The Obama Administration is floating a proposal that would allow the government to directly buy more loans from servicers of mortgage-backed securities
With the financial crisis quickly becoming President Obama’s primary burden, his Administration has intensified its efforts to stem the rising tide of foreclosures in order to solve the root cause of the difficulties. On Feb. 11, Treasury Secretary Timothy Geithner and Shaun Donovan, Secretary of the Housing & Urban Development Dept., met with community groups and key stakeholders in the banking industry to gauge support for a potential program that would allow the government to directly buy whole loans from servicers of mortgage-backed securities (MBS) in order to modify them—and keep more borrowers in their homes.
This is just one of several proposals the Obama Administration is considering as it comes to terms with the dire need to prevent further waves of foreclosures amid a deepening recession. There were foreclosure filings on 274,399 U.S. properties in January, down 10% from December but 18% higher than a year ago, according to RealtyTrac, a foreclosure research firm. In December, the Mortgage Bankers Assn. said that a record 1 in 10 U.S. families with a mortgage are either in arrears or having their house repossessed.
Banks and other mortgage servicers have being doing loan modification under an Federal Deposit Insurance Corp. program since the first quarter of 2008, but many have failed to benefit from a cookie-cutter approach that’s paid insufficient attention to the financial condition of individual homeowners. And these “mods” haven’t addressed the need for a wholesale cleaning out of some of the most toxic loans, those collected in securitized pools and sold piecemeal to vast numbers of investors. The problem is that there is no flexibility to modify the terms of individual mortgages in most of the Pooling and Servicing Agreements, or PSAs, that govern these mortgage pools.
Is the grand plan by FDIC Chairman Shelia Barr in trouble? Bair has been promoting a plan to use $50 billion of the Treasury’s $700 billion bailout funds to guarantee that home loans renegotiated by banks get repaid. Her proposal is modeled after FDIC efforts to quickly restructure troubled loans at IndyMac, the failed thrift that regulators seized in July. But it’s been nearly a week since the plan was first floated , and a story in the Wall Street Journal today suggests the plan has run into opposition in the White House.
It’s hard to tell if that’s the case. White House spokesperson Tony Fratto will only say that the Bush Administration is reviewing a number of proposals for restructuring loans, and that the Journal story “is inaccurate.” Clearly, though, once a new president is elected the pressure will build for some sort of help for homeowners.
Other federal efforts to right the housing collapse seem to be getting off to a slow start. The Federal Housing Administration’s ‘Hope for Homeowners’ program, launched Oct. 1., was designed to keep 400,000 troubled homeowners in their homes by swapping risky loans for conventional 30-year fixed rate ones with lower rates. But the government received only 42 applications from homeowner in the program’s first two weeks and all have been rejected, according to the Housing Wire blog.
Even Spain seems to be showing the U.S. up, declaring a moratorium on mortgage payments for homeowners who have lost their jobs.
Either under pressure from state regulators, as in the case of Bank of America, or under the their own initiative, as JP Morgan Chase recently announced, big banks are taking steps to stop foreclosures and renegotiate loans. Housing advocates say the Bush Administration should be doing so as well. “If we could get (Treasury Secretary) Paulson to do for Fannie Mae and Freddie Mac what Shelia Barr has done for IndyMac, that would overnight be a huge benefit for homeowners,” says Bruce Marks, founder of the non-profit National Assistance Corp. of America.
Crafting an effective mortgage bailout won’t be easy. It has to be done in a way that helps those who are in danger of foreclosure, but without providing an incentive for otherwise healthy homeowners to default. Moreover, there is still some debate as to whether keeping trouble borrowers in their homes ultimately helps the general population. A recent study by the St Louis Federal Reserve of foreclosure moratoriums put in place by 27 states during the Great Depression found that banks cut back on lending and borrowing rates for home buyers were higher because lenders couldn’t take property in default back and resell it.
Raphael Bostic, a former senior economist at the Federal Reserve who now teaches at the University of Southern California, says that if the federal government renegotiated trouble homeowner loans, either by providing assistance to private banks or through buying the loans themselves, it would help put a floor under housing prices. “Everyone is trying to figure out where the bottom is,” Bostic says. “People are not going think there’s a bottom if they know there’s a flood of distressed assets still coming up for sale.”
Both presidential candidates were in favor of renegotiating homeowner loans. Those in the real estate industry are hoping the next president will bring some calm to an uncertain market. Lorna Borenstein, president of Move.com, a real estate information company that includes Realtor.com, says she was at conference for women executives in early October when the news of the big bank-bailout bill passing was announced. “There was a huge round of applause,” she says. Now she hopes a new president will be a catalyst to brighten a gloomy picture. “We have an oversupply of houses on the market,’ she says. “Until that gets cleared out you won’t see any stabilization in prices.”
FTC Launches Redress Program for Mortgage Loan Victims
Almost $28 Million Returned to 86,000 Consumers Harmed by Mortgage Servicing Practices
The Federal Trade Commission today announced that the agency returned almost $28 million to consumers this week as a result of a settlement with The Bear Stearns Companies, LLC and EMC Mortgage Corporation. Using the defendants’ records, about 86,000 consumers who had mortgage loans serviced by EMC have been mailed redress checks.
In September 2008, Bear Stearns and EMC agreed to pay $28 million to settle FTC charges that they engaged in unlawful practices in servicing consumers’ home mortgage loans. The companies allegedly misrepresented the amounts borrowers owed, charged unauthorized fees, such as late fees, property inspection fees, and loan modification fees, and engaged in unlawful and abusive collection practices. Consumers who have been mailed redress checks paid unauthorized fees to EMC and/or had a home foreclosed upon by EMC.
EMC consumers with questions should call the redress administrator at 1-877-225-7510.
Copies of the documents mentioned in this release are available from the FTC’s Web site at http://www.ftc.gov and from the FTC’s Consumer Response Center, Room 130, 600 Pennsylvania Avenue, N.W., Washington, DC 20580. Call toll-free: 1-877-FTC-HELP.
MEDIA CONTACT:
Office of Public Affairs
NACA, the Neighborhood Assistance Corporation of America has reached an agreement with Fannie Mae to offer loan modifications and act as an intermediary between borrowers and lenders.
The agreement was reached after NACA and Bruce Marks led approximately 100 consumer activists and homeowners in late October to Fannie Mae’s front steps. NACA’s tactics have proven to be highly effective and they wasted no time in staging a successful protest outside Fannie Mae headquarters in Washington D.C.
The organization’s carefully planned October protest was successful in forcing a meeting with the newly appointed Fannie Mae CEO, Herbert Allison and other top managers.
