In yesterday’s post on stopping foreclosure, we relayed how Chase bank was literally and figuratively clueless when it came to helping the homeowners whose loans they own stop foreclosure.

Well, there’s good news. One bank seems to be coming through for homeowners trying to stop foreclosure — Bank of America.

The large bank is writing down the principals of homeowner loans. What exactly does this mean? The HuffingtonPost.com article, Bank Of America Executive Acknowledges Poor Service In Mortgage Mod Program, details it best, explaining:

. . . an example of a homeowner who owed $250,000 on a home worth $200,000. The bank would take $50,000 off the mortgage and put it in an interest-free forbearance account. If the homeowner keeps up with his payments on the $200,000, the bank will forgive 20 percent of the forbearance account for each of the next three years, and for an additional two years if the homeowner remains underwater.

This is what many homeowners — and President Obama’s prevent foreclosure program — have wanted all along.

Finally, one big bank is playing ball.

Let’s see if others will follow — or force the hand of many homeonwers who are trying to prevent foreclosure; many of who will just do the “jingle mail walk.”

What’s the problem with Bank of America?

P.S.: Start a Business Cleaning Foreclosed Properties. While the foreclosure crisis has been a nightmare for many, it has presented a perfect small business opportunity for others. Learn how to start a foreclosure clean up business. Read how one foreclosure cleaning business owner rakes in $40,000/wk (not a typo).

P.P.S.: Like this post? Follow Foreclosure Business News on Twitter.

Copyright © 2010 Yuwanda Black for Foreclosure Business News. Article may not be reprinted or reproduced in any manner without the express, written consent of the author.

To be fair, it’s not just Chase bank that’s out of the loop when it comes to what’s happening with foreclosure loans and modifications; it’s just that they’re an obvious target when they keep popping up in the news with major blunders, as was discussed in this prevent foreclosure post which featured the lender.

The latest example is of a California couple whose home was foreclosed on – unbeknownst to Chase – who owns the loan. The homeowner was actually on the phone with a Chase representative when the real estate agent knocked on his door to tell him his home had been foreclosed on the day before.

The homeowner’s response:

I literally handed the phone to him [the real estate agent= and said, ‘Why don’t you tell this guy from Chase?’

California has a pending law to help prevent foreclosures – and clear up some of the confusion around the situation.

Read more about this foreclosure loans legislation and how it is projected to help even more homeowners stop foreclosure.

P.S.: Start a Business Cleaning Foreclosed Properties. While the foreclosure crisis has been a nightmare for many, it has presented a perfect small business opportunity for others. Learn how to start a foreclosure clean up business. Read how one foreclosure cleaning business owner rakes in $40,000/wk (not a typo).

P.P.S.: Like this post? Follow Foreclosure Business News on Twitter.

Copyright © 2010 Yuwanda Black for Foreclosure Business News. Article may not be reprinted or reproduced in any manner without the express, written consent of the author.

When home foreclosure specialists can’t get a clear handle on what’s going on with the housing market, it’s no surprise that many homeowners find themselves in “foreclosure limbo” when trying to refinance or modify their home loans.

Even Housing Experts Can’t Say for Sure What the Hell Is Going On with the Housing Market

According to the New York Times article, Mortgage Data Leaves Bankers Uncertain of Trend, bankers can’t say for sure what some recent data put out means. The article states:

Warning that “fundamental [housing] market factors” might be exercising undue influence over the seasonal [mortgage] numbers, the mortgage bankers said they did not know whether the optimistic or pessimistic sequence was more accurate. . . . “We may be at a point where the [housing] market is changing for the better, but we can’t be sure because of the confounding effect of seasonal differences” . . .

