WaMu executives of gross negligence, and seeking some $900 million from the executives and their wives.

The Senate committee used WaMu as one of several case studies in its investigation.

Goldman Sachs was ’sticking it to its customers’

Levin was especially critical of Goldman Sachs, which he described as the only bank to rake in huge profits during the recession. Part of its success, Levin said, was due to a radical change in its investments once it determined the subprime mortgage market looked weak.

In just two months in 2007, Goldman Sachs went from investing $2 billion in subprime assets to reversing itself and making a huge bet against that market. By Feb. 21, 2007, Goldman Sachs had risked $10 billion on a bet that the subprime market was going to deteriorate, the panel said. Yet at the same time it was still selling subprime assets to its customers.

“The tactics that they used I thought were disgraceful,” Levin said, adding that Goldman Sachs was “sticking it to its own customers.”

Goldman Sachs has objected to the characterization that it was shorting the subprime market. But the committee report says flatly that this defense is not credible.

Levin accused Goldman Sachs of misleading both its clients and Congress, and said he will forward information uncovered in the committee investigation to the Justice Department and the Securities and Exchange Commission.

Asked why there had been no criminal charges brought against those responsible for the financial crisis, Levin told reporters, “My only answer is that there is still time. Hope springs eternal.”

Republican Sen. Tom Coburn of Oklahoma agreed with the investigation’s findings, saying, “It shows without a doubt a lack of ethics in some of our financial institutions.” Coburn said greed, conflicts of interest and lack of transparency helped cause the financial crisis.

Last year, Goldman Sachs agreed to pay $550 million to settle the SEC’s civil charges that the company lied to investors about a subprime mortgage product known as Abacus 2007-AC1 as the housing market began to collapse. Goldman neither admitted or denied the charges as part of the settlement.

Among the highlights of the Senate committee’s investigation:

  • In 2007, Goldman Sachs sold mortgage-backed securities and collateralized debt obligations to clients without telling them that it was betting against those same securities.
  • In one case, Goldman Sachs made a $1.7 billion gain at the expense of its clients by shorting a security known as Hudson without telling the clients.
  • In the months before a massive credit rating downgrade of securities, there were several internal emails circulated by Standard & Poors employees warning that the housing market could collapse.
  • In February 2007, an S&P email warned that a massive downgrade of mortgage-backed securities was likely. “My group is under serious pressure to respond to the burgeoning poor performance of sub-prime deals,” one employee wrote. Yet, S&P continue to rate subprime assets with its highest rating until July 10, when a massive downgrade helped trigger the financial crisis.

The lengthy, new report is the latest effort to summarize the roots of the financial crisis that rocked U.S. financial markets in 2007-09.

The Financial Crisis Inquiry Commission, created by Congress, interviewed hundreds of witnesses before issuing its 633-page findings in January 2011. It blamed former Fed Chairman Alan Greenspan, risky borrowing by big banks, inaction by the SEC, and a systemic breakdown in bankers’ ethics for much of the crisis, but the report’s conclusions were undercut by dissension between Republican and Democratic members of the panel.

Another entity, the Congressional Oversight Panel, was created to publish monthly reviews of the state of the financial markets and the Treasury Department’s management of the $700 billion Troubled Asset Relief Program bailout program. The panel disbanded after issuing its final report last month.

And a court-appointed examiner in the bankruptcy of Lehman Brothers Holdings Inc., issued a 2,200-page report in March 2010 detailing how the investment bank used accounting tricks to hide bad investments before its collapse.

February 12, 2011

WAMU not really the lender on notes between 2005 and 2008

Filed under: Uncategorized — fvbadmin @ 3:02 pm

WAMU Investment Securities Trusts Purchased the Note, Not a Loan 2005-2008

According to WAMU FRAUD.COM

Asset-Backed Security Trusts purchased Notes are not Loans entitled to Trust Deeds

Most “loans” made by Washington Mutual in the past 5 years were actually purchases of Notes by Special Purpose Vehicles created by Lehman Brothers. These Special Purpose Vehicles were Securitization Trusts prefunded by investors for the purpose of purchasing Notes to enable the Trust to be an Asset Backed Security.
The “Lender” named in the Note and Deed of Trust or Mortgage (e.g. WAMU) did not fund the transaction, and therefore was not really the “Lender.” They acted only as a “Nominal Lender” only named in the Note to facilitate the creation of a Deed of Trust or Mortgage to secure the Note as a Loan, when it was not a Loan, but was rather an Investment Security.
Frank J. Fabozzi and Vinod Kothari, in their book, Introduction to Securitization, state on page 5:   “The asset securitization process transforms a pool of assets into one or more securities that are referred to as asset-backed securities.”
Securitization is one type of structured finance, and in the case of WaMu as a “Nomimal Lender” applies to the inclusion of most “Notes” into Asset-backed Securities. No loans were funded by the “Nominal Lender”, in this case WAMU. It can be alleged in court that the “Nominal Lender” was paid in full, plus received a commission.

The Deed of Trust or Mortgage cannot secure an Investment Security. Thus the Homeowner was tricked into thinking he was a Borrower in a Loan, when he was instead a Seller of a Note to an Investment Trust.

The Investment Trust had no right to a Deed of Trust or Mortgage to a purchased Note that was not a Loan. The “nominal Lender” should not be able to foreclose on an asset in an Investment Security with an invalid Deed of Trust or Mortgage, fraudulently procured under the guise of a “Loan”, when it was not a Loan, but rather the “Purchase of a Note” into an Asset-Backed Investment Security, with the “nominal Lender” paid in full, plus a commission for something it did not fund.

Can a “nominal Lender” that did not fund the transaction, but rather fraudulently allowed its name to be put on a Note and Deed of Trust or Mortgage to trick a Homeowner into signing a Deed of Trust or Mortgage to secure an Investment Security, assign a Beneficial Right it never had to another Beneficiary?

WAMU almost never assigns the Deed of Trust or Mortgage.  WAMU forecloses directly or through JPMorgan Chase, its alleged new owner.
WAMU is the Servicer. Trust wording also calls it the Originator however the Trust purchased the Notes directly.  WAMU did not fund the loan.
The Trust was fully formed before the purchase.  It wired the funds into escrow. The originator almost never funds directly to sell it.
Fraud  may be alleged in that the Borrower was tricked into believing it was a loan to procure a Deed of Trust or Mortgage, and the true nature of Transaction was not disclosed.

Fraud may also be alleged (after research) that the Pool Insurance paid off the Investors after multiple Defaults and Foreclosures. If they were paid, why can they foreclose on the homeowner?

Further, fraud may be alleged in that the Deed of Trust (UCC 9) is invalid for an Investment Security (UCC 8) (you cannot have both).  A foreclosure is improper, and should be voidable.

List of Foreclosure Law Firms Linked to Robo-Signing

Filed under: Uncategorized — fvbadmin @ 2:57 pm

If your foreclosure involves a law firm whose name is on the list below,  then there is a good chance that many fraudulent practices were employed. Thanks to the NATIONAL WAMU HOMEOWNERS SUPPORT GROUP for the tireless efforts to help foreclosure victims prevent the big banks from stealing their homes.

The attorneys on the list that follows were doing business with now-notorious fraudulent, robo-signing affidavit mill Lender Processing Services (f/k/a as Fidelity National Foreclosure Solutions and several other names) out of Mendota Heights, MN and Jacksonville, FL, during the fall of ‘06 and fall of ‘07.

It is reasonable to imagine that, if the WAMU attorneys were using a firm that celebrated its robo-signing procedures and practices to the extent that they actually published an article detailing the process, there is a good chance that many of their foreclosure filings are rife with fraud.  Not only is it reasonable to imagine fraud, it’s also reasonable to believe that the attorneys involved knew exactly what they were doing.

So, cast your eyes over this list.  If the firm representing WAMU/Chase in your foreclosure case is on it, then start to dig.  Google the attorneys and all the names on all the affidavits and other documents and see if these people are on any known robo-signing lists or have been fined and sanctioned by any courts for various frauds.   Dory Goebel, the robo-signer in my case, is in trouble for affidavit fraud all over the country!

If you are in Florida and the opposing firm was/is Shapiro & Fishman, I have a personal interest in that firm and I’d like to ask you to contact me.

Everyone in each state needs to get together & compare notes about the attorneys in their cases.  Everyone needs to compare notes, compare signatures, and compare litigation, because so much of what was filed against us is simply boilerplate.  You folks in Georgia, know that McCalla, Raymer is part of the Long v. WAMU/Chase class action lawsuit filed late last year in Fulton County Superior Court.  (I mention that because you’ve got your conference call tomorrow.)

If there’s fraud in your case, let me encourage everyone to file a complaint against the attorney involved with your state Bar.  The Florida Bar has opined that attorneys have an AFFIRMATIVE OBLIGATION to tell the court about any fraud on the court, whether pre- or post-judgment.  This is tremendously interesting, because it looks like many attorneys were in cahoots (a legal term) with the robo-signers.  Lord knows where this well lead! (Or where it will end!)

Let me encourage all members to organize a statewide conference call to discuss this and other matters.

Finally, this list arises from just three of the dozens of issues of LPS’s newsletter, the Summit.  Obviously, it would be helpful for us to find more issues, because this isn’t all the foreclosure mills, not by a long shot.  All these law firms got copies of each issue, month after month, year after year, as did new subscribers to LPS’s services and firms that they were targeting as potential customers.  The smart people have already burned what they have, but who said we were up against people who were particularly smart?  Let’s find more copies!!

I have already furnished copies to state AGs in FL and MN; I’d like to ask all the state leaders to get in touch with me, let me give you the three copies I have, and then you furnish them to your state AGs, so as to assist in their investigations.  You should read the part about the kickbacks… !!!

Go get ‘em.  The tide is turning.

Liz in Sarasota


If your bank is represented by any of the following attorneys, or by a firm using the services of Lender Processing Services, Fidelity National Foreclosure Solutions, DocX, there is an excellent chance you have fraudulent affidavits.  LPS (formerly FNFS and affiliated w/ DocX) is a notorious foreclosure affidavit mill out of Mendota Heights, MN and Jacksonville, FL.  Tell your attorney to find back issues of their newsletter, The Summit, for a play-by-play description of robo-signing.  Tell your attorney to find Max Gardner’s Top 200 Signs you have a false document. This is just a list of the firms who got awards or special recognition in the three back issues (Sept. ’06, Oct. and Dec. ’07)  of the Summit I’ve been able to find; not a comprehensive list by any stretch, because not all firms got an award, and I only have three issues of the thirty or forty that were published.

No state:

Homecomings Foreclosure (GMAC?)


Alaska Trustee, LLC

AK,HI,ID,MT,OR,WA,TX Malcolm Cisneros

AK,HI,ID,MT,OR,WA,TX Trustee Corps.

Regional Trustee Services



AL, MS Dumas and McPhail, L.L.C.

Shapiro & Pickett, LLP

Scott J. Humphrey

Albertelli Law


Mickel Law Firm, PA * major award Oct’ 07

Robert S. Coleman, Jr., P.A.

Wilson & Associates, PLLC (article Oct. ’07)

Dyke, Henry, Goldsholl

Baxter and Schwartz PC


Malcolm & Cisneros

Tiffany & Bosco

Statewide Foreclosure Services

Folks & O’Connor, PLLC

AZ/NV/OR/UT/WA Law Offices of Les Zieve


Old Republic Default Management Services

Solomon Grindle Silverman & Spinella

Malcolm & Cisneros

Curtis Law Group


Quality Loan Service Corp

OPTION ONE (I think CA, see 12/07)

Fremont Investment and Loan Management

Aztec Foreclosure Corp

Old Republic Default Management Services


Aronowitz & Ford, LLP

Robert J. Hopp & Associates, LLC

Edwards & Taylor, LLC

Frascona, Joiner, Goodman and Greenstein

Janeway Law Firm, PC

Moss Codilis

Castle, Meinhold & Stawiarski

Hellerstine & Shore


Reiner, Reiner & Bendett (photos 12/07)

HUNT LIEBERT (now … Jacobson) * photos Oct. ‘06

CT/DC/MD/VA  McCabe, Weisberg and Conway

Law Office of Martha Croog


Rosenberg & Associates, LLC

MD/DC/VA Bierman, Geesing & Ward, LLC

CT/DC/ McCabe, Weisberg and Conway


DC/VA Curran & O’Sullivan, PC


Draper & Goldberg

Whittington & Aulgur

Young Conaway Stargatt & Taylor



Jonathan Kilne, PA

FL/PA Joseph H Ganguzza & Associates

David J. Stern, PA

Marshall C. Watson

Gary I. Gassel, PA

Law Offices of Daniel C. Consuegra

Ben Ezra Law Firm

Phillips, Flynn, Dareneau

Shapiro & Fishman

Smith, Hiatt & Diaz

Albertelli & Halsema

Enrico Gonzales

Popkin & Rosaler


Morris, Schneider & Prior

Ellis, Painter, Ratterree & Adams

McCalla, Raymer, Padrick, Cobb, Nichols & Clark

Shapiro & Swertfeger (photos Oct. ’06)

McCurdy & Candler, L.L.C.

Stites & Harbison

Richard B. Maner

Stephen J. Knezo

Albertelli & Halsema, PL

Flanagan & Ireland

Moore & Associates

Shuping, Morse & Ross



AK,HI,ID,MT,OR,WA,TX Malcolm Cisneros

AK,HI,ID,MT,OR,WA,TX Trustee Corps.

Pite, Duncan & Melmet


Belin, Harris, Lamson & McCormic

Dunakey & Klatt

Petosa, Petosa & Boecker


AK,HI,ID,MT,OR,WA,TX Malcolm Cisneros

AK,HI,ID,MT,OR,WA,TX Trustee Corps.

McCarthy & Holthus

Regional Trustee Services

Alliance Default Services


Kluever and Platt

Dutton & Dutton

Jaros, Tittle & O’Toole

IL/MI/OH/PA Weltman, Weinberg and Reis

Codilis & Associates * major award ‘07

Wirbicki Law Group

Heavner, Scott, Beyers & Mihlar

Kluever and Platt

Fisher & Shapiro

Freedman, Anselmo, Lindberg & Rappe

“I received yesterday the letter and check regarding the Bankruptcy Incentive Award.

I am very proud of the work that my staff has done to get to this point. We are

striving to be in the top 10 nationwide. I fully understand that you do not need to

give out the incentive awards. I am very appreciated of this and in my way have

tried to use your incentive to create an incentive for my staff. We are going to use

the check to create a “lunch” fund to buy bagels, pizza and other foods.”

- Steven C. Lindberg, FREEDMAN, ANSELMO, LINDBERG & RAPPE  October ‘06


Bleecker Brodey and Andrews

KY/IN/OH Reisenfeld & Associates

Nelson & Frankenberger

Feiwell & Hannoy

Foutty & Foutty

Doyle and Friedmeyer


Kozeny & McCubbin

Martin, Leigh, Laws & Fritzlen

Shapiro & Mock

Shapiro & Reid

South & Associates

Gallas & Schultz


KY/IN Reisenfeld & Associates

Manley Deas Kochalski, LLC

Reynolds & Thompson, LLP

Nielson & Sherry

Lerner, Sampson & Rothfuss

Clunk, Paisley and Assoc., PSC

Mapother & Mapother


The Boles Law Firm

Foreclosure Law Firm, LLC

Shapiro & Mentz

Dean Morris


Korde & Associates

Ablitt & Charlton


MA/NH/RI Orlans Moran PLLC

The Fisher Law Group, PLLC

CT/DC/MD/VA McCabe, Weisberg and Conway

MD/DC/VA Bierman, Geesing & Ward, LLC

Friedman & MacFadyen, PA

Cohn, Goldberg & Deutsch

Shapiro & Burson

Rosenberg and Associates


Shapiro & Morley, LLP


Potestivo & Associates

Trott & Trott (also listed as MN)

IL/MI/OH/PA Weltman, Weinberg and Reis

Orlans Associates

Fabrizio & Brook

Peter, Schneiderman & Associates



Usset & Weingarden, PLLP

Shapiro, Nordmeyer & Zielke, LLP. (wrote article December ’07)

Elizabeth Mason, PC

Murnane Brandt


Codilis, Stawiarski & Moody

Martin, Leigh, Laws & Fritzlen

Kozeny & McCubbin

Millsap & Singer

Sandberg, Phoenix and Von Gontart

South & Associates


Adams & Edens PA

Shapiro & Massey

Dyke, Henry, Goldsholl

AL, MS Dumas and McPhail, L.L.C.

Morris and Associates (a/k/a Morris Law Firm)

Morris, Schneider & Prior, LLC


AK,HI,ID,MT,OR,WA,TX Malcolm Cisneros

AK,HI,ID,MT,OR,WA,TX Trustee Corps.

Just Law Office

Mackoff, Kellogg, Kirby & Klos


Shapiro & Ingle

Morris, Schneider & Prior, LLC

Brock & Scott

Nodell, Glass & Haskell

Roberson, Haworth & Reese

Erwin, Simpson & Stroud


Kozeny & McCubbin

Eric H. Linquist


Harmon Law Offices, PC

Korde & Associates

Barron & Stadfeld, PC

Shechtman Halperin Savage, LLP

MA/NH/RI Orlans Moran PLLC

NH/VT Law Offices of Jonathan F. Weidman


Fein, Such, Kahn & Shepard

Zucker, Goldberg & Ackerman

Koury, Tighe, Lapres, Bisulca & Sommers


McCabe Weisberg

NJ/PA Stern & Eisenberg, LLP

Parker McCay


Little & Dranttel


Malcolm & Cisneros

Aztec Foreclosure Corp

McCarthy & Holthus

National Default Servicing Corp.

AZ/NV/OR/UT/WA Law Offices of Les Zieve


Jonathan D. Pincus

Shapiro & DiCaro

McCabe Weisberg

Rosicki, Rosicki & Associates

Ziccardi & Rella PC

Edward A/ Wiener, Esq.

Eschen, Frenkel & Weisman

Cohn & Roth

Steven J. Baum (in big trouble)

Berkman Henoch Peterson & Peddy, PC


IL/MI/OH/PA Weltman, Weinberg and Reis

Shapiro & Felty

(Cuyahoga County) Manley Deas & Kochalski

KY/IN/OH Reisenfeld & Associates



Luper, Neidenthal and Logan

Law Offices of John D. Clunk Co., LPA

Keith D. Wiener & Assoc.

Reimer, Lorber & Arnovitz Co.

Carlisle McNellie Law Firm

Gerner & Kearns Co., LPA



Lamun, Mock, Cunnyngham & Davis

Shapiro & Cejda

Kivell, Rayment and Francis


Shapiro & Sutherland, LLC * got major award in Dec. ‘07

OR/WA Bishop White & Marshal

AK,HI,ID,MT,OR,WA,TX Malcolm Cisneros

AK,HI,ID,MT,OR,WA,TX Trustee Corps.

Robinson Tait

Routh Crabtree Olsen

AZ/NV/OR/UT/WA Law Offices of Les Zieve


Shapiro & Kreisman

FL/PA Joseph H Ganguzza & Associates

Goldbeck McCafferty & McKeever

McCabe Weisberg (McCabe, Weisberg, Conway)

Shaffer & Scerni

Udren Law Offices

Zucker, Goldberg, Ackerman

Martha Von Rosenstiel

IL/MI/OH/PA Weltman, Weinberg and Reis

NJ/PA Stern & Eisenberg, LLP

Law Offices of Barbara A. Fein


Nicholas Barrett & Assoc.

MA/NH/RI Orlans Moran PLLC


Finkel Law Firm, LLC

Roger, Townsend, and Thomas (is it “Rogers”?)