NACA, the Neighborhood Assistance Corporation of America says Fannie Mae was bailed out by the government with taxpayer money, but now Fannie Mae is turning its back on the same people whose money bailed them out.
NACA is led by one of the most controversial and effective consumer advocates in the country, Bruce Marks. A man who has no problem getting in the billion dollar faces of these lending institutions and his protests have achieved phenomenal results in the mortgage industry for consumers and homeowners.
Marks is known in the consumer advocate industry as the “Junkyard Dog” and operates his incredibly powerful non-profit out of a modest office above an electrical supply store in Boston. In an area known as the Jamaica Plains.
Over the years Bruce Marks has become one of the most feared men in the corporate boardrooms of the nation’s leading financial institutions in the home mortgage lending industry. Bringing down billion dollar CEO’s to their knees who scramble to make deals with his in your face protests to strike deals with the notoriously confrontational NACA.
From the WSJ:
The agreement with Fannie has not been announced, the paper said, but added that it was confirmed by the company and by Bruce Marks, chief executive of the NACA, a Boston non-profit group.
Fannie Mae could not be immediately reached for comment by Reuters.
Marks has branded Fannie a “major roadblock” to foreclosure-prevention efforts and led a protest outside Fannie’s Washington headquarters in late October, blocking the entrance until he was allowed in to meet with the company’s CEO, Herbert Allison, according to the paper.
NACA is negotiating a similar cooperation agreement with Freddie Mac, Marks said told the paper.
Fannie and Freddie both need to consult with their regulator, the Federal Housing Finance Agency, before proceeding with the cooperation, according to the Journal.
The most recent protest was held outside Fannie’s headquarters in Washington D.C. yesterday and NACA’s mission was to shine a media spot light on the fact that the home mortgage giant is setting poor “Accepted Servicing Practices,” adhered to by the rest of the mortgage servicing industry.
Marks and NACA are accusing the government backed institution, Fannie Mae of “failing” in terms of helping at-risk borrowers find long-term solutions to their housing woes and “has become a major road block” in providing long term mortgage restructuring, according to the Neighborhood Assistance Corporation of America
NACA highlighted these Fannie Mae Predatory Servicing Traits:
Homeowners must be four months delinquent before receiving some type of loan workout.
Interest rate reductions, when implemented, are limited by the current market rate.
Most all loan modifications are offered at interest only and equate to renting since no equity is created.
In nearly all cases, Fannie Mae will not reduce principal balances on delinquent loans.
Primary solution for struggling homeowners has been the HomeSaver Advance program, that simply puts the unpaid arrearage into a second loan, without addressing affordability concerns.
Fannie Mae is doing very little to delay foreclosure sales for homeowners whose foreclosure ARE preventable.
(Reuters) - President-elect Barack Obama is campaigning to access a $350 billion fund to restore damaged financial markets and help the country work through a serious economic downturn.
In order to unlock that money -- the second half of the $700 Troubled Asset Relief Program -- Obama must map out how he plans to spend the funds and persuade a skeptical Congress that they will help revive credit markets and the broader economy while ensuring transparency and oversight.
An 18-page formal request from the Bush administration on Obama's behalf said the remaining funds could be used partly to help homeowners and to expand existing programs for financial firms. It offered few details but started a 15-day clock on Monday for lawmakers to decide whether to block the request.
Below are some of the new initiatives and reforms to the Troubled Asset Relief Program favored by the Obama team that have backing from Rep. Barney Frank, the chairman of the House of Representatives Financial Services Committee.
* Help struggling homeowners avoid foreclosure -- Frank has asked for $40 billion to guarantee troubled home loans, lower monthly payments and restore investor confidence in the mortgage market. White House economic adviser Lawrence Summers did not put a dollar figure on foreclosure aid, but said in a letter to congressional leaders that reducing mortgage payments for economically stressed borrowers and reforming bankruptcy laws to modify loans were priorities.
* Aid cash-strapped towns and cities - Municipal bonds are typically a favorite of conservative investors but the current credit woes have spooked Wall Street and raised borrowing costs for states, cities and towns, straining their budgets. A federal guarantee program could lower those costs.
* Soothe consumer credit markets - The Federal Reserve has helped loosen the market for consumer and small business loans through fresh lending. Frank and departing Treasury officials have said such programs could be expanded to additional types of securities, such as commercial mortgage-backed securities, in the second phase of TARP. Summers pledged to "use our full arsenal of tools" to restart lending for small businesses, auto purchases and municipalities.
* Increase oversight - An independent auditing panel has criticized the Treasury for poor supervision of the TARP program and Obama has said more oversight is needed. Summers pledged to reform the oversight and accounting of the program. New systems to track the government outlays and effectiveness tests are likely. He also pledged to pursue regulatory reform to better protect investors, consumers and the economy.
* Impose tougher terms on companies receiving taxpayer assistance - Summers pledged to ensure that government aid will not enrich shareholders or executives. Firms receiving exceptional assistance will be subject to tougher limits on executive compensation, dividends, stock buybacks and the acquisition of companies that are financially strong.
This is the most complete list of lender loss mitigation contact information on the internet. It is sorted in alphabetical order. If you have some information on your lender or different contact info that I am not privy too or I have a wrong number or web address then please let me know so we can all help each other.
The first step to stop foreclosure is to contact your lender and try and obtain a reasonable loan workout pr repayment plan. The quicker you get the ball rolling, the better chance you have of striking a deal with your lender, so you can save your home and your credit . Please start making calls, get educated and have all your ducks in a row. The hardest call is the first. It only gets easier after that.
More than 50% of foreclosures would be avoided if people contacted their lender. So be proactive and aggressively pursue all options you have because you do have quiate a few tools you can utilize to mitigate as much loss to you, your credit and your family. If your are short on time and you cannot do it on your own, then please seek help from a Non-Profit HUD approved Housing Counselor, an attorney or a legit for profit that can handle the calls and paperwork for you.
Time is ticking and it goes by fast when you're behind the infamous 8 ball. As Nike would say, "Just Do It!"
This post will be a work in progress and I plan to make it the most complete FREE list on the internet. Please feel free to post this on your website or blog but you must have a link with the anchor text stop foreclosure. Just email me and let me know where it will be on your website.