Facts NOT in Doubt About the Home Foreclosure Crisis

What’s known for sure is the following — and most of it ain’t good news:

Mortgage Delinquency Up: About 10% more homeowners were delinquent on their mortgages when compared to the same time last year;

Home Prices Falling: The decrease was .3% from February to March. This continues to put more homeowners underwater (or further underwater), which housing experts fear can cause many to simply walk away from their homes (ie, do a voluntary foreclosure);

New Home Applications Fall: The government’s $8,000 homebuyer tax credit expired on April 30th. This could be a contributing factor to the 27% drop in new home applications — with a further drop entirely possible as the economy still struggles to get back on track and credit remains hard to get (for home loans, car loans, small business loans, etc);

More Prime Borrowers are Defaulting on Mortgages: While the home foreclosure crisis started with subprime mortgage borrowers, over the last year and a half or so, more and more homeowners with “good credit” (ie, who had conventional, fixed-rate home loans) are now defaulting on their home loans. The aforementioned article states:

The percentage of new foreclosures in the first quarter [of this year] that were prime fixed-rate loans — traditionally the most conservative kind of mortgage — was 36.7 percent, up from 28.9 percent last year (emphasis added).

Many of these, of course, are due to job losses — and in industries that aren’t coming back — as we discussed in the post, Stopping Foreclosures and President Obama’s Job Summit: What’s the Connection?

Home Foreclosures Now Happening Outside of “Bubble Markets”: A lot of the home foreclosures that happened initially were in what’s known as sand states with bubble markets, eg, Arizona, Florida, California, Nevada.

Now though, foreclosures are being seen in states where the economy is struggling. This makes sense because as alluded to in the point just above about prime borrowers defaulting — if a homeowner doesn’t have a job, they can’t afford to pay the mortgage.

Why So Many Homeowners are In Limbo When Trying to Refinance or Modify Their Home Loans Now

The final thing that’s leading to more foreclosures has been the government’s “prevent foreclosure” program which hasn’t helped nearly as many homeowners as it was intended to. Banks are simply refusing to play ball in some cases, as we discussed in:

Prevent Foreclosure Help: Another Big Bank Not Playing by the Rules — If Your Mortgage is With Chase, You’re Screwed; and

Stopping Foreclosure: Big Bank That Received $25 Billion in Bailout Money Against Mortgage Modification Help for Homeowners.

Because of “inaction” by a lot of lenders, many homeowners who want to refinance or modify their existinghome loans — who NEED to take some kind of action to stop foreclosure — are feeling like they’re in some type of holding pen with no start time for the race.

They’re in limbo — and many are running out of time and money — which means more home foreclosures may be on the way. It kinda makes one feel:

Oh what a tangled web bankers and lenders weave when they decide to fleece and deceive unsuspecting homeowners.

P.S.: Start a Business Cleaning Foreclosed Properties. While the foreclosure crisis has been a nightmare for many, it has presented a perfect small business opportunity for others. Learn how to start a foreclosure clean up business. Read how one foreclosure cleaning business owner rakes in $40,000/wk (not a typo).

P.P.S.: Like this post? Follow Foreclosure Business News on Twitter.

Copyright © 2010 Yuwanda Black for Foreclosure Business News. Article may not be reprinted or reproduced in any manner without the express, written consent of the author.

While the number of homeowners who will face foreclosure in the future has hit a plateau many housing experts believe, more home foreclosures are on the way. And ironically, one of the big reasons is the government’s prevent foreclosure program, Making Homes Affordable. Here’s why.

The Washington Post article, Foreclosure continue to rise as banks work on backlogs, explains it best, stating:

Foreclosures have been suppressed over the past year by government and industry efforts to keep people in their homes. But those efforts have largely faltered, leaving millions of distressed borrowers facing foreclosure. Now more people are expected to lose their homes as lenders work through a backlog of delinquent borrowers.

We saw this coming, as was discussed back in February in the post, Some Banks are Purposely NOT Foreclosing on Homeowners in Default: Here’s Why.

When Will the Home Foreclosure Crisis Be Over?

Depending on where you ingest your home foreclosure news, experts estimate that we have anywhere between 3 years and nine years before the home foreclosure crisis is over.

