The Foreclosure Crisis

The foreclosure crisis has created havoc with hundreds of mortgage lenders, banks and untold numbers of families. Creative new loans designed and bought by banks and investment companies ensured the collapse of the housing market.

The foreclosure crisis without a doubt was engineered and the Engineers’ have profited enormously…. You and I will never even begin to profit as those who created this mess have… but, they have created a tremendous opportunity for me and maybe you? The crisis is only beginning! Now is the time to become Very Well off because of it?

Even if homeowners can keep up with inflation, resetting interest rates are doubling their payments. People can’t afford their mortgage payment, and negative equity positions ensure they can’t refinance or sell. That’s Where We Come In!

Just The Beginning Of The Economic Crisis

With all of the bad economic news coming out every day, and the continuing collapse of housing prices and record foreclosure numbers, it often seems like the situation just can’t get any worse. But it will! Compared to a year ago the number of foreclosures is underestimated as foreclosures take months to wind their way through the legal system.

This means that the high foreclosure rates have not yet begun to reflect what is happening in the real estate markets right now, as the numbers only represent how many homeowners defaulted on their mortgages nearly half a year ago or more.

The coming economic collapse may very well contribute to the end of the American dream as most know it. But, not for those of us in the business of helping desperate homeowners, as the economy gets worse we will prosper even more. Banks, investment firms, and government have all worked together to keep up an illusion of prosperity. Do you feel prosperous? Eventually the illusion and deception will have to end or will it?

Various rouses have been used for years to create an illusion of economic growth, when the reality of the situation is simply that more people are working longer hours for more of their lives and never getting ahead. Are you one of them?

Loan Audits Panic Lenders

The word panic may be a little strong to use, on the other hand from what we’ve been getting (correspondence) back from the lenders it appears that something is causing lenders to want to restructure loans. The reason for this we believe is that lenders are finally being forced to look at the mortgages that they issued or purchased and can no longer avoid the fraud and violations in those loans.  For this reason they’re looking at every possible means to help them avoid the lawsuits that are  surely imminent by both the borrower and the investors.

Lender internal audits have brought fear to the mortgage industry this is why I believe lenders are starting to come forward with mortgage restructuring offers that are unlike in the past - these recent offers are more equitable for the borrower.

Giving further details about the current favorable (for the borrower) lender loan restructures, because that’s what is happening more so than a simple modification, we have concluded that the loan audit is what’s contributing to this more agreeable resolution by lenders.

January 09, 2009

WASHINGTON (Reuters) – The desperate straits of many U.S. homeowners showed in new data released on Monday, suggesting efforts to help them are having limited success.

As the recession throws more people out of work, the rate of re-default on modified mortgages is rising and may worsen as the economy deteriorates, banking regulators said.

After much browbeating from Congress, banks and other mortgage lenders are beginning to do more, to modify home loans so that distressed borrowers can avoid foreclosure.

But the latest figures from regulators raise questions about how modifications are being done and how much they help, even as foreclosure rates hit record-setting levels.

"You have to think that it will get worse before it gets better," John Dugan, the U.S. Comptroller of the Currency, said in an interview with Reuters.

Critics say most loan modifications up until a few months ago were temporary and not aimed at providing for sustainable payment plans, so it comes as no surprise that homeowners are defaulting.

At the same time, a lenders' group known as Hope Now warned on Monday that the number of U.S. homeowners seeking help to avoid foreclosure would double next year to 2 million.

The Office of the Comptroller of the Currency and the Office of Thrift Supervision, both key U.S. banking regulators, said that after six months, nearly 37 percent of mortgage loans modified in the first quarter were 60 or more days delinquent.

After three months, 19 percent were 60 or more days delinquent or already in the process of foreclosure, they said.

"One very troubling point is that whether measured using 30-day or 60-day delinquencies, re-default rates increased each month and showed no signs of leveling off after six months or even eight months," Dugan said in the joint OCC-OTS report.

Possible explanations for the high re-default rate include the faltering economy as well as loan terms were not being modified enough to help homeowners, Dugan said.

But critics said the data were misleading because they included repayment plans that did not significantly modify home loans.

A spokesman for IndyMac Bancorp, which was taken over by the FDIC in July, said lenders were only tinkering with loan terms up until a few months ago and not making true modifications.

"Modifications in the past were never about finding the borrower an affordable payment," Evan Wagner said. "So I think it shouldn't be surprising that you are seeing a lot of these folks re-defaulting."

The data, some of which was released in preliminary form earlier this month, were based on information collected from some of the biggest U.S. financial institutions, including Bank of America, Citigroup and JPMorgan Chase.