Weston Adams Law Firm

McDonald McKenzie

SC, TN Brock & Scott, PLLC

Fleming and Whitt, P.A.(formerly Pearce W. Fleming Law)

Riley Pope & Laney

Bolen Law Firm


Mackoff, Kellogg, Kirby & Klos


Shapiro & Kirsch* wrote article Oct. ’06, photos Oct. ‘06

Apperson, Crump, Duzane & Maxwell PLC

SC, TN Brock & Scott, PLLC

Richard B. Maner, PC

Rodgers, Hill and Kolarich (Price, Rodgers, Hill & Kolarich)

McCurdy & Candler

Wilson & Associates


Winstead Sechrest & Minick P.C.

Hughes Watters Askanase (article 12/07)

AK,HI,ID,MT,OR,WA,TX Trustee Corps.

Robertson & Anschutz, P.C.

Barrett Burke Wilson Castle Daffin & Frappier

Baxter & Schwartz

Brice, Vander Linden & Wernick

Brown & Shapiro

Codilis & Stawiarski

Mann & Stevens * wrote article October ‘06

Kelly Harvey

AK,HI,ID,MT,OR,WA,TX Malcolm Cisneros

Hughes, Watters & Askanase



CMS Legal Services

David B. Boyce

Scalley, Reading, Bates, Hansen & Rasmussen

AZ/NV/OR/UT/WA Law Offices of Les Zieve


Shapiro & Burson

Friedman and MacFadyen

Sykes, Bourdon, Ahern & Levy

Bierman, Geesing & Ward

Samuel I. White P.C.

Specialized, Inc. of Virginia

Rosenberg & Associates, LLC

Glasser and Glasser, P.L.C.

MD/DC/VA Bierman, Geesing & Ward, LLC

CT/DC/ McCabe, Weisberg and Conway


DC/VA Curran & O’Sullivan, PC


Lobe & Fortin

NH/VT Law Offices of Jonathan F. Weidman

Jeffery Kosterich & Associates, PC


Robinson Tait

AK,HI,ID,MT,OR,WA,TX Malcolm Cisneros

AK,HI,ID,MT,OR,WA,TX Trustee Corps.

OR/WA Bishop White & Marshal

Meridian Trust Deed Service

Quality Loan Service Corp.

Routh Crabtree Olsen

Shapiro & Sutherland

AZ/NV/OR/UT/WA Law Offices of Les Zieve


Vollmar and Huismann, S.C.


Gray & End (could be Gray & Assoc.)

Blommer Peterman


Law Office of D. Kevin Moffatt

Daniel J. Mancini and Associates


Castle, Meinhold & Stawiarski

Being in Florida and all, things are different.  It was very good to see the Florida Bar publish this piece about attorneys whose clients file fraudulent docs in court.  Attorneys are required to let the court know about fraudulent docs post-judgment.  This is an especially powerful tool to use against the attorneys who aided and abetted this huge, staggering fraud by the banks, and this article can be used as a road map to file a complaint in Florida, and the logic can be used in every state.

Check this out!

Use this list and write in, blog, comment, and complain everywhere.  Call your state’s Attorney General!  If they want copies of The Summit, please get in touch with me and I’ll email them to you.

If lawyers are going to restore any shred of the respect they feel they deserve, they’d sure as heck better start policing their own!  We’ve got an entire profession who is specially, rigorously, and expensively trained in the minutiae of right and wrong, and you’re telling me they didn’t know what was going on?  Baloney.  If you or me filed a fraudulent affidavit in court, what do you think would happen?  Man, they’d put us under the jail.  But when banks come in and their lawyers file phony affidavits by the truck load, does the sheer scale of the fraud make it OK?

Why has no one gone to jail yet?

January 5, 2011

How many Sub-Prime mortgages acuired by Chase from WAMU via FDIC have become permanent loan modifications

Filed under: Uncategorized — Tags: , , , , , — fvbadmin @ 1:34 pm

WHAT PERCENTAGE OF SUB-PRIME MORTGAGES THAT WERE ACQUIRED FROM WAMU HAVE BECOME PERMANENT MODIFIED LOANS. This information is even hidden from JP Morgan Chase employees. Without this vital statistic, Obama is wasting the taxpayers’ money!

Washington Mutual was the LARGEST bank failure in the history of this country.

The value of the bank as estimated before the FDIC stepped in was 321 Billion give or take. What did it sell for to Chase with the FDIC help?
About 1.9 Billion of or about .005 cents on the dollar

The sad and ironic part is today we are trying to figure out how to ‘help’ these homeowners out of foreclosure. These sub-prime borrowers have have always been treated as if in a cast system, castaway into a special category where they are always force to pay more for everything than everyone else because they can afford it the least. These people are forced to pay twice as much on monthly payments for their cars. In some cases they are driving Hyundais and paying more per month that people driving BMWs. They pay staggeringly high interest rates when they get and use credit cards and when they buy a house, they pay so much interest that their humble home monthly payments are on par with homes in luxury neighborhoods.

So just so that we don’t spoil the fun, WAMU’s bk is a great opportunity to screw them once again in big numbers and in a very hurtful way.

I ask this question: If you are going to sell mortgages to another bank for pennies on the dollar, then why not sell them to the homeowners and do it on a sliding scale that brings more profit and keeps hard working families in their homes.

Here is some food for thought:

If instead of allowing a profit-minded self interest company take these homes from families, couldn’t we consider:

1. Creating a legal structure to modify the loans to affordable loans for these homeowners. The modifies interest, no matter how low, would certainly reap more profit that the fee that JP Morgan Chase paid to the FDIC for these mortgages!

2. All taxpayers would save billions because JP Morgan Chase can sell these foreclosed houses at auction and claim an tax write-off for 80% of the difference between what the ORIGINAL PRINCIPAL on the loan was versus the auction sale price. (Even thought JP Morgan Chase paid pennies on the dollar for those mortgages. So WE ARE PAYING THE RICH TO GET RICHER while they steal homes from poor honest homeowner families.

3. The financial entity that can oversee the modified loans for these former sub-prime borrowers could be a self-sufficient non-profit, and at the same time provide much needed jobs in this economy. It would be investing in our country rather than being another parasite such as JP Morgan Chase.


WHAT PERCENTAGE OF SUB-PRIME MORTGAGES THAT WERE ACQUIRED FROM WAMU HAVE BECOME PERMANENT MODIFIED LOANS. This information is even hidden from JP Morgan Chase employees. Without this vital statistic, Obama is wasting the taxpayers’ money!

as long as that all of these subprime mortgage homeowners loans, being purchased by Chase by

So in researching your loan if you ended up with them as your servicer chances are you were part of the mess and you thought they were only a bank that you made payments to, right?

Well, you are not alone.

They did business with originator banks(fake pretending lenders that are really brokers) of the like of:

First Magnus Financial(bankruptcy in AZ)
Countrywide(Imploded and is now BofA)
Plaza Home Mortgage-active
First Horizon-active
Alliance Bancorp-unsure
Residential Funding-unsure
Mortgage IT
Steward Financial

This comes from my knowledge of the wonderful Neg Am Option ARM and may have many more players. Either way alot of the above lenders used a warehouse line of credit to fund the loan and then sell it to WAMU for securitization.

1) I am attaching a link to the WAMU Seller’s guide which explains the underwriting and the way the files are to be delivered etc.
Pay attention to the BLANK endorsement requirement on assignments(Why?)

They also make a point of keeping WAMU’s name out as the purchaser of the loans which I would say is a concealment issue. Add that to the MERS situation and you have more non-transparency

2) Second is the Servicer Guide which explains the servicing procedures etc:

3) Third is a master Prospectus filed with the SEC which explains all of the advanced calculus that goes into confusing all but three humans on earth.

4) Then each bundle of securities gets an individual prospectus to go with it:

5) When they submit the bundle they list all of the loans in the trust at the time of creation. Here is what that looks like. This one has originating lenders names and the loans by number:

and another without lender names:

6) Here is a Pooling and Servicing Agreement that goes through the process of creating the securities and the pool of mortgage loans etc.:

Here are various lawsuits that are filed against WAMU from investors that I have found so far. The last one is a link to the WAMU bankruptcy case and all of the documents that go with it. Chase and WAMU are battling over billions of assets. Interesting reading and gives details of underwriting and appraisal fraud:…

WAMU BK filing and case with Chase

You may or may not be able to find if your loan is included in the above. You can narrow the search down to the year in which you closed your loan and search the above site and find the classes for your time-frame. Once you find the trust(WMALT 200? such and such) you can search the attachments for a FWP file and search through by zip code and see if you are included.

If you log into the secinfo site it may require you to register for free to continue access.

October 25, 2010

JP Morgan Chase and WAMU Foreclosure Class Action

Filed under: Uncategorized — fvbadmin @ 1:01 pm

We Need JP Morgan Chase and WAMU Class Action in Every State!

…The suit alleges that Chase and WAMU had no reasonable basis to conclude that their borrowers’ finances had in fact declined and that the banks broke their written promises to provide customers with two weeks’ notice to substantiate their incomes before taking such action.

June 4, 2010

HAMP Permanent loan modifications: Where there’s a will, there’s a way

Filed under: Uncategorized — fvbadmin @ 11:44 am

This article discusses the conversion of HAMP Trial Modifications into Permanent Modifications. It shows what CAN be achieved if the goal is, in fact, to create permanent modified loans. It shows at least two companies that are achieving an 83% success rate, and reveals the bigger lenders such a JP Morgan Chase converting, for instance, believe it or not, only 1.46%! Compare the following numbers:

Ocwen holds more than 27,000 HAMP-eligible loans in its servicing portfolio, and has offered more than 23,000 trial period-plans. Of those, 19,000 trials have started with 12,000 modifications in permanent status.

HomeEq holds 16,000 HAMP-eligible loans and has extended 5,500 trial offers. The servicer has converted more than 2,200 trials into permanent status. A spokesperson for HomeEq said the numbers speak for themselves and declined to comment further.

By comparison, the big-four banks all held conversion rates in the same range. Bank of America (BAC: 15.56 -1.58%) and Wells Fargo (WFC: 28.17 -2.39%) both converted 25% of their trial modifications into permanent status. JPMorgan Chase (JPM: 38.53 -1.46%) converted 22% of its trials, and the Citigroup (C: 3.86 -2.53%) servicing arm CitiMortgage had a 21% conversion rate.

It should be noted that those banks hold hundreds of thousands of HAMP-eligible loans in the portfolios, compared to the smaller amounts for Ocwen and HomeEq.

But Ocwen, at the outset of HAMP, would not move a borrower into a trial modification until it received all of the documentation. More than 227,000 trial modifications were canceled for the entire program when the servicers found the borrower ineligible for a permanent modification or the borrower missed a payment. In January, the Treasury forced all servicers to collect documentation before the trial stage by June 1, 2010.

Treasury has recognized that our upfront documentation approach, while process-intensive, benefits homeowners and the program — and that approach is now required of all HAMP servicers,” Faris said. (As of June 1, 2010)

One Theory about WHY this is the Chase Case:

The large banks don’t want to incur the expense of REOs so they use “promises of modified loans” to keep the property in reasonably safe condition, mowed lawns, fixed leaks, secure and locked… While actually collecting anywhere from 3 to 12 monthly mortgage payments in the course of each year. There is no accountability in terms of communicating with borrowers seeking modified loans. So any paper trail evidence of why a loan modification should have been approved at a certain time but was denied is absolutely impossible to prove.

But the sheer volume of lost paperwork and documentation reported by an astoundingly large percentage of borrowers who tell of their experiences in court or in letters, complaints or online blogs, shows beyond a shadow of doubt that there is, at least, little or no effort to respect the process of achieving successful PERMANENT HAMP loan modifications for sub-prime borrowers. Endless nearly identical reports of applicants stating that they faxed and/or mailed all the required paperwork over and over only to be denied permanent loan modification with the reason cited as being missing documentation!

If the larger services such as JP Morgan Chase used the same approach as Ocwen and HomeEq, the effective revenue stream from distressed families trying to keep a roof over their families’ heads would cease!

Wouldn’t low income families be better off saving their pennies for the likely eventuality of a homeless family as opposed to sending JP Morgan Chase $1,000 or so dollars a month for a seemingly open-ended amount of time when the likelihood of not getting thrown out of their home — even after paying all the months of trial payments is only 1.46%. You wouldn’t want to play Russian Roulette with a loaded revolver at those odds, would you?

Given the larger banks resources as compared to Ocwen, one can only surmise perhaps  a different agenda, that appears to not include, financial motivation to enter a new lender/borrower long term agreement for a lower interest rate loan. And a closer look under the hood can give us some insight into why a bank such as JP Morgan Chase doesn’t have a lot to lose by not achieving long-term, low interest permanent loan modifications: Many of the JP Morgan Chase sub-prime loans were purchased from WAMU at 3-cents on the dollar. That means that Chase has, on a $300,000 loan a basic investment of $9,000! That’s 1 1,200% profit! There is virtually nothing that Chase can do but profit from such a loan, even if the home is foreclosed and sold at auction for 40% of the original loan value, which is still easy to do in most cases, such a foreclosure would net Chase before expenses an instant profit of $111,000. Having that much money for 40 years in your own account versus the risk of collecting it from a borrower who is experiencing financial hard times is a much tastier treat for sure!

The main point is that when motivation is a factor, HAMP Trials can become permanent.

If you step back from this picture for a bigger perspective, the picture becomes quite clear! A smaller servicer such as Ocwen Financial has a LOT to lose if these homes become bank owned property: REOs. They did NOT pay 3-cents on the dollar for these loans and have a lot at stake if they all default!

The lesson is clear. Banks are in the business of making money! As much as they can and as fast as they can. They are not in business to keep roofs over families! Since in the case of JP Morgan Chase, a 40-year very low interest mortgage with a borrower in financial trouble is not nearly as tasty as an instant

May 3, 2010

Capital One: Expertise in Entrapment of the Poor

Filed under: Uncategorized — fvbadmin @ 6:38 pm

As soon as Capital One sniffs out financial difficulties, the start sending out credit card applications. If you ignore them, they disguise them in different shape envelopes. Some are designed to look so official, so mysterious — nothing but a very official return address — one becomes fearful of not opening it…  This company has mastered the art of coercing poor people into using their card to spend more than they can afford. Then this company goes into high gear with the most mosquito-like collection system in the world.

Even if a Capital One debt is found in court to be invalid or ilegal, Capital One sells their illegal accounts receivable for pennies on the dollar to collection agency scum that harasses good — albeit poor — people illegally for years to come!

All we can hope for is justice in the afterlife. Because if you stomp on that kind of stuff in this life, it makes your shoes stink!

It’s not OK to abuse people, but it seems that if your poor enough, your not considered “people” in this world:(

Albert Einstein on those who look on and do nothing

Filed under: Uncategorized — fvbadmin @ 6:27 pm

“The world is a dangerous place, not because of those who do evil, but those who look on and do nothing…” Albert Einstein

April 12, 2010

One More Good Reason Banks Don’t Make Modifications Permanent

Filed under: Uncategorized — fvbadmin @ 5:22 pm

Chase Home Finance Has MANY Good Reasons Not To Make Your Modification Permanent

You’ll find quite a few listed on this blog. This is just one more, certainly not the only one:

Right now your mortgage is on the books with a home value that fully covers the loan. Once the trial modification is made permanent, Chase will have to update the accounting to the actual value of the home. If your mortgage is upside down, your mortgage turns from an asset to liability on your lender’s books. This lowers what reserves are available to make loans. If all home loans were corrected to the actual value of the homes Chase would be bankrupt, in fact every bank in the US would be bankrupt.

Now you know part of the reason that lenders are so reluctant to make loan modifications. Here is how the stats are breaking down on loan modifications. Right now 75% of all loan modifications that are made permanent under the Making Home Affordable Program are on prime mortgages and not on sub-prime mortgages which are the majority of Americans that are in trouble.

Chase Home Finance is participating in the HAMP Program but their statistics are not publicly reported by the Government. The stats of JP Morgan Chase are publicly reported and since the Loss Mitigation Department is the same for JP Morgan Chase and Chase Home Finance I will use their statistics to answer your question.

JP Morgan Chase as of the Feb 2010 Report has made 179,645 trial loan modifications and 19,385 permanent loan modifications. This is roughly 10.8% of all trial loan modifications made permanent. Now factor in that 75% of all permanent loan modifications where on prime loans that means that 4,846 permanent loan modifications were made for homeowners that needed help the most.

2.7% Are Helped – What About The Other 97.3% Who Need Help?

There is something you can do about it. First you need to find out if the Government owns or guarantees your loan:

Is your Mortgage owned or guaranteed by Freddie Mac

Is your Mortgage owned or guaranteed by Fannie Mae

If you have an FHA or VA loan you most likely would know that information but if you are not sure the easiest way to find out is ask your lender by calling the number on your mortgage statement.

April 5, 2010

Foreclosure Prevention: High Noon. Two Gunfighters. One Has NO Gun!

Filed under: Uncategorized — fvbadmin @ 2:27 pm

Legal battles are hard enough to fight if they are fair. But when one person goes into the ring blindfolded and with hands bound, it’s not fun to watch. This section will discuss the ideal ways to fight back if you are victimized, for any reason, by a wrongful foreclosure. What is provided is just opinion, and we are NOT lawyers, so take it as experienced laymen’s advice. In somewhat order of preference:

Best Foreclosure Avoidance/Defense Strategies

  1. Make enough money to pay your mortgage. This needs no explanation. Sorry, that’s hard to hear but it has to be on this list.
  2. Higher an experienced law firm who will invest many, many hours to find the myriad of technical issues and loopholes to provide an effective defense and prevent the loss of your family’s home. This needs no explanation, but a LOT more money that foreclosure victims can possibly have to invest! Unless you are like me and have lawyer friends and lawyers in your family who owe you big time and still love you when you’re poor:)
  3. Negotiate yourself. Invest the time needed to learn as much as you can about all your options and rights and invest the time needed to communicate with the lender to see if the lender may be willing to work with you. This is challenging in many ways: First, there is a LOT to learn. And most people who are broke are already investing a LOT of time and energy feeding their family and trying to make enough money to keep a roof over their heads. Secondly, despite all the PR that may make us feel otherwise, lenders are NOT obligated to grant loan modifications. And even Obama’s programs, when you look realistically at the bottom line, are 100% voluntary systems for “encouraging” banks to work with borrowers. But encouragement is a little tiny word compared with profit when it comes to motivational factors. Realizing this, makes the foreclosure victim more knowledgeable and thus more effective as a negotiator. Another piece of advice that helps is to remember that we are not people fighting people here. The job description of the people working in companies such as J.P. Morgan Chase who are hired to interface with people facing foreclosure is a lot like the role of reconnaissance roops in the military. It would be foolish to send in troops who knw every detail and every secret — so, in the likely event that some will get caught, very little valuable information will be leaked to the enemy. So the congenial, seemingly sincere person answering the phone for Chase, more likely than not sincerely believes he or she is there to help you. No other system would work so effectively. So those people are not your enemy. A company such as Chase is not designed to be  a social services provider. They are in the lending business. And when it comes to sub-prime mortgages, it’s more like the loan-shark business. Especially when you realize (and it’s important to realize this) that when WaMu went under, Chase managed to buy WaMus sub-prime loans for about 3 cents on the dollar. That means that if you have a $400,000 mortgage originally with WaMu and now with Chase, chase can generate a profit buy selling your house for very, very little! ($12,000 at face value — Less expenses of course) This information should serve to give you an idea of just how LITTLE bargaining POWER you hold, and how much power the bank has to do whatever they want. So treat the bank as you would you dentist or surgeon, and don’t say nasty things to them as the anesthesia is beginning to take effect, unless you want to wake up with the wrong teeth pulled out or the wrong kidney removed:) There is NO REASON to argue with them, or get angry. It’s like trying to extract information from those troops who were sent into dangerous enemy territory without a single drop of sensitive information. I.e., the people answering the phone don’t make the strategies for how to bleed foreclosure victims dry, that’s simply profit-driven corporate planning. Figure out a way, rather, of seeing if you can point out to the lender that modifying YOUR loan will be a safe way for the bank to increase their earning potential on your property. Without that simple reality in place, the lender has no reason to really GRANT your permanent modification and you will be placed in what Catholics would term Permanent Loan Modification Purgatory to suffer endless carpal tunnel syndrome sending faxes that will wind up in the round file until the lender decides that you are sufficiently fattened for the slaughter and the feast.
  4. Hire a Para-Legal Foreclosure Defense Company. And, be aware that in this case, para = parasite. Sell anything you have left, send them a big fat certified check that you should probably spend on feeding your family, and get nothing in return. If you choose this method, may I suggest you go to one of the myriad websites that are out there, search engined optimized to screw you out of your very last drop of blood. There are websites, that appear like this one, and take you name and contact info and SELL it to any pretend-law-firm willing to pay for leads. I think one of them, at the top of Google, is Sign up and get hounded today. In fact, it is a state bar violation, at least in some states, for real law firms to acquire leads from websites that collect them from people under duress facing foreclosure. Then you’ll get email and phone calls and more harassment than you need right now. If you’re inclined to do this, maybe I can sell you some beach front property in Arizona:)
  5. Walk/Run away from the whole thing. (Understandable but not recommended) Pack up the car, and drive… Not my cup of tea but some people, understandable become, let’s say, quite disenchanted with the American Dream. Some to the extent that they spend a little extra on a bulldozer and level their home. Now if this were the case with a WaMu loan, WaMu may be better off, after all,  a nice developed land could certainly bring in more than $12,000.
  6. Unite and Help Others. Do the best you can to do right for your family and stick it out. And if you can muster a little more energy, put some information together in a website to help other nice people in the same boat.