P.S.: Start a Business Cleaning Foreclosed Properties. While the foreclosure crisis has been a nightmare for many, it has presented a perfect small business opportunity for others. Learn how to start a foreclosure clean up business. Read how one foreclosure cleaning business owner rakes in $40,000/wk (not a typo).

P.P.S.: Like this post? Follow Foreclosure Business News on Twitter.

Copyright © 2010 Yuwanda Black for Foreclosure Business News. Article may not be reprinted or reproduced in any manner without the express, written consent of the author.

Just yesterday, I was talking to a friend of my — a Navy veteran who’s done two tours in the current war no less — about his home loan. He’s been trying to refinance his mortgage off an on for the last year and a half or so. But, because he’s underwater on his home, of course, that’s been the big stumbling block.

Yesterday, he told me that his Chase, who is the lender on his home loan, had finally agree to modify (not refinance, modify) his mortgage. He showed me the modification package they sent him and said the Chase representative said:

You’re the perfect candidate for our mortgage modification program.

Even though he’s gainfully employed (same company for 14+ years) and has excellent credit, I said:

Hmm, I’m surprised because I know you’re underwater (just like a lot of other homeowners in his area area)). Just don’t celebrate until the papers are signed.

I smelled a rat. So imagine my nonsurprise when I ran across this CBS news story, Chase’s Foreclosure Disgrace. Even though — by Chase’s guidelines — the three homeowners featured in the story should have qualified for permanent home loan modifications, they were denied. Not only that, they were eventually foreclosed on.

To Stop Foreclosures, Homeowners Sue Lenders

But, these gutsy homeowners are not taking things lying down. They’re fighting back. With assistance from the  Urban Justice Center, a legal nonprofit agency in New York, they’ve filed suit in federal court in Brooklyn to force Chase (and hopefully other big home loan lenders like it) to do the right thing. Good for them!

As one homeowner who’s now facing foreclosure featured in the article states:

The Obama administration’s [prevent foreclosure] program was supposed to give people like me a lifeline and a chance to save our homes. But if the banks won’t play by the rules, what else are we supposed to do?

If you’re the average Joe out there facing foreclosure — and you’re hoping to work something out with your bank, as I told my friend, don’t hold your breath until the papers are signed. Even when you hold up your end of the bargain — there’s nothing that says your lender will.

Why Banks are Not Playing Fair When It Comes to Modifying Home Loans and/or Refinancing Mortgages for Homeowners Facing Foreclosure

It’s quite simple . . . there’s nothing or nobody that’s MAKING them play fair. Again, to quote the aforementioned article:

. . . the Obama Administration’s approach to foreclosure prevention . . . depends entirely on the banks voluntarily (emphasis added) doing the right thing. [But of course] . . .nothing will change until banks are forced (emphasis added) to do the right thing.

The “Bait and Switch” Campaign Big Banks are Running on Homeowners Who are Desperately Trying to Stop Foreclosure

This is but further proof that big banks — the very ones that we the taxpayers bailed out — have no interest in helping homeowners prevent foreclosure. They seem to be running a ”bait and switch” campaign that squeezes as much money out of struggling homeowners as they can before they officially foreclose on them.

Otherwise, why would the Chase homeowners be told they met all the guidelines (which included making payments for a certain amount of time), THEN be told that their home loan modifications were denied?

Care to explain that Mr. Chase Bank Home Loan Modification Specialist?

More Proof that Big Banks Have No Interest in Helping Hoemowners Stop Foreclosure

Get more seemingingly infallible proof that big banks have no desire to help homeowners prevent foreclosure.

P.S.: Start a Business Cleaning Foreclosed Properties. Learn how to start a foreclosure clean up business. Read how one foreclosure cleaning business owner rakes in $40,000/wk (not a typo).

P.P.S.: Like this post? Follow Foreclosure Business News on Twitter.

Copyright © 2010 Yuwanda Black for Foreclosure Business News. Article may not be reprinted or reproduced in any manner without the express, written consent of the author.

