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# HowTo Package Your Loan Mod Application Kit
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# HowTo Stop a Foreclosure Sale In 1-Day
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Forcing banks to approve loan modification may be unexpected blessing from robo-signing foreclosure document scandal

Robo-signing of foreclosure documents could be ammunition homeowners finally need to force banks to offer affordable loan modifications including principal reductions

Talk about making lemonade from lemons.

As the practice of robo-signing foreclosure documents hits media-daylight, homeowners are also discovering that their lenders have another fatal flaw in the home loan process to worry about.

This legal flaw was discussed in a recent segment of the PBS NewsHour. Watch the video for full details. Original air date: 2010.10.14

“We have no clue who owns what”

Experts featured, who weighed in on this document mess, include:

  • New York Supreme Court Judge, Arthur M. Schack // He has been throwing flawed foreclosures out of his court.
  • Rebecca Mairone, Default Servicing Executive for Bank of America // She states that based on the bank’s assessment, the underlying facts of the foreclosures being processed and the decisions are accurate.
  • N. Carolina consumer attorney, Max Gardner // His clients are receiving favorable loan modifications including principal reductions
  • California consumer attorney, Walter Hackett, who says, “We have no clue who owns what.”
  • April Charney, Florida Legal Aid attorney

In the process of securitizing the mortgage loans made to homeowners, mortgages were gathered into a pool and then used as collateral for mortgage-backed securities that were sold off to investors. In the several steps of this process, a key step may often have been neglected – legally transferring or assigning the mortgages from the original lender on through to the tax-exempt trust that issued the securities.

Now, nobody, not even the loan servicers – it appears – knows who owns the notes. Without legal possession of the original note, it is illegal to authorize a foreclosure proceeding against the borrower.

Don’t expect to get a free house, but…

While Bank of America, Chase Bank, PNC, and GMAC have temporarily suspended foreclosures to review their foreclosure process, don’t count on the likelihood of the lenders voluntarily admitting they did anything wrong with respect to your loan documents or foreclosure process and, in turn, happily wipe out your mortgage and give you a free a home.

Instead, the situation of “legal ownership limbo” and the practice of “robo-signing” are ideal for forcing the loan servicers to negotiate an affordable loan modification – one that not only reduces the interest rate, but also substantially reduces the principal debt.

This has been the experience of homeowner-clients represented by consumer attorney, Max Gardner, of North Carolina, who is featured in the video.

How you can force your loan servicer to get off the dime and approve your loan modification – especially if they have been jerking you around

  • In your loan modification application, include a Qualified Written Request that requests a copy of the note. This is the note that is referred to in the video segment. If they cannot produce it, which is highly likely, you’ve got leverage against them to negotiate aggressively, ie, get a principal reduction along with better interest rate terms. This will likely an in-house modification deal, not a HAMP deal.
  • Watch the Q&A Coaching Videos for more help:

# HowTo Package Your Loan Mod Application Kit
# HowTo Phone Negotiation Tips
# HowTo Complain & Motivate When Getting the Run Around
# HowTo Follow Up by Phone, Fax, Mail
# HowTo Use a Qualified Written Request
# HowTo Fight Rejection Tactics
# HowTo Stop a Foreclosure Sale In 1-Day
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Source: http://www.pbs.org/newshour/bb/business/july-dec10/makingsense_10-14.html

Technorati Tags: force loan modification, negotiate loan modification, who owns the note, robo-signing, Judge Arthur Schack, Rebecca Mairone bank of america, attorney Max Gardner, California attorney Walter Hackett, April Charney Florida Legal Aid

Related posts:

  1. FDIC Chairman Sheila Bair wants to force banks to reduce principal for homeowners on brink of foreclosure
  2. Bank loan modification errors and absurd document requests
  3. Bank of America faces fines or regulator actions from faulty foreclosure documents

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One Response to Forcing banks to approve loan modification may be unexpected blessing from robo-signing foreclosure document scandal

  1. efrain alvarez on 19/10/2010 at 17:40

    I was trying loan modification for my home loan countrywide now with Bank of America and I attended to the first mediation and this was very poor ;in this the bank of america seems to want to foreclosure the house to sale a keep the cash.. and they did not want to help, they invented some excuses to don’t give me the modification..I wan to pay, but cuotes more affordables please.. We have to force to help us we are more and good have to help us from this usures unscrupulous people.. I need to contact an association or movement to enjoy this war….

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