Foreclosure in 95828>Question Details

Regg, Home Owner in 95828

How will mortgage modification be effected by BofA's payment of $3billion for Countrywide substandard practices?

Asked by Regg, 95828 Tue Jan 4, 2011

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Which is more likely to happen:

Senario #1.) A bunch of Banks admit wrong-doing and Modify a few million loans to help homeowners.

or

Senario #2.) A bunch of Banks file Default Judgements against a few million ex-homeowners.

If Vegas was running a book, I know which way I would bet!
0 votes Thank Flag Link Mon Jul 4, 2011
elizabeth - heartfelt question- did not mean to be rude -

Again - There are NO LOAN mods. Lender by its own admission sold the asset to investors. There are no servicing rights with assets delivered in to a Statutory business trust.Only a holder in due course or servicng agent can negotiate a mod or short sale.

You cannot short sale somthing that represents the lendes reoucrse and buyback provision. The homes are sole short at sale abyway in a controlled or "rigged" bid and lender there is off the hook for recourse. ITS MAKING REALTOS LOOK LIKE A$$ES .ITS GOT TO STOP ...

MSOLIMAN
0 votes Thank Flag Link Sun Jul 3, 2011
What loan mod? That would be my question. Most of the homeowners I know who applied for loan mods never got them, even though the bank strung them out and put them through the mill for months. What they got instead was a foreclosure notice and a trustee's auction positioned days from the loan mod denial. So be very careful. If you are granted a temporary loan mod, keep the balance of the payment in cash somewhere so you've got the money to pay it back if and when your modification is denied.

As for the effect of the $2.8 billion B of A paid to Fannie Mae and Freddie Mac for selling them lousy loans, that's a drop in the bucket. In fact, I was looking at buying a few shares of Fannie Mae the other day and then, decided meh. Why?

Elizabeth Weintraub
Broker-Associate #00697006
Lyon Real Estate
0 votes Thank Flag Link Wed Jan 5, 2011
expert.witness@live.com say's . . .

How will mortgage modification be effected?
Ash, hmm not sure what you mean here my level headed friend.

By BofA's payment of $3billion
What? $3 billion in what ! ! ! . Are you kidding? BAC is on the brinks of a knock out and right behind CitiFinancial group who should not be around by months end. R E C E I V E R S H I P

Mortgage bond investors say the home loans should never have been sold to them in the first place because they did not meet investors' underwriting requirements. Bank of America said it made cash payment to Freddie Mac as part of an agreement to end all claims through 2008 related to mortgages sold by Countrywide. The bank paid Fannie Mae $1.34 billion in cash and applied certain credits to reach an agreed $1.52 billion settlement on 12,045 Countrywide loans.
Bank of America said it would put aside $3 billion in the fourth quarter related to the Fannie and Freddie claims and expects to record a goodwill impairment charge of $2 billion in the quarter in its home loans and insurance business unit.


For Countrywide substandard practices?
BofA is Countrywide. Angelo M. Started Indy Mac Bank remembers. Bof A swept him away and floored the entire toxicity tax payer taking the hit for.

Peace

M.Soliman
0 votes Thank Flag Link Wed Jan 5, 2011
I don't see a direct correlation to the news and what i see happening in the field. Personally. while I know it will affect their allocation of resources to certain parts of their business (foreclosure/REO vs. short sale resolution), I don't see a difference in how it affects my clients who are trying to resolve their current individual sitautions.

More recently, I've found their Equator online system runs much more effectively in evaluating a short sale vs. some of the other lenders. For the volume of loan mods/short sale that they are considering, I imagine they are much more efficient that some lenders with a much smaller case load.

So I only care about how they're handling MY clients' situation. The $3B payment is more related to the national economy and how much longer we will have to deal with this issue, not the day to day operation. But that's the opinion of one of the little guys who is trying to help resolve the situation, not the bigwigs.
Web Reference: http://www.suearcher.com
0 votes Thank Flag Link Wed Jan 5, 2011
It will still be a case by case basis. There will be no blanket answer for all homeowners.
0 votes Thank Flag Link Tue Jan 4, 2011
Regg

Bank of America announced in December that it would move more than 2,000 employees from the origination department to the modification side to help meet a surge in home retention needs.

Several state attorney generals are implementing foreclosure moratoriums for their states and getting banks to agree to modification programs. They have come to an agreement with AGs in almost all 50 states with the nation's top five servicers.

As a result of the mishandled foreclosures, Paul Leonard from the Center for Responsible Lending told Bloomberg the group of attorneys general “offers one of the most promising avenues to increasing loan modification and servicer accountability that we have seen so far.”

Hope this info helps. You can continue to follow the story as it unfolds on my team Facebook fan page "The Dream Team 21 Gold"
0 votes Thank Flag Link Tue Jan 4, 2011
Regg

Only time will tell. Best thing to do is pay attention to the news or if you have a BofA loan, stay in contact as much as possible.

Maurice
0 votes Thank Flag Link Tue Jan 4, 2011
Well Regg, I am actually not sure if B of A just agreed to pay the money or whether they also have to take the loans back. If they just pay the money, but the loans stay with Fannie & Freddie, there probably won't be any changes as far as loan modification and short sales are concerned because those would still be handled under the HAMP & HAFA guidelines. I think we know better than trying to predict lender behavior. The government tried to influence them by pumping tons of money into the system and we know now that those efforts yielded marginal results because most of the lenders were just not cooperating as much as the government thought they would.
0 votes Thank Flag Link Tue Jan 4, 2011
Ute Ferdig -…, Real Estate Pro in Newcastle, CA
MVP'08
Contact
Good question! Not to mention allowing homes to short sale. I hope one hand does not feed the other.
0 votes Thank Flag Link Tue Jan 4, 2011
Good question not to meantion Short Sales!
0 votes Thank Flag Link Tue Jan 4, 2011
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