Here’s the punchline. As they say in Brooklyn: There ain’t no such thing as a Free Foreclosure Lawyer. But if I can save you from throwing your money away on some ambulance chasing “law-firm mimicking” thief, then please accept my apologies for misleading you. This is not a bait and switch, rather a bait and rescue. Good luck my friends! And send your comments and stories.

Wamu/Chase Foreclosure Victims’ Real Stories – Tell us yours!

Filed under: Uncategorized — fvbadmin @ 10:10 am

Robert of San Jose, CA July 1, 2009

I would first like to state Im a first time home buyer. It all started 2006 When I recived a notice of Trustee’s Sale dont really remember the out come of that noice I do know Im still ilving in the home. Well I recived a Notice of a trustee’s sale in march of 2009 I did recive letters from WAMU bank telling me that they would work with me with modification. to my surprise every letter I recived had a number that was to only leave a message or gave options that didnt concern my needs.

Kim of Bellingham, WA June 11, 2009

I acquired an adjustable rate home loan from WAMU in 2003. A couple of years later I re-fied and took out a home equity line of credit. In late 2005 I became ill. I was never late on any payments. I began receiving letters from WAMU telling me that I needed flood insurance, which at the time of purchase was not required. I had coverage through Farmers Insurance. WAMU insisted that I didn’t have coverage and began charging my equity line for coverage that they provided. They also froze my line of credit for literally years while we hashed out the flood insurance issue. I continued making payments on my home and my line of credit. All the while I was being charged interest on the sum that was charged to my credit line for flood insurance.

Many hours were wasted on this issue. I spoke with so many people in so many departments being transferred time and time again with the explanation that their left hand did not integrate with their right hand and the information had to be faxed, mailed and/or sent electronically to department A so Department B could audit the information and find out why my line of credit was frozen even after proper documentation of my flood insurance was sent by my insurance company. They were so RUDE! Like it was my fault that their records were screwed up. The never apologized or offered any show of accountibility.

After WAMU finally cleared up the flood insurance issue on their end my line of credit remained frozen. I spent several more hours being transfered from dept. to dept. No one could figure out why my credit was frozen. All my payments had been made and my credit was in good standing. After about 18 months I got a letter explaining that since I had lost my job I had violated the terms of our agreement and my line of credit would not be re-instated.

To this day I make payments but do not have access to my home equity line of credit. I have begun to be harrassed by CHASE for flood insurance. I have coverage and do not understand how the bank can freeze my credit but then charge me for insurance infractions on that line of credit. WAMU has been a huge nightmare.

Do I have an opportunity here to be added to a class action suit? I hope so. I should be compensated for all the time I’ve wasted and extra charges I’ve incured. I have documentation of phone conversations I had with WAMU. I’d also like to look into saving my house do to medical hardships. I appreciate your consideration. Sincerely, Kim A. Storm

CARMEN of Punta Gorda, FL June 20, 2009

I contacted WAMU/JP Morgan Chase approximately a year and six months ago. I informed the lender of the property located in Sunrise Fl. (second) home being on the market but not moving. I needed some type of modification we could not afford three loans. I was told by the lender their was nothing that could be done because we were not at default. Shortly after this my husband was admitted into the hospital (third optic nerve palsy) vision impaired. He was 64 years old when it happened and had no medical insurance. He also lost his job.

Finally WAMU issued a temp. work out which Debbie S of WAMU left me a message on my home phone indicating WAMU would work on a permanent solution. I cannot count the amount of calls I’ve made to the lender to find out my modified payments. The lender has since then only requested over-and – over a revised package. I finally contacted an approved Hud housing counseling to help me complete these loan modification packages. The housing counselor indicated there was a new presidential program and I would qualify. Although the housing counseling sent this package to the lender the lender still proceeded to send my loan to foreclosure. When I was served I proceeded to send proof to the court.

Dan of Dublin, CA June 12, 2009

I lost my job in July of last year, and applied for a loan modification with Washington Mutual in March 2009. I filled out all the information and sent them everything they needed. Eventually, I received phone calls from their loan mod center saying that my information was incomplete, and I needed to submit proof of insurance payment, copy of my taxes and proof of paying my property tax, or else my case would not be reviewed. When I received the call I would pick up the phone and say hello but no one was there. Eventually I called the number back and found out they were trying to contact me for the additional info they needed. They told me they sent out a leter also, notifying me of this, but I never received it. I ended up faxing in the information twice. After receiving a second call telling me that they did not receive anything, I wrote my loan number on the top of every page that I sent in, and to no avail. Luckily, I kept the confirmation from the faxes I sent them. I finally received a letter in the mail from Washington Mutual telling me my info was still incomplete and they would not review my case. Not a nice letter to receive because at the top it says they are a debt collector collecting a debt, and that you will now be reported to a credit bureau as being delinquent (not fun considering I have tried as hard as possible not to miss a payment). When I called Washington Mutual, they said they still had not received the information I had faxed them twice, and that now I would have to start all over again with a brand new application. Most likely I will try one of their loan modification centers. Hopefully they won’t lose the paper work on the fax machine.

Denise of Sarasota, FL June 12, 2009

I am a Real Estate Title Examiner when the market crashed so did my business, I knew I wouldn’t be able to keep up with my mortgage at that point so I put the house up for sale, no surprise it did not sell. Before I even got behind on my mortgage I called and was told they could not do anything for me until I was in default, which I obviously did not want to be. I became employed again my family was going to lend me money at this point I was just 2 months behind. I recieved a letter I responded and was told I had options, when I called back after I arranged to get some money I was now 3 months (Nov 1) behind now I was told it was too late and they couldn’t help me.

I have lived in this house for 8 years for the last 5 I have owned it, I did not want to lose it. I was served in December with a Lis Pendens, I took in a roommate got a second job filled out all of there paperwork, never able to reach anyone to talk to. I went to a local branch and the manager he could not get anyone to help me. I fell for a scam for a loan modification for a 1000.00 still no help. I filed for bankrupcty to stop them from selling this house. It was approved and I started paying then they wnated more money I could not pay.

On the advice of my lawyer I had the bankrupcty dismissed and tried yet again to work with the bank. I was quite pleased to reach someone right away because now the whole country was in a mess they seemed they wanted to help and they had also recieved bailout money I was told nothing would happen until the assigned counselor spoke with me,what a relief. I sent them everything they asked for numerous times no response and many calls saying someone would contact me. I waited and called nothing after 4 months and no contact.

I recieve notice of the sale of my house for May 28th, I contacted the banks attorneys who were of no real help offered a number for me to call. I finally spoke to some arrogant man who said my information was purged but told thier attorney I never sent them anything. With no options left the house wnet for auction and the bank, the only bidder paid 100.00 for it.

So now I have no home. I don’t know where I am going and I am [upset], they not only recieved bailout funds but now they also have my house that I have paid on for almost 9years. I didn’t want a principal reduction just a simple modification of the maturity date to add what I had missed to the end of the mortgage, that is all. I have no where to go, the stress of all of this has made me sick even to the point of having a breakdown. It is not right they should not be allowed to have their cake and eat it to.

Tom of West Lafayette, IN June 12, 2009

Sent in application for a loan modification on the house I own in Bloomington, IN. I have been trying to sell for a year even after to reducing the price to where I would come even on the sale. I am currently renting house in West Lafayette, IN, on temporary duty for at least four years. Wamu acknowledged receipt of application and sent letter requesting 2 most recent bank statements, 2 most recent pay stubs and copy of most recent tax return. Since no fax available, I mailed them.

Received a from Wamu and May 29 informing me that they have recieved the information and within two weeks, I should get a call finalizing the loan modification. Have not heard back so I called on Jun 11 to check the status of the loan modification before I made my June mortgage payment. I was informed that the loan modification was denied on June 8 due to lack of required documents.

I was eventually transferred to the “Customer Care” dept and speke with Leon. He said the documents were never received and that I should re-fax or semd them to an address in Glendale, CO despite me stating that I received a call two weeks ago saying that all the required information was received. I also mentioned that the material I mailed was extremely confidential and where did it go if not received. Frustrated, I hung up then decided to call back. After a lengthly process to speak with Customer Care again, I talked with Allen this time.

The documents were received but there are no notes as to why the loan modification was denied. Could not get an answer as what information was lacking. So I asked if I could fax the information and he told me I need to submit a new application because the original application and information I sent have been shredded.

I will complete a new application and resubmit with required information this time by fax though I am not confident anything will be done. In the meantime, I get called daily from Wamu requesting my mortgage payment from someone I can hardly understand while I could not get a call on my loan modification which I really need.

Kara of Minneapolis, MN June 9, 2009

My husband and I found out we were having our first child last year! We were over the moon. Due to the economy my husband had a cut in hours at his job for a couple months. When I was ready to go back to work my job wasn’t ready for me. All in all I saw a storm coming so I contacted WaMu letting them know we would be late on the next couple months payments because we were short all around. They thanked me for contacting them before anything happened and said I would be a great candidate for a loan modification. They also told me that during the modification process our credit wouldn’t be negatively effected by a late payment.

4 months later we were denied for a modification due to lack of documentation which I sent in 3 times and made sure they got. Because the mod was taking so long my husband and I decided to sell our house. We sold it in a month which was great! As we were trying to get a pre qualified for a loan on a house 80k less than what we own on our current house we realized that we had 2 late payments on our credit score from WaMu.

After hours and hours of talking with multiple different people from WaMu they basically said it was my fault and they wouldn’t change anything. So we are closing on our house at the end of July and can’t buy a new house because of the lies WaMu told us. I am so sad with how this all turned out. We tried to do our due diligence at catch the problem before it even started but WaMu just blew smoke and now are credit is ruined. I want to be apart of a class action suit. I feel like our livelihood was totally effected in the worst way because of WaMu. I feel for all of you!

Maria of Sussex, NJ June 5, 2009

I have made repeated calls since November 2008 to WAMU to inform them that I was having trouble keeping up with my payments. they told me to do a hardship package but I would have to first not pay for 2 months so I could get the package started. So I sent in my hardship package in January well a month goes by and no calls. then I get an adjuster sent from wamu to my door and was told they sent him because they tried to reach me and could not? that’s funny since I sent a hardship package with my number and my husband work number?

I called many times in January and was told that a P. Johnson was asigned to me they gave me a # to call. well it said it is a none working # and gave me another # which asks for your loan # or S.S then that # said it could not find my loan and then hangs up on me. Finally I call another # and its there dept collection number they give me Peggy Johnsons voice mail I call and left a message after about 3 days I get a message from her stating she has no idea who I am or what this has to do with? Well again I call and get DCollection and they transfer me to her again but this time no call back. then I was told my moditification is being worked on but no one knows who is working on it and it may take until April to go through

I finally get a call 04/12/09 and was asked to Fax out updated papers I did at the WAMU bank on the 13th of april. this time I made a payment in march and then in April. May comes and I try to make a payment and they can’t procces it in the bank. I also got a katie on the phone from wamu and she says fax the papers to her that they may have never got them this was may 26 2009 again. I faxed them from wamu bank.

I get a phone call on Sunday from there dept collection and was told it was being recorded. I spoke with Duwanye of course he wants a payment I told him that I would pay but I wanted a letter from wamu telling me what months I owe and how much in total and where I should send my payments and if I pay all of it will it stop any foreclosure started, I stated that I would pay and send a certified mail with request on signiture. well he said that he could not do that!

I told him that whenever anyone calls me from wamu I also am recording and he told me well I guess this conversation is done and we are no longer talking and he hang up on me. Its funny they can record me but I can’t record them ? Well now its June 5th and no one has contacted me. I am sick from all of this physically sick!

Betty of rainier, WA June 10, 2009

I have been trying to get a copy m history payment for about 6 weeks. I have had nothing but a run around every time i call i get someone different and a different story. The one thing i don’t get is the history. I have requested this 4 times now. I talked to a supervisor (Sean) and he could not help me. I requested the no to your head office to talk to some one there and he would not give it to me. He claims there was no phone # to give me.

I ammazed me how no one has phone # in this company. I done business with WAMU Morgage for oalmos 10 years and never had problems till jp morgan chase took over. I will defentely never use them again. my daughter will use a different co to finance this house into her name now that this has all happened.I have to have all this for my attorney and i have explained this to then every time.They are the most disorginised group and then they lie about it. would not tell anyone to use this service from WAMU. I may lose my home over this becouse i cannot get the paper work i need for the courts.

Carl of Bolton, CT June 8, 2009

We began our refinancing of our current mortgage in February 2009. Initially we were told there was a 90 day lock on our new rate. We began providing the initial wage, employment and bank statements in March. Since that time we have supplied some of the information again. We were told the application was with underwriting. We made numerous phone calls to automated lines which were never answered.

We sent e-mails to specific loan processors and some were ignored or we got automated “I am out of the office”. If we did get a response it was we need more information from you or the loan is with underwriting. On Thursday June 4 I got through on a direct line and left a message on an answering machine. I did get a call back stating that my application had a new loan processor and I would hear from her on Thursday or Friday. I did get an e-mail from here and she said the application was being sent back to underwriting and that it would take 2-3 more weeks and than will have to go to another department for condominium review. So in the mean time we are still waiting. I could understand if I am a new customer but they hold our current mortgage which we have reduced by making extra payments on the principal and our FICO scores are over 800

Traci of Arlington, TX June 5, 2009

I bought a house December 2005. I lost my job 3 months later and was out of work for 2 months. Also, during this time, I became ill. Obviously, I got behind on mortgage payments. However, I did not ignore the situation and pretend it wasn’t happening. I tried contacting WaMu customer service several times to work something out with them but to no avail. They wanted their money, and they wanted me to pay in full. Impossible!

Finally, I spoke with a rep who said I could apply for a loan modification. I did all the long paperwork, made copies of everything they needed and sent in the huge package to them. I felt a little relief thinking that they were going to work with me and I was going to get through this. However, I received a letter not too long after applying, stating that I had been denied the loan modification.

Again, I tried calling WaMa customer service several times to figure something out. Instead, I usually hung up the phone crying because they made me feel so bad. I after many letters warning default/pre-foreclosure/foreclosure, I decided to sell my house. I found a wonderful realtor (after being turned down by many), and the house was approved for Short Sale. The house was sold within 4 months. I received a letter saying that the loan had been satisfied, and I was no longer responsible for the debt; I no longer had a debt.

David of Salem, OR May 26, 2009

I filed Ch 7 bankruptcy two months ago, excepting my WaMu mortgage, which was to be re-affirmed when the bankruptcy is final. Last week I get a phone call from someone in a foreign country asking me to pay up the past two months mortgage payments plus late fees. As with all my other creditors, no statements were sent to me after the initial filing. After trying to explain the situation with the voice, I asked to speak to someone else. I got a “supervisor” who spoke worse English than the first voice. I hung up.

I then get the mortgage statement in the mail, two month’s plus late fees. I call the Customer Service number, am on hold 12 minutes, hang up and drive to the local WaMu/Chase branch. I explain the situation, she calls the same Customer Service number, finally gets a voice that tells her they have to record of my bankruptcy filing and that she cannot access my account other than to tell me I owe the payments plus late charges and that I have to call their bankruptcy department. they never answer.

I go to my attorney, he rolls his eyes, shakes his head and makes a copy, says he’ll take care of it. I hope he knows what he’s up against.

Daniel of Tehachapi, CA May 12, 2009

My wife came down with cancer 6 months into our home loan with WAMU. We repeatily offered to work with WAMU but we always received the brush off. THEY NEVER ATTEMPTED TO WORK WITH US. They preferred us to default on the loan, then short sale the house and after which, they come after me for financial reimbursement. This is after they receive their BAILOUT/BUYOUT. We are now living check to check with my wife still battling cancer and myself, distraught with stress, high blood pressure and depression. I want to sue Washington Mutual for this. They should not be allowed to get away with this. I will join a Class Action also. If this holds true, I will not be able to pay for my wife’s medical care. This is not fair. I short sale’d my home. This should be enough.

Omid of Irvine, CA May 22, 2009

I am in the process of loan modification. Up until April my account was debited through automatic payments. April and May we made manual check submissions due to the loan modification temporary payment schedule. We were denied credit based on our credit score and upon our credit report review there was a reported 30 day delinquency on our mortgage payment from WaMu. Through our discussions apparently they had applied the first payment to another loan number and now are in the process of clearing after our submission of the appropriate documentation.

My wife spoke with a representative that stated that they the late payment would still show up on our credit report because we are in loan modification. None of this was mentioned in our loan modification agreement. We have attempted to resolve via phone wither several customer representatives and trying to speak with managers and get different answers each time. Can never get to the appropriate person to handle this issue. The representatives are very unfriendly and extremely unhelpful and not willing to assist in reconciling. Terrible etiquette and inappropriate behavior. What can we do to get this resolved.

Orvis of Tulsa, OK May 13, 2009

WaMu is the current holder of my mortgage and has sent me letters requesting me as a customer that refinancing was available and I could save closing cost by using them. In Jan. 09 I submitted an apllication and documents for refinancing loan # 0758948079, again in Feb. 08. In April I was approved and supposed to close shortly thereafter. I have since not heard or been able to contact these people. They requested a fee of 750 which I paid and fear this has all been a scham. The refinancing was to acquire a lower interest rate and extra cash for some remodeling and new heat and air unit. I have had to access my IRA for this which I wanted to avoid and seem to have lost the fee of 750.00.

Joyce of Durham, NC May 8, 2009

I was discharged from Bankruptcy in the month of April 2009. I was informed by the Bankruptcy court to make my payment to Washington Mutual for April which I did in the amount of 1178.00. The Check was cashed and I contacted them toward the end of April and they informed me to makemy next payment in the amount of1082.02 and to send it to the Jacksonville Fl address. New homeowners insurance was paid for the year in the amount of 644.00 on the home, and we thought everything was fine, until I received a letter on 05/7/2009 dated 05/04/2009 stating they could not accept my payment.