Lender/Servicer Loss Mitigation Phone Numbers & Contact Information
Last updated 1/04/2007 with Countrwide and Option One
ABM AMRO Mortgage (800) 783-8900
Web: https://www.mortgage.com/C3/application.bus
Accredited Home Lenders(877) 683-4466
AMC Mortgage Services (Also handles loans originated by Ameriquest and Argent) (800) 211-6926
1600 McConnor Parkway
Schaumburg, IL 60173
Web: https://www.myamcloan.com/malwebapp/begin.do
American Home Mortgage Corp.(877) 304-3100*
Ameriquest Mortgage (Debt collection -- see AMC Mortgage Services) (800) 211-6926
Aurora Loan Services (Debt collection) (800) 550-0508
By Overnight Mail:
601 5th Avenue
Scottsbluff, NE 69361
Attn: Customer Service
By Regular Mail:
P.O. Box 1706
Scottsbluff, NE 69363
E-mail: ccnmail@alservices.com
Web: https://www.alservices.com/Consumer/UI/SSL/Authentication/Login.aspx?ReturnUrl=%2fConsumer%2fUI%2fSSL%2fServ icing%2fDefault.aspx
Avelo Mortgage LLC (866) 992-8356*
Bank of America(800) 846-2222
BB&T Mortgage (800) 827-3722*
AmTrust Bank (fka Ohio Savings Bank) (888) 696-4444
Beneficial (800) 333-5848
Central Pacific Bank (800) 342-8422*
Charter One (800) 234-6002
Chase (800) 548-7912
Loss Mitigation (877) 838-1882 ext 52195.
The Number you will be directed to after you give your loan number: (866) 665-7629 (business hours are 11AM-8PM M-TH, 8AM-12PM F)
Chase Home Finance (800) 848-9136 (customer service) (858) 605-2181 (delinquency customer service)
Chase Home Finance-New Jersey(800) 446-8939*Chevy Chase Bank(800) 933-9100*
Web: https://chaseonline.chase.com/chaseonline/logon/sso_logon.jsp?fromLoc=ALL&LOB=COLLogon
For SUBPRIME ONLY (877) 838-1882 ext 52195.
The Number you will be directed to after you give your loan number:
(866) 665-7629 (business hours are 11AM-8PM M-TH, 8AM-12PM F)
--- Subprime Letter of Authorizations Fax: 1-877-287-7559.
---Subprime Workout Packages Fax: 1-888-219-7813.
For Prime Loans: 1800-446-8939
Prime Letter of Authorization & w/o packages Fax: 614-422-7259
Chase Home Finance (800) 848-9136 (customer service)
(858) 605-2181 (delinquency customer service)
Chase Home Finance-New Jersey(800) 446-8939*
Chase Manhattan Mortgage
(800) 446-8939 (Ohio Servicing Center)
(800) 526-0072 (Florida Servicing Center)
(800) 527-3040 x533 (Florida Servicing Center)
Chevy Chase Bank (800) 933-9100
Web: https://www.chevychasebank.com/htm/payment.html (Payment Addresses)
Citi Financial & Citi Mortgage Special Homeowner Outreach Phone Number
Email address:
homeownerhelp@citi.com
Phone Number:
1-866-255-3901
Countrywide (800) 262-4218
https://customers.countrywide.com/secure/FHAStart_login254.asp
Here is some contact info I have for Countrywide. Keep in mind these numbers and address may only be good if you live in CA.
Mailing address: (Send all your certified complaint letters, etc. here.)
Contrywide Mortgage
400 Countrywide Way SV-HRD
Simi Valley, CA 93065
Toll free direct number to Workout Dept. in Lancaster, CA:
866-806-8692 (extension 8692 if your negotiator is M. A. Hernandez)
Direct number to Workout Dept. in Lancaster, CA:
661-951-5100
(not toll free but gets you right in)
Address: 400 Countrywide Way SV-314
Simi Valley, CA 93065-3500 Other Addresses: 400 Countrywide Way SV-314
Simi Valley, CA 93065-3500
450 American St
Simi Valley, CA 93065
7105 Corporate Dr.
Plano, TX 75024
P.O. Box 10211
Van Nuys, CA 91499
P.O. Box 5170
Simi Valley, CA 93062-5170
21 E. Victoria Street
Santa Barbara, CA 93101
35 North Lake Avenue, 35-72B
Pasadena, CA 91101
Primary Phone: (800) 669-6093 Other Phone Numbers: (800) 669-6093
(818) 874-8779
(818) 225-3000
(972) -52-6-6330
(805) 650-6566
(805) 520-5100
(800) 686-0145
Primary Fax: (800) 658-9364 Other Fax Numbers: (800) 658-9364
(805) 520-5019
Primary Contact: Daniel Whitehead
Executive Relations Corodinator Other Contacts: Daniel Whitehead
Executive Relations Corodinator
Joe Riggio
Senior Vice President
Angela De Aro
Vice President
Gail Shelly
Melissa Guerra
1st Vice President
patricia mckenzie
Rina Jariwala
VP, Operations
 Ditech (800) 852-0656 (800) 449-8582
Downey Financial Corp.(800) 824-6902, ext. 6696
Deutsche Bank National Call Number on Mortgage Statement
EMC 800-723-3004
P.O. Box 141358
Irving, TX 75014-1358
Web: https://www.emcmortgageservicing.com/ccn/ccnsecurity.asp
EverBank (800) 669-7724 ext. 4730
Equity One (Debt collection) (866) 361-3460
First Horizon Home Loans (800) 489-2966*
Fifth Third Bank (800) 375-1745 Option 3
First Merit Bank (888) 728-9931
Flagstar Bank (800) 968-7700, ext. 9780
Fremont Investment & Loan (866) 484-0291
GMAC Mortgage (800) 850-4622
GreenPoint Mortgage Funding (800) 784-5566, ext. 5383*
Green Tree (877) 816-9125
Homecomings Financial (800) 850-4622*
HomeEq Mortgage Servicing ( Debt collection) (866) 822-1471
Amy Fleitas
Executive Offices (Loan Servicing)
1-319-236-4766 (in her letter she states this is her direct number) she also provides
1-800-206-2901 ext. 2364766 (they must have alot of ext.)
