Foreclosure // Current TV

10 Types of Companies Involved with Foreclosures

When a piece of property enters into the foreclosure process, there can be several... more

AngelAlina
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US Banks in 'Cash for Keys' Foreclosure Talks

The five biggest US mortgage servicers were told this week at a private meeting with regulators to consider paying delinquent borrowers up to $21,000 each as part of a broader settlement of the foreclosure crisis.

People who attended the meeting, chaired by the Federal Deposit Insurance Corporation on Monday, said the industry-wide “cash for keys” program would involve the biggest servicers, led by Bank of America, paying borrowers as an incentive to leave their homes.

Banks would pay borrowers who are more than 90 days behind on mortgage payments up to $1,000 to seek independent financial advice and up to $20,000 in cash as a “fresh start” payment towards living costs in a new home. They would have to vacate their properties quickly and leave them in good condition.

Fannie Mae and Freddie Mac, the government-sponsored mortgage guarantors, and private investors who own mortgage loans were also mentioned as possible providers of cash in the scheme. Eligible borrowers would likely include some, but not all, of the 4.8 million who are more than 90 days in arrears.

Sheila Bair, FDIC chairman, raised the idea but people involved said it was not an official government proposal and was rejected strongly by some of the banks.

Officials and bank executives discussed other options at the meeting, which had been requested by some in the industry. The FDIC and the servicers declined to comment. Some banks already pay some borrowers to vacate their homes because it proves cheaper and quicker than a court-ordered eviction but payments are generally much smaller.

Foreclosures were halted by banks across the country when it emerged that many of the legal documents were being completed by so-called “robo signers."

The Department of Justice; state attorneys-general; banking regulators, including the FDIC; the Treasury; and the new Consumer Financial Protection Bureau are among the agencies trying to come to a settlement with the industry. A combined penalty of about $20 billion has been discussed, with one idea to use the money to write down the outstanding debt of struggling homeowners.

However, prospects for a single “mega settlement” have worsened because officials disagree on the level of penalty and whether money raised in fines should be used for a principal writedown. The banking regulators, who do not agree among themselves, are nonetheless keen to come to an agreement quickly.

One way through the gridlock, which has been discussed among officials, is giving the servicers a menu of options for settlement, which might include principal writedown or a “cash for keys” scheme.

http://www.cnbc.com/id/42265558The five biggest US mortgage servicers were told this week at a private meeting with... more

Schnookums
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Foreclosure-Gate 4.0 - Fraudclosures

For over two years I’ve had a front row seat for the foreclosure crisis, the... more

figgdimension
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1 year ago
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JaMarcus Russell Loses His Houses

Even former athletes with guaranteed contracts are not immune from the current... more

samthesixth
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1 year ago
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Goth Home Owner Forecloses on Wells Fargo

The Philadelphia homeowner who made national news by not only winning a judgment... more

JonRaymond
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1 year ago
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Homeowner Forecloses on Bank Office

A Philadelphia homeowner is giving his local branch of Wells Fargo a taste of its own... more

bundlebear
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1 year ago
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3 comments

JPMorgan Overcharged and Foreclosed on Soldiers, but they're Sorry (Sorry they got caught)

Members of the House Veterans' Affairs Committee tore into an apologetic JPMorgan Chase executive today after the bank admitted violating a law that guarantees protections to servicemembers serving in harm's way.

The giant financial institution failed to comply with the Servicemembers Civil Relief Act, which provides active duty soldiers, who purchased a home prior to the start of their active duty, a 6 percent cap on their mortgage interest rate and any other fees while they are on active duty and for a year after they are discharged.

Stephanie Mudick, head of Consumer Practices at JPMorgan Chase & Co., admitted Chase failed to comply with all aspects of the law and apologized to soldiers for violating the guarantees set forth by the Servicemembers Civil Relief Act.

"I'd like to express to the men and women serving our country and to the members of this Committee Chase's deepest regret over the mistakes we made in applying those protections," Mudick said. "I commit to you that we will get this right."