I contacted Washington Mutual spoke with Steven, who was very customer service focused, who informed me they had not released it on their end, and I needed to call the bankruptcy deparment on Monday. In my opinion this is unacceptable. They cashed my check, then sent me a refund due to my escrow, and now they send my payment of 1082.02 back.

I have been through the mill with Washington Mutual and something needs to be done. Maybe JPMorgan needs to reconstruct their customer service department and make sure their systems talk to each other. Something needs to be done to clear this matter up immediately. I want to make payments, but what do you do when they return your payment when you are current. Please Help.

jodi of pasadena, MD May 6, 2009

WAMU will not return calls, emails or faxes! We were suppose to do a refi 4months ago & it’s still sitting in closing! I am sure they are trying 2 back out, increase rate etc. Looks like a bait & switch!! We were approved, they have everything they need- including our money. I am currently on the phone on hold – have been for over an HOUR! Nobody!

L of Memphis, TN May 8, 2009

I attempted to apply for a loan forbearance in Nov 2008. I continued to fax forms with requested documents and followed up on the status. Tell me why its May and they are foreclosing on my mortgage. I did my part why would that drag there feet when it comes to saving my mortgage. Every time I call they say re fax or we are awaiting a negotiator to look at your mortgage. My mortgage forclosed in April 2009 due to the loss mitigation dept not corresponding with me.

leo of los angeles, CA May 1, 2009

I re modified my mortgage in 2008. it took wamu from january 2008 to dec 2008 to complete the modification and me having to burden extra 38,000 of interest charges tack on to my sub prime mortgage. they told m 60 day from negation to close. I was not satisfied with the new modification due to an high monthly increase i received in monthly payments so i submit it again on 2/10/09 and as of yet they lost my file 2 times. i had re faxed 4 times every one has a different view as to what is going on and time frame.

now they quoit 14 day to receive 68 day from negotiator. why cant they seam to get there act together to properly file work and get it to the people they need to get it to. on thier 68 day they originally told me was yesterday and they still have not place me with a negotiator. shame on you wamu.

David of Cumming, GA May 11, 2009

Since May 2008 I have been trying to get a loan modification from Washington Mutual. I was told in January 2009 that it would take 20-60 days for an answer. It is now May 11, 2009 and I still cant get anyone to tell me the status of my loan. I am told that the Loan Officers that are handling these loans are overwhelmed and are no longer taking calls. I have called WaMu’s customer service department 17 times since April 13, 2009.

Paul of Arizona City, AZ May 8, 2009

We applied for the home modification thru WaMu. Our mortgage account, which was never late more than 10 days was transferred to collections. We have never received a call from WaMu about being between 5-10 days late. We started getting harassing phone calls from WaMu at night about being able to pay our mortgage. The first one was “I understand you have a hardship and have applied for the home modification program. Pet DepotWhen will you make your mortgage payment?” We got calls on our business number which was the number on our WaMu account from outside companies trying to solicit us to use them for the home modification program right after WaMu received the papers. When we call to get info on the status of our application, we first have to go thru collections. We are canceling our application because we fear this will affect our credit rating and we now are treated like deadbeats.

Debra of Harwich Port, MA April 24, 2009

My husband and I have been out of town for several months caring for an ailing relative. Today we received a letter from WAMU that asked if our home was vacant, and stated that, if we didn’t call their office within 8 days, they “may change our locks and board our windows”, etc. for the protection of our home. The payments are current on the property, the heat and all utilities are on at the house, AND there are three cars parked in the driveway, so we cannot imagine why they would think the house is vacant or why in heavens’ name they think they should be able to change locks on our doors! We called as soon as we received the letter which was forwarded to us from our home postal service. Though we spent more than an hour on the phone speaking with several departments, we still don’t have any answers or even know IF they did indeed change the locks! Is there no limit as to what this Mortgage Company can do within the bounds of its contract with us? Anyone know how to get this and the other numerous complaints into the Senate Finance Comittee handling the banking/ mortgage bailout fiasco??

Brenda of Erwin, NC April 21, 2009

We have our home financed thru Washington Mutual Bank. Bad Idea! They have always shown us being late. But when I lost my job they were quick to try to foreclose. We decided to try a modification to reduce our payments to keep our home. Because Fedex delivered the papers a day late the wrote and told us we were denied the modification. I had to hunt a place to move to and place a deposit.

A week later I was contacted and told they were going to try to use the paperwork they recieved but was not for sure if they could because of the date on the papers, someone would contact me. YEAH RIGHT! I called then two times a day for 60 days. I never received any returned calls, no letters, I was always transfered over to a collector who did not know what was going on. I have yet to speak to a live BANK person. And because of their delay I found out in March of this year they accepted the Modification, but they are now trying to foreclose because they said I am 2 months behind on payments after several attempts to contact them about the approval and lost out on the deposit because she held the other house for a month for us.

Now just because they did not return my calls, they want all the money they said we owe because of their neglect towards me. They should make it right. I never get to talk to a banker from the bank, its always a creditor. I have asked to talk to someone and they refuse to put me through. I have changed my phone number twice because they would call me on the hour everyday and it was always someone new.Even now they will not work with me, I am now in a decision mode. Do not finance with this bank.

Stress in my home. Since this has been occuring I am now on blood pressure medicine for high blood pressure and I have never taken medication for anything serious. We are drained out of our savings, because at one time I was paying 800.00 a month to catch up on what they said we were behind on, I have migraines almost everyday. Having to pay out to change phone numbers, and embarrassment form our postal man seeing the FORECLOSE pasted on the front of the letter of intent.Stress in my marriage.

Fern of Richmnd, CA April 20, 2009

I received a phone call from WAMU asking which modification program am I intrested in but in the mean time I also received paper work about a modification and I asked to be considered for the Obama modification that came out in April 2009. I was told by a WAMU representive not to return the paper work I have. Now I received a letter canceling my modification because I didn’t send the paperwork back. I also requested to not be contacted at work and as of 4/17/09 I am still receiving calls at work. WAMU also is holding any monies I send even if its two to three dollars short this is helping to rack up late fees.

A large amount of late fees that they are not telling me that the monies I send is not being applied toward my loan.

Robert of Detroit Lakes, MN April 18, 2009

We missed a payment with WAMU in 2007. We set up a date with them to electronically debit our account for two mortgage payments. They debited the account a day early, resulting in an NSF. They placed our property in forclosure. We entered a work out plan with them and worked with Debra Kuehle. We paid 600 a month for three months. In January of 2008, we were to contact Debra and set up new mortgage payments. At that time, we were assigned to Betty Winters, as Debra moved on to another office. Betty stated that we could begin a loan modification and would get back to us in a few days. When she didn’t call, we called her. She continually stated she was working on the pkg, or needed signatures. She sent us paperwork to fax back to her on two occasions. Both sets were lost. Betty does not return our calls.

It is now March of 2009. We haven’t made a mortgage payment to WAMU and they don’t return our calls. On March 30th, we received a Fed Ex pkg from Betty with a letter stating we needed to complete the list of items and fed ex them back to her (third pkg of the same stuff she already has). The letter gave us 10 days and Betty gave us 3 according to her pre-paid return fed-ex. We sent the pkg information and paid to send it ourselves.

Got a letter yesterday from Chase (4/17) denying our workout, because it was late and missing items (items not included in the letter or on her list). Our home is back in forclosure! Give me a break! They don’t return our calls for two years and we are late? Thank God that Genworth Financial (our PMI holder) has contacted us to assist with our workout efforts. We have sent them the same documents and the person has kept in touch via emails. Hopefully they can help us.

What has resulted is a credit rating that indicates we have been behind and in forclosure for two years. We are in fear of losing our home that we have made every effort to keep. We are stressed out and and worry that WAMU will throw another curve ball at us. How can a company ignore its clients? We don’t get it.

Jennifer of Fife Lake, MI April 18, 2009

In December 2004 I refinanced my home. I ended up with Washington Mutual (the names Long Beach Mortgage and Duetsch Bank were also in my loan papers whatever the relationships there are). Things went along fine for a few months, I had my payment set to auto pay and it was great. In the middle of 2005, my auto pay did not get taken from my account. I called WaMu and was told they had no idea what happened. I made the payment on the phone to avoid a late fee.

The next month, the same thing happened and I called again. I was told I had been cancelled from autopay because my previous month payment had failed and I had unpaid failed payment fees. I argued and refused to pay the fees, went ahead and made my regular payment via phone. I continued calling and arguing and they did finally waive the fees and set my autopay back up. The next month went fine. The month after that, I was on vacation for the week my autopay was to go out to WaMu. I returned home to find it had NOT. I was by then late on my payment.

This was September 2005. I started sending a check each month for my payments, refusing to pay the late fee. Each month I would send the check on the first in order to get it there well before due date, however WaMu would not credit my payments until after the due date. Late fees began to pile up, which I argued and refused to pay. I was being threatened with foreclosure if I did not pay these amounts. WaMu began refusing to accept my payments, stating they were under no obligation to accept a partial payment. In December of 2006, my property tax bill came out. I had ALWAYS paid my own taxes, there was no escrow agreement or payments for WaMu to do so. My bill comes in December and I would pay it in January every year with income tax refunds (taxes are due by mid February).

All of a sudden, WaMu went and PAID property taxes on my home in December, leaving me with a negative escrow balance. They began charging late fees, penalties and increased my house payment. I agreed to pay a higher house payment to cover the negative escrow but nothing else. I refused to pay late fees, penalties or continuing escrow for future tax years. They still refused to accept payment unless I paid the entire amount they claimed were due for late fees and penalties and for the escrow balance plus all the missed payments which were due to their refusal to accept the payments.

They foreclosed on my home and in March 2007 I ended filing a Chapter 13 to keep from losing my home of 20 years. The trustees office had to threaten WaMu with legal action to get from them information on my monthly payment amount and balances on the mortgage and the arrears. Three days after my Chapter 13 was filed and WaMu was notified, they auctioned my house, verified by the county sheriff’s department. My attorney said not to worry, the court would have that sale set aside. (He was a useless liability as an attorney- a whole seperate story).

Well, my home burned down last fall and we rebuilt. I used part of the contents money to pay off my Chapter 13, which was almost all WaMu (even my good accounts had to be filed and it screwed them up as well). I am waiting now to see how long it takes for WaMu to pull something with me again- I just made my first payment to them this month outside the protection of the court.

The consequences have been steep from all of this. The stress of going through all of it was terrible. The financial impact has been tremendous, with a Chapter 13 to work off on my credit now. Now the worry of what will happen with WaMu outside the protection of the courts is a daily nagging concern. I mailed my payment with Priority Mail delivery confirmation to prove delivery date. I also mailed them a letter the same day which has not been accepted. I cannot access my account online any more and I cannot get anyone to help me when I try and call WaMu.

Adrienne of Kearneysville, WV April 16, 2009

My husband and I have a mortgage through WAMU. I see now that unfortunatly we are not the only ones in the mess we are in. In Oct 07, my husband lost his job. We put out heads together and decided to try and keep our home. We have four children and stability is very important to us for their sakes. So I work overtime, and while it isn’t as much as what we were making with his income we were trudging along. Reciently we ran out of unemployment and it is getting tougher to make the payments.

We sent in our statement of hardship along with every requested document not once but twice. Apperently the address on the envelope that they sent us was incorrect so it was sent out again. We have been told on three different phone calls, three different dates of when they recieved our information and that it would take 60 days from the time the recieved it till a decision would be reached. This was told to us after telling us that they would not put us through to management, that there was no program that would help us, and management would tell us the same thing.

Apparently we are going to have to find a lawyer and show them how hard we will fight. We are thankfully only a month behind and have been able to stay that way. We need, I need help. I cannot keep up the hours I have been working trying to keep our house. I have been sick several times in the last month partially due to exaustion. Someone needs to step up and PLEASE make WAMU accountable for what they are doing to hard working home owners.

Evelyn of Sussex, NJ April 7, 2009

I am not going to exhaust any more minutes of yours or my life saying the same thing that the last several people have stated. WAMU is not helping, they say they want to and maybe they want to but they put homeowners wanting help into limbo with endless faxes and mail with short time lines and request the same information. I have fax receipts, certified mail receipts of sending the same information (Pay Subs, Hardship Letter, Statement of payments ect) and they will say they received it only to get another letter stating they need it again…… What good is the Presidents Plan when these companies still continue to do this? It seems they keep this up just to prove they put effort into this. PLEASE investigate and put an end to the run around and endless calls to people who cannot help and make them assign agents to take responsibility for these modifications so the economy can get better!

I have the same story as everyone else with the exception if I keep exhausting the energy that I have into this, I will lose my job, and what’s left of my life….

Ibrahim of Beaverton, OR April 4, 2009

I have a mortgage and an equity line of credit (ELOC) with WAMU along with a checking account since 2001. Both my mortgage and ELOC had been on auto pay. In 2008 I withdrew some more money from ELOC. Because of this change, I needed to set up another autopay. So far so good. At the local branch, I filled out a paperwork and assumed it would be done. A month later, I noticed money was not withdrawn from checking. So, I went to the local office. The same people who filled out paperwork said somehow it could not be done and I need to do it on their web site! I followed their instructions and assumed it is done again. WRONG! The next month the same problem.

I followed up with the local branch again. Aparently they have no clue on what is going on, they filled out another paperwork. In the meantime, I am getting charged with late fees and I keep paying the payments manually. So, finally the next month, auto pay worked. Couple months later, I get hit with another late payment notice and couple other threatening letters about cancellation of my account and reporting to credit companies.

Visit to the local branch: they said when J.P. Morgan bailed out WAMU, all auto pays were suspended, and they apparently sent out notices, probably in junk-mail looking envelopes. So, anybody who do not open junk mails like me would have missed that. Went to the local branch again and again to bring my account to current and avoid a credit issue. Each time, they promised to follow up and no progress was made until I went back and ask again and again. To make things even more complicated, each time a different representative is assigned to the task, so there is no contiunity. All in all, WAMU experience has been, at best, awful.

Wasted time, stress.

Brad of Bradenton, FL April 1, 2009

I just found out that my mortgage co. foreclosed on my property, and I found out due to a money hungry lawyer looking at clerk of courts documents. I was never notified by wamu. When I called they said they had try to reach me on my 4 (four) contact phone numbers. Not 1 (one) of them was mine. Now they say I owe them 4,000 and my payment I have sent will be returned, because they will no longer take any payment unless it is in full , and i must pay a reinstatement fee to their lawyers over and beyond. When I asked how they came up with the number 4,000 They said I had not made a payment since Nov. 08, wrong!!

I then said I have a statement from Jan..I was passed to 3 different people who said they had my info. and would help. The help was to try and pay the full amt. that I don’t owe and I needed to cantact their lawyers to get the amt. I owe them to be squared away with them. If I can’t pay in full I was told our new pres. has new plans to help, (If I qualify) NOT.

My neighbor has not paid his mortgage since Aug. 08 still no foreclosure, why he owes more than property, me they can make a killing on my home, I have too much equity, free money to wamu. Side note I have called their law firm 6 times all different hours, all voice mails and no return calls. This from a firm that says they are serious about fl. foreclosures, yea there’re serious about selling peoples homes.

I have high blood press. if I die over this because of stress I leave a loving wife and a wonderful 8 year old son. It just really disgust me that someone could lose their home over 1,000 and never be notified,SAD. The kicker to the whole thing is now I have to pay a lawyer to fix this crap and pay more than I owe. What a great business.

Mark of Running Springs, CA March 30, 2009

my wife has been laid off for a year and i had my hours cut. we have been working on a loan modification with wamu since nov 08 with no help from them. we are now 4 months behind and are still getting denied and the run around. we have no money for food and have been eating oatmeal. does anyone know where we can get some assistance to move out into an appartment in another state. I had perfect credit and now its ruined. this is so sad but i cant fight anymore. I just want to leave the house and move on. why drag this devistation on any longer.

dont have any choice but to walk away from my home with no money for a place to live or even eat. I obviously cant afford an attorney.

Sally of Mount Morris, MI March 27, 2009

I was layed off 08-08-2008. With the loss of over half of my pay I just keep going behind in my bill. I called wamu/chase starting in jan and i’m still fighting with them for help.thay ask me to send information 4 times now, sometimes the samething.Thay tell me everytime thats all thay need,and then want more.I’m givin 10 days to get everything to them each time or thay will drop /close my case and i’ll have to start over. thay take forever and I think thay do this in hopes that people will get tired and give up.

well i’m not asking for help for no good reson,I need help and need it now.I have never been late in 11 years or defaulted on a payment and this is how thay help me out. now i know why there is so many foreclosure, wouldn’t you think helping me out a little would be better then me giving them the house back and them losing a lot of money?? I’v also been told if i havent missed a payment thay can’t help,that i just don’t understand. why not help befor its to late. I have read other people storyes and it seem that there are alot of me’s out there that wamu/chase don’t want to help.

Right now i dont have any damage,but i’m rally upset and emotionally i’m getting really tired of dealing with all of it. I did’nt ask to be layed off, I really loved my job and wish i was still working there.I hate to ask for help, and this is why!!!!!

Regina T Lacroce of Carmel, CA March 24, 2009

I began by trying to work with the local mortgage department in Carmel CA when my exhusband divorced me and took my cash and equity. I just needed a little loan modification until I could get back on my feet. I dealt with Carolyn D in the local office. She strung me along until I asked for the new JP Morgan Chase program that was to help home owners modify their mortgage. I faxed documents to WAMU Dec 9 2008 for a loan modification. I re-faxed the same info, per Shelly’s request at WAMU on March 14th, and on March 14th in the evening I refaxed updated docs per Greg’s request.

I have asked for Doreen M to call me about my status, she is the reviewer. I am trying to avoid default by being on the offense verses defense. I have no other debt but my home loan and equity loan. I have excellent credit. All I want is to have a dialog with the reviewer, if they can’t help me they should just tell me so I can make other arrangements. I am being forced to go into default when this could have been avoided.

I am being forced to go into foreclosure, to lose my good credit rating, and I am suffering emotional stress since I am not being given the time and respect that I need to work out my problem with the bank. I am a pawn in their game, they just want to string me a long for as long as they can. They never inteded to help me. Once I go into default then I will be worth their time, but for now they are cheating the law by their bad behavior. I am being responsible and trying to work it out with the bank but they are truly unwilling to meet me unless I first go into default.

Angela of Ypsilanti, MI March 21, 2009

I had a loan modification right through my mortgage company last Sept, Washington Mutual (WAMU). I hadn’t missed or been late with payments, but I was looking at falling behind because I was spending thousands in medical care for a newly diagnosed incurable chronic illness. I thought the modification was the answer to my prayers.

I paid my payments every month, and received a letter at the end of January saying I was several payments behind. Shortly after my modification WAMU was bought by CHASE. I called WAMU, who is still handling the loan, and figured it was a simple error. They hadn’t credited one payment to my account. It is now March, I have not missed or been 30 days with a payment since I’ve owned the home for 11.5 years, but apparently my house is now going to foreclosure, because they are still not crediting my payments.

I have continued to make the payments, have called WAMU repeatedly, & no one will straighten this out. I have the documentation for the modification, monthly statements, payments deducted from my bank account, yet my house is going to be taken? I can’t afford an attorney to battle this, so I sent copies of all my documentation to 3 local news stations & ABC World News praying someone will pick up this story. I have received one back with a couple of phone numbers, and have yet to hear from the other 3.

I am too sick, too tired, and too broke to fight. If one of these news stations don’t pick this up, I have no idea what to do, other than continue my payments, and attend the foreclosure hearing, if I even know about it. Present all of my documentation to the judge and hope for the best. I have filed a complaint with the BBB, but I am sure they have a lot of complaints, & are probably not answering them because they have a D rating. I happen to be in a mortgage nightmare through no fault of my own, and can’t seem to get out of it. Stress is no good for my health condition, and I am nearing the point of walking away to save myself rather than my home

I am spending the little energy I have trying to save my home. This is detrimental to my health. I have spent money making copies of all documentation as well as postage, that I can’t afford to be spending. This is making a serious negative impact on my credit.

