Bank of America Faces Homeowner Class Action For Withholding Federal Bailout Funds

Bank of America Faces Homeowner Class Action For Withholding Federal Bailout Funds

Anyone who did business with a mortgage lender or broker who used Bank of America or Countrywide should have their documents audited due to the appraisals and general paperwork errors.

I for one will never do business with them again or refer anyone due to their business practices.

Does the small guy have a chance? My Opinion - Maybe or No

David and Goliath the epic battle in which the undog wins against all odds

It really depends on the bank and type of investor in your loan.    The company you call such as Indy Mac or One West Bank are the servicer and usually do not hold the note.   A third party investor like Fannie Mae,  Freddie Mac, or priviate investors owns the note.

Fannie and Freddit are working with services to get short short sales done and loan modifications but if your note or mortgage is held by a 3rd party investor who isnt willing to work with you and rather foreclosue to collect their MI (Mortagage Insurance) you are frankly screwed.   By the way they get their money when the insurance kicks in and you get foreclosed on.   If you actually speak with the MI carrier they will assist in doing a short sale or loan modification because they dont want to pay out a claim.  Or if the servicer is acting in "Bad Faith" let them know it may invalidate their policy.

Speaking of Indy Mac who went belly up and the Feds stepped in and ran the company until a group of billionare investors bought it for pennies on the dollar are just one of these banks who look like they are working hard on "getting it done", sending out mailers saying we want to help, calling using an auto dialer that hangs up after one second (proves they called but gave you no chance to speak with them, fills their quota of calls so they can foreclose."

All is just a facade to prove they reached out to you and you didn't respond.

If you are serious you have to go on the offensive and contact them every day, send in the paperwork by fax, by email, federal express so you have a papertrail.  Use their tactics against them.

David and Goliath - The Judges are seeing what the banks are doing in Nevada Foreclosure Mediation Program but their hands are tied.

In New York, a Judge granted a couples lawsuit against Indy Mac or One West Bank whacked the entire mortgage telling IndyMac/One West Bank they acted in bad faith and because of that they were nullifying the mortgage.   Of course it is in appeals court.

More battles will be fought and one by David.   Let's hope when the dust settles and the War is over Goliath is flat on his back.

SysAdmin

Loan Modifcations March 2010 - What is changing?

2008-2009 Las Vegas Map - Depreciation Map

2008-2009 Las Vegas Map - Depreciation Map from LVRJ.com

FHA Relaxes Anti-Flipping Rule

FHA Relaxes Anti-Flipping Rule



Beginning Feb. 1, the Federal Housing Administration will provide mortgage insurance for some purchases in which the seller bought the property and held it for fewer than 90 days.


The agency is changing what is known as the “anti-flipping rule” to speed up sales of renovated homes in communities with too many bank-owned and foreclosed homes, says FHA Commissioner David H. Stevens.


Waiving the 90-day rule will encourage private investors to buy vacant properties, fix them up, and quickly sell them to buyers who will be eligible to buy them using FHA financing.
FHA's change "is going to be absolutely terrific" for first-time home buyers hoping to take advantage of the tax credit, says Bobby Taylor, an associate with Coldwell Banker Mountain West Real Estate in Salem, Ore.


Source: Washington Post (01/30/2010)

HUD Waives 90 Day Seasoning for Purchasers.

HUD Waives 90 Day Seasoning for Purchasers.

HUD has decided to waive the 90 day seasoning financing contingency for buyers.

Effective February 1st 2010, there will no longer be a requirement for a seller of a property to be on title for 90 days or more in order for approval of an FHA backed loan. This is incredible news, since the majority of buyers in today’s market are FHA buyers!

If you are planning on investing in foreclosures via short sales the time is now.

The 90 day seasoning issue has long been an issue for investors and agents when working with short sales. This is changing on Feb 1st.

Below is an excerpt from the HUD website: www.hud.gov

"In today’s market, FHA research finds that acquiring, rehabilitating and the reselling these properties to prospective homeowners often takes less than 90 days. Prohibiting the use of FHA mortgage insurance for a subsequent resale within 90 days of acquisition adversely impacts the willingness of sellers to allow contracts from potential FHA buyers because they must consider holding costs and the risk of vandalism associated with allowing a property to sit vacant over a 90-day period of time."

"The policy change will permit buyers to use FHA-insured financing to purchase HUD-owned properties, bank-owned properties, or properties resold through private sales. This will allow homes to resell as quickly as possible, helping to stabilize real estate prices and to revitalize neighborhoods and communities."

This will have such a positive impact on the housing market, investors, agents, buyers, sellers, and everyone else as a whole! It’s about time. We’ve been anticipating this, and it has arrived.

Ok, here are a few important key points. There a few simple stipulations that are part of this rule, which are actually quite simple to meet. Another – it’s only supposed to last for one year. I anticipate that this will change, once they realize the positive impact this has on the housing market and economy as a whole.

Here are a few more rules:

The waiver will take effect on February 1, 2010 and is effective for one year, unless otherwise extended or withdrawn by the FHA Commissioner. To protect FHA borrowers against predatory practices of “flipping” where properties are quickly resold at inflated prices to unsuspecting borrowers, this waiver is limited to those sales meeting the following general conditions:

- All transactions must be arms-length, with no identity of interest between the buyer and seller or other parties participating in the sales transaction.

- In cases in which the sales price of the property is 20 percent or more above the seller’s acquisition cost, the waiver will only apply if the lender meets specific conditions.

- The time is now investors properties will be popping up on the market.

Thanks

Admin

REALTOR® Magazine-Daily News-Loan Modifications Hit Credit Scores

REALTOR® Magazine-Daily News-Loan Modifications Hit Credit Scores

Applying for a mortgage modification and being in a months-long trial period can devastate a home owner’s credit score.


Under the government plan, troubled borrowers can have their mortgage payments reduced to 31 percent of their pre-tax income. They are first put in a trial modification for several months to test whether they can meet the requirements of the new mortgage.
Borrowers who were previously current on their mortgages will see their FICO scores fall about 100 points while they are in the trial period, according to the Treasury Department. Borrowers who were previously late or missed payments will see their scores fall more, the government says.

The longer a borrower is in the trial period, the greater the impact on their credit scores, Once the modification is approved, the borrowers’ mortgage credit status will be listed as current and that should improve their scores, the Mortgage Bankers Association explains.
Even so, the delinquency remains on credit reports for up to seven years and can make getting credit for something else like a car difficult and expensive, borrowers report.

Source: CNNMoney.com, Tami Luhby (12/28/2009)