Mortgage Foreclosures - Access to Justice in Lending Act

On October 20, Governor Paterson signed into law the "Access to Justice in Lending Act", Chapter 550 of the Laws of 2010, which adds new Section 282 ("Mortgagor's right to recover attorneys' fees in actions or proceedings arising out of foreclosures of residential property)" to the Real Property Law.

The Assembly Bill is posted at the following link.

New Law Allows Homeowners to Recoup Legal Fees in Foreclosure Cases

[Reprinted from the New York Times]

By JOHN ELIGON

Published: October 21, 2010

A new state law signed in Albany this week will allow homeowners who win foreclosure proceedings to have the lender pay their lawyers’ fees.

Supporters say the law balances what they see as the long unfair practice of lenders writing provisions in mortgage contracts that allow them to collect lawyers’ fees from homeowners when the lender successfully forecloses. Some also say that the new law may give homeowners a better chance in court because they will more easily be able to get representation.

The law comes at a time when big banks are coming under increasing scrutiny for lax handling of mortgage documents.

“We have thousands of foreclosures in New York State where homeowners” have valid defenses, said Assemblyman Rory I. Lancman, a Democrat of Queens who co-sponsored the bill. “But they are unable to assert those defenses because they don’t have a lawyer.”

In some other types of litigation, like employment or civil rights, lawyers’ fees have long been awarded to the winning party, Mr. Lancman said. But foreclosure litigation has been an exception.

“There’s been a major problem as this foreclosure crisis has exploded in getting representation for people who need counsel,” said Andrew Scherer, the former president of Legal Services NYC, an agency that provides counsel to people who cannot afford lawyers in civil cases.

“This is going to provide a pretty reasonable incentive for private attorneys to take on these cases,” Mr. Scherer added.

In general, homeowners are considered to have won foreclosure proceedings when they are able to get a judgment from the court allowing them to keep their homes. With recent revelations that banks have cut corners in documenting mortgages during the boom, lawyers say, chances are better than ever to raise legitimate defenses to get a bank’s foreclosure action thrown out.

Even in cases in which a settlement is reached, Mr. Lancman said, lenders may be more willing to negotiate the lawyers’ fees, knowing that they may have to pay those fees if they lose a judgment.

Michael J. Wrubel, a Florida lawyer who represents homeowners, said he did not believe the new law would substantially tip the scale in favor of homeowners.

New York Changes Rules for Filing Foreclosures

New York State instituted new requirements for filing foreclosure
documents effective immediately to stem a wave of foreclosures that were
not documented properly, The Wall Street Journal reported Wednesday in
its online edition. Foreclosure claims must now reportedly have a lawyer
file an affirmation that reasonable steps have been take to verify the
accuracy of the information in the documents.

"We cannot allow the courts in New York State to stand by idly and be
party to what we now know is a deeply flawed process, especially when
that process involves basic human needs-such as a family home-during
this period of economic crisis," said New York State Chief Judge
Jonathan Lippman, according to the Journal.


The marketwatch article links here.
http://www.marketwatch.com/story/ny-changes-rules-for-filing-foreclosures-wsj-2010-10-20

This is the link to the press release from the Unified Court System of New York.
http://www.nycourts.gov/press/pr2010_12.shtml

To Foreclose or Not to Foreclose

Well, as if its NEWS - the big banks have finally confessed that perhaps some technicalities have been overlooked in their foreclosure process.  Putting it mildly.  Yes errors were made and continue to be made.  I am amazed that anything gets accomplished at all at a bank. 

Mortgage Fraud Is Rising, With a Twist -- Wall Street Journal Reports

Wall Street Journal Real Estate August 23, 2010


Mortgage Fraud Is Rising, With a Twist / Adopting to Tighter Rules After Collapse, Scammers Turn to More Complex Plots

By ROBBIE WHELAN

New data suggests that mortgage fraud—which got tougher to pull off after the collapse of the U.S. real estate market—is returning in a big way.