Carolyn of Poway, CA March 21, 2009

WA MU has foreclosed on our property 2 times when we were in negoations with their loss medigation department. I have been working with them for 12 months to get a modification agreement on 2 residences, something that should have taken 30 to 60 days at the most. One was completed finally in Oct. 2008, the other one they kept coming back with denial and asking again for update financial information. I have provided this to them 3 times along with a hardship letter, of which I really don’t think anyone reads or cares about.

I was laid off work in 2006, my husband has had 4 strokes and is on diability and unable to work. I finally started working in July 2007 full time and then in Nov. 2007, had to go part time as I work in a business that is related to the real estate market. In Jan. 2008 we started delivering newspapers to make extra and did that for about 6 months until I was hired back full time.

In Sept. 2008, they forclosed on the house we live in when we were in negotiations with their loss medigation department. The foreclosure was recinded in Oct. 2008 and then we continued with the loss medigation department. Thank goodness we had hired an attorney to work with us, as WA MU is ruthless to work with on your own. We were offered a modification in Feb. 2009 for this property, with a very high (downpayment) whatever that means in thier mind. We were offered this at 3pm PST and had to give them an answer by 5pm EST. Well we all know that is not possible considering the time difference. We notified them that we would not take the modification and were informed as well as my attorney that we could reapply in 30 days for another modification. This was also when the great Obama stimulas plan had just come out and we wanted to see what difference that would have on the situation. Well it didn’t have any!

So I called WA MU on March 19, 2009 to ask for a new modification package to get this rolling again, and was politely told that the property was sold back to the lender on March 2, 2009 and there was nothing we could do! Once again, with in the WA MU structure, the right hand does not know what the left hand is doing. My husband and I are not of the group that bought over our heads, this property was inherited and do to circumstances beyond our control, we have ended up where we are. We are both in our 60’s, have worked hard all our lives to be homeowners, and should not be facing this type of financial disaster that we have in front of us. This last sale was done in 5 days, no mailing, no publishing and no posting! Go figure how this lender gets away with this type of action. How can they treat their customers this way? If we all ran our businesses like they run theirs, we would not have any customers.

Hector of Hialeah, FL March 20, 2009

Washington Mutual keeps calling my mother about a mortgage in my brother’s name, they want to speak to him, they want to know who will pay the mortgage. He has been dead since July 25, 2005. He did not own a home and lived in an apartment. I can only assume that they are looking for some other HENRY. My mother only speaks Spanish and I keep telling her to have them call me but she gets nervous because someone is calling ALL THE TIME about her dead son! Can you help us?

I have tried to call the number that registers on the caller ID, but I cannot ever get to a human being, because I don’t have whatever account number they are calling about, and when I tried entering his social security number it doesn’t work because he does not have an account with them. She thinks that the address that the man keeps saying is 6190 West…. but she cannot tell us the rest (she is in tears by the time they get to the rest).

My mother has cried every single time they call. Then when she stops, she calls me and cries some more. I am getting really upset with Washington Mutal and want this to stop right this minute. What do I need to do, get an act of congress to stop this? Or get an attorney and file charges for harrassment.

Peter of Hollister, CA March 20, 2009

I purchased a home for 400.000. The proprty was listed at 569k prior to my purchasing the home. WaMu is collecting taxes based the higher amount. I have tried to get them to make the change.They refuse saying that is the amount that the county has placed on the property. I have a letter from the county showing that amount of the taxes is 5020 per year. I sent the letter to WaMU. Still no change. What can i do. I have thought about just paying the p&i and paying the taxes and ins on my own.

The amount of the monthly payment is 41% of my net income

Pamela of Mchenry, IL March 20, 2009

We have WaMu (Chase) for a mortgage company I have my payments up to date. So we thought. About 14,000 later they are still telling me I’m behind. All the money I sent was placed in a holding account that made us get late fees. I went without a statement almost half of the year last year but I sent them the regular payment. My husband got a letter saying he was 3,000 behind, so he called and talked to them to find out why the payment more than doubled. We needed to catch up or the house would be foreclosed.

They let me make partial payments to get it caught up. At the beginning of this year they suddenly would not do the partial payments and sent me a check back and said I was behind even more. I sent them a hardship letter with all the required information (they asked for on their web page) they needed over a month a go. Over the weekend they sent a payment statement saying that we are a month behind again.

Every time I call I get a different person thats rude with different stories. We talked with a HUD counselor, and he was a big help. I did everything he said to do to save our home. I don’t know what to do. I feel they are making it look like we are behind so we don’t qualify for the mortgage help, and they ruined our credit to find a new loan company. There are six of us living in this house and I used all my money to fix the mortgage so we could stay here. I have nothing to even get an apartment. We couldn’t afford it any way because my husband was recently laid off.

We are currently looking to refinance with a different company, but because of the credit issues, and WaMu pulling stunts like they did, I fear it will be almost impossible to get a decent loan

Paul of Clearlake, CA March 16, 2009

we fell behind on a payment and we asked for help we where told to send bank statement income and hardship letter we did 8-26-08 we got calls every night we told them we sent in all paperwork they inforemed us that a jennffer b was taking care of it we went on this for 4 mo we get a letter in the mail saying she will contacted us in 45 day we got the money together to caught up on are payment and still need the help we get a letter saying a payment was going up starting apirl 1 09

we called agian they are still working on it we get another letter saying we are diend because the paperwork is not current and up to date and that they changed companys and that we don’t make enough income to Qiulfly for the modifcation loan please help us we don’t want to lose are home we have two kids a 14 year old with sma type 2 getting ready for back surgery and a 2 year old with only 2 heart value and is getting ready for a heart surgery please find it in your heart to help us out not only are we stress on are kids we have to deal with wamu that don’t want to help

Norine of Waianae, HI February 24, 2009

I don’t want to lose my house. I got a forclosure notice in the mail just a few days ago. To my surprise my husband I have to pay back a 14,000 + attorney fees? Why cuz I lost my low paying full time job! We were only on 1 income. My husband did the part of the paperwork like they suggested, so we mailed in their paperwork…guess what they LOST IT. so now we didn’t know what was going on until now? We sent in the papers in December. Now WaMu says we will contact you within in 30-40 days.  thats too late, we would lose our house by then.

Oh, well I guess we’d have to keep calling WaMu everyday and hound on them to take action. I am not going to lose my house, not in Hawaii. I got a new job, just temp, but it’s part time. By now we are trying to see how we can come up with 14,000 in a few months….unreal! We are making calls and contact anybody else we know that can help us reduce the amount, modify the mortage, cuz the amount kept going up and up and up and soon, it was getting out of hand each month. We scrimped and tried to save, but living in Hawaii is expensive and at times it was hard. I’m just scared of what will happen with our mortage? I guess we’ll prabably be homeless and become another stastistic..all because of WaMu. They spent on those commercials.

I am so worried and haven’t told people in my family on what’s going on. Im ashamed to tell them. no one in my family has lost their home..ever! So, we get penailized just because I lost my job in September, and we knew we’d be late on the payments. But, we thought it was taken care of when we called WaMu. We had confidence that WaMu took care of things, but I guess we were wrong now they are sticking us with a forclosure.

JP Morgan has a attorney in Hawaii, so now they are not kept in the loop of things and they knew nothing about what WaMu was doing. So,I called the attorney’s office and gave them some news and they are now aware that we are trying to make progress and sense of this whole mess. Is it our fault we live in Hawaii that we don’t have a local office here. I tell you the next company we deal with will have a Hawaii office to help us deal with this and that we can meet people eye to eye. makes me so mad.

Washington Mutual Mortgage

Washington Mutual

• WaMu Bank
• WaMu Mortgage
• Refinancings
• Home Equity Loans
• Construction Loans

• WaMu Seized, JPMorgan Chase Buys the Remains
• WaMu Buys Providian
• Class Action Filed

Thomas D. Avazian of Miami, FL February 18, 2009

Amount of mortgage loan was changed/adjusted upwards by approximately 100.000 per month in January 2009. I have the set amount of approximately 1,500 programmed into my bank’s computer and sent the payment as usual in mid-January before the due date. They put this money in a suspense account, did not apply the payment, never advised me and reported me 30 days late to the 3 credit bureau’s in February. I fullfilled all money due at the new higher payment amount plus all late fees in February yet they claim they will not retract the report of late payment to the credit bureau.

My credit score declined by over 80 points and it will take up to a year to get this off my record and I am in the market for a new home, this is putting me in very difficult situation, all for a measly 100.00, I have many obligations but have never been late nor defaulted on any loan and I find their action wholly unjustified in the current market and I would like them to retract their action with the credit bureau.

Paul D Steinberg of Babylon, NY February 7, 2009

Mortgage for home with Washington Mutual. Have been trying for over two months to remedy problems concerning payment. Mortgages payhments have been made from two accounts: Business account with Chase (WAMU’s Parent Company) and one other personal account. WAMU claims they did not receive certain payments. At WAMUS request faxes were sent to WAMU for them to investigate.Additional fax (same as original) were sent by the branch manager at Chase to WAMU requesting answers. Included in each fax was documentary proof from my bank accounts that in fact the money for the mortgage was sent AND each bank provided documentation that the funds were received by WAMU.

In spite of WAMU claiming they have opened investigations via their moneyh tracking division, no answer has been forthcoming except they are working on it. I have reqested several times thaWEAMU fax a letter to me indicating the account was current. This was needed as we are renewing auto leases and in today’s times they auto supplier (Saab and Lincoln)insist upon such a statement).

Credit affected as auto lease firms have not recieved statment from WAM as requested. Saab the supplier of my wife’s vehicle is requesting the car be returned. Both require a car for business. The situation has taken hours trying to get response from WAMU, severe stress on both myself and my wife requiring medical attention and medication.

Lonelyss of Northridge, CA February 6, 2009

I have been working wiht this ban for 2 months to reduce my interest rate. Stop my negative ameritization. Today the incerased my interest rate to 6.875 3950.00 The vaule in my house has dropped. I tried to sell got a qulaitfied buyer for 629,000.00 but had a 16,000.00 pre-paryment penalty and they would not accept my offer of 11,000.00 of the pre-payment. I have always been on time never late with my payments. I was told I make too much money to refinance or reduce my rate.

I can not instantly change my payments form 2690.00 to 3950.00 per month. I am planning to walk away from my home. I simply can not do this any more.

Amanda of Boise, ID February 3, 2009

I have had a mortgage with WaMu for fifteen years. My mother became terminally ill with brain cancer and I dropped out of college to care for her in her last months. I also was not working at this time. I became 3 months behind on my mortgage payments. I called WaMu to make a 2,100 dollar payment and get completely caught up with my mortgage. They refused to accept it. They stated that 2 days prior to my call, they had put my house in foreclosure and I needed to pay over 5,100 to keep it. That included the 2,100 I was behind and attorney’s fees for an additional 3,000. I was never notified of the foreclosure or anything. The only reason I had heard of this was because I called to make a payment.

I cannot afford to make a 5,000 payment to WaMu. I had scraped the originial 2,000 together from student loans. I have found a new job and re-enrolled for my last year of college, but I’m only making 7.15/hr. I’m a single parent with 3 children, working and trying to finish my degree. Is there ANY way I can just make my house payments? I’ll lose my house if I can’t. Is it right for them to charge me excessive attorney fees when the lawyers really haven’t done anything that I know of? I haven’t been served, no paperwork has been sent to me. Nothing. No notice of possible foreclosure, I hadn’t received anything from an attorney or from WaMu/Chase. I cannot afford to lose my home.

Nicole M Beck of Milwaukie, OR January 31, 2009

I am a mortgage loan officer & due to a sporatic year with all the changes had multiple months with no commission & fell behind on my mortgage w/ Wamu, this mortgage was a Long Beach Mtg opened 8/2006 @ a Predetory lending rate of 9.20%, I sent in all of the required info to request a modification in Oct of 2008, @ 90 days behind on my payments.

Received a packet in the mail randomly (no calls, nobody from Wamu reached out to discuss the terms) January 8th containing my approved modification docs lowering my rate to 6.55, ONLY IF I SEND IN A REQUIRED CASHIERS CHECK BY JANUARY 16TH IN THE AMOUNT OF 2500 TO COVER (And I quote) This amount includes charges for the modification fee and necesary advances including but not limited to recording fees, attorney fees and costs, returned check fees and late charge fees, if any. Additional sums may become due as a result of the timing of this letter and Agreement. Nothing in this letter precludes our collections of additional advances. AND A pmt of the new mortgage amount of 1,598.75 before Feb 1st. SO, they want over 4,000 from me to modify my mortgage to terms that are still not affordable & are setting me up to fail once again.

This Agreement was sent to me DIRECTLY from Wamu, I did NOT use an intermediary party to request the loan modification. Also, escrows were not added, despite the fact that I am currently 2 yrs behind on property taxes as indicated in the FULL financials sent in when the mod was requested. I also was being asked for my 1st payment to be Feb 1st 2009, this date was never discussed with me nor agreed upon & agreeing to a pmt due on that date was IMPOSSIBLE, as I do not have commissions (income) coming in until the end of February.

Thus this agreement was not only IMPOSSIBE, If I had 2500, I would have PAID MY MORTGAGE. But also is setting me up for yet another failure both with the lack of escrows included AND the timing of the 1st payment due on the agreement. A VM was left for the negotiator on 1/14, (2 days prior to the deadline to send in the signed paperwork) explaining in detail the above. NO RETURN CALL EVER RECEIVED. Today is now 1/30, Monday I will be another 30 days behind, now at 5 months, sent in my request in early October 2008, & am being asked for an exuberant amount of modification fees from MY lender?

My understanding was that if I went DIRECTLY to my lender / servicer they were not able to charge these fees for loan modifications. This is why I went to them dorect rather than going through one of the attornies/ companies offering the service. I do not have this to PAY to have this completed, again, if I did I would have paid my mortgage payment.

I am now 5 months late on my mortgage, fees continue to accrue & collection calls were NON stop (until my home phone was shut off) My family does not have for food, due to lack of commissions & an unemployed husband, being required to pay 2500 + a 1st pmt at the new terms of 1598.75 all within 2 weeks to get my mortgage that was a predatory loan to begin with lowered to an affordble rate /pmt should not cost me 4K to do.

Again, if I had 4,000 just lying around OR was able to borrow this as the rep on the phone told me to. I would not be in this predicament to begin with as I would have PAID MY MORTGAGE. I Have all the documentation to support this claim, as I was not able to sign the modification paperwork & send it due to not having this Wamu required from me to secure this modification

Harriette B. Ware of Carson, CA January 31, 2009

This month, 3 payments were taken out. Her comment Why are you just inquiring now, you have been with us for 10 years and never inquired before. Well, I was charged 99 in fees because the third payment was not in the account after paying two payments and frankly, I do not remember 3 payments being taken out of my account ever. It was not until I looked at statements again and was able to see a cycle showing 3 payments required. Any case, this woman did not have the right to respond to me in that manner.

Probably, nothing will happen with this complaint, but there needs to be some training for workers on customer service. The young gentleman at the desk was very helpful and sensitive, but the woman in the mortgage dept., she had to be one who answers phone inquiries was wrong. From the location above, the mortgage dept. was contacted.

Diana of Wesley Chapel, FL January 29, 2009

WAMU is requiring us to increase our flood insurance to match our home owners insurance coverage on a heloc loan on a home where they also hold the first mortgage. The home is and has been continually insured for more than the loan balance. They also force placed flood insurance, apparently mixing up our file with another customer with the same name. They eventually cancelled but have not refunded the premium which came directly from the heloc account. We have discussed this matter with many representatives of Washington . They say they will straighten this out but they just send another letter restating their position, stating it is their policy, a policy which does not appear in any documents we signed when we took out the loan. Our loan is current.

The insurance increase premium is about 100. My husband suffers from hypertension and is visibly shaken when he has to talk to the customer service personnel who are unable to help us. I fear for his health.

Joan of Piscataway, NJ January 28, 2009

I went through a divorce in 2000. I kept the marital home. It had a 146,000 mortgage on it, with my ex as the primary borower, and me as the co-signer.. I dont’ work and still don’t. He signed the title to the home over to me. That is in my name alone. The mortgage was bought by Washington Mutual and his name and mine were both on the mortgage for quite awhile after the divorce. And, the mortgage loan number was the same as the one assigned to us when we first got this loan from another institution.

Suddenly one day I notice that I have a new loan number and that his name is not on the statements anymore.. Just mine. I never did a quit claim or refinanced the mortgage. I called them after noticing this and spoke to a woman. She said this was done awhile ago and she had no idea when or why I was assigned a new loan number! I gave up.. Since then, they sold my mortgage to Wells Fargo. I don’t talk to my ex husband and now I’m wondering how he managed to get his name off this mortgage! I kept the loan which is at 6 3/4% since I did not want to be totally reponsible for repaying if I were to run out of money. I could have refinanced at a lower rate if I had only been notified of this! I am still trying to get WAMU to give me the hows and whys of what took place! I am so angry that I was not even notified! And why the new loan number? What’s up with that??

I still have a 6 3/4% interest rate and I don’t even know if I will be able to refinance since I have no job and no alimony coming in. I’m 62 and live off a small pension and now SS which is only a bit over 700 a mo.

Patricia of Detroit, Michigan, MI January 28, 2009

In March of 2008, Ms. McKissick contacted me by phone and asked if a loan modification would help. At the time, I had an adjustible rate mortgage with a payment of 1114.20 a month. It is important to note, the rate had not adjusted. She stated, while the loan is being modified, you do not have to worry about making payments, I accepted. A few weeks later, the Loan Modification papers arrived. I was instructed to sign and send a money order in the amount of 95.00. When the papers were returned, they showed a payment of 707.09 as of May 1, 2008. Apparently, the time it took to modify the loan, WAMU took upon themselves to report my payments as being late.

I have lived in my home for 23 years. I have mortgage it several times. I have never been late or missed a payment since I have owned a home. I am sick and tired of loan agencies being allowed to take pen and ink to paper and ruin the lives of families. The incorrect information which appears on my credit report is preventing me from getting rid of this ill-fated loan. The agency that initially set this loan up,the State of Michigan have shut them down. I am now sueing the company and according to my attorney, whoever purchased the loan, purchased everything that comes with it. In my opinion, WAMU should be taken to task for the hardships they have brought upon families. If anyone knows of a class action lawsuit, please forward the information tto me.

I applied for a VA Loan and I was ask to have Ms. McKissick to write a statement concerning her comments about the mortgage not needing to be paid during the modification process. I contacted WAMU to address the issue, however, Ms. McKissick is no longer employed there and they have no clue of where she is. I am a 65 year-old widow. I am not able to go through these stressful situations. I have documents to prove all allegations.

Shawna Crayton Renando of Monroe, WA January 26, 2009

I recently sold my home and I cant believe all the fees added to my closing and payoff balance. I was sad to sell my home, but extremely excited to get out from under Washington Mutual Home Loans. I have been going back in forth for years about outrageous fees [they] charge customers. When I went online to see who else I wasnt shocked to see hundreds of people have had the same problems. [They] state that I havent paid my mortgage since October. I have check numbers and days [they] cashed my checks in November and December. [They] state my property taxes werent paid, so put that on my closing. When paid those out of escrow in October [they] tacked on hundreds of dollars of late fees. When I pay my mortgage late, I always add on my late fee. So how is that possible?

