I recently saved A house from foreclosure in a very
I recently saved A house from foreclosure in a very expensive Chapter 11 bankruptcy. I had no problem debt other than the loan on a rental property on which arrears had accumulated. I'd been told the arrears would be rolled into the modified loan I was applying for under Making Home Affordable's HAMP 1 program. I had re-applied for 6 years, always with Bank of America, or the loan servicer to which BofA had handed the loan off in Year 4, requiring new copies of out-dated documents. I was not rejected until the new loan servicer said in Year 5 that my income was inadequate. They had determined it to be about half what it really is.I hired a lawyer, and he got them up to 80% of my real income, which they also rejected, and then finally, he got them to verify my entire gross monthly income of slightly over $10,000/month. In an exquisite Catch-22, they then declined my application for inadequate income, but a later explanation made me question that. They set a foreclosure sale date and managed to arrange things so that I didn't know I had thirty days to appeal. (I can fault my lawyer here. He knew, but didn't think to tell me. They had informed him by telephone, which was improper, and which meant that there was no letter he could forward to me.) I immediately complained to CFPB. I said that the process had been artificially delayed so that my arrears became too great for HAMP 1.The loan servicer responded to CFPB's request that they address my concerns. They repeated that my income was inadequate. To demonstrate that, they showed how they had calculated the allowable arrears, which is not derived from my income. The real reason they declined my application was excessive arrears. They found that they were not allowed to put enough of the current amount owed into the forbearance/balloon to yield a balance that HAMP 1 said I could afford. Well, they should not have been so helpful, because whoever wrote the unsigned letter revealed that they were doing the calculation wrong. HAMP 1 said they could put 30% of the capitalized unpaid principle balance into forbearance, but they had calculated 30% of my original balance (the one I had when I began applying for HAMP 1). That made a big difference, because by then my arrears were nearly half the size of the original balance. They also didn't do the last part of the HAMP process, which was to extend the loan term, if necessary, to create smaller payments (and incidentally much higher amounts paid over the life of the loan). I became curious about this, wondering if this had only been done in my case. Data from the US Treasury showed that this loan servicer had the very lowest HAMP approval rate of all the servicers they tracked. They approved only 12% of HAMP applications. I then found data on Bank of New York Mellon's investor site that showed that any loans they did modify were modified without any adjustment to the loan term. The 2006 tranches all had maturity dates in 2036, the 2007s in 2037, etc. Unless they calculated my allowable forbearance by hand, I assume that they did it wrong for all borrowers, because it would have been built into whatever software they used to determine the net present value of a modified versus unmodified loan.If a fraud examiner were brought into a class action suit against this loan servicer, do you think she or he would find some nicely smoking firearms? Are you familiar with any litigation over matters like these that would supply optimism for a borrower like me? I went through far more than was necessary to get my interest rate dropped from 6.375% to 4%. I couldn't re-fi in 2012 or 2013 because my inflated balance was still too high, and by then the arrears were sky high, too.Additional atrocities attached. The long and short of it is that my HAMP applications were not handled honestly, which I think amounts to fraud. Do you?
