Resources - Modification Matters
Now that we've learned that lenders and servicers have only modified an average of 9% of qualified mortgages under the Obama plan, it's hard to tell which companies were scamming and which were made to look like scams by the servicers and lenders who failed to live up to their agreement with the federal government.
-- ml-implode.com 09/04/2009
Having legal help can be the difference between people keeping their homes and being evicted. A lawyer can stop foreclosure proceedings or put enough pressure on lenders to get them to rework the terms of the loan. A lawyer can also intervene in other ways, such as enforcing consumer protection laws or spotting legal violations by banks and lenders.
-- Lack of Legal Help: One More Way the Deck Is Stacked Against Homeowners, Arianna Huffington, 10/05/2009
Debt servicing rights were routinely assigned to third parties who possess financial incentives to foreclose on homes. Yet, in many states, the law fails to provide homeowners a full and fair opportunity to save their homes.
-- Foreclosure: A Crisis in Legal Representation, Melanca Clark with Maggie Barron 10/06/09
In fact, ever since it's come to light that mortgage servicers have been sued hundreds of times, that they continue to violate the HAMP provisions, that they foreclose when they're not supposed to, charge up front fees for modifications, require homeowners to sign waivers, and so much more, who can be sure who the scammers really are. Bank of America, for example, got the worst grade of any bank on the President's report card listing, modifying only 4% of the eligible mortgages since the plan began. We've given B of A something like $200 billion and they still claim that they're having a hard time answering the phones over there, so who's scamming who?
-- Mandalman Matters: 09/04/2009
The foreclosure crisis is being made substantially worse by a shortage of lawyers for people whose homes are at risk. According to a new study, an overwhelming number of homeowners who face foreclosure do not have legal help in protecting their rights. As a result, people are losing their homes who do not need to.
-- New York Times, Editorial 10/09/09
Telling me that I don't need anyone representing me when attempting to get my bank to modifying my mortgage seems a lot like the police telling me that I don't need a lawyer after I've been arrested because if I have any legal questions I can just ask the District Attorney. Gosh, thanks for that, but I think I'd prefer someone on my side of the table anyway, if it's all the same to you.
-- Pigs, Puppets and People in Peril, The Niche Report, May 2009 Issue
CNNMoney.com has heard from hundreds of troubled homeowners who've run into roadblocks. The complaints are often the same: a lack of responsiveness by servicers. Even many of those whose applications are deemed complete say they never receive final approval or are told they can't be helped now because they haven't missed a payment.
-- Obama Mortgage Plan Needs Work, CNNMoney.com, 09/11/2009
"Although I support the prohibition of individuals charging advance fees for mortgage loan modifications, I do not agree with the provision of this bill that will only allow fees to be collected if a modification is successful. This could adversely affect legitimate businesses that provide loan modification services. As such, I am signing SB 94 that accomplishes this prohibition against advance fees without unnecessarily harming legitimate companies."
-- CA Governor Arnold Schwarzenegger, 10/11/2009