When I have have called WAMU mortgage I dont get the same person twice. There are no contact people who you can talk to. Chances are when you call back, there is nobody by that name. I paid my late fees and my back payments in March of 2008 in the amount around 5,000.00 to bring my loan current. It only took [them] a month to start holding my checks again. Every time I made a payment [they] held it up until a week after it being officially late (the 15th). Then slammed me with a late fee. Which then I added that fee to my next payment. .

As far as the Escrow, I would have a positive amount if [they] actually did what [they] were suppose to do when I refinanced my loan. That was to have my property taxes taken out of my payment. Of coarse that didnt happen. I would like an explanation on all of these charges: Recoverable Balance of 580.00, Other Outstanding fees of 10.65, Payoff statement fee of 30.00, Reconveyance Fee of 45.00, late charges of 319.22, Interest to 1/23/09 of 4,095.54, Escrow/Impound Overdraft fee of 1,817.77. And why are you charging an interest of the payoff of 216.96?

Are all these fees [their] way of ripping off the customer. I want refunds on the payments [they] said I never made. Refunds on all these Misc fees [they] are asking for.

Michelle L. of Portland, OR January 25, 2009

Washington Mutual hold the mortgage to my home my husband and I recently fell into some hardtimes due to economic conditions he lost his job and also had medical prblems are income was impacted significantly. I contacted WAMU to inform them that I could not afford to make the 2mos that I was behind in my mortgage they offered me a modification in which they stated that they could put my past due payments on the back end of my loan.

I paid 1800 in processing fees for the modification only to find out just recently that they never modified my loan, I continued to make payments as I could and communicated with WAMU reps who had no idea what they are doing. I recently asked for another modification because the rep assured me that it would possibly save my home I submitted paperwork in 11/08 its now Jan 2009 and they keep telling me the same old thing their still processing my paperwork in the mean time we have received a forclosure notice and are planning to vacate these people won’t give you a straight answer they just want you to continue sending them with the intentions of taking your home. Wamu is scamming decent hard working people and there is no one to hold them accountable!

Kirstin of Port Orchard, WA January 22, 2009

Somehow, WAMU cancelled an auto-pay that has been in existence monthly, since 1991. I did not catch the problem until several months later when they posted FORECLOSURE notices on each door of our 4-plex. There was never a phone call, never a certified letter of notice, nothing except a letter amongst all their solicitations for their credit card–which I never open. (I have REPEATEDLY asked to be remove from their junk mail list–one must enter the bank and sign off on it.) Is that LEGAL? I’m handicapped–I seldom get out of my car.

At any rate, once I discovered the payment problem, I immediately covered the original oversight. However, WAMU returned the check because the late fees were not paid–THEY CALCULATED THE WRONG LATE FEES–but failed to notify me of the corrected amount. I could go on and on–they eventually notified me of the FORECLOSURE SALE DATE–inspite of the fact that I was then current. WAMU is spread out all over the country, each location serving a different function. No one knows what another department is doing since the employees really cannot contact the managers needed to track down problems.

WAMU thus far insists I pay all the attorney fees, foreclosure fees, recording fees and all that they did to begin the foreclosure process. I was compliant from the very beginning. There was ALWAYS several thousand dollars in the account from which the mortgage SHOULD HAVE BEEN DEDUCTED. WAMU has never been able to give me the reason the payment stopped–other than the computer occassionally kicks out a loan payment. In this instance the foreclosure process was started on a property that had already been paid off 80%.

Karen of Kennesaw, GA January 15, 2009

I sent two month’s mortgage payment to WaMu. Instead of putting towards the two months it was intended for, they put in on other aspects of the loan. As a result, I keep getting calls concerning being late on payment. Although I have been assured corrections to my account is being made, I continue to get calls and certified letter.

Extreme emotional damage!

Kathleen of Oakdale, CA January 9, 2009

i purchased a lot with 2 houses, one of which i found out is illegal. i feel it’s appraisal error that wamu chose to loan money on. the septic also shouldn’t have passed escrow. county is requesting one house be converted back to a garage and septic fixed.

meanwhile i only have one house left on a huge loan. both wamu and i were cheated. i want wamu to lower the principal to a rate i might have paid for one house since that’s all i have. they denied my application for modification and didn’t really say why. like i said we are both victims in a way but i don’t have deep pockets and am not able to pay for what i did not get.

Kurt of Land O Lakes, FL January 6, 2009

WAMU has refused to aknowledge my flood insurance, which has been adequate for over 2 years, and remains adequate even with their new higher coverage equirements. I have faxed the dec. page to them twice and my agent has faxed it to them twice. today, I received my statement, 2 weeks prior to the autodraft and WAMU is going to charge me 350.62/month for forced placed insurance. 3506 for the year: TEN times what I paid AAA for my current flood insurance.

The WAMU loan is an equity line. The main mortgage is also with WAMU and there is no mention of any problem with flood insurance on the first mortgage statement, only withe the WAMU equity line. Both loans are listed on the policy declarations page. I believe WAMU attempted to stick this flood insurance on the LOC becauuse it is a variable rate and would probably just blend in, since the payment varies each month. Ironically the payment is only 160 per month, which is why I noticed the 350 add on right away. Anyone with a higher monthy payment may not notice the extra charge, or may just assume the rate went up.

Tammy of Green, OH January 6, 2009

I sent in modification papers towards the end of September 2008. I called several times in October and they had received the paperwork October 1st. I called back in November and our file had been assigned to a negotiator the first part of November. I had my husband call today Jan. 5, 2009 and they told him the file was just assigned to a negotiator Dec 18, 2008!

I called them back and talked to Kimberly and explained the situation and because there wasn’t any notes in their system, which I know there were because everytime I spoke with someone they said they were putting notes in the system and I could hear them typing. I told her again that our file was assigned to a negotiator and how would I know that they were called a negotiator if I hadn’t been told that our file was assigned to a negotiator. She continued to repeat that there wasn’t any notes and our file had been assigned in December! Finally I told her I hadn’t made Novembers payment and Decembers payment and I’m not making Janurary or Feburary payments until I hear back from them about the modification.

In my case, I don’t care what the outcome is because I will just file bankruptcy and in 2 – 3 years buy another house when the housing market is good again. I’m not thrilled about having a 1700 house payment for a 800 / month house. I work hard every day as does my husband and we deserve to own our home but it’s not going to be like the way that WaMu wants it. I don’t want to pack my family and my belongings up and move and start over that’s the last thing that anybody wants to do so I am giving WaMu 2 more weeks to let me know their answer before I do pack up.

So I got nowhere with WaMu and she said that I should hear from them by Monday the 12th and I guess I will have to wait and see what they have to say. You would think they would want to work with homeowners by lowering their payments – they still get their money and the homeowners have money to pay their debts and maybe spend a little to boost this economy. I guess WaMu / Chase wants to own all of their houses and then go out of business like the rest of the banks that have failed because they won’t have any cash flow when the right number of homeowners walk away from their homes!

There is so much stress because of this mortgage crisis. We have 4 kids and all of our other debt it’s just crazy! It keeps my husband I on edge every day all day long and it’s hard to enjoy life or your home when you don’t know what to expect every time the phone rings or with every knock on the door. WaMu – have a heart and do your part to keep hard working americans in their homes that they deserve!!

Sandra of Cambridge, MA December 30, 2008

Washington Mutual bought my mortgage from my original lender five years ago. For the past 5 years, I have been mailing my mortgage payment to WAMU around the 9th of the month. Although the official due date is on the first of the month, because of the pay schedule of my employer, I can’t mail the check until a week into the month. Well, I could send it earlier, but it may bounce if WAMU received it too early and cashed it immediately.

For five years this has worked fine. But in the past three months, I have been charged for two late payments. They have been sitting on the incoming check and not cashing it until one day after the grace period (which ends on the 16th each month.) I would love to know if anyone else has noticed this pattern recently, where they just happen to receive your check on exactly the 17th day of each month? If there is a pattern of this happening, I think a class action lawsuit is called for!

Jerry L Ellsworth of Manteca, CA December 28, 2008

In september I wrote wamu stating that I was not going to be able to make oct. or nov. payment. They responded that ther was nothing thay could do. get this,becouse I was currant! OK I know how to fix that. due to changes at work and some high vet and doctor bills / five doller a gallon gas plus I had to pay back a personal loan to a relitive before the end of the year I havent made a payment in three months and january doesn’t look good.

I get calls from wamu everyday from different locations. the left hand doesn’t know what the rihgt hand is doing. all the phone people just ask the some questions but have no answers. I owe twice as much as my house is worth 09 is going to tank even worse, I can’t wait 15 years to break even. I can rent a house like mine for half what wamu wants/if im not building any equity aren’t i just renting. Ican save about 17000.oo a year renting some where else. wamu can’t scare me with threats. Iwish that they would make me an offer to modify just cuz I’d hate to pack all this stuff/but to get out of this mess and save 15,000 a year yea i’ll move

Tom of Bensenville, IL December 26, 2008

I will tell you this I started my longer journey to get a better mortgage rate approx 18 months ago and i went into their branch offices and inquired.I was told that there is nothing they can do for me.Maybe sometime in the futre.I do have 2 loans for the house I live in,both are fixed but at high rates.I have heard that as long as you make your payments on time and you are consistant in this manner you will never qualify for a revision in the rate you pay.I totaly belive that.You have to become a bad guy you have to start to skip perhaps 2 payments before you get their attention.There are numerous firms that charge a fee and state they will do the talking to the bank for you,I have heard that there are companys that help consumers and do not charge for assisting in communicating with the bank.I would like to know who they are.

The struggle goes on to make the payments.

Coletta of Ventura, CA December 23, 2008

I got two late notices today from my home mortgage bank which I pay via WAMU online banking. Both payments show that they were sent on time AND my balance reflects that both payments were cleared. I called WAMU customer service to get the date that both checks were cashed so I can give that information to my mortgage company. I have NEVER made a late payment and I DO NOT want screwing up my credit.

Well, the customer service reps says that even though my balance shows that the checks have cleared..they really haven’t. I am told they will have to look into this to see why it is deducted from my account, where the checks really are, etc, and that they will pay the late fees. I DON’T CARE ABOUT THE LATE FEES. I want to know 100% that you make sure my credit score is not screwed up AND I want to know why you show the checks as cashed when they really aren’t. I am FURIOUS!

We just put an offer in on a house and both have credit scores in the HIGH 700’s. Late payments on a mortgage will not only mess up our credit score but will cause major issues with the bank we just got approved on a new house for.

Jay of Stafford, TX December 12, 2008

Where do I begin…it’s been frustrating dealing with WAMU reps. My home was going under foreclosure and I was considering filing for bankruptcy. You would of thought, from what everybody says that banks are not in the business of inventoring homes. When an opportunity to modify your home loan is offered to you, who in there right mind would pass that up. So the process begins, supposidly. Zee was the contact person for the modification in the lost mitigation department for Wamu. According to specific instructions given to FAX all documents which included a cashiers check , bank statements , payroll stubs …. and so on. Everything that was needed was sent. Call after call after call. Rep after Rep after Rep. Everyone and their grandma involved in passing the message that Zee would call me back. His mailbox was always full. A dozen reps. reading my file telling me that the sale of the house was postponed. Again call after call. No one to get a confirmed answer. Tried to get hard copy of modification via email or even a reference number, still nothing. Day after day.

So here I am today. While the waiting game continued. A month went by and behind the scenes under my nose, my house was being sold. Notice on the door of foreclosure. Notice on the door of eviction. Who’s responsible? WAMU? Chase? JP Morgan? Do they even care? Do people working for these companies have accountability? Bail money for this, bail money for that. I did’nt even ask for bail money, it was just a simple modification. I would have even accepted a higher rate. Good thing that the new owner was not looking to move in, but was an investor, and gave us 2 months to relocate. I beleive that some how, some day, justice will be served. Today I’ll rejoice and thank GOD that I’ve got family.

Stan of Newport Beach, CA December 12, 2008

We tried to get the payoff on our mortgage which we have through you, via the internet and your computer and the computer told us we would be charged 30.00 for that info.That is not very good customer relations. We have had a bank account with you for several years and it is hard to understand why you would do this. Please call on the phone and we can discuss this. Thank you,

Paul of Charlottesville, VA December 11, 2008

I was given permission to do a short sale on my home which I was three Months behind in payments. My real estate company sold the house we closed on April 7th 2008 through Stewart title company of Staunton VA. Washington mutual reported it as a foreclosure to the credit reporting agenesis I have tried to get this solved but they refuse to call me back or answer me in any forum.

My credit now has gone down the toilet the other companies I do business with have raised my interest rate do to this.

Kim of Apple Valley, CA December 11, 2008

No one will call me back and they keep saying they lost paper work and re fax it. I really thought they would help, but I guess not. Now I realize if I wait any longer I will be out of money and they are stringing me along. Im to the point of a short sell and a deed in lieu. But It looks like they wont even do that. My escow is out of this world. Im sunk.

So someone is documenting our calls. Theres no hope for us with wamu.Once again the goverment screwed us with our tax money and the rich get richer. I will have lost my house in the next 2 months. I am out of money and wamu wont call me back. Im to tired and stressed out on waiting. every time i call they hang up on me and no one seems to know anything and why am I talking to people in another country. Its very stress full and I cry all the time.

Amy of Plover, WI December 8, 2008

We have a mortgage with WAMU. Up until we filed Chapter 13 bankruptcy we were fine. My father, my husband and I are all on the mortgage. When we filed the bankruptcy I received a letter that said we were to mail our mortgage payment directly to WAMU. I did that in September, received the payment back in the mail. Called my attorney and they did nothing. Called in for the October payment and they said they would not discuss my account, I had to contact their attorney. November came, sent the payment they sent it back again. Called my attorney. Two days later I received a certified letter telling me that we defaulted on the bankruptcy mortgage related rules and they were now asking the bankruptcy courts to take our mortgage off the stay so they can foreclose upon the property.

The attornies filed and appeal which will be heard in December. In the meantime WAMU hired a private company to cut out the lock on our front door, secure the house and put a new lock on the door. We came home last night and couldn’t get into our home. I called the company they hired and they said they did it by order of WAMU. I am at my wits end. Why would the attornies not even get a letter stating they were going to secure the home. It makes no sense to me.

Washington gave all this money to WAMU because of their bad debt and they are still in business. We are the ones paying for this and yet we are the ones who suffer. What would WAMU have done if the government changed the locks on the CEO’s office doors? I have asked and asked for them to help lower our payment and all I get is print the forms off the internet, fax them in and wait. How long is a person to wait. I need some help and am hoping if a ban of people come together we can beat them at their game.

Maria of Menlo Park, CA December 5, 2008

We try to do a loan modification and we ask WaMu in a very kind way to help us to modify or just wait for us because we were buhind 4 months and we sent a payment to them…but I guess my home was target by the assets group that sharks! my house was in Belmont Ca 14 years old we live there for 8 years! we had a balance of 624K and we had a bad time because my husband was very ill and i was taking care of him with not enough funds to cover the months we were behing instead i try to pay the taxes (very silly from our side) because at the four moth I received a notice of default)in January 2008-by February 13, 2008. I got a man at my door he said he wants to get my house- I did not believed that it happen-I had too many things on my head.

The WaMu sold my house to the shark Raymond and he did not allow me to pay and had my house back-he re-saled for almost double the amount we own to the bank this sharksold my house for 1.2m he just plan with the bank to get from me to 629K it was my balance with the bank WAMU. all my savings and equity that I had inmmy home..was took by this broker Raymond with his company Founders in San Francisco….he had been doing a lot of fraudes and scams with people in bad situation like us.

Janina of Zion, IL December 1, 2008

For the past two years, I have been paying the mortgage on my deceased mother’s house. I cannot change the mortgage into my name because the property is in probate. WAMU put forced insurance on the house because my name is not on the mortgage (but it is on the insurance policy and has been for years). Even after faxing several death certificates and papers verifying that I am the executor of the estate.

One month later, I’m still having difficulties getting someone to discuss anything with me. First, I was told that I faxed the papers to the wrong number (which they gave me), then I spoke with at least 12 people afterwards who told me there were no notes in the computer authorizing them to speak with me. In the meantime, WAMU increased my mortgage 100 and told me they had sent a letter stating I had a 701 shortage in my escrow account. I never received the letter. Now I don’t have the option of breaking down the amount I’m short to decrease my monthly payments. They want the 701 in full.

Leslie of Lake Placid, FL December 1, 2008

Well, I ran into some financial troublw about one year ago. I called Washington Mutaul about my mortgage and I told them about my situation and ask them what to do. I was told to fill out a hardship letter and follow the procedure and I would be notified of wheather or not I was approved.. Well, I got letters stating that they did not recieve my documentation I needed to resend it. I sent all documentation at least six times or more. I kept getting the same result. I called several times got the same thing, we need documentation.

All I wanted them to do was to please lower my interest rate so that I could afford my home. I told them that I was hoping my situation would just be temporary. They gave me the answer of we have to review all documentation.. I was so frustrated the same answer over and over. I finally called after about three months of being behind and ask if I could pay half now and the other half in two weeks. I was told NO that my late fees would be taken out and they need the whole payment. I was left with no other choice but to file bankrupcy. Before I did that I tried to get help noone would help me. Sll the answers I got was sorry your debt ratio is higher than your income.

The new bill the President Bush signed to help people in this situation I called them was told the same thing, sorry sell your house, short sell it. I then hired and attorney to help me save my house that right now I am going to lose because I just can’t make it without help. I am at my wits end here trying to save my house and noone will help.

I am going to lose my house. All I wanted was for someone to help me. I got nothing!

Royan of Lakew View Terrace, CA November 26, 2008

This time WaMu phoned to tell me no mortgage payment had been made. I paid a second monthly payment. WaMu will not allow contaact with a person to straighten out their error. The computer disconnects each time I follow instructions to provide my SS #. If I provide the loan #, the computer also hangs up. If I try to find a human, using the key pad, the phone hangs up. WaMu has an extra 3600 of my money and now has sent me a statement saying that a payment is due on Dec. 1. I can’t contact ANYONE!

I am a generally calm person presently so angry that I might swear at anyone now answering the phone. I cannot devote my business day to companies that don’t tend their phones.

Anish of Scotch Plains, NJ November 14, 2008

They charge me for my home insurance without notifying me. My home insurance premium went up from 1000 to 6643 per year. This was without my approval. I also called WaMU and they told me that they charged me for two years and are not willing to negotiate.

My mortage amount went up by 2000 to 4000. I cann’t afford this. I may have to go bankcrupt if they don’t adjust my payment. Also, now they want to charge late penalty. Need some help to resolve this.

March 31, 2010

J.P. Morgan Chase Chase Paid 3 Cents on the Dollar for Foreclosed Loans

Filed under: Uncategorized — fvbadmin @ 3:07 pm

(With excerpts from Fortune and CNN) — To date denying all but about between 1.5% to 3% of homeowners applications for permanent loan modifications, especially pre-qualified borrowers who meet the basic criteria for Obama’s Making Home Affordable Plan, has always seemed suspicious and odd. But in light of a new report on CNN news today, it takes on a new air of heinous greed. For instance, the WaMu sub-prime borrowers (and there were many) whose loans wound up in the hands of J.P. Morgan Chase may be interested in this piece of information. The next time you are told that the dcision to approve or deny your permanent loan modification is in the hands of the “investor”, bear this in mind: The investor, in most of these cases, is J.P. Morgan Chase, and J.P. Morgan Chase paid only $0.03 on each dollar of your loan when they purchased it from WaMu. So if J.P. Morgan Chase lowers your interest, even dramatically, they still have a very profitable, tasty fattened pig just waiting to be roasted when ever they have a craving. And, no matter how they prepare the pig, it will still be a fat and tasty one. Purchasing loans at 3-cents on the dollar puts every option in the bank’s court. If they sell your home for 15-cents on the dollar they can still make a profit.

