Two articles on foreclosures

david52 Zone 6June 16, 2013

The first talks about going after individuals whose homes went into foreclosure, and the banks go after them later for the difference between the mortgage amount and what they sold the house for. So, for a $400,000 mortgage, the bank forecloses and sells it off for $200,000, then they come after the original guy, years later, for the difference of $200,000. Plus interest, plus fees, plus plus plus ...

And *they* say that they just go after the people who walked away but could really pay the mortgage. How would they know? Well, because they paid their other bills.

Right. End result is declaring bankruptcy.

And then we have one from ProPublica, where ...Bank of America employees regularly lied to homeowners seeking loan modifications, denied their applications for made-up reasons, and were rewarded for sending homeowners to foreclosure, according to sworn statements by former bank employees.

Which, of course, Bank of America says, with raised eyebrows (Who, me?

Sometimes, homeowners were simply denied en masse in a procedure called a âÂÂblitz,â said William Wilson, Jr., who worked as an underwriter and manager from 2010 until 2012. As part of the modification applications, homeowners were required to send in documents with their financial information. About twice a month, Wilson said, the bank ordered that all files with documentation 60 or more days old simply be denied. âÂÂDuring a blitz, a single team would decline between 600 and 1,500 modification files at a time,â he said in the sworn declaration. To justify the denials, employees produced fictitious reasons, for instance saying the homeowner had not sent in the required documents, when in actuality, they had.

Here is a link that might be useful: propublica

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Makes me even more glad I bankrupted the house!

    Bookmark   June 17, 2013 at 8:33AM
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David, I saw that second article regarding the outright deceit involved. How underhanded is that?!

And people really don't see the greed or lack of any ethics and integrity in today's world of big business? Really? More like they choose to ignore it for one reason or another.

Having been in this situation before, I can tell you that it's more than a little frustrating to send required documents and letters by registered mail to a business or government agency, obtain the receipt that indicates they were received, and then to have receipt of those documents and letters denied over the phone as "no, we never received those"... yes, they did. I hold the receipt proving they did. They choose not to acknowledge receipt so they don't have to investigate, don't have to pay any monies owed, and can effectively keep consumers strung along, not receiving their just due. Often, consumers will give up the fight. Not always, but that's half the intent of such practices.

This blatant lack of honesty and integrity, the outright deceit in business, for the sole purpose of satisfying greed at some level, is more than a little disturbing. The fact that these companies or agencies get away with this immoral, sometimes criminal activity is outrageous.

Some people, though, will go to any lengths to ensure that dollar goes into their pocket instead of the pocket it belongs in.

    Bookmark   June 17, 2013 at 10:56AM
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david52 Zone 6

I had a similar situation a few years back trying to renew my kids in CHIP - they *lost* all the documentation.

Re-sent it registered mail, return receipt requested. Cost $10.

edited to add that what bothers me the most is that BoA can do this stuff and get away with it - maybe pay a fine or something, then its business as usual.

As for the first issue, where the mortgage lender sells off your remaining debt to some bill collection agency for pennies on the dollar and they harass you for the rest of your life, why is that legal in some states, and not in others?

This post was edited by david52 on Mon, Jun 17, 13 at 11:20

    Bookmark   June 17, 2013 at 11:16AM
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It bothers me too, David, that there are no real consequences for any of these criminal actions, and it's become acceptable for these larger banks to pay a small fine and go on about the business of lying, defraudung or cheating until caught next time and pressed to pay another fine. And that's just to placate whomever is pressing the issue. They're too big to fail, don't ya know?

David, we've been trying to clear up an issue with a large agency for almost a decade, stemming from a mistake the agency made. We've sent in the same documentation multiple times, registered mail, which is not free... nor is obtaining copies of some of the documentation free, or easy. In what should have been a simple slam dunk decision, a cut check, and a thank you very much - so sorry for the inconvenience, the agency in question refuses to admit to or correct their mistake, refuses to pay owed monies, and refuses to open an investigation at the other end of this fiasco which would net them every penny back and then some due to outright fraud on the part of that 'other end'. It's nothing short of everyone's nightmare, a trip through the ultimate in frustration.

This is the nature of such large beasts, though... they do whatever they like, whether within or without the bounds of the law or what's fair to the consumer.

As to what is legal from state to state when it comes to debt collection, whether real or imagined debt, and harassment, I'm sure I don't know... what a giant mess.

    Bookmark   June 18, 2013 at 10:35AM
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