Loss Mitigation area
Lauren Koos 1-214-874-6138
another address:
PO Box 205
Waterloo, IA 50704-0205
also:
3451 Hammond Avenue
Waterloo, IA 50704
Household Finance (A HSBC Co.) (800) 333-5848
Household Mortgage (800) 333-4489
HSBC Mortgage (800) 338-6441
Default Resolution Team (if long term problem)
2929 Walden Avenue
Depew, NY 14043
(888) 648-3124 Loss Mit
(732) 352-7519 Fax
Web:http://us.hsbc.com/personal/mortgage/existing/difficulties.asp
Huntington National Bank (800) 323-4695
Indymac Bank (877) 736-5556
C/O Loan Resolution Department
P.O Box 7014
Pasadena, CA 91107
(Monday - Friday 6:15am-7:15pm. (Pacific Time))
Web: https://www.indymacbank.com/contactus/loanResolution.asp
Irwin Mortgage (888) 218-1988
P.O Box 7014
Pasadena, CA 91107
Web: https://www.irwinmortgage.com/wps/portal/!ut/p/cxml/04_Sj9SPykssy0xPLMnMz0vM0Y_QjzKLN4g3sdAvyHZUBAAqwx9c
E-mail: deliquency.prevention@irwinmortgage.com
James B. Nutter & Company (800) 315-7334
Key Bank (800) 422-2442
LaSalle National Bank (800) 783-8900
Litton Loan Servicing (800) 999-8501 or (800) 548-8665
Fax (713) 966-8820
4828 Loop Central Drive
Houston, Texas 77081-2226
Web: https://www.littonloan.com/index.asp
Loss Mitigation Department Hours:
Monday Eastern: 9 a.m. - 7 p.m. Central:8 a.m. - 6 p.m. Mountain:7 a.m. - 5 p.m. Pacific:6 a.m. - 4 p.m.
Tuesday-Thursday Eastern:9 a.m. - 9 p.m. Central:8 a.m. - 8 p.m. Mountain:7 a.m. - 7 p.m. Pacific:6 a.m. - 6 p.m.
Friday Eastern:10 a.m. - 6 p.m. Central:9 a.m. - 5 p.m. Mountain:8 a.m. - 4 p.m. Pacific:7 a.m. - 3 p.m.
Default Counseling Department representatives are also available most weekends on Saturday from 8 a.m. to 12 p.m. and Sunday from 10 a.m. to 2 p.m. (CST).
Midland Mortgage (800) 552-3000 or (800) 654-4566
Web: https://www.mymidlandmortgage.com/MyMortgage/Login/Login.asp
Mortgage Lenders Network (800) 691-0129
E-mail: customerservice@mlnusa.com
Web: http://www.mlnusa.com/customers/info_credithelp.asp
Mortgage Electronic Registration Systems (888) 679-6377
National City (800) 367-9305, Ext. 53221 or (800) 523-8654
Attention: Homeowner's Assistance
3232 Newmark Dr.
Miamisburg, Ohio 45342
(8AM-10:30PM ET, Monday - Thursday)
(8AM-5PM ET, Friday)
(8AM-Noon, Saturday)
Web: http://www.nationalcitymortgage.com/service_assistance.asp
Nationwide Advantage Mortgage Company (800) 356-3442, ext. 6002*
NationStar Mortgage (888) 850-9398* Press 0 for operator
New Century Financial Now Carrington Mortgage Services (800) 790-9502 or (877) 206-9904
(6:00 a.m. to 7:00 p.m. Pacific Time, Monday - Thursday)
(6:00 a.m. to 6:00 p.m. Pacific Time, Friday)
Web: https://myloan.newcentury.com/webapps/servicing/myloans/index.do
NovaStar Mortgage Loan Resolution Department (888) 743-0774 Non-English: (888) 743-0774, ext. 4523
Ocwen Federal Bank (800) 746-2936 or (877) 596-8560
Web: http://www.ocwencustomers.com/csc_fa.cfm
Attention: Financial Information
12650 Ingenuity Drive
Orlando, Florida 32826
or
Ocwen Financial Corporation
1661 Worthington Rd., Suite 100
West Palm Beach, Florida 33409
Phone: 877-226-2936
For serving Ocwen with legal process, please send to their registered agent:
Corporation Service Company
2711 Centerville Road, Suite 400
Wilmington, DE 19808
Phone: 561-682-8000, x8386
Option One (866) 711-1962 or (888) 275-2648
Web: http://www.oomc.com/servicing/servicing_baifaqs.asp
Option One Mortgage
Home Retention Contact Center
6501 Irvine Center Drive
Mail Stop BAT
Irvine, CA 92618
US Phone number 1-800-704-0800 or 800-505-3706
PHH Mortgage (Formerly Cendant) (800) 257-0460
For borrowers facing possible delinquency: (800) 330-0423*
For borrowers in the foreclosure process: (800) 750-2518
Web:https://www.phhmortgage.com/sso/mq/login.jsp?TYPE=33554433&REALMOID=06-9153316d-cf4d-4425-a5d7-c0b20a7b098d&GUID=&SMAUTHREASON=0&METHOD=GET&SMAGE NTNAME=phhmort-stb&TARGET=$SM$https%3a%2f%2fwww%2ephhmortgage%2ec om%2fhome%2flandscape%3fjpid%3dLogIn%26loginmode%3 dregistered&SMSESSION=NO
ResMae Mortgage Corp.(877) 473-7623, ext. 5944
Saxon (800) 665-7367
Select Portfolio Servicing (888) 818-6032
Fax: (801) 293-3936
Loan Resolution Department
P.O. Box 65250
Salt Lake City, UT 84165-0250
(Monday - Thursday 10:00 a.m. - 10:00 p.m. EST)
(Friday 10:00 a.m. - 7:00 p.m. EST)
(Saturday 9:00 a.m. - 1:00 p.m. EST)
Web: http://www.spservicing.com/services/customer/loanresolution.htm
SkyBank (800) 290-3359
Sun Trust Mortgage (800) 634-7928
PO Box 26149
Richmond, VA 23260-6149
Mail Code RVW 3003Web: https://www.suntrustmortgage.com/generalquestions.asp#
Third Federal Savings (888) 844-7333
US Bank (800) 365-7900
Wachovia Bank of Delaware (866) 642-8608
Fax too 210-509-1144 --- Attn Loan Counseling
Call back 24 hrs to make sure they have received the request call back # 888 345 1352 x 32648
Process takes 15-20 days. Also they advise to call after the new year because they say there will be new programs available to people to modify, etc.
Washington Mutual (866) 926-8937 or (888) 453-3102 or (800) 478-0036 or (800) 254-3677
Waterfirld Mortgage (800) 957-7245
Fax: (260) 459-5390
c/o Loss Mitigation Dept.
