A Real (estate) Game Changer for Unsuccessful Loan Modifications

I hear" I hope the banks get stuck." That is not the answer. We have to change the system that is hurting us. Wells Fargo took the money, had the docs signed an then changed their minds. This is a DICTATORSHIP and it happened because those who voted, voted for the person who spent the most money on the campaign. How do you expect things to turn out for the average person when we behave like children.

I agree with you, Jimmy.  The result of poor political choices are the cause of much of what ails our country. The actions of Wells Fargo and the other big banks bring it out so we can see it. Too bad not enough people are watching and learning.

The playing field is never even when indivicuals compete with corporate entities. Maybe the courts will provide some needed justice to this situation for a few more citizens.

Paddy - It will be interesting to see how this finally settles out for the lenders and the home owners.

Paddy, it looks like our brothers actively practicing the law have found another profit opportunity that will most likely result in a class-action. Now we all know who gets rich in class action suits and it usually is not the injured party.

Paddy- I hope this resolves the issues many homeworners have had,we often hear about them being strung along. 

We have yet to see any homeowner come out a "winner" in  a loan modificaiton....it buys the homeowner a little time...and the bank far more money.

Paddy, I must be jaded, I hold out little hope this will amount to much and that the banks will win again. But it is a step one court was willing to take in a better direction.

In the 80's I had to attend a seminar that had to do with health care and town assistance. There was a speaker there who used to work for a very large insurance company and spoke about the 5 finger rule. (It could have been 4 finger, I can't remember exactly now) It had to do with how large the pile of claims were on each claims processor's desk. Anything higher than 5 fingers was thrown out. The theory was.. either they would continue to refile until the claim was paid (if they ever were lucky enough to stay out of the trash) or they would give up. I was horrified.

What I learned way back then was that life isn't fair, and there are those companies who get to do what they want no matter who knows about their activities. 

Once I started hearing about what was happening to most people trying to get a loan modification I knew it was the same thing as the old 5 finger rule I had learned about so many years ago. Approve just enough to fool the government and maybe some naive folks in the real world, and deny the rest. Toss out information sent confounding and confusing everyone. 

Only the banks are winnning. 

How many failed modifications I saw that resulted in a desperation short sale. . many of my clients decided that it was just too much and they wanted closure. .

This is amazing stuff.  How are these banks getting away with this stuff?  Lets hope the legal system holds them accountable.

Paddy, the loan modification process is just a way to appease homeowners into thinking they will be able to save their homes. When all along the banks have an ulterior motive to foreclose.

With their sketchy track record on foreclosure, it's hard to believe they won't find a way around this one too. Hopefully it will be a life raft for a few.

"Never forget with how little wisdom the world is being governed".  That's all I can say.  Forgot who said it first, but it is from a few centuries ago.

Paddy, if a borrower and lender have voluntarily entered into a mortgage contract why is everyone else interfering?  Haven't the parties to that contract already agreed what happens if the borrower defaults?  

Many home owners don't have the fortitude or resources to fight their lender. Why Glass-Steagall needs to be put back in place to freeze Wall Street in its tracks. I look forward to your next blog. Thanks for the update today. 

Good info for borrowers. The "right to sue" doesn't seem like enough of a guarantee to me.