Uusally, when news comes out of the entertainment world about rappers, it’s not good. Well, Will.i.am of the Black Eyed Peas has put the kibbash on that. On Oprah recently, he paid off the mortgages of two families facing foreclosure.

His generosity underscores how a few thousand dollars to one man is like a few billion to another. He stated in the article, Will.i.am Pays Off Mortgages For Families Facing Foreclosure, stating:

Doing this isn’t gonna leave a dent in my house… but it could help somebody that really needs it. It’s something that means a lot to me.

Way to go Will.i.am!

What Would You Do If You Didn’t Have Mortgage Debt?

Most of us dream of the day when we don’t have a mortgage to pay. Proof? In the What Would You Do If You Had a Million Dollars poll on GenerationXFinance.com, many of the respondents mentioned either paying off mortgage debt or outright buying homes.

How would you spend the money you pay on your mortgage each month now if you no longer had a mortgage?

Get the FREE credit repair report, 6 Credit Repair Myths and 6 Specific Ways to Raise Your Credit Score and start repairing your credit.

Copyright © 2010 Yuwanda Black for Foreclosure Business News. Article may not be reprinted or reproduced in any manner without the express, written consent of the author.

The actual nerve of some of these big banks who got government bailout money — ie, OUR tax dollars — is unbelievably astounding.

JP Morgage Chase, one of those banks deemed “too big to fail,” and so got $25 billion in government bailout money is now . . . are you ready for this . . . saying that homeowners in danger of losing their home to foreclosure don’t deserve mortgage modification help from the government. 

Mortgage Modification Help for Homeowners: What JP Morgan Chase Bank Doesn’t Like About It

Specifically, the bank doesn’t like the Obama administration’s call for lenders to decrease the principal amount owed on a home loan. This is one of the ideas put forth by the government’s mortgage modification program (HAMP), primarily to help homeowners who are under water on their homes.

Their argument, according to the article, JP Morgan Chase Argues Against Mortgage Modifications, Citing Sanctity of Contracts, goes:

Like all loans, mortgage contracts are based on a promise to repay money borrowed . . . Importantly, there is no provision in the mortgage contract, express or implied, that the lender will restore equity or reduce the repayment amount if the value of the collateral — be it a home, a car or a stock market investment — depreciates.

This argument might hold some water if they weren’t one of the ones with their hands out taking government bailout money when the housing market tanked.

But, I digress.

Stopping Foreclosure: Why Principal Writedown Is Neeeded to Help Many Homeowners Facing Foreclosure

The reason this is necessary say many experts is that homeowners who are underwater can’t refinance/modify their home loans because there’s no equity in the home. And, even though the mortgage modification help offered by the government let homeowners refinance up to 105% of the value of the home, it wasn’t enough to help many homeowners who are underwater by much more than that (eg, 15, 20 and 25% or more).

Why JP Morgan Chase’s Argument Against Mortgage Modification Help for Homeowners Falls Flat

As stated in the previously linked-to article, the simple fact is, contracts are rewritten all the time. After all, what is “refinancing a home loan” if it’s not a “contract rewriting/renegotiation.” But, when banks like JP Morgan Chase are collecting fees off of these kind of every day transactions — with no principal reduction — they’re only too happy to sign on the dotted line without putting up a fuss.

HOWEVER, when the pendulum swings the other way — ie, they’re asked to forego some of their profits — it’s all of a sudden tantamount to a “breach of contract?”

Give me a friggin’ break!

JP Morgan Chase: Here’s What the Average Joe Seeking Mortgage Modification Help Wants to Say to You

WE ALL have to suck it up and pay the piper, so to speak, to get through the foreclosure crisis. Because of actions some like you took — many homeowners who did everything right are suffering. We’ve lost value in our homes, money from our retirement accounts and are still paying outrageous property taxes — and there’s no bailout to help us get back on our feet.

Now that the shoe is on the other foot — stop waving the “but we have a contract” flag with one hand, while asking for “we are too big to fail” help with the other.