Fortune printed this explanation of how J.P. Morgan Chase profited while so many others lost:

If there was one bank that managed to emerge from the financial crisis unscathed, it was J.P. Morgan Chase. Led by CEO Jamie Dimon, the massive financial services company never posted a quarterly loss during the downturn.

J.P. Morgan (JPM, Fortune 500) shares have returned 82% in the past year, beating the S&P 500 (SPX) by 29 points, as its own trading floor boosts profits and investors anticipate consumer credit losses declining. In its most recent quarter, J.P. Morgan’s profit more than quadrupled to $3.3 billion.

J.P. Morgan got a great deal on WaMu, which it bought out of receivership for 3 cents on the dollar. Every time WaMu does a foreclosure, J.P. Morgan makes money. WaMu’s a beautiful thing.

So, J.P. Morgan Chase, how about spreading a little bit of the good will you were so fortunate to have received and do something that will not only not hurt you one drop, but it will put you into the category of “humanitarian”: Spare hard working, sincere, desperate families from the hardship of losing their lifetime investment, their roof and the credit they need to safely house and care for their children. Give them a lowered interest rate, a permanent loan modification, and continue to collect checks from them for many years to come. It’s a win/win situation and it will bring you good karma!

In its most recent quarter, J.P. Morgan’s profit more than quadrupled to $3.3 billion. J.P. Morgan got a great deal on WaMu, which it bought out of receivership for 3 cents on the dollar. Every time WaMu does a foreclosure, J.P. Morgan makes money. With this in mind there is plenty of room in their business plan to have a conscience that can make a good profit, safely, without creating fabricated excuses to deny permanent modifications and to through families and children out on the streets.

March 20, 2010

Making Home Affordable vs. Making Foreclosure More Profitable for Lenders?

Filed under: Uncategorized — fvbadmin @ 12:12 pm

Famous people and their friends are foreclosure victims too… As a case in point, let’s say President Barack Obama had a family friend they visited at their home. And let’s say that this personal friend had some financial hard times. And let’s say that the Obama family has dinner with this family in their home regularly and could readily attest to the fact that these people actually live in this home. In other words, let’s say that the president himself knew first hand that this family actually lived in the home and was not just pretending to live there:) Well, in the case of a friend of one homeowner we at have come to know and whose story we have been following for some time, it’s not Obama who is the personal friend, but it is the the talented musician who played the organ solo on Stevie Wonder’s Golden Lady Album who stayed with the family in their home and socializes, works with with the husband co-writing and producing commercial music… And proof of occupancy is a very valid safety precaution and a good thing that avoids people who try to cheat the system and get loans modified for property that they do not live in. But when it’s used as a delay tactic or a loophole against the goals of the Obama Making Home Affordable plan, it’s not helping anyone. But in this case the homeowners submitted numerous utility bills for months and months, and the service address is clearly indicated on all the utility bills. The issue was that after accepting these utility bills as adequate for months, Chase suddenly decided that the service address and account names on the utility bills are not sufficient since, in this case the homeowners had the utility companies send the bills to their PO box. As in the case in many rural areas and on busy, insecure streets, the homeowners have their mail arrive in a more secure PO box rather than sit out in front of the home where mail had often disappeared from the mailbox in the past. Hand delivered legal notices of Sale had arrived at the very same address and were signed for by the owner occupants, sent by the Bank — Chase — or its law firm — Northwest Trustee Services. If the real interest was to ascertain whether or not the couple was residing in the home, the bank need only check its own records. Or call the utility companies.

We are not advocating that famous foreclosure victims should not be treated any differently than the rest. We are just trying to show that the all too common reasons provided for denying permanent loan modifications seem to be coming a place other than an effort to get to the truth, and what seems to be a special interest agenda. When people do meet all the criteria for a permanent loan modification and are denied for reasons such as no proof of occupancy, or for instance situations such as this story:
On the Saturday before Thanksgiving, Lesa Herron of Santa Rosa, Calif., opened a letter from Chase Home Finance. She’d been denied a permanent modification under the federal government’s loan-mod program, Chase said, because “Your hardship is not of a permanent nature.” No other reason was given.
Pro Publica has

Through interviews with housing counselors and homeowners, we found six cases in which homeowners were denied because the hardship was found not to be permanent. All were in November, and all were denied by Chase , JPMorgan Chase’s mortgage servicing arm.Chase seems to be alone among the largest servicers in having used that reason for denial. The criteria Chase used to judge a hardship temporary are unclear.

Housing counselors told us that homeowners denied a modification for that reason should reapply. The program does not allow homeowners to appeal denials, and housing advocates have criticized the program for not providing an effective way to challenge servicers’ determinations.

Christine Holevas, a spokeswoman for Chase, said the company “adapts as quickly as possible” to the Treasury’s guidelines. When asked, she did not say whether Chase would review the applications of homeowners who’d been denied because their hardships were considered temporary.

As previously reported, the largest servicers have lagged in approving homeowners for modifications. Together, those servicers account for more than 60% of the 3.4 million mortgages eligible for the program, but few homeowners have been approved for lasting modifications. About 425,000 Chase customers are eligible for loan modifications, according to the Treasury Department. Only a little more than 7,000 have received permanent modifications.The Treasury Department has laid out extensive guidelines for the $75 billion program in an attempt to standardize servicers’ evaluations of applicants. When a servicer joins the program, it signs a contract that says it will abide by those guidelines. In return, the servicers receive incentive payments from the government for each modified mortgage.

Story from

Nathan Reynolds is something of an expert on the government’s foreclosure prevention program. A mortgage broker who’s worked in the Chicago area since 1998, he’s seen both his business and his home’s value plummet in the past few years. After receiving his own trial loan modification from JPMorgan Chase, he’s helped others apply for modifications through the program on his own time.

But in November, after Reynolds had made trial loan payments for seven months, Chase told him his mortgage would not be permanently modified. Chase had determined that his personal financial troubles were only temporary — because Reynolds had expressed optimism that the administration’s policies might rescue the housing market, boosting his income.

That’s not a legitimate reason for a loan servicer to deny someone’s modification, according to the Treasury Department’s guidelines for the program. And Reynolds’ experience — along with the cases of two other homeowners examined by ProPublica, shows how servicers have created unnecessary hurdles that, in some instances, violate the loan program’s rules.

Housing advocates say they frequently see homeowners rejected or kept in a trial modification for questionable reasons. “There’s a real resistance on the servicers’ part to making permanent modifications,” said Diane Thompson of the National Consumer Law Center.

The administration set a goal of helping up to 4 million homeowners through the $75 billion mortgage modification program [1] as a way to blunt the boom in foreclosures. Treasury has produced a growing number of mandatory guidelines for banks and other loan servicers to review applications and perform the modifications. In exchange for tailoring loan payments to 31 percent of the homeowner’s monthly income, both the servicer and the owner of the loan receive incentive payments.

Servicers representing 85 percent of the housing market have signed up to participate. Applicants must first go through a trial period before their mortgage payments can be permanently reduced. But servicers have been slow to convert hundreds of thousands of trials into permanent modifications — as of November, only about 31,000 had been made permanent [2]. That spurred Treasury to publicly criticize the servicers’ performance and to put out new guidelines in recent months to speed up the process.

Treasury said recently [3] (PDF) that the effort has resulted in a “significant increase” in offers of permanent modifications, but numbers demonstrating how significant won’t be available until February.

ProPublica has reported [4] since last June on homeowners’ frustrations [5] in receiving a prompt answer [6] from servicers, particularly the program’s largest servicers — Bank of America, JPMorgan Chase, Wells Fargo and CitiMortgage. In response to widespread complaints, those servicers have dramatically increased staffing and touted other improvements, such as new document management systems.But when homeowners do get an answer, the reasons don’t always jibe with how the program is supposed to work. Housing advocates say this is a direct result of a lack of effective oversight of servicers in the program, something we see often.

‘An Excuse to Deny Someone’

Reynolds was a prime candidate for a loan adjustment and was among the earliest homeowners to receive a trial modification.

His mortgage brokerage business had followed the market downward, and as a result, he’d fallen three months behind on his interest-only mortgage. Area real estate cratered. His own home, bought in 2001 for just over $400,000, had rocketed up to about $1.2 million in value in 2006, and then down again to about $350,000. With a refinancing in 2005 and a home equity line of credit with Countrywide, his mortgage debt exceeded his home’s value by more than 70 percent.

Soon after the loan program was announced last February, Reynolds applied. He received an application in late April and was accepted, making his first payment of about $2,400 (down from $3,300) in May. He made six more payments. Like many borrowers in the program, he says he was asked over and over to send the same documents and later, updated versions of those documents. Finally, in late November, he received an answer: He was denied a permanent loan modification.

The reason? A Chase employee explained to Reynolds that they’d determined his financial difficulties weren’t permanent. In his application, he’d written that he believed that the government’s rescue efforts would “save the U.S. housing market” and that his business “will once again be profitable.” The Chase employee told him that statement indicated his hardship was only temporary.

“That’s just nonsense,” said Thompson of the consumer center. “To me, that sounds like an excuse to deny someone.”

Chase spokeswoman Christine Holevas told ProPublica that Reynolds had been denied “because the skill and ability is still there to earn the income.” Since he’d “stated in his letter that business would be picking up,” it was “not considered a permanent hardship,” Holevas said.

Such a determination contradicts Treasury’s guidance to servicers for the program. A FAQ [9] (PDF) issued to servicers says the program does not “distinguish between short-term and long-term hardships for eligibility purposes.”

When ProPublica asked about this guideline, Holevas did not directly respond. She did offer another reason for denying Reynolds: Chase’s review of financial information showed his income had not decreased.

Reynolds, who has a wife and two small children, says no Chase employee had made such a claim to him and that the documents he provided show that his mortgage business dropped more than 50 percent in 2009. He submitted a new hardship statement in December, in which he tried to make clear that his troubles are real and lasting. Holevas said those documents would be reviewed.

Now, Reynolds says his finances are at the breaking point and bankruptcy appears unavoidable if Chase denies him again. “I did everything that was asked of me, but Chase has me backed into a corner that I cannot get out of.”

The Nine-Month Trial

Six months into a trial modification, Gary Fitz of California still doesn’t know whether or when his mortgage will be permanently modified, and he’s been told he’ll have to wait for a few more months.

Under the program’s design, the trial period was supposed to last three months, giving time for the servicers to collect and evaluate the homeowner’s financial information. At the end of the trial, if the homeowner fit the program’s criteria and had made all three modified payments, the servicer was supposed to promptly make the modification permanent.

Instead, trial modifications routinely last more than six months, homeowners and housing advocates say.

Click to see our chart of the performance of servicers in the foreclosure prevention program
Click to see Pro Publica’s chart of the performance of servicers in the foreclosure prevention program

[10] There are a number of adverse consequences [11] of a trial period’s dragging on, said the consumer law center’s Thompson. Because a homeowner is not making a full payment, the balance of the mortgage grows during the trial period. The servicer reports the shortfall to credit reporting agencies, so the homeowner’s credit score can drop. And most important, says Thompson, the homeowner isn’t saving money in case the modification fails and the home is foreclosed. “Keeping someone in a trial modification really does not do them a favor,” she said.

Fitz’s case shows why some homeowners have remained in limbo so long.

He sought a loan modification in the spring of 2009 because his wife’s salary had been cut. Like millions of others, he applied soon after the administration announced the program last February. He was accepted for a trial modification and made his first payment in July.

Fitz was prepared for an uphill struggle. A Wells Fargo customer service representative told him early in the application process that he should make seven copies of his financial information — because Wells Fargo would likely lose it more than once. He says he’s sent the same paperwork in five times.

When the trial stage lasts so long, servicers commonly ask homeowners for updated financial information months into the trial period. Fitz, for example, submitted his paperwork for the first time last spring. But when Wells Fargo requested an updated package in December, it showed that he’d received a pay raise last June of about $80 per month.

Because of that, Wells Fargo started him over on a new trial period – even though his trial payments climbed just $27, from $1,733 to $1,760. His first payment on the new trial period is due Feb. 1, meaning that by the time he completes it, he will have been making trial payments for nine months.

Wells Fargo spokesman Kevin Waetke said the company does not comment on individual borrower’s cases. He did say, however, that “the federal guidelines require a final review of updated financial documents before moving any Home Affordable Modification from trial status to complete.”

That’s not true. A Treasury guidance [12] (PDF) to servicers issued in October, meant to streamline the review process, says there is “no requirement” to “refresh” the homeowner’s documentation as long as it was up-to-date when it was originally received.

Wells Fargo also appears to have begun Fitz’s second trial period contrary to Treasury guidelines. A Treasury guidance [13] (PDF) last April said that a servicer should not begin a new trial period if a homeowner has only a minor income change (defined as exceeding the “initial income information by 25 percent or less”). Guidelines issued later [14] (PDF) are even more restrictive about starting a new trial period. The reason is clear: The purpose of the trial period for the homeowner is to demonstrate the ability to pay, and such a small change in income is unlikely to affect that.

Asked to respond, Waetke said that “given the complexity of the program, the volume of calls we receive and the number of modifications currently in process, there is the potential for a mistake to be made.” He added that Wells Fargo would continue to review the case.

Buying Time

Sometimes there seems to be no reason at all for a trial period to drag on.

Cynthia Mason of Texas, another homeowner with a Wells Fargo mortgage, also recently restarted her trial period after several months.

Last spring, she sought a loan modification because medical and other expenses had made it impossible for her to afford her mortgage payment on a fixed alimony income. She’d planned to supplement that income with a job, but has been unable to find anything. Like Fitz, she began the program in July.

In October, good news came with a phone call: She’d been accepted for a permanent modification. She waited for the final paperwork to arrive, but it never did. Instead, while speaking to a Wells Fargo employee about an unrelated issue six weeks later, she found out that she’d in fact been denied. When Mason inquired why, she says she was told some documentation was missing, but the employee could not tell her what it was. She also learned she owed late fees because she’d paid the modified payment, not the original, full payment, in November and December.

When she complained about the late fees (which were eventually canceled), she was passed to a different employee, who told her she was being put back into a trial period. She didn’t understand why. Another representative finally told her that she’d been denied because of a negative “Net Present Value” test. The test is the calculation at the center of the Treasury Department’s program: It determines whether the loan’s owner (sometimes the lender, sometimes a mortgage-backed security’s investors) is likely to make more money modifying the loan or not. A negative result means the servicer has no obligation under the program to modify the loan and is a common reason for denial.

But in Mason’s case, a Wells Fargo employee told her she’d nevertheless been put back into the trial period in order to “buy time.”

Wells Fargo spokesman Waetke declined to speak about Mason’s case but did say that the bank sometimes extends the trial period “to allow customers time to get the documents so we can complete the review.” Mason says she doesn’t know of any documents that might be missing, and she’s not optimistic about receiving a permanent modification. By extending the trial, Mason told ProPublica, Wells Fargo is “just prolonging the inevitable” – denial.

Have you applied for a loan modification under the Obama administration’s Making Home Affordable program? Are you experiencing things that you would like to share to help others in your situation? If so, we at would like to publish YOUR story too! [15].

Foreclosure Lawyer Rip Offs to Avoid

Filed under: Uncategorized — fvbadmin @ 11:43 am

HUD has a reporting tool to help keep Foreclosure Victims from being further exploited by unscrupulous so called Law Firms and website that appear to be empathetic, collect your personal information, and are actually illegally selling leads and your personal contact information to anyone willing to buy it. And the parasites waiting to suck the last drop of blood from homeowners facing foreclosure are many. Often the people who buy your contact information from these websites that call you are not even lawyers. Sometimes they have one token lawyer in the company somewhere…

National Coalition Launches Online Scam Reporting Tool

March 12, 2010

Foreclosure Scam Lawyers and Consultants Steal Homes and Money

Filed under: Uncategorized — fvbadmin @ 10:28 am

We will read your complaints regarding Scam Artists, Fraudulent Lawyers, Law firms and Scam Mortgage consultants and publish the list (Foreclosure Lawfirm Dot-com Scam Artists Database) here on the Foreclosure Victims Website Prevent Loan, created by HUD, let’s foreclosure Scam Victims report the scam artist. It would be an even better resource if they could share their information with the public. Being they are a government resource, they have extensive rules governing the way they disseminate the reports. On the other hand, review website, all over the planet allow their end users to publish their findings and reviews. We at will be the direct link between Foreclosure victims and the world. There are too many special interest groups wanting to blur the true story of foreclosure victims for many, many reasons. That is how we are unique. We have only one SPECIAL INTEREST: YOU, the foreclosure victim.

There are businesses created around the hardship of others: Like mushrooms growing on a dead tree. And when we are dead trees, that’s a good thing for the environment. But while our hearts are still managing to go pitter-pat, that’s heinous.

Search for a specific type of lawyer on line and you’ll find Google Masters who intercept your searches and sell the leads to law firms. But do you know that in many cases, lawyers purchasing these leads from distressed homeowners are in violation of the State Bar. And certainly a lawyer who has no regard for the law is not one who can help you understand it.

Rules of Professional Conduct Applicable to Attorneys Providing Services to Distressed Homeowners. Why are foreclosure consultants and attorneys teaming up to defraud homeowners experiencing mortgage-related distress? Individuals acting as “foreclosure consultants” are not entitled to receive payment until their loan modification work is completed. However, attorneys are permitted to accept advance fees for providing typical legal services. As a consequence, some foreclosure consultants and others offering foreclosure prevention services may partner with attorneys in an effort to get around laws that prohibit them from receiving payments from homeowners before providing the foreclosure prevention services. Homeowners should know that these partnering arrangements may violate the ethics rules governing attorneys’ professional conduct in YOUR State. To date, the many State Bar offices have not instituted specific loan modification scam regulations or initiatives. However, the following examples of attorney misconduct related to foreclosure prevention activities are typical of what may be prohibited by the State Bar: Here are some possibilities: Lawyers often cannot split fees they earn from distressed homeowner clients with foreclosure consultants, or the consultants directing or regulating the lawyer’s professional judgment. Lawyers often cannot aid a foreclosure consultant in the unauthorized practice of law. For example, Oregon lawyers may not form partnerships with foreclosure consultants if any of the activities of any such business would involve providing legal services. Lawyers often cannot contact distressed homeowners referred to them by foreclosure consultants unless the lawyers have a family or prior professional relationship with the distressed homeowners so contacted. Lawyers often cannot accept fees for little or no work.

March 10, 2010

How hard is it to get a loan modification?

Filed under: Uncategorized — fvbadmin @ 10:03 am

People ask: Can I get a loan modification. Looking at the numbers below, it looks like about  only 2.3% of borrowers who need help actually get it from permanent  loan modifications:

More than 5 million U.S. households are behind on their mortgages, and a government-sponsored program in which banks reduce monthly payments voluntarily has, by all accounts, foundered.

Only about 116,000 homeowners have had their monthly burden permanently lowered by the Obama administration’s Making Home Affordable Modification Program. About another million are enrolled in trial modification plans.

Many mortgage borrowers are underwater, meaning they owe more than the property is worth. In the Bay Area, about 27 percent of mortgage holders are underwater. In California, that figure is 35 percent.

Government payments are central to the new strategy. If lenders agree to certain guidelines and a short sale is completed, $1,500 goes to homeowners who move out, $1,000 to the servicing bank and another $1,000 to any second lien holders.

The program imposes new demands on banks. They must fully release homeowners from future liability for their first mortgage. They also must work with those homeowners who despite help from the government loan modification program are delinquent on their mortgages.

March 9, 2010

Do Banks Wait to See if Interest rises or Trustee Company Can Find Buyer, BEFORE modifying loan?

