Never a Borrower nor a Lender be . . .
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3 years ago
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Forcing a lender to lower interest rates without refi?
Comments (11)Hi Parma, She also said that the owner of a loan company told her that there's a law (and this is where it gets stupid) saying that you can go to your mortgage company and demand they lower your rate if you can show your home has lost a lot of its value. He said he did it with Countrywide, (our lender, also). He also said that they will try to do something else but if you stick to your guns, they have to lower it. Urban legend? Either urban legend, or a broker full of beans! *IF* your loan was sold to Freddie of Fannie, you *MAY* benefit from the upcoming Homeowner Affordability Modification Plan (HAMP) or Homeowner Affordability & Stability Plan (HASP - refinances.) More details here (go to my SECOND post inthis thread for good links); http://ths.gardenweb.com/forums/load/realestate/msg0314583220481.html?3 Homeowner Affordability and Stability Plan The industry is awaiting clarifying details from the Fed... due either April 1st, or (more likely) May 1st, at the earliest (depending on who's rumours are to be believed.) Anything already accomplished (i.e. with Countrywide or other lenders) was an open market Loan Modification negotiated prior to Obama beginning to tease us about the issuance of federal guidelines. Once the trickle-out of fed guidelines, pretty much most (or all?) of the servicing companies have frozen all negotiations while we wait for them to discover if they'll get more sugar by awaiting the government plans. Luck! Dave Donhoff Leverage Planner Here is a link that might be useful: Homeowner Affordability and Stability Plan...See MoreA judge rules that they were victimized by predatory lenders
Comments (34)Logic you have succeeded in convincing me and here is why. "Attorney Noah Pusey said his clients tried to back out of the deal before closing but were told they'd lose their $5,000 deposit." Buyers who need a mortgage routinely sign a contract with a financing contingency, among other contingencies. If all of the other contingencies are satisfied the only way the buyer can get out of the contract and get his deposit back is if the buyer cannot get financing. Not if the buyer cannot get financing that makes sense to him, but only if the buyer cannot get financing of any kind. If the mortgage company did to others what it tried to do to me on the day of settlement, put a monkey wrench into the financing I chose, I wonder if I would have been obligated to continue with a restructured loan on a moment's notice or lose my deposit. I guess so. Luckily we had gone through our local bank and we found out later the monkey wrench was thrown by Countrywide, to whom we were sold almost immediately we found out afterwards. Luckily my hometown banker found a way to counfound the the ridiculous demand Countrywide had come up with at the last minute. Of course none of this was explained to me at the time. I was just furious with her that the matter did not come up until the day of closing and in fact the sellers, who went to the table earlier in the day, were the ones who called me and said there was a problem. I was one of those that did not realize or understand that my local bank was going to sell my mortgage. It was certainly never brought up during my conversations with my local banker....See MoreBorrowers Caught in Foreclosure Nightmare
Comments (35)A large part of the problem has arien frm the 'electronic recording' of note. Instead of actually shuffling paper, an electronic database is used to 'record' ownership of the notes. This was done to speed yup sale of the notes, and avoid the recording fees jurisdictions require to actually record the ownership of the note at the court house. There have been hints of problems dating back a couple years. Dutsche Bank created a shell company to securitize notes and issue bonds backed by the notes. They then wanted to save even more money and rolled the shell company into Dutsche Bank. When they then tried to foreclose on some defaulted notes, the court required them to prove they actually owned the notes. All they had was ownership of the bonds, the notes were still in the name of the dissolved shell company. It would be like you purchasing a Fannie Bond, and then claiming the right to foreclose a note 'included' in the bond. You own a bond from Fannie, NOT the underlying notes. Fannie owns the notes, and they are the one who must foreclose. The electronic recording database is a private company, set up just to make buying and selling of the notes faster and less expensive. Some courts have allowed the company status as the 'owner' of the notes, others have taken issue. For may years the whole thing was handled on paper. Each seller added a transfer of the note ownership to the paper file, and then had the new ownership recorded at the appropriate court. This 'hampered' the secondary market, so the recording database was created. At least some of the title insurance companies have had some heartburn with the lack of public record. Only the actual owner of a note can release the note (or someone they directly designate like a settlement company for sales). With ownership of the note not clearly and publicly recorded, how is anyone to judge if the release on full payment is valid? Just as with a quit claim deed, you can only convey your actual interest in a property. A quit claim for the Empire State building I might give you conveys nothing, since I have no interest in the Empire State building. In the name of faster they have managed to cause clouds on titles that may take some time to unwind, and in the meantime owners who have defaulted will escape foreclosure until the courts are satisfied with clear ownership of the notes (and not simply a bond backed by the note)....See MoreNegotiating with Lenders