7500 W. Jefferson Blvd.
Fort Wayne, IN 46804
(7 am – 10 pm EST Monday – Thursday)
(7 am – 9 pm EST Fridays)
(8 am – 2 pm EST Saturdays)
E-Mail: saveyourhome@waterfield.com
Web: http://www.waterfield.com/scripts/cgiip.exe/WService=wfg/pub/borrowerservices/delqasst
Wells Fargo (877) 216-8448 or (866) 261-5642 or (800)766-0987 or (800) 678-7986 for payment assistance
Borrower Counseling Services
Monday - Friday 8:00 a.m. - 9:00 p.m., CT
Saturday 9:00 a.m. - 2:00 p.m., CT
Web: https://www.wellsfargo.com/mortgage/account/
Wendover Financial Services Corporation (800) 934-1081 or (800) 436-1022
Web: http://www.wendover.com/borrowers.html
Wilshire Credit Corporation (888) 502-0100
P.O. Box 8517
Portland, OR 97207-8517
From 6 a.m. to 5 p.m. (Pacific time) Monday through Friday
Web: http://www.wfsg.com/borrower/borrower.aspx
One of the items your lender or servicer will ask for during the loan workout or loan modification process is a hardship letter. A hardship letter is a written explanation as to what “event” has caused you to fall behind on your mortgage and it vital in helping you stop foreclosure.
This letter acts much like an outline or biography of your current “life” issues that are affecting your ability to meet your financial obligations.
Please keep in mind that your are composing the hardship letter for your lender or servicer and because of the foreclosure crisis, they are extremely busy and back logged. So, with that in mind, do not write a book because most likely it will not get the attention of an over worked, $12 an hour loss mitigation employee. Keep it short and to the point. Usually 1 or at maximum 2 pages is more than enough to get your point across.
Here is an example list of hardships that lenders consider during the loan workout process:
- Adjustable Rate Mortgage Reset- Payment Stock (uncommon, but we will see more lenders accept this in the future)
- Illness
- Loss of Job
- Reduced Income
- Failed Business
- Job Relocation
- Death of Spouse or C0-Borrower
- Death
- Incarceration
- Divorce
- Marital Separation
- Military Duty
- Reduced Income
- Medical Bills
- Damage to Property (natural disaster or unnatural)
- Other (Please Specify)
Now that you understand what your lender or servicer is looking for, it’s time to sit down and write a hardship letter. I made it easy for you by giving you a couple templates below that you can use as a boiler plate for your own letter. Make sure you make it unique to your situation.
Remember that your hardship letter is only one piece of the loan workout process, but key in helping you avoid foreclosure. You will still need to jump a few hurdles with your lender before they will approve you any kind of work out plan.
Example Harship Letter:
Name: (Your Name)
Address: (Your Address)
Lender Name: (Your Lender)
Loan #: (your Loan #)
To Whom It May Concern:
I am writing this letter to explain my unfortunate set of circumstances that have caused us to become delinquent on our mortgage. We have done everything in our power to make ends meet but unfortunately we have fallen short and would like you to consider working with us to modify our loan. Our number one goal is to keep our home and we would really appreciate the opportunity to do that.
The main reason that caused us to be late is (insert reason here and don’t be too lengthy and long winded) Soon after being late and our income not being nearly enough, we had fallen further and further behind. Now, it’s to the point where we cannot afford to pay what is owed to (lender). It is our full intention to pay what we owe. But at this time we have exhausted all of our income and resources so we are turning to you for help.
(The approximate date of hardship and we believe that our situation is Temporary or will be Permanent.)
Our situation has got better because (reason here) and we feel that a loan modification would benefit us both. We would appreciate if you can work with us to lower or delinquent amount owed and or payment so we can keep our home and also afford to make amends with your firm.
We truly hope that you will consider working with us and we are anxious to get this settled so we all can move on.
Sincerely and Respectfully,
Borrower’s Signature
Date
Co-Borrower’s Signature
Date
Get your gloves on and start training for the fight of your life because foreclosure defense is going to be no easy battle. Make no bones about it, you are definitely fighting against one of the toughest and most powerful opponents in the world.
Your lender!
“An Informed Consumer is a Powerful Consumer” - Get Educated and Fight Back!
1. Truth in Lending Act (TILA) - Does your loan have legal violations? Are you the victim of predatory lending? Did you know that 90% of victims do not even know they are victims? Discover how the Truth in Lending Act can help you with your mortgage or to stop foreclosure.
The federal Truth In Lending Act was originally enacted by Congress in 1968 as a part of the Consumer Protection Act. The law is designed to protect consumers in credit transactions by requiring clear disclosure of key terms of the lending arrangement and all costs.
This is the most abused laws by lenders and the one that has the most teeth.
Homeowners can use this defense even if they are not late on their mortgage and an effective tool to bring litigation against their lender or to mediate a loan modification.
This is one defense I am sure the lender funded Hope Now and non-profit, 995-Hope band of merry do gooders do not share with you as you call them for help. I know, because these same homeowners call us daily because they have been turned away by these same people and we use the forensic mortgage audit to discover Truth in Lending Act violations as our weapon of choice against “unhelpful” and “predatory” lenders or servicers.
Here are some very important Truth in Lending Act cases that the banks are shaking in the ring as they wait for the fights to start.
Class Action Under the Truth in Lending Act
Andrews v. Chevy Chase Bank, FSB (2007 WL 112568, E.D. Wisconsin, January 16, 2007).
Borrowers alleged that the lender: (1) failed to properly disclose the payment schedule because the schedule did not reflect that the required payments were due monthly; (2) did not clearly disclose the APR and variable rate feature, based in part on disclosures reflecting a note rate of 1.950% and a five year fixed period that applied to the payment and not the rate; (3) added information to the TILA disclosure that was not directly related to the information required to be disclosed (i.e., the initial discounted interest rate of 1.950% set forth as the note rate); and (4) failed to properly disclose the possibility of negative amortization.
The federal district court agreed with the first three allegations and determined that the loan was rescindable because of the violations. The court further determined that this matter was appropriate for class certification, finding nothing in the language of the TILA that precludes the use of the class action mechanism to obtain a judicial declaration of whether a TILA error entitles each member of the class individually to seek rescission.
The MBA and other industry trade groups have 2 filed an amici curiae brief requesting that the United States Court of Appeals for the Seventh Circuit overturn the class certification.
Right to Rescind After Loan Pay-Off
Barrett v. JP Morgan Chase Bank, N.A. (445 F.3d 874, 6th Cir., April 18, 2006). The borrowers refinanced their mortgage with Bank One in May 2000 and again in January 2001. In May 2001, the borrowers refinanced the loan with another lender, and Bank One released its security interest in their home. The borrowers requested that the Bank One loans be rescinded based on alleged TILA violations.
Bank One responded that because both loans were refinanced, and the security interest released, there was nothing left to rescind. The district court agreed, but the United States Court of Appeals for the Sixth Circuit reversed.