Filed under: Uncategorized — fvbadmin @ 3:52 am

As a society we learn to point fingers at social injustice around the world. And that’s not a bad thing. But it is when the person pointing fails to see his own faults. From shark fin soup to the movie The Cove, we pride ourselves on our good taste in fashionable morals. How we decide which animals to grind up for our tacos and which ones to spend billions of dollars protecting. And we have a sense, in the whole scheme of things that there is an underlying selfish motive to not letting dolphins, for instance, disappear from the face of the earth. Something tells us, like Marty from Back to the Future, that messing with things that are way over our head means trouble beyond our ability to fathom. And among scientists of all genres it’s hard to find any who do not agree with this principle. And the same principle applies to the health of the economy and the health of our society.

The theme of The Cove, for instance, essentially tells how sometimes a few people with special interest and instant gratification, quietly and effectively slaughters to satisfy their personal insatiable appetite. Enter the hungry bank… And the damage and cost their behavior inflicts not only on the foreclosure victim, but the financial impact each foreclosure has on each of the foreclosure victims neighbors. What the PR departments of the banks would never want you to consider and calculate is this: Keeping foreclosure victims in their homes with modified mortgages is cheaper than throwing them onto the streets. And because we are all motivated by a touch of self interest, that particular view of how banks become experts at procrastinating and NOT very often successfully and permanently  mortgage loans, costs us more than if they simply lowered the homeowners’ interest rates and put aside their greed.

In an ideal world sliding scales would exist to help people afford what they are willing to work hard for. But when several people in a family working for poverty level wages is forced to pay more each month for the same mortgage principal as a family with a high FICO score, than maybe doing something nice for these people can mean some good karma in the process.

All of the bills in the world will never do any good if they remain voluntary no more than telling people that eating dolphins is a “no-no”. Without penalties, legal recourse, societies intervention, financial penalties or at least good old fashioned accountability expectations on the part of the way banks deal with foreclosure situations, is the ONLY way things will change significantly. Mortgages are legal contracts and protecting interests in a contract is a legal battle. And with all the bills in the world saying pretty things about what banks “should and shouldn’t” do, nothing will change unless foreclosure victims are treated like humans and there are legal ramifications for abusing their rights. For the time being, no one has made the movie called the Foreclosure Cove. But we need one! And the predatory practices are every bit as savage but the victims have two legs instead of tails. And the victims range from infants who will be excluded from a safe and clean place to live simply because he or she was born into a family with financial woes. And the curse placed upon these infants will be tenacious as their parents, who face foreclosure, will not be ably to shed the after-effects of the damage to their credit until these children are big enough to work on their own. Their parents will be rejected from apartment rental applications, and pay more for every purchase made on behalf of their growing children for years and years in the form of exorbitant  interest.

In keeping with our metaphor of food and predatory practices, here is omeFood for thought… Maybe this is worth pondering… and observing to see if there is any evidence of a pattern. Is it possible that lenders, during the review process for a pending application for a loan modification, base their decision in part on how much progress the trustee company is making in finding potential buyers. Advertising the property on a website throughout the entire modification process, never deleting the listing and accepting inquiries. It would be a great way for a bank to test the waters to determine whether it pays to reduce an interest rate or just simply sell if the bank knows there is a buyer or two ready. In the meanwhile, the current owner maintains the property while the trustee company advertises it for sale. All along, telling the buyer they need to send in the same documentation 6 times: drivers licenses, marriage certificates, utility bills… (Typically things that have been in the banks possession for many months.) This drags the process on and on. There is something to be gained from procrastination or the process would be expedited! Just as the process is expedited when interest rates are soon to fall and lenders become the Guinness Record holders for fastest paperwork processors. And when the interest rates are promising to rise, well, it… sure… starts… to… mysteriously… slow… down… doesn’t… it…?

February 26, 2010

Obama Plan to Reduce Foreclosures 2/19/2010 Speech Video Comments

Filed under: Uncategorized — fvbadmin @ 10:23 am

Watch the Video Now: (Speech text below)

Barack Obama announced his plan to reduce foreclosures at Dobson High School in Mesa, Arizona Wednesday. The $75 billion plan could prevent up to 9 million Americans from losing their homes.

Blog administrators comment: The amount of money being invested in inciting fear regarding Obama’s efforts across the board to help provide the hard-working poor with bare minimum life support basics, points to the obvious source of the revenue. The speech eloquently points out that each completed foreclosure cost the entire nation more in lost revenue than the cost of avoiding it. And in the process, little children can have roofs over their heads rather than shopping carts. Who else would fear such an approach except those financial sectors who feed off the poor: Those who set the policies that make the poor pay more than the rich for every needed credit-related purchase: From cell phones, to car payments, to mortgage payments to credit card interest rates. If you add up the difference between what the average poor family pays for all of these, and what the average rich family pays for these same necessities, and you return a little of that lost income to these hard working families, those families would be able to afford their monthly mortgage payments! Obama’s plan uses a different door to get us to the same room: Give poor, hard working homeowners an affordable interest rate. Don’t make them pay more for the same houses for which the wealthy pay less. Nothing for free, but remove some of the reciprocal nature from the equation: poor people = higher payments for exactly the same things!

I’m here today to talk about a crisis unlike any we’ve ever known – but one that you know very well here in Mesa, and throughout the Valley. In Phoenix and its surrounding suburbs, the American Dream is being tested by a home mortgage crisis that not only threatens the stability of our economy but also the stability of families and neighborhoods. It is a crisis that strikes at the heart of the middle class: the homes in which we invest our savings, build our lives, raise our families, and plant roots in our communities.

So many Americans have shared with me their personal experiences of this crisis. Many have written letters or emails or shared their stories with me at rallies and along rope lines. Their hardship and heartbreak are a reminder that while this crisis is vast, it begins just one house – and one family – at a time.

It begins with a young family – maybe in Mesa, or Glendale, or Tempe – or just as likely in suburban Las Vegas, Cleveland, or Miami. They save up. They search. They choose a home that feels like the perfect place to start a life. They secure a fixed-rate mortgage at a reasonable rate, make a down payment, and make their mortgage payments each month. They are as responsible as anyone could ask them to be.

But then they learn that acting responsibly often isn’t enough to escape this crisis. Perhaps someone loses a job in the latest round of layoffs, one of more than three and a half million jobs lost since this recession began – or maybe a child gets sick, or a spouse has his or her hours cut.

In the past, if you found yourself in a situation like this, you could have sold your home and bought a smaller one with more affordable payments. Or you could have refinanced your home at a lower rate. But today, home values have fallen so sharply that even if you made a large down payment, the current value of your mortgage may still be higher than the current value of your house. So no bank will return your calls, and no sale will return your investment.

You can’t afford to leave and you can’t afford to stay. So you cut back on luxuries. Then you cut back on necessities. You spend down your savings to keep up with your payments. Then you open the retirement fund. Then you use the credit cards. And when you’ve gone through everything you have, and done everything you can, you have no choice but to default on your loan. And so your home joins the nearly six million others in foreclosure or at risk of foreclosure across the country, including roughly 150,000 right here in Arizona.

But the foreclosures which are uprooting families and upending lives across America are only one part of this housing crisis. For while there are millions of families who face foreclosure, there are millions more who are in no danger of losing their homes, but who have still seen their dreams endangered. They are families who see “For Sale” signs lining the streets. Who see neighbors leave, and homes standing vacant, and lawns slowly turning brown. They see their own homes – their largest single assets – plummeting in value. One study in Chicago found that a foreclosed home reduces the price of nearby homes by as much as 9 percent. Home prices in cities across the country have fallen by more than 25 percent since 2006; in Phoenix, they’ve fallen by 43 percent.

Even if your neighborhood hasn’t been hit by foreclosures, you’re likely feeling the effects of the crisis in other ways. Companies in your community that depend on the housing market – construction companies and home furnishing stores, painters and landscapers – they’re cutting back and laying people off. The number of residential construction jobs has fallen by more than a quarter million since mid-2006. As businesses lose revenue and people lose income, the tax base shrinks, which means less money for schools and police and fire departments. And on top of this, the costs to a local government associated with a single foreclosure can be as high as $20,000.

The effects of this crisis have also reverberated across the financial markets. When the housing market collapsed, so did the availability of credit on which our economy depends. As that credit has dried up, it has been harder for families to find affordable loans to purchase a car or pay tuition and harder for businesses to secure the capital they need to expand and create jobs.

In the end, all of us are paying a price for this home mortgage crisis. And all of us will pay an even steeper price if we allow this crisis to deepen – a crisis which is unraveling homeownership, the middle class, and the American Dream itself. But if we act boldly and swiftly to arrest this downward spiral, every American will benefit. And that’s what I want to talk about today.

The plan I’m announcing focuses on rescuing families who have played by the rules and acted responsibly: by refinancing loans for millions of families in traditional mortgages who are underwater or close to it; by modifying loans for families stuck in sub-prime mortgages they can’t afford as a result of skyrocketing interest rates or personal misfortune; and by taking broader steps to keep mortgage rates low so that families can secure loans with affordable monthly payments.

At the same time, this plan must be viewed in a larger context. A lost home often begins with a lost job. Many businesses have laid off workers for a lack of revenue and available capital. Credit has become scarce as the markets have been overwhelmed by the collapse of securities backed by failing mortgages. In the end, the home mortgage crisis, the financial crisis, and this broader economic crisis are interconnected. We cannot successfully address any one of them without addressing them all.

Yesterday, in Denver, I signed into law the American Recovery and Reinvestment Act which will create or save three and a half million jobs over the next two years – including 70,000 in Arizona – doing the work America needs done. We will also work to stabilize, repair, and reform our financial system to get credit flowing again to families and businesses. And we will pursue the housing plan I am outlining today.

Through this plan, we will help between seven and nine million families restructure or refinance their mortgages so they can avoid foreclosure. And we are not just helping homeowners at risk of falling over the edge, we are preventing their neighbors from being pulled over that edge too – as defaults and foreclosures contribute to sinking home values, failing local businesses, and lost jobs.

But I also want to be very clear about what this plan will not do: It will not rescue the unscrupulous or irresponsible by throwing good taxpayer money after bad loans. It will not help speculators who took risky bets on a rising market and bought homes not to live in but to sell. It will not help dishonest lenders who acted irresponsibility, distorting the facts and dismissing the fine print at the expense of buyers who didn’t know better. And it will not reward folks who bought homes they knew from the beginning they would never be able to afford. In short, this plan will not save every home.

But it will give millions of families resigned to financial ruin a chance to rebuild. It will prevent the worst consequences of this crisis from wreaking even greater havoc on the economy. And by bringing down the foreclosure rate, it will help to shore up housing prices for everyone. According to estimates by the Treasury Department, this plan could stop the slide in home prices due to neighboring foreclosures by up to $6,000 per home.

Here is how my plan works:

First, we will make it possible for an estimated four to five million currently ineligible homeowners who receive their mortgages through Fannie Mae or Freddie Mac to refinance their mortgages at lower rates.

Today, as a result of declining home values, millions of families are “underwater,” which means they owe more on their mortgages than their homes are worth. These families are unable to sell their homes, and unable to refinance them. So in the event of a job loss or another emergency, their options are limited.

Right now, Fannie Mae and Freddie Mac – the institutions that guarantee home loans for millions of middle class families – are generally not permitted to guarantee refinancing for mortgages valued at more than 80 percent of the home’s worth. So families who are underwater – or close to being underwater – cannot turn to these lending institutions for help.

My plan changes that by removing this restriction on Fannie and Freddie so that they can refinance mortgages they already own or guarantee. This will allow millions of families stuck with loans at a higher rate to refinance. And the estimated cost to taxpayers would be roughly zero; while Fannie and Freddie would receive less money in payments, this would be balanced out by a reduction in defaults and foreclosures.

I also want to point out that millions of other households could benefit from historically low interest rates if they refinance, though many don’t know that this opportunity is available to them – an opportunity that could save families hundreds of dollars each month. And the efforts we are taking to stabilize mortgage markets will help these borrowers to secure more affordable terms, too.

Second, we will create new incentives so that lenders work with borrowers to modify the terms of sub-prime loans at risk of default and foreclosure.

Sub-prime loans – loans with high rates and complex terms that often conceal their costs – make up only 12 percent of all mortgages, but account for roughly half of all foreclosures.

Right now, when families with these mortgages seek to modify a loan to avoid this fate, they often find themselves navigating a maze of rules and regulations but rarely finding answers. Some sub-prime lenders are willing to renegotiate; many aren’t. Your ability to restructure your loan depends on where you live, the company that owns or manages your loan, or even the agent who happens to answer the phone on the day you call.

My plan establishes clear guidelines for the entire mortgage industry that will encourage lenders to modify mortgages on primary residences. Any institution that wishes to receive financial assistance from the government, and to modify home mortgages, will have to do so according to these guidelines – which will be in place two weeks from today.

If lenders and homebuyers work together, and the lender agrees to offer rates that the borrower can afford, we’ll make up part of the gap between what the old payments were and what the new payments will be. And under this plan, lenders who participate will be required to reduce those payments to no more than 31 percent of a borrower’s income. This will enable as many as three to four million homeowners to modify the terms of their mortgages to avoid foreclosure.

So this part of the plan will require both buyers and lenders to step up and do their part. Lenders will need to lower interest rates and share in the costs of reduced monthly payments in order to prevent another wave of foreclosures. Borrowers will be required to make payments on time in return for this opportunity to reduce those payments.

I also want to be clear that there will be a cost associated with this plan. But by making these investments in foreclosure-prevention today, we will save ourselves the costs of foreclosure tomorrow – costs borne not just by families with troubled loans, but by their neighbors and communities and by our economy as a whole. Given the magnitude of these costs, it is a price well worth paying.

Third, we will take major steps to keep mortgage rates low for millions of middle class families looking to secure new mortgages.

Today, most new home loans are backed by Fannie Mae and Freddie Mac, which guarantee loans and set standards to keep mortgage rates low and to keep mortgage financing available and predictable for middle class families. This function is profoundly important, especially now as we grapple with a crisis that would only worsen if we were to allow further disruptions in our mortgage markets.

Therefore, using the funds already approved by Congress for this purpose, the Treasury Department and the Federal Reserve will continue to purchase Fannie Mae and Freddie Mac mortgage-backed securities so that there is stability and liquidity in the marketplace. Through its existing authority Treasury will provide up to $200 billion in capital to ensure that Fannie Mae and Freddie Mac can continue to stabilize markets and hold mortgage rates down.

We’re also going to work with Fannie and Freddie on other strategies to bolster the mortgage markets, like working with state housing finance agencies to increase their liquidity. And as we seek to ensure that these institutions continue to perform what is a vital function on behalf of middle class families, we also need to maintain transparency and strong oversight so that they do so in responsible and effective ways.

Fourth, we will pursue a wide range of reforms designed to help families stay in their homes and avoid foreclosure.

My administration will continue to support reforming our bankruptcy rules so that we allow judges to reduce home mortgages on primary residences to their fair market value – as long as borrowers pay their debts under a court-ordered plan. That’s the rule for investors who own two, three, and four homes. It should be the rule for ordinary homeowners too, as an alternative to foreclosure.

In addition, as part of the recovery plan I signed into law yesterday, we are going to award $2 billion in competitive grants to communities that are bringing together stakeholders and testing new and innovative ways to prevent foreclosures. Communities have shown a lot of initiative, taking responsibility for this crisis when many others have not. Supporting these neighborhood efforts is exactly what we should be doing.

Taken together, the provisions of this plan will help us end this crisis and preserve for millions of families their stake in the American Dream. But we must also acknowledge the limits of this plan.

Our housing crisis was born of eroding home values, but also of the erosion of our common values. It was brought about by big banks that traded in risky mortgages in return for profits that were literally too good to be true; by lenders who knowingly took advantage of homebuyers; by homebuyers who knowingly borrowed too much from lenders; by speculators who gambled on rising prices; and by leaders in our nation’s capital who failed to act amidst a deepening crisis.

So solving this crisis will require more than resources – it will require all of us to take responsibility. Government must take responsibility for setting rules of the road that are fair and fairly enforced. Banks and lenders must be held accountable for ending the practices that got us into this crisis in the first place. Individuals must take responsibility for their own actions. And all of us must learn to live within our means again.

These are the values that have defined this nation. These are values that have given substance to our faith in the American Dream. And these are the values that we must restore now at this defining moment.

It will not be easy. But if we move forward with purpose and resolve – with a deepened appreciation for how fundamental the American Dream is and how fragile it can be when we fail in our collective responsibilities – then I am confident we will overcome this crisis and once again secure that dream for ourselves and for generations to come.

Thank you, God Bless you, and God bless America.


This speech has generated some controversy in what The New York Times called in a Friday article ( “a revolt among conservative parents, who have accused the president of trying to indoctrinate their children with socialist ideas and are asking school officials to excuse their children from listening.”

February 23, 2010

Why We Tea Party the Best President In Decades?

Filed under: Uncategorized — fvbadmin @ 10:55 am

With so many so-so presidents over the years. And too many notoriously less than so-so presidents over the years. If we can just squint a little, strain our eyes a bit, see through the smoke and mirrors you’ll find the puppet strings of the Tea Party Investors. (And they may very well be the same investors you’re waiting for to approve your loan modifications:)) And they are investing very heavily in undermining everything Obama has been trying to do since he got into office. They are investing many, many dollars in instigating and feeding the flames of this “Tea Party” that’s spreading faster than the swine flu. If you are familiar with the movie “The Island”, than it’s Obama’s turn to win the lottery! Because he has seen through the smoke and mirrors and is not willing enough to play the game. If you’re not familiar with The Island, suffice to say Obama is playing the role of Winston Smith from George Orwell’s 1984. In any case, the powers that be (making the big buck) don’t want Obama to succeed. So this man’s biggest crime: Being the first president in my memory who has tried so hard (failure is acceptable, effort is what’s given the grade) to do somethin that is apparently not part of the real reason for electing a president: Really doing (Snicker… Gulp! Yikes!) what he promised to do in his campaign. That was (apparently) not what we were planning when we passionately put him into office. Apparently we look for a “Go to church on Sunday so we can sleep better after being a bad dude all week” magic elixir. But if this crazy president doesn’t understand the plan, how are we going to continue to drain the last drop of blood out of the poor to support the fat of the tiny minority that control all the wealth in this world. So they incite the very people who Obama is trying to help to accuse him of being everything from a Maoist to an illegal alien. Well, alien he may very well be! He apparently doesn’t understand how to rub shoulders with the people in the $10,000 suits. Let’s not fall for this trick. A bro has nothing to do with the color of a person’s skin. It has to do with loyalty. And Obama, in that sense, is the best “bro” we’ve had in a long time. I am the dog on the side of the road that got hit by a car. When someone pulls over to help. I won’t bite him, I’ll bite the guy who ran me down! Let’s find an appropriate level of respect for a president who may very well be one of the most ethical and sincere this country has ever scene!

The fact that big bucks are being invested in discrediting Obama is testament to his threat to the people who control the money and make the big bucks by squeezing the little people. Everyone forgets that the poorer you are the more you pay every month for everything: Mortgages, interest rates, credit cards, car payments… Obama, the Harvard man he is, sees through this and thus poses a threat to the Buffalo Bill feast on the poor that has been en vogue for all these years. And health care, well insurance companies are sweating and money is pouring into sabotaging any effort to really make health care affordable to poor people. We live in a society that makes good people seem like criminals and makes Buffalo Bill look like Ghandi. The poor father who buys a car for $250 but can’t afford liability insurance. Every time he drives to work to feed his kids, he is a criminal! What a world! What if we paid at the pump for basic liability insurance. Than if he bought $2.00 worth of gas to put food on the table, he could legally drive to work and feed his kids!

What if we encouraged thinking instead of expecting the status quo. Let’s think out of the box. Because the box is made out a a familiar pine and we are having a Good Ole Boy Tea Party driving nails into our own coffins!

Older Posts »

Powered by WordPress