Rep. Bob Filner, D-Calif., ranking Democrat on the committee, wasn't satisfied with the bank's apology. "You just cannot apologize and give back people 70 bucks and to think this is over," he said. "This is not over for them. But you've broken the law, you've ruined people's lives and people ought to take responsibility for that."

For Marine Capt. Jonathan Rowles and his family, their pursuit of the American dream of homeownership turned into a fiv-year nightmare saga with Chase overcharging the family on interest payments, threatening to foreclose, and offering little help to fix the solution.

"This is like a bad movie except they're living it. While they're trying to defend us, they're catching friendly fire, so to speak from this country," Richard Harpootlian, the Rowles family's attorney, said. "The penalties need to be stiffer. The banks need to understand that they're not going to have their way with our American fighting men and women."

Rowles did everything right. He sent Chase a copy of his active duty orders and sent them again when Chase couldn't find the first set. Rowles and his wife, Julia, didn't miss a mortgage payment, but according to their attorney, Chase failed to credit them for the payments and then launched a determined collection agency campaigns. The calls came three times a day, some after midnight and at 4 a.m.

"While Jonathan is away either in training, flight school or any of his Marine Corps duties, I was left at home to deal with Chase and their problems," Mrs. Rowles said. "We have two children. One of them was born prematurely and had to have a lengthy stay in the hospital, but yet at the same time I'm dealing with Chase and getting their phone calls, getting their harassment around the clock.

All of this was happening while Capt. Rowles was serving out of the country, his wife Julia was home with a young child and pregnant with another one.

http://abcnews.go.com/Politics/jpmorgan-testifes-congress-apologizes-foreclosures-hiking-interest-rates-soldiers/story?id=12873749Members of the House Veterans' Affairs Committee tore into an apologetic JPMorgan... more

bundlebear
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Subprime Foreclosures and the 2005 Bankruptcy Reform

Is it just coincidence that subprime foreclosures surged right after the bankruptcy... more

Schnookums
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1 year ago
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Foreclosure damages families, communities and the environment - Sacramento Environmental News | Examiner.com

The environment is often forgotten.

harryosibin
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1 year ago
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Lenders foreclosed on about 100 churches last year

The Lord giveth and the bank taketh away — at least, that is what a lot of... more

Wade_Dokken
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1 year ago
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Tea Party on Foreclosure: “They Bought Houses They Couldn’t Afford”

We already know some Tea Party members don’t believe renters should vote. But... more

IlyceGlink
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1 year ago
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Foreclosure-Gate 2.0: DC's Bankster-Friendly Fraud Solution

We’ll analyze a proposal to fix the foreclosure mess put out by a DC think tank... more

figgdimension
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1 year ago
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2 comments

Tony Destructo: Foreclosure Revenge

Tony Destructo takes on the housing crisis.

TonyDiGerolamo
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1 year ago
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City Demolishes Man's House in Error....Oooops!

This guy returned after a week to find his house gone. Happy New Year.

Progresshiv
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1 year ago
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SMART PEOPLE DO STUPID THINGS; WHAT’S THE STUPIDEST THING YOU’VE EVER DONE?

Wow, stupidity. This is a word that everybody loves to hate. It's a penetrating... more

denisethornton
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1 year ago
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Foreclosure-Gate 2.0 : Banks Break In's lead to Litigation

Even though banks piously insist that every one of their foreclosure actions is fully... more

figgdimension
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1 year ago
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4 comments

Foreclosures on People Who Never Missed a Payment

Yves Smith: Mortgage service industry makes more money from foreclosures than... more

Vierotchka
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1 year ago
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25 comments

http://www.informedplanet.com/opinion_/us-housing-market-running-a-fever/

No one is paying attention to the perfect storm brewing that will push the housing... more

blogspression1
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1 year ago
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Wall Street Quietly Creates a New Way to Profit From Homeowner Distress

Auctions allow private investors to acquire rights to collect overdue property taxes,... more

toyotabedzrock
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1 year ago
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37 comments

GLOBAL POLITICAL AWAKENING: Madison County Man Being Evicted Off His Own Land for Living Too Simply

Madison County officials are forcing a man out of his home — a recreational... more

GLOBALPOLITICAL
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1 year ago
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