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?
My situation is very complicated. We own our home in Oakland
My situation is very complicated. We own our home in Oakland Ca. We have a 1st mortgage and a HELOC. We are current on our 1st mortgage and have been so since 2001. The HELOC is the problem. Chase has our 1st and Bank of America the HELOC. We began falling behind in 2011. In 2012 we tried 3 separate times to refinance with BofA and got the run around each time, being turned down each time but for different reasons. We then were unable to keep making payments. 3 1/2 years went by with no communication from BofA and no payments from us. In Sept. 2015 they finally sent a letter wanting to renegotiate but it was exactly like the last time. We sought legal help. For the last 10 months we have been letting a law firm handle this. They have been very hard to get any answers from too. We received a notice of Trustee sale about a month ago and it is set for September 21st. Our case manager said don't worry we have plenty of time and we are just waiting for opposing counsel to respond to our last meeting. Despite many attempts to make a back up plan ahead of the sale date, my emails and calls were unanswered and by last week I am starting to lose my mind. Finally I heard from our lawyer Friday. Now they are instructing me to file an emergency bankruptcy to halt the sale so they can have more time to work out a deal with BofA. I need help understanding what I should do and I do not have anyone to turn to. I also have not time because I put my faith in this firm and what they thought they could do for me.JA: Because real estate law varies from place to place, can you tell me what state this is in?Customer: I did in the beginning....Oakland Ca.JA: Has any paperwork been filed?Customer: Are you even reading what I typed?JA: Anything else you want the lawyer to know before I connect you?Customer: Are you a real person?JA: I'm an assistant to the Real Estate Lawyer. I work with them to help customers like you.Customer: Could you read what I typed in the time it took you to answer?
Now that I have the answers to the previous questions can
Doug, Now that I have the answers to the previous questions can you help me with the following scenario?In Utah a homestead exemption does not interfere with a contractual debt such as a mortgage from foreclosing without regard to the homestead exemption. In my case, I have a third mortgage which sits in a junior position to a first mortgage, second mortgage, and a judgement lien. Taken together the first, second and judgement lien add up to twice the value of the home. If the third mortgage exercises the power of sale would a bid greater than the first, second and homestead exemption be required in order to comply with Utah code stating that, “Property that includes a homestead may not be sold at execution if there is no bid which exceeds the amount of the declared homestead exemption.”
My father in law is selling his home - there is not a
My father in law is selling his home - there is not a mortgage against it but there is an equity line with a zero balance - do we have to close the equity line before the closing date with the title company?
I know this is vague… but this couple owes us money…. They
I know this is vague… but this couple owes us money…. They needed an equity loan to pay us and their debts off... equity loan is on 3 houses that is owned by them ( 2 in Haworth, NJ and one in Long Beach Island on the Ocean)First company had issue and in January 2016 they went to other company, who proclaimed that they would be able to get the loan. Most of the paperwork was completed and valid for that type of loan, due to this was their 2nd try.Every week we are being told that there is another reason that they need to wait, and the closing will be the following week.It is now the end of August and it is still the same situation with the same Loan company, supposedly.The Question is: WOULD AN EQUITY LOAN ACTUALLY TAKE THIS LONG ?? or ARE WE BEING PLAYED FURTHER. ????
I own a 1 family house no mortage, however have a heloc on
I own a 1 family house no mortage , however have a heloc on it since 2011 . I have moved in to take care of my elderly mom, and have been renting the house past 6 months. payments are always on time am in violation of the loan ? would the bank pursue any action on me ?
I am wondering the likelihood that a mortgage company would
Hello. I am wondering the likelihood that a mortgage company would sue me for a sold out junior loan from 2012?JA: Because laws vary from place to place, can you tell me what state this is in?Customer: MinnesotaJA: Have you talked to a lawyer yet?Customer: Very briefly, maybe 3 minutes worth.JA: Anything else you think the lawyer should know?Customer: I spoke to the bank twice and neither time were they willing to consider a settlement unless I provided financials. I declined.
Question about contract. I entered into an agreement with my
Question about contract. I entered into an agreement with my separated wife that in the agreement I would provide $65K back into the heloc, reduce her mortgage to me (on a rental property- i hold the mortgage), move out all in return for her to refinance the house in her name (out of mine). In the agreement she would pay me $95k out of the sale of the rental property (which sold). She says the contract is not enforceable because she was forced into signing it or I would not put the $65K into the heloc for the refinance to go through. I had every right to take out $65K loan on the heloc (house in my and wifes name) and I paid the loan back in this agreement. She say she was "forced" so what do I need or her need to prove she was forced and make the entire contract unenforceable?
I have a prenup that states at time of separation, I get 60%
I have a prenup that states at time of separation, I get 60% of marital property. My wife moved out and I then took 60% of what was in the heloc out. She is challenging a contract saying she was forced to sign it or I would not retun the funds to allow her to refinance. I ended up in the agreement giving her the money to refi in return for getting a payment out of a rental property (whihc did sell and money is held in escrow due to this claim). What is her rights and mine towards one to take my portion of heloc funds out and for her to claim contract is enforecable cause I "forced" her?