If you have to write down some principal balances to help the housing market recover so we can ALL get back on track to prosperity — stop being such a ninny and do it.

Man up for heaven’s sake! As the graphic accompanying this post says, “Suck it up” . . . which is just what the rest of us have had to do.

Millions More Foreclosures Coming This Year

In 2009, there were almost 3  million (2.8 million) homes foreclosed on. This year, home foreclosures are on track to exceed 2009 numbers, making mortgage modification help — and any other kind of help the government can give — all the more necessary.

P.S.: Start a Business Cleaning Foreclosed Properties. Learn how to start a foreclosure clean up business. Read how one foreclosure cleaning business owner rakes in $40,000/wk (not a typo).

P.P.S.: Like this post? Follow Foreclosure Business News on Twitter.

Copyright © 2010 Yuwanda Black for Foreclosure Business News. Article may not be reprinted or reproduced in any manner without the express, written consent of the author.

Losing one’s home is fraught with stress, tension and fear. Some homeowners facing foreclosure are not taking it laying down though. They’re fighting back in some unconventional ways.

Following are four homeowners who took drastic action because they were facing foreclosure.

To Stop Foreclosure, Man Barracades Himself Inside Home

After having surgery and subsequently losing his job, this Ohio homeowner got fed up with banks who he says won’t work with him to help prevent foreclosure. So, he’s barracaded himself inside his home and has vowed to stay there until his “demands are met, or he’s dragged out.”

Read more on this Ohio man who is fighting foreclosure in this unique manner. Or, see his story in the video below.

Another frustrated homeowner facing foreclosure actually bulldozed his own home rather than let the lender take it, saying:

When I see I owe $160,000 on a home valued at $350,000, and someone decides they want to take it – no, I wasn’t going to stand for that, so I took it down . . .

Read more on the homeowner who bulldozed his home rather than lose it to foreclosure.

Homeowner Gets into Fatal Shootout with Cops Resisting a Foreclosure Eviction Notice

Unfortunately, this case took a tragic turn when a homeowner, Mark D. Fussner, got into a 22-hour shootout with police who were trying to evict him from his ome. The article, Cops enforce illegal bank foreclosure Homeowner dies resisting eviction, details the tragedy in the following manner:

Two . . . officers had come to Fussner’s home . . . to carry out a writ of eviction after foreclosure. Fussner reportedly ordered the bailiffs to leave his property and said he would open fire to defend his home. [The officers] left but returned with armed cops determined to carry out the eviction. The bailiffs’ provocation led to the shoot-out.

Sadly, all of this was unnecessary as two days before this tragedy, President Obama had signed the Helping Families Save Their Homes Act. Part of this act stipulated that some lenders put a moratorium foreclosures and work out solutions with homeowners. Mr. Fussner’s lender, Chase, was one of those who had agreed to to so.

Read more on this homeowner who literally died trying to save his home from foreclosure.

Homeowner Facing Foreclosure Rams SUV into Home

From bulldozers to SUVs, some homeowners take the route of, “If I can’t have it . . . neither can you; at least not in good condition.” To that end, one Ohio homeowner who was served with a foreclosure notice from his lender rammed his SUV into his home, causing quite a bit of structural damage.

The article, Sheriff: Ohio man rams SUV into foreclosed home, states:

30-year-old Steve Doak told deputies he was recently served with foreclosure papers and wanted to destroy the house rather than turn it over to the bank. The sheriff’s office says Doak drove the vehicle into fencing and then into the rear of the house . . . They say he did extensive structural damage . . .

These foreclosure horror stories detail how emotion-packed losing one’s home can be.

Let’s hope the foreclosure crisis starts to abate soon.

P.S.: Start a Business Cleaning Foreclosed Properties. While the foreclosure crisis has been a nightmare for many, it has presented a perfect small business opportunity for others. Learn how to start a foreclosure clean up business. Read how one foreclosure cleaning business owner rakes in $40,000/wk (not a typo).

