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Bank Sued For Letting Foreclosed Properties Rot

Posted in Lenders

View PhotoReuters/Reuters – A statue is pictured in front of the former head quarters of Germany’s largest business bank, Deutsche Bank in Frankfurt, January 28, 2013. REUTERS/Kai Pfaffenbach Thanks to Yahoo. By Jessica Dye NEW YORK (Reuters) – A judge has denied Deutsche Bank AG’s bid to dismiss a lawsuit by the city ofLos Angeles accusing it of letting hundreds of foreclosed properties fall into disrepair and illegally evicting low-income tenants, a representative for the city’s attorney said on Wednesday. Los Angeles Superior Court Judge Elihu Berle allowed the 2011 civil enforcement action to proceed, according to the city attorney’s office. The ruling was made during an April 8 hearing and a written decision was issued late on Tuesday, the city said. “This ruling will now allow our action to move forward to trial and ultimately to holding the bank accountable for its intolerable practice or...

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Jumbo Modification

Posted in Lenders, Mortgage Modification

A residential property where the first loan was more than around $729,000 at the time of the default is not eligible for modification under the Making Home Affordable program. However, home owners with jumbo-size loans should not despair – especially if their home is under water. Many lenders will modify. Consider this modification in which the owners owed $1.078 million. They received a Making Home Affordable like modification in which their rate was reduced to 2.0% for five years, then 3.0% for one more year, with a probable permanent rate thereafter of under 4.0%. The amortization was 40 years. And they received a principal reduction of $316,000! The servicer is Ocwen, and the trial payment program is here. The final modification is here. The key to the modification is this: The property is now worth only around $700,000. The...

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GMAC Modification Makes Contractor Happy

Posted in Lenders

8-31-12 VZ is a hardwood floor layer and general contractor. His business tanked when the Great Recession set in. He got behind on his home mortgage.  Payments were high at 7.8%. However, in 2010 his income was recovering. His income turned out to be a little too high for him to qualify for the Making Home Affordable program, however, I was able to work out an in-house modification at 4.5%. As the months have gone by, all the lenders have learned the rules of the road and are behaving more reasonably, GMAC included. In 2012 VZ’s income had dropped. We played with the figures and decided that we should make another try to get him a Making Home Affordable modification. Success! On his $350,000 loan, he has principal and interest payments of $1,219.40, escrow payments of $555.58 and total...

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Successful EMC Modification

Posted in Lenders

We have several modifications going with EMC. So far EMC seems to be reasonable to work with. Meanwhile, EMC is being sued. A young couple came to us with a 7.0% negative amortization EMC loan. We were able to negotiate an interest rate of 2.0% for five years, 3.0% for one year, and then 3.875% interest for the next 25 years. The principal balance was reduced from $595,000 to $460,000. Read the details here:...

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EMC Sued

Posted in Lenders

Keller Rohrback LLP has announced that a class action has been filed in the United States District Court for the Eastern District of Washington on behalf of all mortgagors in the State of Washington whose home mortgage loans are serviced by EMC Mortgage Corporation and who (a) have attempted to obtain loan modifications of their loan terms from EMC; and (b) have made payments pursuant to a “Repayment Agreement,” a Home Affordable Modification Program (HAMP) trial modification plan, or any other temporary modification plan.  Read...

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GMAC

Posted in Lenders

I have found GMAC to be reasonable to work with in some cases, very inflexible in others. In one case I was able to negotiate a $10,000 payoff on a $120,000 second mortgage. This was an underwater property, with little equity available to secure the second mortgage. *** Another case did not go so well. The client came to me with only a few weeks remaining before foreclosure. I submitted a complete package, however, GMAC refused to call off the foreclosure until the lender gave its approval. The foreclosure date arrived and GMAC had still not agreed to extend the foreclosure date. To save the property I put the client into Chapter 13 bankruptcy. A week later the client decided the property was so far underwater that he just wanted to give up. So I canceled the Chapter 13,...

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