Data prepared for The Wall Street Journal by research firm CoreLogic, examining about seven million home loans made by hundreds of lenders, show that losses from mortgage fraud—ranging from falsified credit reports to identity theft—rose 17% last year after declining 57% in the two years after its 2006 peak.

In 2009, $14 billion in loans, or about 0.7% of all mortgage loans made in the U.S., were originated with fraudulent application data.

The figures are a fraction of the mortgage market, but the increase is sharp.

CoreLogic, which tracks fraud only by mortgage value, examines about 7 million loans each year using a proprietary computer program that detects discrepancies in loan documents and predicts the likelihood of fraud. The real losses to banks won't be known for several years when banks are forced to write off the value of the loans' value.

New data suggest losses from mortgage fraud nationwide rose 17% last year.
Some of CoreLogic's profits come from selling market research to lenders aiming to cut losses from mortgage fraud.

Investigators and lenders say they are seeing a similar upswing in fraud.

The Federal Bureau of Investigation in June indicted a Phoenix man for mail and wire fraud among other alleged crimes when the agency says he tried to steal a house from his landlord. Also in June, federal prosecutors in New Jersey charged 29 defendants—including 12 real-estate agents, four mortgage consultants, an appraiser, a bank employee and a mortgage broker—with wire fraud in an alleged scheme involving 17 properties in the state and losses of $5.5 million.

"Even though we have certain compliance measures in place, people will adapt whatever scheme," said Sharon Ormsby, the FBI's section chief for financial crimes. "It doesn't matter if the market is going up or down."

The kinds of fraud that contributed to the mortgage crisis and the collapse of the housing market were relatively simple. Crooks took advantage of the size of mortgage loans and the lax rules governing who qualified for them.

In one common con, they would recruit as accomplices "straw buyers" with good credit to apply for "no-doc" loans, which required no documentation or proof of income, to buy their house. Good credit was required because lenders generally did check a borrower's credit score, even if they didn't require pay stubs or bank statements.

When the bank sent funds, typically to make a down payment or for a home-equity loan, the schemers and the fake buyer would split the profits and walk away, leaving the house to fall into foreclosure and the bank stuck with the loss.

Since the mortgage crisis, banks and the government-sponsored entities that underwrite or insure mortgages, including Fannie Mae, Freddie Mac and the Federal Housing Administration, have tightened lending standards and closely scrutinize mortgage applications.

No-doc loans are a thing of the past, and many lenders now require borrowers to furnish proof of employment, tax forms, credit reports, bank statements and other documents.

Fraudsters have adapted to the new restrictions. With banks less apt to lend to borrowers with shaky finances, criminals rely more on falsifying documents, recruiting loan officers and other bank insiders to work for them, and stealing identities to get loans, federal investigators and mortgage industry research reports.

In the Phoenix case, prosecutors allege, Jose Victor Buencamino did all three. Some people who knew Mr. Buencamino describe him as a large, friendly man devoted to his children, the life of many a party and a passionate golfer. Gary Weaver, who rented a home to Mr. Buencamino last year, has a different impression. He said the Arizona businessman tried to snare him in an elaborate mortgage scheme.

According to a federal indictment unsealed in June, while Mr. Buencamino was renting Mr. Weaver's house on the golf course at Moon Valley Country Club, he intercepted mail intended for Mr. Weaver and obtained his social security number, then applied for a driver's license in Mr. Weaver's name.

Then, the indictment alleges, with the help of a friend who worked as a loan officer at a local branch of Compass Bank, a unit of Spanish bank Banco Bilbao Vizcaya Argentaria SA, Mr. Buencamino obtained a $245,000 cash-out mortgage on the property. A homeowner using a cash-out mortgage refinances the home loan for more than the mortgage is currently worth and pockets the difference in cash.

A Compass Bank spokesman didn't respond to requests for comment. Mr. Buencamino, who couldn't be located for comment, has not responded to the charges.