The Sixth Circuit stated that nothing in the TILA or its implementing regulations provides that the act of refinancing extinguishes an unexpired right to rescind, and that the right to rescind gives consumers the right to recover fees in addition to the right to the release of the security interest.
2. Challenge the Ownership of Your Note - Does your lender really own your mortgage? Are you sure? Why don’t you make them prove it?
Aaron Krowne and I first broke the story about the Ohio ruling in which Judge Christopher A. Boyko of the Eastern Ohio United States District Court, on October 31, 2007 dismissed 14 Deutsche Bank-filed foreclosures in a ruling based on lack of standing for not owning/holding the mortgage loan at the time the lawsuits were filed.
Judge Boyko issued an order requiring the Plaintiffs in a number of pending foreclosure cases to file a copy of the executed Assignment demonstrating Plaintiff (Deutsche Bank) was the holder and owner of the Note and Mortgage as of the date the Complaint was filed, or the court would enter a dismissal.
April Charney, a powerful legal aid attorney and foreclosure defense pioneer in Jacksonville Florida said this about the Ohio rulings, “This court order is what I have been saying in my cases. This is rampant fraud on every court in America or non-judicial foreclosure fraud where the securitized trusts are filing foreclosures when they never own/hold the mortgage loan at the commencement of the foreclosure.”
Charney said, “That means that the loans are clearly in default at the time of any eventual transfer of the ownership of the mortgage loans to the trusts. This means that the loans are being held by the originating lenders after the alleged “sale” to the trust despite what it says per the pooling and servicing agreements and despite what the securities laws require.”
“This also means that many securitized trusts don’t really, legally own these bad loans.”
She went on to say, “In my cases, many of the trusts try to argue equitable assignment that predates the filing of the foreclosure, but a securitized trust cannot take an equitable assignment of a mortgage loan. It also means that the securitized trusts own nothing.”
Now, this is quickly becoming a preferred punch of choice used by cleverly trained homeowners and aggressive heavy weight attorneys to bring lenders to their knees with a swift jab to the chin during the foreclosure process.
I can almost guarantee that your lender or servicer will not want to see you in the foreclosure ring if you have been training using the above fighting techniques.
Section 6 of RESPA provides borrowers with important consumer protections relating to the servicing of their loans. Under Section 6 of RESPA, borrowers who have a problem with the servicing of their loan (including escrow account questions), should contact their loan servicer in writing, outlining the nature of their complaint. The servicer must acknowledge the complaint in writing within 20 business days of receipt of the complaint. Within 60 business days the servicer must resolve the complaint by correcting the account or giving a statement of the reasons for its position. Until the complaint is resolved, borrowers should continue to make the servicer’s required payment.
The Real Estate Settlement Procedures Act (RESPA) is a consumer protection statute, first passed in 1974. RESPA covers loans secured with a mortgage placed on a one-to-four family residential property. These include most purchase loans, assumptions, refinances, property improvement loans, and equity lines of credit. HUD’s Office of RESPA and Interstate Land Sales is responsible for enforcing RESPA.
Loan servicing complaints
A borrower may bring a private law suit, or a group of borrowers may bring a class action suit, within three years, against a servicer who fails to comply with Section 6’s provisions. Borrowers may obtain actual damages, as well as additional damages if there is a pattern of noncompliance.
The following is a sample qualified written request from you, the borrower, to a lender. Use this format to address complaints under the Real Estate Settlement Procedures Act (RESPA). Be sure to read more about RESPA, and your rights under this Act, elsewhere on the RESPA site.
Attention Customer Service:
Subject: [Your loan number]
[Names on loan documents]
[Property and/or mailing address]
This is a “qualified written request” under Section 6 of the Real Estate Settlement Procedures Act (RESPA).
I am writing because:
Describe the issue or the question you have and/or what action you believe the lender should take.
Attach copies of any related written materials.
Describe any conversations with customer service regarding the issue and to whom you spoke.
Describe any previous steps you have taken or attempts to resolve the issue.
List a day time telephone number in case a customer service representative wishes to contact you.
I understand that under Section 6 of RESPA you are required to acknowledge my request within 20 business days and must try to resolve the issue within 60 business days.
Sincerely,
[Your name]
Here is an example from a Loan Safe member:
Attention Customer Service:
Subject: Loan number xxxxxxxxxx
xxxxxxxx xxxxxxxx xxxxxxxxxxx
Xxxxxxx xxxxxxxxxx xxxxxxxxxx
x xxxxxxx
Xxxxxxxx, TX xxxxx
This is a “Qualified Written Request” under Section 6 of the Real Estate Settlement Procedures Act (RESPA).
I am writing to request:
(1) Copies of all documents pertaining to the origination of my mortgage including my loan application, Right to Cancel, Deed of Trust, note, adjustable rate note, addendum to the note for the interest only payment period, Truth in Lending statements, Good Faith Estimate (GFE), HUD 1, appraisal, and all required disclosures and rate sheets associated with this transaction for the above referenced loan. The copies should be legible and all documents shall be copied in their entirety.
(2) A copy of the loan history including all payments made, all fees incurred, what has been paid out of the escrow account, and how all payments were applied. This information should cover the entire life of the loan.
I have reason to believe that the loan terms were misrepresented to me at the time of application and further obscured and/or modified prior to signing. I believe that our income was inflated on the application. I also have reason to believe that certain statements were not provided for my approval prior to closing, and that signatures may have been forged on various documents. It is also my belief that certain documents may have not presented at all. Additionally, I believe that a notary was not present to witness my signatures on several pertinent documents and that this transaction did not take place in a legitimate title/escrow/real-estate office with any title/escrow/real-estate professionals therefore leaving us ill advised at the time of closing.
I started the process of trying to renegotiate this loan in 11/1/07 when I spoke with your HOPE department. On 11/03/07, I faxed a letter of hardship, along with bank statements and pay stubs as she recommended. I was advised that someone would contact me within 7-10 working days and there would be no problem getting assistance to bring the account current and capitalize the negative escrow. On 12/14/07, I called back, as I hadn’t heard from anyone. I was told my payment was going to be 2300.00$$. I hung up the phone in despair and in tears. On 1/10/08 I visited the local HUD office trying to get help there. Countrywide’s system was down so I returned the next day. This is 160 mile round trip and 2 days off work. This time the CSR set up a repayment plan but now the payments are to be 2700.00$$$. If we could make a payment of 2700.00 we would not be delinquent. Since January I have again spoken to the HOPE department, Home Retention, Work Out Department. And any one else who would listen. I have involved 995HOPE as well as Acorn. I have documented phone calls and kept records. In addition I joined a watchdog website called loansafe.org.
