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April 27th, 2011

You may get a second shot at a loan mod

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ApprovedIf you were unsuccessful at modifying your home loan, perhaps this will sound familiar: while you were making your trial payments, your servicer simultaneously began the foreclosure process.

A chance to remodify your loan mod

Due to the federal penalties against mortgage servicers and a recent court ruling in California, a new wrinkle to the foreclosure prevention effort has emerged. If you were delivered a foreclosure notice while making trial payments, you may qualify for a ”remod”–a term Mortgage Servicing News describes as the new buzzword in the mortgage servicing industry.

From Mortgage Servicing News, Kate Berry, April 24, 2011:

Lenore Albert, a plaintiff’s lawyer in Huntington Beach, Calif., says the consent orders federal regulators recently issued against the largest mortgage servicers gave her “another tool” to fight foreclosures.

On April 15, two days after the enforcement actions came out, Albert won a court order blocking Aurora Loan Services from holding foreclosure sales on six homes in Orange County. In their request for a restraining order, her clients claimed they were harmed by so-called dual tracking, in which Aurora began foreclosure proceedings at the same time it was evaluating the borrowers for loan modifications. The consent orders bar this practice.

Thousands of homeowners affected

The hundreds of loan-mod-related comments this blog has gotten from frustrated borrowers revealed a host of issues and frustrations with the federal loan mod process. While the majority of the comments focused on communication issues, we did hear from a few borrowers who received foreclosure notices in the midst of making on-time trial payments.

So, how many borrowers are expected to get a second shot at a loan mod? As of now, the estimates vary from thousands to hundreds of thousands of borrowers.

From Mortgage Servicing News, Kate Berry, April 24, 2011:

One likely result of the orders, some industry observers say, is that thousands of borrowers, many of them currently in litigation against servicers, will get another shot at a loan modification.

“There will be a lot of remodifications for those [borrowers] that fell out of a modification the first time,” said Art Tyszka, director of document services at Wolters Kluwer Financial Services, which has been hired by several of the largest servicers to conduct loss-mitigation efforts.

“Several hundred thousand loans at a minimum” will get one more chance, Tyszka said.

We’ll be sure to keep you updated as we learn more about “remods” and how you can make sure you get your second chance.

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2 Responses to “You may get a second shot at a loan mod”

  1. Pamela Zander Says: July 19th, 2011 at 1:38 am

    Forensic Loan Examiner/Pamela CEO

    Attended the American School of Mortgage Banking, certified in Loan Processing and EscrowII, worked at the Title co. ’80’s

    Why on earth would anyone want a loan mod., since all it does is give someone title to your property! Think about it. Some have an idea who originated the loan, but most don’t have a clue who funded it! The Loan Mod, is another scam, People! Please start using your brains. Yes, another scam. Even though say for instance, Bank of America claims to now have your loan. You and only you own the Note and Deed of Trust, and it is a promise to pay your lender. On the other hand, B of A only becomes the servicer, not the owner of the note.

    All transfers of title begins with the originator. Now remember, in CA, MERS was suspended in 2002! Therefore, they have “NO” jurisdiction or authority to designate a Trustee. Want more? Call Pamela Zander to arrange an appointment to view your loan docs, you may be sitting on a time-bomb. Much to your advantage. 760) 244-6248

  2. JD Rawcliffe, Esq. Says: July 21st, 2011 at 9:45 pm

    Sounds like the previous poster is the scammer. Scaring people that modifications involve surrender of their HOME OWNERSHIP – LIES!! She’s not an attorney, just marketing her unlicensed and unregulated “consulting” services by scare tactics. ONLY in CA have the courts refused to acknowledge the authority of MERS (Mortgage Electronic Recording System) to foreclose, which only delays the inevitavble for those who truly cannot pay, once the banks find the documents proving what institution actually owns the mortgage. Modification, whether by lenders, or through HAMP, remains the best option to get borrowers who wish to keep their homes back on their feet, although the process can be arduous. AND, it’s FREE!! – through your local HUD counseling agency – look up your local office at: http://portal.hud.gov/hudportal/HUD?src=/localoffices

    Good luck, and God bless

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HSH.com's daily blog focuses on the latest developments in the mortgage and housing markets. Our mission is to relate how changes in mortgage rates and housing policy, as well as the latest financial news, impacts consumers, homebuyers and industry insiders alike. Our 30-plus years of experience in the mortgage industry gives us an edge as we break down the latest changes in an ever-changing market.

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Tim Manni

Tim Manni is the Managing Editor of HSH.com and the author of their daily blog, which concentrates on the latest developments in the mortgage and housing markets.

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