I went through a divorce about three years ago. My ex got the house but I remained on the note. She is now six months late on her mortgage payment and it is dragging my credit score lower. I’m currently attempting to refinance my own mortgage but with a credit score in the mid 500′s, I’m not getting anywhere. What, if anything, can I do to get myself removed from this obligation. I doubt my score will get better while I’m on her non-performing mortgage.

Mike (more…)

The Court finds that there are genuine issues of material fact concerning whether GMAC’s March 9, 2005 correspondence satisfied the requirements of RESPA. Section 2605(e)(1)(A) provides that:

If any servicer of a federally related mortgage loan receives a qualified written request from the borrower (or an agent of the borrower) for information relating to the servicing of such loan, the servicer shall provide a written response acknowledging receipt of the correspondence within 20 days … unless the action requested is taken within such period.

12 U.S.C. § 2605(e)(1)(A). The March 9, 2005 correspondence is untimely with respect to the plaintiffs’ December 15, 2004 correspondence. (more…)

Paul, My mortgage lender has agreed to a loan mod which would get me out of a 9.1% 30 year ARM, to at least a fixed 30 year mortgage at 9.1%; however. They have said that I am at 32% and they base their terms on 38%…clearly I am not poor enough to qualify for a lower fixed rate. Any suggestions?

Wendie (more…)

Hi Paul,

I just found your site, and wish I had found it earlier.  We recently went through a short sale due to needing to relocate to another city for work. 

We had a first mortgage and a 2nd (HELOC, both with Wells Fargo.  The process was arduaous, and Wells Fargo was absolutely terrible to deal with, but the bottom line is it finally closed in October. 

The first mortgage is reported as settled, but the 2nd is listed as a charge-off. In our inexperience and zeal to get this thing to close, I inadvertently let them include language giving them the right to attempt to collect on the deficiency after the sale.  I was somewhat relieved when I heard from them in November stating that they have deemed the deficiency amount “uncollectable” and they would be issuing a 1099. 

Now, the other day, I get a letter from a law firm stating that they are pursueing payment for the short amount.  I called them to ask about the situation, and they said that they will be issuing a 1099, and attempting to collect as well. 

Is this legal?  How long do they have to issue the 1099, until January 31st for this year’s taxes? Once I get the 1099, can thye still attempt to collect or pursue a judgment?  If they do elect to pursue the judgment, do you recommend that I demand to them to validate the debt by providing the original documentation? Your help is greatly appreciated!

Phil (more…)

I just filed a lawsuit against my lender for fraud and 10 other actions including sold note and I would like to know what law governs mortgage servicers to report my payment as disputed and not late since I am not behind in payments, the servicer and lender is countrywide.

Tim (more…)

Paul,
 
Recently, I attended a seminar in Temecula CA yesterday regarding Forensic examination of the loan docs, the firm’s representatives made claims that during the litigation period (which usually takes 1 yr) after some TILA/RESPA violation has been submitted to the lender for settlement, the homeowner has
 
a) no obligation to pay mortgage during that 1 yr period.
b) may collect all the interest & principle paid since the home ownership if the lender relents & gives in
c) credit reporting by the lender is frozen so no negative credit is reported to the credit agencies.
d) at the end of the process, the free clear title is handed to the homeowner.
 
They charge $995 initial fee & if the client agrees to go ahead with the TILA/RESPA litigation after some violations in loan doc are found, there is a fee of  7K – 15K (depending on the homeowner circumstances) due after 3 – 4 months into this litigation period. If the title of the home is successfully won, then there is a fee due equal to 30% of FMV (fair market value) of the house at the beginning of the litigation process.
 
But this sounds too good to be true. And invariably, when it sounds this good to be true, most likely it probably is.
 
Do you have any thoughts on this?  Is this legally possible? Scam?
 
I desperately want to find a way to reduce the principle in my house to the current market value but no one will even look at me since I’m current with my mortgage. Do I need to deliberately skip few payments in order to get lender’s attention? I don’t want to ruin my credit.

Thank you in advance,
 
Eric (more…)

I understand RESPA< Tila, etc.  under each I can question my mortgage loan history via a Qualified Written Request, or that's what I thought.  I got a loan in 1996, no problems until it was sold in 1999.  Within 5 months, after making the $3,100.00/mo pymts. payments, my loan servicer filed a NOD for $46,000.00 and sold the loan. 

Facing a sale date the new servicer offered a forbearance agreement and promised a "loan audit".  I accepted and the audit never came.  I did the QWR, etc. and paid $90,000.00 in 9 months, all the time asking about the "audit", each payment postponing the sale 30 days. 

I finally protested and threatened suit.  They re-noticed the sale and demanded $74,000.00. 

I protested and the day before the sale, another Forbearance agreement in 2001 with another "audit" promise.  Same thing all over.  I paid,protested, QWR. etc. 

I stopped paying and they re-noticed the sale.  Again they offered a forbearance agreement in 2002, this time $552,700.00 in arrears.   That was the original loan in 1996. 

I crossed out the wrong amount and with the officers consent for an "audit" sent them $13,000.00 as a deposit for the "audit".  They sold the loan. 

New servicer, same stuff all again.  I had the loan audited by a nationally know audit firm and I was way ahead.  The new servicer wasn't impressed and filed another NOD. 

I filed a lawsuit. 

The suit came down to the 2 last agreements.  Which one is enforceable?  Was it the 2001 that was replaced by the 2002 that was confirmed by the former bank officer or the 2002 that had nothing in arrears and promised a Federal and State mandated debt verification audit? 

Guess what, the Court ruled that a forbearance agreement is not enforceable unless signed by both parties.  Based on that decision it could not be the unsigned 2002 agreement, even with the verification of the bank that drafted it, it had to be the 2001 unsigned agreement. 

My question is, how can a Court enforce an unsigned agreement when they just declared that an agreement had to be signed to be enforceable?  With that question, how can a State Court bar me from my Federal rights under RESPA, etc. via a QWR? 

The other problem is since I am the first case in California of this type, what is going to happen to all of the borrowers that are getting these agreements and do not know they are unenforceable against the lender?   

When the economy recovers the banks will come back and with my case, void all of the agreements and immediately claim all of the deferred or reduced payments.

Gene (more…)

Paul,
 
I saw your blog and I do short sales in Atlanta.  You mentioned TILA, RESPA section 6, and FDCPA as ways to negotiate with the bank.  What exactly are those and how will they help me, if you don’t mind me asking?
 
Anthony (more…)

Best approach and whom to speak to for loan principal decrease and fix a low interest rate for remaining payments.

Tiffany (more…)

I have spoken with the mortgage company and they will not budge on my ARM interest rate, and want to charge me 1800.00 by Nov 7, another 1800 on Dec 7th and then another 1800 on January 7th. At that time they will review to see if I am eligible for negotiation on my rate. If they deem me eligible, they will lower the rate some and lock it for 5 years, in which I cannot ever default or they will foreclose immediately.

This company was not our original lender, our loan was transferred to them, and they would not return any calls for the last 2-1/2 months when I tried to reach someone to see if we could work something out before I missed a payment. They are also not on the list of lendors for FHA or HUD loans offered to help consumers now. The only other option given to me was to shortsell and move somewhere to rent, if at all possible. My wife, young child and I do not want to lose our home, but this lender will not work with us.

Do you  have any suggestions on how we can keep our home?

Gary (more…)