Most recently you COUNTRYWIDE have sent a demand for payment. Again if we hade the 2700.00 x 2 + late fees + other various fees we would not be delinquent. The situation is urgent. We and COUNTRYWIDE can not drag there feet in this process. We do not want to incur further inflated fees by our home going into foreclosure we want to find a solution pleasing to COUNTRYWIDE, ourselves, as well as the investors that hold the loan. It would behoove all parties to come to applicable solution today!!!
We are very proactive in keeping our family home. We do not want to loose it nor do we have to we can make a reasonable payment.
I have been given the runaround by the voice recognition call routing system on numerous occasions. I have talked to various agents with different versions of what the loan modification process really entails. I have been re-routed to the wrong department or individual at dozens of times. I have been disconnected from helpful individuals, when I unsuccessfully tried to call her back I am told it is because she has no extension. I have been told that the negotiator handling my loan is unavailable to speak to anyone via telephone. All of these calls are documented in your records, as they are in mine. The customer service provided to me has been less than adequate. Let this letter serve to document my request to have my communications responded to in a timely manner.
I can be reached at xxx-xxx-xxxx this is my cell whenever a COUNTRYWIDE wishes to contact me. If I do not answer I will call back promptly if a message is left with the phone number that I can call and get thru on. My email address is xxxxxxxx@aol.com, and is the best way to contact me.
I understand that under Section 6 of RESPA you are required to acknowledge my request within 20 business days and must try to resolve the issue within 60 business days.
In closing we are not trying to get out of paying anything only having the loan modified the interest rate lowered. We want a payment we know we can live with one that will not get us in trouble again
sincerely,
REMEMBER: This letter SHOULD NOT be included with your mortgage payment, but should be sent separately to the customer service address.
You SHOULD continue to make the required mortgage and escrow payment until the request is resolved.
You may bring a private right of action under Section 6, if you suffer damages due to the lender’s servicing of the loan. See the RESPA statute and regulations.
Filing a RESPA complaint
Persons who believe a settlement service provider has violated RESPA in an area in which the Department has enforcement authority (primarily sections 6, 8 and 9), may wish to file a complaint. The complaint should outline the violation and identify the violators by name, address and phone number. Complainants should also provide their own name and phone number for follow up questions from HUD. Requests for confidentiality will be honored. Complaints should be sent to:
Director, Office of RESPA and Interstate Land Sales
US Department of Housing and Urban Development
Room 9154
451 7th Street, SW
Washington, DC 20410
Important Tips From HUD:
- Do ask lenders what fees they charge, as well as the interest rate and points, when shopping for a loan.
- Do ask the builder whether you are required to use a certain provider in order to get a special concession.
- Do compare the costs of different settlement service providers before agreeing to use one to whom you were referred.
- Do ask to see the HUD-1 Settlement Statement a day before settlement, and compare the charges with those listed on the Good Faith Estimate.
- Do question the lender and settlement agent about any charges you do not understand.
- Keep making your mortgage payment on time, even if you have sent a complaint to your lender.
- Do forward any tax or insurance bills you receive, immediately to your lender. (If the lender is supposed to pay the bill).
- Do check your annual escrow account statement for mistakes.
- Do make a “qualified written request” when asking your lender for information or making a complaint.
- Do read the FAQs about Escrow Accounts carefully before filing an escrow complaint with a banking or government regulator.
The law from HUD: 12 usc section 2605 servicing of mortgage loans and administration of escrow accounts
Source HUD
(e) Duty of loan servicer to respond to borrower inquiries
(1) Notice of receipt of inquiry
(A) In general
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 (excluding legal public holidays, Saturdays, and Sundays) unless the action requested is taken within such period.
(B) Qualified written request
For purposes of this subsection, a qualified written request shall be a written correspondence, other than notice on a payment coupon or other payment medium supplied by the servicer, that–
(i) includes, or otherwise enables the servicer to identify, the name and account of the borrower; and
(ii) includes a statement of the reasons for the belief of the borrower, to the extent applicable, that the account is in error or provides sufficient detail to the servicer regarding other information sought by the borrower.
(2) Action with respect to inquiry
Not later than 60 days (excluding legal public holidays, Saturdays, and Sundays) after the receipt from any borrower of any qualified written request under paragraph (1) and, if applicable, before taking any action with respect to the inquiry of the borrower, the servicer shall–
(A) make appropriate corrections in the account of the borrower, including the crediting of any late charges or penalties, and transmit to the borrower a written notification of such correction (which shall include the name and telephone number of a representative of the servicer who can provide assistance to the borrower);
(B) after conducting an investigation, provide the borrower with a written explanation or clarification that includes–
(i) to the extent applicable, a statement of the reasons for which the servicer believes the account of the borrower is correct as determined by the servicer; and
(ii) the name and telephone number of an individual employed by, or the office or department of, the servicer who can provide assistance to the borrower; or
(C) after conducting an investigation, provide the borrower with a written explanation or clarification that includes–
(i) information requested by the borrower or an explanation of why the information requested is unavailable or cannot be obtained by the servicer; and
(ii) the name and telephone number of an individual employed by, or the office or department of, the servicer who can provide assistance to the borrower.
(3) Protection of credit rating
During the 60-day period beginning on the date of the servicer’s receipt from any borrower of a qualified written request relating to a dispute regarding the borrower’s payments, a servicer may not provide information regarding any overdue payment, owed by such borrower and relating to such period or qualified written request, to any consumer reporting agency (as such term is defined under section 1681a of title 15).
(f) Damages and costs
Whoever fails to comply with any provision of this section shall be liable to the borrower for each such failure in the following amounts:
(1) Individuals
In the case of any action by an individual, an amount equal to the sum of–
(A) any actual damages to the borrower as a result of the failure; and
(B) any additional damages, as the court may allow, in the case of a pattern or practice of noncompliance with the requirements of this section, in an amount not to exceed $1,000.
(2) Class actions
In the case of a class action, an amount equal to the sum of–
(A) any actual damages to each of the borrowers in the class as a result of the failure; and
(B) any additional damages, as the court may allow, in the case of a pattern or practice of noncompliance with the requirements of this section, in an amount not greater than
$1,000 for each member of the class, except that the total amount of damages under this subparagraph in any class action may not exceed the lesser of–
(i) $500,000; or
(ii) 1 percent of the net worth of the servicer.
(3) Costs
In addition to the amounts under paragraph (1) or (2), in the case of any successful action under this section, the costs of the action, together with any attorneys fees incurred in connection with such action as the court may determine to be reasonable under the circumstances.