A federal agent said he had been tracked to Vancouver, where the agent said he is applying for Canadian residency. Prosecutors involved in the case said he didn't have an attorney on whom they could serve court papers. U.S. authorities said they were seeking his extradition.

"Fraud continues to be a pervasive issue, growing and escalating in complexity," said an April report from LexisNexis's Mortgage Asset Research Institute, which cited as reasons easy access to records via the Internet and, in many cases, though not Mr. Weaver's, the vulnerability of cash-strapped homeowners.

MARI's breakdown of the numbers reflects the shift in technique. Fraud related to falsified credit reports has declined each year since the boom years, MARI reports, while the share of mortgage fraud involving false appraisals jumped 50% between 2008 and 2009.

Application fraud—in which borrowers lie about their names, where they live, how much money they earn, their employment, their debt or their assets—remains high, accounting for 59% of all mortgage fraud.

One of the defendants in the New Jersey dragnet, a mortgage consultant with Newark-based Invest & Investors LLC named Viviane Bernardim, allegedly paid accomplices $15,000 apiece to steal the identities of several New Jersey residents who earned $90,000 or more and had good credit ratings. She used those identities to obtain second mortgages on a number of homes in the Newark area, according to U.S. Attorney Paul J. Fishman, head of the office prosecuting the case.

But since good credit ratings are no longer enough to get a mortgage, Ms. Bernardim also needed friends who worked for the lenders to pull off the caper.

"Having players at every level of a conspiracy makes it easier to carry out fraud," said Mr. Fishman. "But each bad actor and criminal act is also another chance for law enforcement to find a way in."

Maria Delgaizo Noto, an attorney for Ms. Bernardim, said that she had no comment until an indictment was unsealed, but that her client "maintains her innocence of any criminal activity."

In Phoenix, Mr. Buencamino's alleged fraud was assisted by an insider, but also by easy access to public documents on the Internet. After intercepting mail intended for Mr. Weaver and obtaining his Social Security number, Mr. Buencamino applied online for an Arizona driver's license in Mr. Weaver's name, according to the criminal complaint and law enforcement agents involved in the case.

When he received the permit, he submitted mortgage application documents by mail to Compass Bank and, with the help of co-conspirator William Baxaveneous, the Compass loan officer, obtained a second mortgage on Mr. Weaver's home—which had no mortgage—without ever having to meet any bank officials face to face, Mr. Weaver said. He said he learned this from the federal agents investigating the case.

Mr. Baxaveneous's attorney said he was trying to settle the case and declined to comment further.

Dog Days of August

Here we are coming to the final two weeks of August and what is the hottest summer I can remember in many years.

It's been a slow month and I look forward to the cooler days of Autumn and what I hope for is better news across the country with our economy. 

What YOU Need to Know - "Real Estate Education" - New York State - Brokers & Salespersons

The following information is reprinted in its entirety from the Department of State's website for your information:

The Department of State’s “Real Estate Education” Campaign

The following are some basic facts that anyone looking to buy, sell or rent should know. 

These facts are part of a new brochure that is available for download on the Department of State homepage, http://www.dos.state.ny.us/.  [This is the link to the brochure itself.]

What you need to know before entering into a real estate transaction:

1. All real estate professionals[1] must be licensed by the Department of State, and they must renew their licenses every two years.
2. To check if a person who represents themselves as a real estate salesperson or broker is, in fact, licensed by the state of New York, you can search the Department of State website, http://www.dos.state.ny.us/ by clicking on the “eAccessNY” link [this is the direct link to the search area for licensed real estate professionals] and entering the name of the person or by calling (518) 474-4429.
3. Buyers, sellers, renters and landlords all have the right to hire their own broker in a real estate transaction.
4. You should not assume that an agent is acting solely on your behalf. Unless you have entered into a written agreement with the broker, he or she could be representing the other party to the transaction.
5. When you have hired an agent to represent you, he or she owes you the following duties: reasonable care, undivided loyalty, confidentiality, full disclosure and the ability to provide you with an accounting of any money collected or expended on your behalf.
6. Real estate salespeople and brokers must disclose whom they are representing in the transaction at the time of their first contact with you.
7. Commission fees are negotiable. You have the right to negotiate the amount of the commission to be paid to a broker or salesperson. There is no such thing as a mandatory commission rate.
8. If a broker collects fees that you owe to the landlord or seller, such as a deposit or the first month’s rent, the broker has an obligation to separate that money from his or her own. If the money is not immediately provided to the landlord or seller, the broker must put the money into a separate escrow account until the transaction has been closed. If the transaction does not close, the broker cannot keep the money and must return it to you.
9. Non-refundable commission deposits are not permissible. A broker earns a commission when he or she finds a person who is ready, willing and able to purchase the property or rent the apartment. Only if the broker has assisted the parties in reaching an agreement on all of the material elements of the deal has he or she earned a commission.
10. Real estate salespeople and associate brokers work under the oversight and supervision of the broker with whom they are associated. You have the right to contact the broker with any concerns about the transaction or the agent’s handling of the transaction. Some salespeople and associate brokers advertise themselves as a “team” or “group.” This is not a separate company. These agents still work for a broker who is responsible for supervising their activity.

The brochure also includes information on where New Yorkers can turn if they believe that they have been a victim of a loan scam or of abusive lending practices. New Yorkers are encouraged to visit the Department of State’s website if they have any further questions about what constitutes illegal or dishonest actions by licensed real estate professionals – and to report these actions to the Department if they experience them.

[1] To become a licensed real estate salesperson, an individual must take specific coursework and pass an exam on state real estate law and practice. To work in New York state, salespersons must be associated with a real estate broker. Real estate brokers are individuals who, after gaining two years of experience in real estate sales, take additional coursework and exams in order to own or operate their own brokerage firms. Real estate appraisers must take required coursework and exams to become certified in estimating the value of real property.

###

Additional news available at http://www.dos.state.ny.us/about/new2.htm.
New York State Department of State | info@dos.state.ny.us | 518.486.9846 | 212.417.5801

Late Breaking News - In NYC You Can See if Someone Has Posted A Doc Against Your Property

July 6, 2010 the New York City Department of Finance implemented a Notice of Recorded Documents Program.  Owners of property in Manhattan, Bronx, Brooklyn, Queens, or Staten Island can register to receive notification when a deed or mortgage (or related) document has been recorded against their property. This program was designed to alert registered property owners or their designees when documents are recorded without their knowledge so that they can take steps to attempt to limit the harm caused by such recording.  

An owner’s agent (including a child, spouse, or domestic partner of owner if listed as a designee), the managing agent, the property owner's attorney, the lien holder, and the executor or administrator of the estate of the owner or lien holder of the property may also receive notification if registered. 

To find out more about this program, you can go to the New York City Department of Finance website at www.nyc.gov/finance  or ACRIS webpage at www.nyc.gov/acris and click on the Recorded Document Notification link. to register.

Fannie Mae - New Program for Forclosure Help - starts 8/1/2010

Fannie Mae Introduces HAFA Program - You can read the announcement here.


On Tuesday, June 1, Fannie Mae issued Servicing Guide Announcement SVC-2010-07, introducing Fannie Mae's Home Affordable Foreclosure Alternatives (HAFA) Program. It, like Treasury's Home Affordable Foreclosure Alternatives Program (as described in Supplemental Directive 09-09 Revised), is designed to mitigate the impact of foreclosures on borrowers who are eligible for a loan modification under the Home Affordable Modification Program (HAMP) but ultimately are unsuccessful in obtaining one.