We have tried to contact Real Estate lawyers with no
We have tried to contact Real Estate lawyers with no response. We had a lender working with clients that were buying our house. They were preapproved, the lender even assured the sellers of the house we were buying that there were no issues as the purchase of their home was contingent on us selling our home. Weeks went by with inspections on both houses, termite inspections, well inspections, etc. We were told there was a delay because the lender of our buyers thought there was a judgment, but then were told it wasn't our buyer and things would proceed. The next delay was the buyers lender had a death in the family, another delay. When he returned, we were told they would schedule the appraisal of our home, then a week before the scheduled closing we were told they had finally scheduled the appraisal, it never happened. Then we were told closing would be delayed by a few days. Closing was scheduled for the sale of our properties on Thursday and Friday of one week and closing on the house we were buying was the following Monday. On the day we were to close on the house we were buying, the lender stated they would not be funding the buyers of our house. I asked for a specific reason in writing and they sent it and it stated because of the credit of our buyers and the type of property...Well to our knowledge nothing new was found on their credit, the property didn't change and to cancel funding the week of closing when we were continually told all was proceeding but there were the various delays. So, now there are costs to be paid that would have been paid at a closing that is no longer happening. Our house was off the market for over almost two months with this lending company assuring everyone it was a done deal. Now we owe fees for all the inspections, repairs done on our house from the findings of the inspection, deposit for the movers once we closed all to be paid from proceeds of the sale of our home. We feel this lender should have known a month sooner, not the week of closing that they wouldn't fund these buyers and since they waited until the week of closing to deny this, they should be held responsible for the fees due at the closing that didn't happen. Do we have a case to recoup these fees? or any additional fees due to loss of buyers from this lenders leading us on for almost two months? Would a lawyer take this on contingency or should we take this to small claims? Any guidance is appreciated.
The seller came back with a response on the closing expiry
Hi Again Richard. The seller came back with a response on the closing expiry date. I've been thinking of how to address the open ended things over the weekend.I'd still like to proceed since Seller is confident he can get the IRS liens non-attached. Plz find attached a one page doc for your review. It contains Seller's response and my further response. Kindly review and let me know if i am protected still from all angles. Thank you!
Thank you Real estate answer. My question for you is can we
Thank you Real estate answer. My question for you is can we structure a short sale where the bank takes the lower of two appraisals? One appraisal is for 740k and the other is for 1,200k. The 500k difference is due to a zoning dispute with the town. I am thinking I will do short sale for 750k and then have agreement with bank that once zoning dispute is settled, they and the other creditors can have a pie chart percentage of the benefit.
Again. Following up from our conversation yesterday, by law,
Hi Richard again. Following up from our conversation yesterday, by law, is the seller obligated to disclose all liens at the time of purchase contract signing? And in my case they didn't, so i can ask for compensation related to that as well, right? If so, can you tell me how to word asking for that compensation? Thnx
My husband and I recently put an offer on a home, had an
My husband and I recently put an offer on a home, had an inspection done on the home which ended up showing that the sellers did not disclose several issues with the home. The only issue that they did disclose was that there was water condensation on the floor in the basement from a broken AC motor that they had fixed. Our inspector not only found that the AC had other issues with it, the house has cracks in the foundation, an issue with the CSST tubing leading from the gas fireplace to the basement, it currently isn't bonded, therefore in a storm if the house would be struck by lightening, the tube could rupture leading to a fire; they had a bowl holding up the disposal drain under the sink in the kitchen with visible water damage under the sink; the sump pump is currently inoperable. There are many more issues, but these are the major ones. We definitely do not feel comfortable moving forward therefore we submitted a mutual release form. We have an inspection contingency that states if anything is left out of the disclosures, we can walk away. We submitted the release form 2 days ago, they haven't signed but are requesting the appraisal. We have 2 questions - do we have grounds to be released from our contract and 2. do we have to supply them with the appraisal?
Looking for an answer about my pay off of my home. The USDA
Looking for an answer about my pay off of my home . The USDA said that they have to reappraise my home and find out the market value from then to now and said I would have to pay the difference. Can they do this to me after I have paid my loan in full?
We were getting a permit to build a fence and were told we
We were getting a permit to build a fence and were told we could not as there is an easement running through the middle of our house and barn. We purchased the house from a real estate developer who also owns a title company and who built a house on a sub divided part of the original property in 2009. He owned the entire property, that originally included our house, from 2004 and sub divided prior to building the other house.We bought the house in 2014. In his seller disclosure he stated he was not aware of any easement. The appraiser and the home inspector said there was no easement. As previously noted the borough says the easement runs through the center of our house and barn. Since we are now aware of this we must disclose it when we sell.Is there any action we can take for redress?
Counselor at Law