Another quick, link-heavy update here. It certainly does not appear that the whole foreclosure mess is going away anytime soon:
According to a Miami Herald/AP article, the FBI is beginning an investigation to see if any criminal laws were broken in foreclosure fraud fiasco. This comes despite the fact that major lenders and servicers continue to insist that any issues here are merely procedural, technical issues. Bank of America and GMAC/Ally recently resumed some foreclosures, saying they reviewed their processes. Citigroup and Wells Fargo were insistent that their processes were sound and never suspended foreclosures (just this morning reiterated that this position in a conference call).
Legislators, judges, and analysts all seem less than convinced. Attorneys general from all 50 states have started a joint investigation into allegations of fraud and other misconduct. Additionally, a Washington Post article by Zachary Goldfarb suggests that:
“Federal investigators are exploring whether banks and other financial firms broke U.S. law when using fraudulent court documents to foreclose on people’s homes, according to sources familiar with the effort”.
Although the Obama Administration’s response to this crisis has been somewhat underwhelming (at least in this blogger’s opinion), HUD Secretary Shaun Donovan stated in a Huffington Post article that a “comprehensive review is underway and will respond with the full force of the law where problems are found”.
I’m really not sure where this situation is going to go from here. I am hopeful that a full investigation into these matters will uncover any wrongdoing, and if it is found, that rules and regulations will be put in place to make sure that something like this does not happen again. The only thing to be sure of is that this mess is not going away, and appears to be getting larger by the day.
What do you think is going to happen? Let me know in the comments section below.
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Karen
October 20, 2010 @ 1:53 pm
If there is not fraud involved why do the banks not just modify loans as per Obama Plan or there own plan. They just keep asking people for more documentation and make then be late and later until they sometimes tell them they cannot help them after 10 months have passed and lots of stress on people. Its a travestry against the american people.
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Lisa Reply:
October 20th, 2010 at 3:28 pm
I agree. We were going into foreclosure and the mortgage company had us apply for one of Obama’s modified plans. They set us up on a trial payment for 3 months and all the paperwork stated that’s close to what the payments would be. It took many months for them to sort it all out and we had to send paperwork twice. All of a sudden, we got a letter saying we were approved and the agreement needed to be signed and sent in within 36 hours or they would foreclose. They payments in the final were almost $600 more than the trial ones! We didn’t know what to do and there was no time for legal counsel. Calling the mortgage company was useless as nobody would return the call. We signed it to get it in and figured we’d sort it out later. Now we can’t pay any other bills and are going deeper and deeper into debt. The mortgage co. says they can’t look into it for a year!! We were so snowed. You are so right on about the stress Karen.
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Hanna Reply:
October 20th, 2010 at 7:38 pm
I am in that same boat right now. Was told I was approved for the HAMP modification, email stating my income was approved by underwriting, did trial payments, final papers were in process so they told me, only to get a letter saying I didn’t qualify because of my income and be put into foreclosure 1 month later. And if I found this to be incorrect contact them and they would look at “alternative options” for modification….not fix the mistake. Now,set for foreclosure Dec. 7th as my 3rd in-house modification is still under “review.” Of course adding on all of the amount past due would make my payments too much to afford.
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Candace Reply:
October 20th, 2010 at 8:27 pm
I am a previous Wells Fargo homeowner. They put us off for 6 months one time trying to do a loan modification. They wanted more and more paperwork and more money to process. The amounts were crazy. Finally, after the six months of waiting they told us they would need the full months payment paid or they would foreclose. All the time they told us not to make a payment during the decision time to wait until they were done with the review. They never did what they said they would do. You get a different representative everytime you call and they don’t care, they just tell you whatever to get you off the phone.
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Shelley Reply:
December 22nd, 2011 at 7:26 pm
This same experience happened to us. They kept sending more paperwork and we would complete, sign and send it back then they would claim that the the package was incomplete. We called and called, each time we would get a different representative, re-explaining everything. In the end they won, completed the foreclosure and evicted us from our home.
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pam Reply:
October 21st, 2010 at 4:41 pm
Absolutely Wells Fargo is at fault. My story sounds like everyone else who has dealt with Wells Fargo. How do we band together and fight WF for incorrect foreclosures. Mine took over a year for a modification. Don’t know where my payments were applied, enormous amounts of duplicate paperwork, and different person every time you call. Now they want my home after they’ve screwed up. Fess up WF, you screwed up just like the rest of the banks did.
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bob
October 20, 2010 @ 9:13 pm
The banks already have there money from the bailout! So they don’t care!!! So when they forclose there actually getting more money. Obama’s plan didn’t work and the banks just screwed over the american people!!!
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EdFitch
October 25, 2010 @ 1:57 pm
Wells Fargo is among the most guilty. My home has been taken by a “carbon copy” of hundreds of thousands others -demanding constant monthly updates to thick reams of paperwork (and not being told when it was to be required, just that they threw out all paperwork monthly), no one answering phone calls or giving their names, lying as basis to foreclose, then immediate sale to an affiliated land management company. And the land management company – in this case, Chase Merritt II LLC, has kept hitting me with UnlawfulDetainer / Eviction notices so that I have spent a lot of money and not been able to file a lawsuit against a very guilty Wells Fargo. All this after 31 years in my home!
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Hillary
January 6, 2011 @ 3:52 am
Folks its Hells Fargo
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Longporteve
March 26, 2011 @ 5:16 pm
Wells Fargo is the worst
I went back and forth on loan modification just to buy time. I got a forclosure notice and paid the full amount which was also the balance of the loan. When I asked the agent three times if the loan was paid in full he said yes. Then, I get another forclosure notice 7 days later for $600. they said my loan wasn’t paid off. When I questioned this they said the agent lied. Now I have a payoff statement to pay off my loan in full including recording of the deed, and three days later I get 4 certified letters stating Wells Fargo is going to forclose on our home because we owe them $5,959.00. They kept sending me statements and didn’t deduct payments so that is how they came up with that amount.
At the present my Mom is on her death bed and all my energy has gone to that and I feel that this is harrasement that I don’t need!!!!
I will deal with them when I have the time. Right now I am just venting!!!!
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Duane
April 16, 2011 @ 2:17 pm
I don’t know if this will help anyone out there but I am having problems with Oregon Department of Veterans Affairs (home loan).
I admit I did get behind on my payments, but then the ODVA sent out notices to the wrong address (documents from their file now prove they knew the correct address).
I was able to get enough money together to catch up all the payments but they wanted “Legal fees” claiming over 80 hours for “boiler plate” documents.
I tried to contact the head of the ODVA he did not respond, I sent a certified letter to the governor of Oregon he never responded.
I finally in an attempt to put an end to all of this sent a check (for the full amount they demanded) to Oregon Department of Justice attorney who was handling this (Daniel H. Rosenhouse) by certified mail ( I have proof that the check was receive) yet the check has not been cashed and I have not heard anything from them.
This appears to be Real Fraud and I wonder how many other Veterans they have pulled this scam on in the State of Oregon!
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