Program Features:

The Fannie Mae Home Affordable Foreclosure Alternatives Program, which becomes effective August 1, 2010, simplifies and streamlines the use of short or "preforeclosure" sale and deed-in-lieu of foreclosure (DIL) options on HAMP-eligible loans by incorporating the following unique features:

• Complements HAMP by providing alternatives for borrowers who are HAMP eligible (including borrowers facing imminent default);

• Allows the borrower to receive pre-approved short sale terms prior to the property listing;

• Prohibits the servicer from requiring, as a condition of approving the short sale, a reduction in the real estate commission agreed upon in the listing agreement;

• Releases the successful HAFA borrower from future liability for the debt;

• Uses standard processes, documents, and timeframes;

• Provides financial incentives to borrowers, servicers and subordinate lienholders; and

• Utilizes verified borrower financial and hardship information collected in conjunction with HAMP, eliminating the need for additional eligibility analysis.

Copy machines - SECURITY RISK!

One of my fellow members of the state bar association forwarded this link to a CBS News video which demonstrates that copy machines built since 2002 contain hard drives which maintain a copy of every document. 

Talk about a security risk waiting to happen!

NYC first in the nation for mortgage fraud

New York City was first in the nation for mortgage fraud last year, according to a report by LexisNexis Mortgage Asset Research Institute, released on April 26, 2010. To review the report, please click here.  The metro area accounted for 12 percent of all suspicious activity reports filed with the Financial Crimes Enforcement Network in 2009, squarely defeating second-ranked Los Angeles, whose suspicious activity reports accounted for 8 percent of the nation's total.

While the LexisNexis did not break down its city data further, a recent report from First American CoreLogic found that South Jamaica, Queens was first in the nation for mortgage fraud between 2004 and 2009. On the whole, New York state has seen a sharp increase in mortgage fraud over the past few years, according to LexisNexis. This year, the state -- ranked 18th in 2007 -- took second place, behind Florida. 

I always warn persons about mortgage fraud and get help quick schemes....please read more at my law site or contact our office if you are in need of assistance.

3.5% Closing Cost Assistance and Appliance Incentive Extended Through June 30, 2010

Fannie Mae is extending the 3.5% incentive for homebuyers who purchase and close on a Fannie Mae-owned home by June 30, 2010. Buyers purchasing properties listed on HomePath.com will continue to be offered an incentive of up to 3.5% of the final sales price to be used towards one of the following:
→Closing costs
→The purchase of new Whirlpool® appliances
→A mix of closing costs and appliances, at the buyer's discretion, up to the maximum 3.5%.

Eligibility
To be eligible for this incentive:
* Property sale must close on or before June 30, 2010
* Buyer must be an owner-occupant (second homes are eligible as long as they are owner-occupied) -- investors are excluded.

4/28/10 through 4/30/10 NASSAU COLISEUM - MORTGAGE MODIFICATIONS - Bank Open House

     There is an open house at the Nassau Coliseum this Wednesday, Thursday & Friday, 4/28-4/30/10 from 1PM to 7:30PM  where  most major lenders will be available to discuss mortgage modifications. There was an article in Newsday, last Friday April 23, 2010, "EVENT OFFERS HELP TO HARD-PRESSED HOMEOWNERS" by Ellen Yan which states:

     "Next week, the Nassau Coliseum will host a marathon - three days of face-to-face negotiations between lenders and distressed homeowners.   Borrowers can try to make on-the-spot loan modifications with their mortgage holders...."

    All mortgagees are invited to come, bring all their records, bills, proof of income (two most recent pay stubs), last two mortgage payment statements, layoff notices, credit card bills, utility bills etc. and try to work out modifications.

Short Sales in New York - Deficiency Judgments

As an attorney I have been working with homeowners in the luxury real estate market in Manhattan.  As we have been completing short sales, the banks have waived the deficiency judgments on loans that are close to the sale price.  However, in a recent Bank of America short sale - the loss is in excess of 500K -- I was presented with the following language that the bank would not waive the deficiency unless state law required it.

Is there a New York State law that requires waiver of the deficiency in a short sale?  The short answer is no. 

How contrary is this?  When you access the New York State Banking department's website, it specifically states:

•  "Short Sale:  The lender lets the borrower sell the house for less than the outstanding loan amount, takes the proceeds and forgives the remaining debt."