P.P.S.: Like this post? Follow Foreclosure Business News on Twitter.

Copyright © 2010 Yuwanda Black for Foreclosure Business News. Article may not be reprinted or reproduced in any manner without the express, written consent of the author.

Looks like the suspected Times Square bomber has troubles on several fronts, ie, legal and financial. Not only is he in hot water legally for allegedly planting the bomb in times square, he’s also in the process of losing his home.

Home Foreclosure: Time Square Bomb Suspect Faisal Shahzad Defaults on $200,000 Mortgage

According to an article on Salon.com article, Suspect’s home was in foreclosure, among numerous other sources cited from around the web:

Court records show that the suspect in the failed Times Square bombing defaulted on a $200,000 mortgage on his Connecticut home and that the property is in foreclosure.

This has brought out the fangs of some seeking to turn this into a political issue. A YouTube video (below) posted on the conservative site Townhall.com, features CNN anchor Jim Acosta apparently “sympathizing” with the suspected bomber by stating:

. . . if it can be confirmed that his house was foreclosed on  . . .  one would have to imagine that brought a lot of pressure and a lot of heartache on that family . . .

Things really heat up in the comments section of this post (CNN Empathizes With Times Square Bomber’s Home Foreclosure), with comments ranging from the sarcastic “the tea partyer’s framed this ‘unfortunate immigrant’,” to the more benign, CNN reporters are “lefty Obama idiots.”

It can cause one to scratch their head and think:

Can’t we just all get along? Do we have to turn a serious issue like the home foreclosure crisis into a politicial football? 

And that folks is your home foreclosure news of the day.

P.S.: Start a Business Cleaning Foreclosed Properties. While the foreclosure crisis has been a nightmare for many, it has presented a perfect small business opportunity for others. Learn how to start a foreclosure clean up business. Read how one foreclosure cleaning business owner rakes in $40,000/wk (not a typo).

P.P.S.: Like this post? Follow Foreclosure Business News on Twitter.

Copyright © 2010 Yuwanda Black for Foreclosure Business News. Article may not be reprinted or reproduced in any manner without the express, written consent of the author.

One of the things needed to end the home foreclosure crisis is for shadow inventory to be bought up buy eager homebuyers, as was discussed in yesterday’s post entitled Foreclosure Crisis to Drag on for Another 9 Years?

Looking for a Home? Buy a Foreclosure Cheap & Enjoy Instant Equity

One of the things that has helped the housing market to start to recover (no matter how slow it has been in the eyes of many) was the recently expired $8,000 tax credit for first-time homebuyers. And apparently, even though it expired last Friday, the enthusiasm of those in the market to buy has not been dampened . Proof?

According to the Business Journals article, Poll: End of homebuyer tax credit won’t hurt real estate market - The Business Review (Albany), consumers have an appetite to buy. And, jobs and market conditions affect their decision to buy more than things like tax incentives — which is just as we speculated in yesterday’s post. The article states:

Consumers think now is a good time to buy and are confident prices will rise.  . . . The survey found the most important factors affecting the decision to purchase a home are rising mortgage interest rates, unemployment [emphasis added] and more stringent lending criteria. Expiration of the tax credits was lowest on the list of concerns.

Not to sound repetitive,while tax credits are nice, it’s jobs, jobs, jobs that’s needed to end the home foreclosure crisis. Nothing more, nothing less.

What do you think will pull us out of the home foreclosure crisis? Let us know.

P.S.: Start a Business Cleaning Foreclosed Properties. While the foreclosure crisis has been a nightmare for many, it has presented a perfect small business opportunity for others. Learn how to start a foreclosure clean up business. Read how one foreclosure cleaning business owner rakes in $40,000/wk (not a typo).

P.P.S.: Like this post? Follow Foreclosure Business News on Twitter.

Copyright © 2010 Yuwanda Black for Foreclosure Business News. Article may not be reprinted or reproduced in any manner without the express, written consent of the author.