New HAMP Rules Benefit Bankrutpcy Filers

March 26, 2010

Mortgage Servicers can no longer ignore mortgage modifications under HAMP (Home Affordable Modifications Program) for those in active bankruptcies.  Additionally the new directive allows Consumer Bankruptcy Attorneys to request an analysis under HAMP and the Servicer MUST comply. Supplemental Directive 10-02 marks a significant change in Treasury’s HAMP policy with respect to borrowers in bankruptcy. [...]

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Bank of America Mortgage Modifications to Offer Reduced Principal

March 24, 2010

Bank of America will on Wednesday announce plans to start forgiving mortgage loan principal for troubled homeowners who owe more than 120 percent of their home’s value or are battling ever-expanding “negative amortization” loans. According to a summary of the program obtained by Reuters, Bank of America pledged to offer an “earned principal forgiveness” of [...]

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Homeowner Faces Foreclosure For Making Payments Early

March 19, 2010

After losing one of her part-time jobs in the fall, Indiana law student Melissa Stuart applied for a mortgage modification in hopes of reducing her monthly payment. Her servicer, GMAC, deemed her eligible and put her in a trial modification under the Obama administration’s Home Affordable Modification Program. She said her monthly payment shrank to [...]

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Bankruptcy Court to Require Mortgage Modification with Chapter 13 Debtors

March 8, 2010

The Orlando bankruptcy court is preparing to adopt a rule providing for mandatory mediation between homeowners and their mortgage companies to facilitate mortgage modification. Congress rejected a change in the bankruptcy code that would have empowered Chapter 13 debtors to force reduction in their first mortgage principal to their residence’s current fair market value. This [...]

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President May Ban Foreclosures Without a HAMP Review

February 26, 2010

The Obama administration may expand efforts to ease the housing crisis by banning all foreclosures on home loans unless they have been screened and rejected by the government’s Home Affordable Modification Program (HAMP), Bloomberg News reorted today. The proposal, reviewed by lenders last week, “prohibits referral to foreclosure until borrower is evaluated and found ineligible [...]

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Bank of America Sued Over Broken Promises

February 11, 2010

Yesterday, a group of Ohio homeowners filed a lawsuit in federal court for failing to honor its agreement to modify their mortgages under federal loan modification programs.  The ten families are asking the Court to order Bank of America to honor its agreements to modify their loans and to award them damages for the bank’s [...]

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Walk Away From Your Home! Really

December 2, 2009

Each week I meet with underwater homeowners.  An underwater homeowner is one that owes a principle balance on a mortgage  higher than the fair market value of their home.  I advise all of them to consider walking away.  Especially in Wisconsin, most mortgage lenders waive a deficiency judgment in order to reduce the redemption period.  [...]

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Another Class of Adjustable Rate Mortgages Hasten Foreclosure Fears

September 9, 2009

A second wave of foreclosures is about to rush upon the shores of US cities, as another class of Adjustable Rate Mortgages are set to cycle through.  This article is from today’s Washington Post. The housing market faces the prospect of a new round of foreclosures as hundreds of thousands of risky home loans known [...]

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Foreclosure Scams – What to Look For

September 7, 2009

Foreclosures numbers continue to rise in Wisconsin.  An unfortunate byproduct of the booming foreclosure numbers are people seeing an opportunity to take your money.  Pay attention to this article from the Washington Post. By Kenneth Harney Washington Post Posted: 09/06/2009 12:00:00 AM PDT WASHINGTON — How’s this for a business plan to make money during [...]

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Foreclosure Mediation Who Should Represent You?

August 26, 2009

Here in Milwaukee, the foreclosure mediation program does not stop the lender from seeking a default judgment if you haven’t filed an answer to the complaint.  Therefore, I would not recommend the strategy of hiring a mortgage counselor to represent you in the mediation.  Trust me on this one, all the while the lender is [...]

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