However after I called the Banking Department about this claim, no one could answer my questions, and they suggested that I speak with an attorney.  Interesting.

After speaking with several real estate attorneys, and the New York City Bar's attorneys who specialize in foreclosures - the answer is the same -- there is no law that says the bank must waive the deficiency judgment.  It seems to me as a reasonable person, that the bank would recognize that after all the work performed to acquire a buyer for a property at a higher amount then the bank would be able to receive in foreclosure, that waiving a deficiency is a better choice than taking the bankruptcy route.  But then again, who ever said that the people at the banks are reasonable?

Keep this in mind - bankruptcy is the option to all of this and in New York State there is no law that says (at the time of this post) that a bank must waive the deficiency against the homeowner for the amount of the loan that will not be paid off in a proposed short sale.

At my law site I have further information regarding foreclosures, short sales, and loan modifications.

New Short Sale Guidelines

The federal government recently announced the short sale program guidelines for the Home Affordable Foreclosure Alternatives (HAFA) program which will go into effect on Monday, April 5, 2010. 

Bank of America Home Loans is implementing HAFA, the program designed to help those customers who were not eligible for the Home Affordable Modification Program (HAMP) or any other modification.  For more detailed information on the HAFA program, go to the National Association of Realtors site.

The HAFE program provides incentives for short sales and what are known as a deed-in-lieu of foreclosure on a loan eligible for modification under the HAMP program.

A list of servicers participating in the HAMP program - including HAFA - can be found at the Making Home Affordable website.  

CHASES' website regarding short sales can be accessed for further information. 

FDIC Tips for Consumers

For some nifty tips, you can view:
Winter 2009/2010 which includes tips on online banking and ideas for growing a small business.
 
Enjoy!

NAR issues brochure to help reduce short sale stress

On April 5, 2010, the U.S. government will implement the Home Affordable Foreclosure Alternatives Program (HAFA). The HAFA helps homeowners who are unable to retain their home under the Home Affordable Modification Program by simplifying and streamlining the use of short sales and deeds-in-lieu of foreclosures. Homeowners must meet certain requirements to participate and incentive payments are provided to homeowners and servicers. To help REALTORS understand HAFA and its guidelines, the National Association of REALTORS ("NAR") has released an informational brochure available through the links below:
NAR’s press release
HAFA brochure

Legislation Protecting Prospective Renters Passed By NY City Council

Legislation Protecting Prospective Renters Passed By NY City Council

'Tenant Fair Chance Act'  Passed

 

February 11, 2010 

MANHATTAN — The City Council passed legislation on Thursday requiring that landlords provide greater transparency during the tenant screening process.

 

Landlords are routinely sold copies of housing court histories that misrepresent prospective tenants, which leads to deserving renters being denied housing, the City Council said. Because renters often have no idea that the landlords are obtaining these reports, they are powerless to correct any inaccurate information.

 

Housing court data is reported by name, not social security number, causing landlords to frequently get the wrong reports, the City Council said.

 

The reports many landlords obtain also fail to disclose the context of a renter’s appearance in housing court. If someone goes to court because they are involved in a rent strike to protest adverse living conditions, the report simply shows a housing court action for non-payment.

 

“Prospective tenants across our city have been denied by landlords for the simple fact that their tenant screening report shows a housing court action,” said Council Speaker Christine C.  Quinn. 

 

"By streamlining the process for tenants and giving them easier access to reports they are entitled to view, we can ensure that all New Yorkers are given a fair chance to find a new home.”

 

The new law called “Tenant Fair Chance Act,” requires landlords to tell applicants which company was providing the records, so they can get their own copies and correct problems.

 

Landlords could be fined $500 for violations, but Quinn said the real estate industry is not opposing the bill.

 

“Today, we are taking another step to ensure that the deck is not stacked against the renters of this city,” Council Member Dan Garodnick said in a press release.

 

“By improving the accuracy and transparency of tenant screening reports, we are making sure that tenants who assert their rights in court don't face a backlash for it the next time they try to rent an apartment.”

