More Headaches for those Seeking Mortgage Modification in Miami

Propublica recently detailed another mortgage modification nightmare, as banks continue to throw roadblocks and wrenches into the process. While modification is one option for those looking to prevent foreclosure in Miami, it is an option increasingly wrought with peril.

Our Miami foreclosure defense lawyers recently reported on our Miami Foreclosure Lawyer Blog that Washington politicians have voted to throw in the towel on HAMP, the government’s $50 billion help-for-homeowners program. The plan ultimately spent just $1 billion and helped just a fraction of the eligible homeowners, primarily because banks refused to cooperate, lost paperwork, broke promises and did everything possible to avoid foreclosure — which is their new billion-dollar business.
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Bruce Jacobs is part of “Max Gardner’s Army” and is trained in the cutting-edge strategies being used to assist homeowners in fighting foreclosure. Max’s army is a nationwide team of foreclosure lawyers who are sharing information and strategy in real time.

Whether you are considering a short sale, mortgage loan modification or strategic default, we can help protect your rights. Protecting yourself against a deficiency judgment is another important consideration when it comes to dealing with bad real estate debt.

In this case, Propublica reports a Georgia homeowner spent two years working out a loan modification. Her bank agreed. The investors who had bought the mortgage-backed securities of which her mortgage was a part also agreed. However, the investor’s trustee — whose job it is to make sure the bank is striking the best possible deal on behalf of investors, refused to accept the deal. The bank HSBC was the trustee for the package of mortgages. And it refused to allow the modification. The case resulted in an unprecedented move. The loan servicer (which the average homeowner knows best as the bank holding their mortgage) has sued HSBC in an attempt to force approval of the modification.

In the meantime, the servicer, OneWest, has also filed foreclosure action.

Homeowners are finding loan modification can be a nightmare. As we have reported, banks have approved temporary modifications, only to reject permanent modification and use the resulting arrears as a reason to foreclose. In other cases, they have resold the note and the new bank has refused to honor the deal.

We are long past the time where a homeowner should deal with their bank expecting a fair deal. Wall Street is reporting banks have gone back to billion-dollar bonuses and million-dollar profits. Meanwhile, criminal investigations into their behavior have been launched in all 50 states — more for political posturing than out of any real concern for the plight of middle class homeowners.

Consult an experienced foreclosure defense attorney in Miami-Dade. Negotiate from Strength.

If you need help with foreclosure issues in Miami or the surrounding areas, including short sales, deficiency judgments, strategic defaults or other help for Miami homeowners, contact Jacobs Keeley for a confidential appointment to discuss your rights. Call (305) 358-7991.

Lawsuit Reveals How a Middleman Is Blocking Mortgage Modifications for Homeowners – ProPublica (2).pdf