About 100,000 houses will be foreclosed in January 2011 and a record number in the first quarter. That will put more vacant homes on the market, offered at lower prices as the banks try to unload them. In turn this will lower house prices and put even more mortgages underwater, more into foreclosure, more for sale. (Source)
Modify Your Loan?
You’ve tried but your lender said “no”: You’ve most likely tried, for over a year, to persuade your lender to modify your loan. Force your lender to modify or accept a short sale. (Source)
lenders, who get Government Bailouts and Pay Themselves Huge Bonuses,
even though they committed many frauds,
seem to be doing everything possible to Avoid Loan Modifications, and
homeowners facing foreclosure may mistakenly feel powerless,
Leveling the playing field in foreclosure negotiations
Here’s an approach offered by Home Lease Exchange: ForceYourLenderToModify.com
Home Lease Exchange’s idea is that two home owners facing foreclosure agree to lease their home to each other. Under Obama’s Protecting Tenants at Foreclosure Act (PTFA), lenders and foreclosure servicers must abide by the terms of leases and, hence cannot evict the lease holder until the lease expires (ask your lawyer to verify this for your situation). Lease agreements potentially make foreclosure especially unattractive to lenders because:
Here’s how Home Lease Exchange’s new service works: (Source)
- A borrower whose foreclosure is drawing near leases – under very generous terms – his or her home to another borrower who (a) lives nearby and (b) is also facing foreclosure.
- The long-term lease will deter buyers at trustee sales, leaving the servicer and/or bank to deal with the REO and its tenants, Home Lease Exchange explains.
List your home lease exchange. Those living nearby will consider your home as their home lease exchange.
Enter into a home lease exchange agreement and get the process started so your trustee’s sale is canceled.
Notify lenders of the long term lease and your plan to notify buyers wanting to purchase your home at trustee’s sale.
Check it out with your lawyer, but according to ForceYourLenderToModify.com, this plan “creates amazing leverage for homeowners with their lenders, because under President Obama’s Helping Families Save Their Homes Act, tenants have the right to stay in their homes through the term of their lease, as long as the lease is entered into before complete title to the property is transferred.”
The Helping Families Save Their Homes Act, which passed in May 2009, included the Protecting Tenants at Foreclosure Act (PTFA). Created in response to the rare but nonetheless unfair situation where a tenant is kicked out of his home on little notice because his landlord stopped paying the mortgage, the PTFA was designed to give tenants some breathing room between learning of his landlord’s foreclosure and securing new living accommodations. Under the PTFA, servicers must abide by the terms of bona-fide leases or, where no such lease exists, provide a 90-day grace period for tenants.
A PTFA amendment included in this year’s financial reform legislation allows borrowers and tenants to enter into leases up until the point at which complete title to a property is transferred to a successor entity.
[Leases are] “a strategy to significantly delay the REO owner from recovering possession of the property,” Larry R, Rothenberg, a partner at Weltman, Weinberg & Reis Co., “‘Strategic renting may now join ‘strategic default’ as a term in our lexicon.” (Source)
Home prices are crashing:
- Housing Development: Home price plunge is widespread as a double dip that Is Now Accelerating , Will Drop House Prices Another 20% and The Economy Is Screwed as things are Starting To Look Exactly Like 2006-2009 as Home foreclosures jump in 3rd quarter. (Source)
Mortgage fraud by lenders is rampant:
- Anatomy Of A Fraudclosure – Florida AG Reveals How It’s Done
- Dedication: Martha Kunkle, who died in 1995, managed to continue signing foreclosure affidavits until 2008.
- How Allstate Used Sampling To Confirm BofA/Countrywide Lied About Virtually Everything When Selling Mortgages
Lenders often make more money foreclosing than by modifying loans–they have little incentive to negotiate with home owners. (Source)
Perhaps it’s time for home owners to explore ways to “encourage” foreclosing lenders to negotiate in good faith.
This post suggest one such approach.
- Another Flood of Foreclosures on the Way
- Why Won’t My Lender Modify My Mortgage?
- Here’s Why Banks AVOID Loan Modifications–they get more $$$ from FDIC if they foreclose on your home
- Loan modification can be a life saver
- What’s My State’s Statute Of Limitations On Debts?
- Endless Affirmative Action for the Rich
- Why New York Foreclosures Are Grinding to a Halt: paperwork (4closurefraud.org)
- Robo-signing paperwork problems hit California, slow foreclosures (centralvalleybusinesstimes.com)
- KABOOM! BofA, GMAC, Chase, Wells, Citi, Onewest Face N.J. Foreclosure Freeze
- NY Times – Mortgage-Servicing Methods, Exposed in a Court Case
- Denied – Lawmakers Reject Legal Aid Money for Troubled Borrowers