THE HAMP HOT LINE WORKS! ONE PHONE CALL CAN MAKE A DIFFERENCE

Don't be threatened when a banker tells you the U.S. Treasury has made a determination that stops your program - they may be wrong - as CHASE was wrong this week.

A big applause for everyone working at the Making Home Affordable Program.  https://www.hmpadmin.com/portal/about/overview.html

As you may know, I am an attorney working with short sales in Manhattan, and assisting some home owners in loan modifications.  Both programs are frustrating, irritating, hair-pulling, down-right horrible - but there is nothing more satisfying than the feeling when it works!

Since July 2009, I have represented a single homeowner who faced the loss of her company and was struggling building a new company and needed to apply for a home loan modification because of changed circumstances and the loss of income.

One loan- from CHASE - which qualified under the Home Affordable Modification Program ("HAMP") limit of $729,750.00 - for a modification.

Three months into the process, CHASE lost the short sale package - reason: change of computer systems.  The process began again, from the beginning.

The homeowner received nearly daily phone calls (mostly rude) from the bank's collection agency demanding payments - the homeowner kept explaining that they were in the home modification program - no department of CHASE reports to the other she was told and the phone calls would continue - which they did through October.

November rolled around and CHASE again lost several of the documents -- again they are re-sent....December arrived, CHASE doesn't know what happened to those documents, they need to be sent again and this time, they need to be embellished.  More info supplied.

By the end of December, CHASE reports that all seems to be fine and that they are waiting for a "representative" to be assigned. 

Encouraged by the press releases and statements from the Obama administration demanding to know why only 5% of all loan modifications are approved, and asking for twice-monthly reports on status from the banks, I am hopeful that a modification approval will be eminently forthcoming.

I'm "buddies" now with "Eric", "David" and "Jennifer" with whom I've spoken over the past several months and they have shared that they are sitting in the same office together (Texas) with a few desks separating them.   How cozy.

But NO -- I received a phone call from "Jennifer" January 18th, 2010, with the news that the "U.S. Treasury has put all loan modifications on hold since December until further notice."  WHAT?  HOW IS THIS POSSIBLE?  "The Underwriters are not able to make a decision".  And even though the loan had every appearance of being approved, "should have been approved", it is not.  The late payments continue to accrue.

I said - show me where this is in writing - this is completely contrary to what our administration is saying needs to be done!  Oh no, I was told, it is an internal memo and only information to be provided to the homeowners.

I wanted to throw the phone through the window.  People wonder why homeowners destroy their homes because they are so angry at the banks.

What to do?

I went to the Making Home Affordable website - easily found the Contact Us page (upper right hand corner in big letters) where the page clearly states: "Whether you are having problems registering online, require support for the servicer tools, or have general questions about the Home Affordable Modification program, we can assist."  So I called.  And they did.

The phone number is (866) 939 - 4469; and you can also e-mail - which I did too - support@hmpadmin.com  My e-mail was answered within two hours.

I called - was transferred to a "HELP Team Member" - explained in detail what had been happening and asked if they knew anything about the U.S. Treasury putting a hold on home loan modifications.  It seemed absolutely contrary to what should be occurring.  She concurred and assured me that their upper management spoke nearly daily with the U.S. Treasury department and she was unaware of anything of that manner. 

BUT importantly -- she said she personally would bring their management knowledge of what I was going through and it would be addressed that afternoon with the U.S. Treasury department.

Now, if you're like me - you're skeptical of anything like that being done - but apparently it happened. 

I called CHASE later that afternoon and at 4:25 p.m., as I was speaking with the CHASE representative, he stopped me to read to me an email he had just received. 

He read:  the U.S. Treasury has notified us of some information that has been not quite accurately imparted to some homeowners.  Not all loan modifications are on hold.  Those that may qualify under HAMP will continue to be processed.

So there you have it.  We changed a policy - and hopefully helped accelerate some loan approvals.