loan modification: Mortgage Settlement Program-How Arizona Homeowners Will Benefit
- 02/10/12 10:00 AM
Last night Arizona was awarded $1.6 Billion from a major class action lawsuit settlement involving 5 of the largest banks in America: Wells Fargo, Bank of America, JPMorgan Chase, CITI and GMAC/Ally. They were sued for their involvement in illegal foreclosures and abuse (including ROBO signing) and are now required to shell out damages to the tune of approx $26 Billion. Where will the 1.6 Billion for Arizona end up? $110 Million of the settlement money will go to borrowers who lost their homes to foreclosure in AZ between Jan 1, 2008 and Dec 31, 2011. These borrowers will … (3 comments)
loan modification: Principle Write Down, Fo' Reals?
- 07/28/11 06:33 AM
Ocwen Financial Corp. is launching a new loan modification program called Shared Appreciation Modification. Underwater borrowers who qualify will have their principle reduced to 95% of market value. In return for remaining current on their new reduced payment program homeowners agree to "share" the home's future equity. The amount written down (the debt on the negative equity portion) is forgiven in one-third increments over the first 3 year period and when the house is later refinanced or sold the borrower will be required to share 25% of the appreciation with the investor.
This program has been in trial mode since … (1 comments)
loan modification: So Why Won't Banks Modify Loans?
- 12/17/10 05:15 AM
It is a curious thing why a bank would rather foreclose on a home than modify the borrower's loan. Well, not so curious if you understand the bank's position i.e. their stake in the game. One thing to remember is just because the borrower receives a statement form Wells Fargo or B of A doesn't mean that bank is the holder of the note. In fact many times they are just servicing the loan. Once loans are originated they are often sold off a few months later to an investor, to Fannie or Freddie or to another bank. Banks are in … (1 comments)
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