thecanary

Attorney General Edmund G. Brown Jr. today sued a foreclosure consultant and an attorney -- Paul Noe Jr. and Mitchell Roth - who conned 2,000 desperate homeowners into paying exorbitant fees for "phony lawsuits" to forestall foreclosure proceedings. These lawsuits were filed and abandoned, even though homeowners were charged $1,800 in upfront fees, at least $1,200 per month and contingency fees of up to 80 percent of their home's value. "Noe and Roth ripped off homeowners desperate for help... Read Full Story

Since the Making Home Affordable Program was rolled out earlier this year, several more lenders and servicers have signed on to participate. Whether they are really cooperating and complying with the program remains to be seen. Here is the current list: Amalgamated Bank * http://makinghomeaffordable.gov/contact_servicer.html#TB_inline?height=200&width=300&inlineId=leaveSite 1-866-725-0647 Aurora Loan Services LLC http://makinghomeaffordable.gov/contact_servicer.html#TB_inline?height=200&width... Read Full Story

Since the Home Affordable Mortgage program was announced on March 4, 2009, those in the business of loan modifications had a reasonable chance of success with homes with only one mortgage, but were left with a gap in solutions in regard to homes that were encumbered by first and second liens. Often the second liens were large, and despite a modification to 31% of gross income on the first, the second holders were not always participating or cooperating. Nevertheless, twelve servicers... Read Full Story

It has always been about the Benjamins--loan modification companies have routinely collected fees up front, and provided no guarantees. Banks were not very willing to modify loans 2 years ago, so many homeowners were out of luck despite having paid up front fees. To control this practice, sections of the Business and Professions Code were amended to require that anyone performing loan modifications have an "advanced fee" agreement which had been reviewed by the DRE, prior to collecting... Read Full Story

Visit msnbc.com for Breaking News , World News , and News about the Economy It is a great time to be in the loan modifcation business. With the introduction of the Obama plan last month, lenders are more willing than ever to modify loans, including interest rate reductions, term increases, and where necessary, principal forebearance or reduction. It is a great time, that is, if you are a legitimate loan modification company, one that is complying with all state and federal laws. If not, you... Read Full Story

10% of homeowners in the US are in foreclosure or behind on their mortgage payments today and the news isn't getting better. Regardless of who is at fault, the situation is taking an emotional toll on many American families and they are desparate for some relief. Unfortunately, this desparation is leading to a new breed of predators--foreclosure rescue scams and loan modification experts. I am shocked to hear that only a few states actually regulate these practices and this new category of... Read Full Story

Randy Johnson, a troubled man who had not been seen since 2005, fell asleep for the last time in a little Victorian house that he grew up in on the South side of Chicago. When the new owners of 4578 S. Oakenwald Ave arrived at the house they had purchased at a foreclosure sale for $93,000 in January 2008, they found Johnson's mummified body sitting in a rocker next to a dead dog. Wow.....a whole new level of the "if I don't look I will see no evil" underwriting standards that we have seen at... Read Full Story

Everyone affected by the mortgage crisis is asking "What about me?". Government programs can be so full of legalese, that many can't really understand the benefits and qualifications for participation. $300 BILLION IN FHA REFINANCING: Under the HOPE for Homeowners Program, 400,000 distressed homeowners can pay off their troubled mortgages and replace them with more affordable, FHA-insured loans. To qualify: 1. A borrower's monthly payment on existing mortgage loans must be over 31% of his or... Read Full Story

San Diego City Attorney Michael Aguirre filed a civil complaint this morning in San Diego Superior Court against Countrywide Financial Corporation alleging that the lending institution engaged in a “pattern of unlawful, fraudulent or unfair predatory real estate lending practices” that has caused numerous City of San Diego residents “to be in jeopardy of losing their homes through foreclosures.” The legal action also calls for injunctive relief and civil penalties. “We are asking a court to... Read Full Story

In an effort to deal with lenders who foreclose and then abandon or fail to maintain homes, the City of Buffalo just isn't going to take it anymore. With an innovative approach, District Attorney Cindy Cooper and Judge Norwalk are holding lenders accountable all the way up and down the line, from the loan originators, to the servicers , to the Wall Street trusts that bought the loan. Facing up to the numbers of 5000-10,000 abandoned homes in Buffalo, New York amended it's definition of... Read Full Story