I currently represent hundreds of homeowners who are fighting every bank you’ve heard of (and some you’ve never heard of) in foreclosure. Virtually all of my clients have the ability (and the desire) to pay close to the full amount of the mortgage they signed up to pay. Virtually all of my clients got into financial difficulty for reasons that were outside their control like job loss, divorce or illness.
Some are on fixed income and got pinched when an adjustable rate mortgage shot through the roof. Some of my clients did not have the capacity to understand the nature of the loan they were getting into and many clients were outright mislead about the terms of the mortgage they were sold.
Whatever the case when I’m fighting for a client, the first thing I’ve got to figure out is what that client wants then determine whether they have any hope of achieving that goal. Many want to stay in their home. Although they’ve got income problems, they want to pay a mortgage and do their part. Some have recognized they cannot maintain the home or they just want to sell it and get on with their lives.
The most frustrating thing about defending homeowners in foreclosure is the solution that works for the homeowner (i.e. a modified mortgage or a short sale/deed in lieu) is often times the best possible outcome for the lender. There was a time when a lender could foreclose then sell the property and cover the debt.
In this market, I don’t think it’s possible for a lender to conclude a foreclosure and not lose more in the foreclosure than they could get from working with the lender.
With this in mind,
I cannot understand why lenders refuse to accept the payments my clients are trying to send….they may be partial payments and even if the lender accepts them, they can still proceed with the foreclosure, absent a formal agreement to the contrary.
I cannot understand why lenders ignore persistent, diligent, obsessive efforts from realtors who offer these banks short sale contracts that net the lender a significant amount of the debt owed…if the lender takes it back, they’re going to net far less in a sale.
I cannot understand why lenders will not enter into formal or extended modifications that at least provide them payments every month.
I cannot understand why the attorney of record for the the lender has no authority or leverage with his client to advocate for a settlement.
I cannot understand why lenders cannot keep track of paperwork or communications they receive from their customers.
I cannot understand why a guy who lost his job here in the US has to beg for a solution to keep his home from an operator in a far away, foreign land.
I cannot understand why the lenders who received bajillions of taxpayer dollars can use that money to dump lavish bonuses on their staff.
I cannot understand why the assets of big lenders like Indymac and Countrywide were sold so cheaply with my money and now the purchasers of these assets are making massive profits. (One West/BofA)
The Countrywide/Indymac situation really fires me up. Countywide engaged in gross and abusive fraud and was essentially shut down as a result. The assets were purchased for cents on the dollar using taxpayer money, but try getting a reasonable deal out of BofA. (Try getting any deal out of BofA) Same situation with Indymac….bad conduct on their part, bailed out with my money. Now the millionaire owners of the Indymac assets are making bajillions of dollars in profits…(Try getting a deal out of Indymac)
I cannot understand any of this, but I’m hard into litigation on all these cases….and with several cases against Indymac in particular…I’m going to figure it out.