(4) Nonliability
A transferor or transferee servicer shall not be liable under this subsection for any failure to comply with any requirement under this section if, within 60 days after discovering an error (whether pursuant to a final written examination report or the servicer’s own procedures) and before the commencement of an action under this subsection and the receipt of written notice of the error from the borrower, the servicer notifies the person concerned of the error and makes whatever adjustments are necessary in the appropriate account to ensure that the person will not be required to pay an amount in excess of any amount that the person otherwise would have paid.
(g) Administration of escrow accounts
If the terms of any federally related mortgage loan require the borrower to make payments to the servicer of the loan for deposit into an escrow account for the purpose of assuring payment of taxes, insurance premiums, and other charges with respect to the property, the servicer shall make payments from the escrow account for such taxes,insurance premiums, and other charges in a timely manner as such payments become due.
(h) Preemption of conflicting State laws
Not withstanding any provision of any law or regulation of any State, a person who makes a federally related mortgage loan or a servicer shall be considered to have complied with the provisions of any such State law or regulation requiring notice to a borrower at the time of application for a loan or transfer of the servicing of a loan if such person or servicer complies with the requirements under this section regarding timing, content, and procedures for notification of the borrower.
OCC Consumer Tips for Avoiding Foreclosure Rescue Scams
Foreclosures are increasing nationwide, and so are scams that promise to “rescue” homeowners from foreclosure. What these scams do is take your money, ruin your credit record, and wipe out any equity you have in your home.
Foreclosure con artists take advantage of people who have fallen behind on their mortgages and face foreclosure. Con artists know that people in these situations are vulnerable and likely to be desperate. Potential victims are easy to find: mortgage lenders publish notices before foreclosing on homes. After reading such notices, con artists approach their targets in person, by mail, over the telephone, or by e-mail. They advertise their services on Web sites or publications. They often refer to themselves with titles that sound official, such as “foreclosure consultant” or “mortgage consultant,” and market themselves as a “foreclosure service” or “foreclosure rescue agency.”
Your mortgage lender – or any legitimate financial counselor – can help you find real options to avoid foreclosure. If someone offers to negotiate with your lender and offers to arrange to stop or delay foreclosure for a fee, carefully check his or her credentials, reputation, and experience. To protect yourself, follow the recommendations contained in this Consumer Advisory.
WATCH OUT FOR FORECLOSURE RESCUE SCAMS
Lease-Back or Repurchase Scams – Be very suspicious if someone offers to pay your mortgage and rent your home back to you. This scheme often involves signing the deed to your home over to the con artist. The con artist may promise to sell your home back to you, but this may be very difficult, if not impossible, under the terms of the contract.
Signing over the deed gives the con artist the power to evict you, raise your rent, sell the house, or steal the equity you have in your home. You will still be responsible for your mortgage, so if the con artist stops paying it, your lender would have the right to foreclose on your home, and the foreclosure and any other problems would go on your credit record.
Refinance Fraud – Look out for people posing as mortgage brokers or lenders and offering to refinance your loan so you can afford the payments. Con artists may trick you into signing over the ownership of your home by saying that you are signing documents for a new loan.
Signing over the deed to your home exposes you to the dangers described above. Even if you are a victim of fraud, you could still lose your home.
Bankruptcy Schemes – Several scams attempt to abuse the bankruptcy laws. For example, a con artist may ask you to give a partial interest in your home to one or more persons. Each holder of a partial interest can then file bankruptcy, one after another. The bankruptcy court will issue a “stay” order each time to stop foreclosure temporarily. However, the stay does not excuse you from making payments or from repaying the full amount of your loan. In another kind of scam, a con artist may offer to obtain refinancing or negotiate a payment plan with your lender. If you may make payments to the con artist, he or she may keep the money rather than pay the lender on your behalf. The con artist may even file a bankruptcy case in your name, without your knowledge, as a part of the scam.
Bankruptcy laws provide important protections to consumers. Scams can only temporarily delay foreclosure, and they may keep you from using bankruptcy laws legitimately to address your financial problems. Signing over ownership of your home, or even partial ownership, can result in serious financial harm.
HOW TO PROTECT YOURSELF FROM SCAMS
Know what you are signing. Read and understand every document you sign. If a document is too complex, seek advice from a lawyer or an approved, trusted financial counselor. Never sign documents with blank spaces that can be filled in later. Never sign a document that contains errors or false statements, even if someone promises to correct them later.
Get promises in writing. Oral promises and agreements relating to your home are usually not legally binding. Protect your rights with a written document or contract signed by the person making the promise. Keep copies of all contracts you sign.
Make your mortgage payments directly to your lender or the mortgage servicer. Do not trust anyone else to make mortgage payments for you.
Be very careful about signing over your deed. Foreclosure scams often require you to sign over ownership of your home to a con artist or another third party. Never sign over your deed without getting the advice of your own lawyer, financial advisor, or other independent person that you know you can trust. Understand the terms of the deal you are making. By signing over your deed, you lose your rights to your home and any equity built up in the home.
Report suspicious activity to the Federal Trade Commission and to your state and local consumer protection agencies. Reporting con artists and suspicious schemes helps prevent others from becoming victims.
HOW TO FIND LEGITIMATE HELP FOR YOUR FINANCIAL PROBLEMS
Contact your mortgage lender or mortgage servicer as soon as you think you are unable to make your mortgage payment. Lenders are often in the best position to help, especially if you are current on your loan or not seriously late on your payments. Your mortgage lender or mortgage servicer may be able to identify options to help you bring the loan current or to modify your loan.
Contact a legitimate housing or financial counselor to help you work through your financial problems. To find one:
□ Call (800) 569-4287, or visit HUD Housing Counseling to find counselors approved by the U.S. Department of Housing and Urban Development (HUD).
□ Call the Homeownership Preservation Foundation at (888) 995-HOPE, or visit Homeownership Preservation Foundation, to reach a nonprofit, HUD-approved counselor through HOPE NOW, a cooperative effort of mortgage counselors and lenders to assist homeowners.
Visit the following Web sites for information:
□ NeighborWorks America, NeighborWorks® America: Strengthening Communities and Transforming Lives.
□ Federal Trade Commission, Mortgage Payments Sending You Reeling? Here’s What to Do.
Finally, if you have a complaint or question involving a national bank and cannot resolve it directly with the bank, contact the OCC’s Customer Assistance Group by calling (800) 613-6743, by e-mailing customer.assistance@occ.treas.gov,
or by visiting Help and Frequently Asked Questions about National Banks from OCC's HelpWithMyBank.gov.
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