Comments (7)Here's a short summary of foreclosure law in Maine: ---------------------- Maine Foreclosure Sale following expiration of Period of Redemption Upon expiration of the period of redemption, if the mortgagor, or the mortgagor's successors, heirs or assigns have not redeemed the mortgage, any remaining rights of the mortgagor to possession terminate, and the mortgagee shall cause notice of a public sale of the premises stating the time, place and terms of the sale to be published once in each of 3 successive weeks in a newspaper of general circulation in the county in which the premises are located; the first publication to be made not more than 90 days after the expiration of the period of redemption. The public sale must be held not less than 30 days nor more than 45 days after the first date of that publication and may be adjourned, for any time not exceeding 7 days and from time to time until a sale is made, by announcement to those present at each adjournment. The mortgagee, in its sole discretion, may allow the mortgagor to redeem or reinstate the loan after the expiration of the period of redemption but before the public sale. The mortgagee may convey the property to the mortgagor or execute a waiver of foreclosure and all other rights of all other parties remain as if no foreclosure had been commenced. The mortgagee shall sell the premises to the highest bidder at the public sale and deliver a deed of that sale to the purchaser. The deed conveys the premises free and clear of all interests of the parties in interest joined in the action. The mortgagee or any other party in interest may bid at the public sale. If the mortgagee is the highest bidder at the public sale, there is no obligation to account for any surplus upon a subsequent sale by the mortgagee. Any rights of the mortgagee to a deficiency claim against the mortgagors are limited to the amount established as of the date of the public sale. The date of the public sale is the date on which bids are received to establish the sales price, no matter when the sale is completed by the delivery of the deed to the highest bidder. -------------------- All that being said. We are at the point of the sale - it does not appear to me that the mortgagors (debtors for the rest of us) have any right that would allow them the ability to do a short sale and that would be what I was told by one person at the bank and two lawyers. My agent called and after talking with another agent who claims to be some 20 year expert - says that if I buy it at the public sale, I will take it along with the subordinate mortgage. Silly me, lawyer and all, I read the above as saying that the purchaser takes the property free and clear of all interests of the parties in interest joined in the action. The second mortgagee is a listed party in interest. So, to recap: 1. In Maine the mortgagee (creditor) must file a civil collection action and get a Judgment of Foreclosure, then the mortgagor (debtor) has 90 days to redeem the property. And within this period of 90 days presumably, you could probably do a short sale. 2. After the 90 days - it sounds like the debtor's lose their status as owners of the proprety, and the creditor can then sell the property at a public sale. 3. Even after the 90 days the debtor can pay the judgment and get the property back, but only at the discretion of the creditor/mortgagee. But it does not look like after that 90 redemption period passes that any short sale can be done. 4. At the public sale, the buyer takes the property free of any interest of the second mortgage so long as that second mortgagee has been listed as a party in interest in the original foreclosure suit and notice given to it. I've about convinced myself to go ahead and order my bank check and show up - who knows the first mortgage may bid less than the foreclosure judgment, but I doubt that, seriously. :) We decided to also go ahead and submit a purchase and sale agreement to the paralegal for the foreclosing attorney, simply because - we feel at the very least she has a fax number and contact at the bank - and if all the stars align properly - the right person at the bank will have our names and information that we want to purchase the property in case I don't buy it at the public sale. I'm still on the fence as there are other considerations - we just don't want it to get caught up in the abyss of some large corporation. I still have some glimmer of hope. MP...See Moreyoyobon_gw
3 years agoCarolyn Newlen
3 years agovee_new
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