Hello Readers:
The news only seems to get worse. In December 2009, Congress re-visited the idea of allowing Bankruptcy Judges to reduce the principal balance owed on first mortgages on a borrower's residence. This is referred to as a "Cramdown" aka "Cram-down" This concept was suppose to the be the "STICK" against the mortgage lenders if they failed to play fair when it came time to offering a loan modification. Mind you, these are loan modifications that mortgage lenders promised President Obama and Congress that they would liberally provide to troubled homeowners in exchange for receiving money from the Troubled Asset Relief Program. Instead of giving borrowers fair consideration for a loan modification, most of the lenders have repaid TARP funds in exchange for a license to foreclose with impunity!
In December 2009, the Senate overwhelmingly turned down a bill which would have given a cramdown to bankrupt homeowners. The wealthy in this country can cram down their boats, airplanes, yachts, and rental units. . . but the average American homeowner is stuck with a huge mortgage on a house that is worth 40% to 50% of what they owe.
My observation has further been that if you have been in trial loan modification status, you will continue to be kept in that status until there is no way that the income you identified on your loan modification application could be enough to support filing a Chapter 13 Bankruptcy! Think about this. If a bankruptcy could eliminate your credit cards, refinance cars which were purchased more than 2.5 years ago, and eliminate your 2nd mortgage, and you had enough income to pay your first mortgage and 1/60th of what you are behind on your first mortgage, then it is clear you can save your house in bankruptcy. However, what it seems like some of these lenders are doing is inviting borrowers into trial loan modifications. They don't deny the loan modifications until the arrears get so big that there is no way that the borrower could afford the 1st and pay 1/60th of the arrears. Its a blatant trap.
Alternatively, if they don't want to wait that long they do what OneWest Bank did to one of my clients. My client had fully complied with the trial loan modification requirements. One West bank admits they received everything they needed to fully accept the offer of a trial loan modification. However, two weeks after they received all of the documentation, OneWest Bank foreclosed on the property, WITHOUT ANY WARNING to my office or my client.
Unfortunately we don't know whether the property was sold to a Third Party or not. If it was sold to a 3rd party then there won't be anything that can be done to get it back. However if the bank simply took it back they could rescind the sale. But it doesn't appear that they will be willing to do so. I suspect that OneWest Bank figures that my client doesn't have the $5,000 in attorneys fees needed to file the lawsuit to get the property back. The few that do fight back, seem to end up losing their money because the "Old Boy" network of judges in place from the Bush administration always seem to side with the banks in these disputes.
Many of you have seen my friends at http://thinkbigworksmall.com/mypage/tbws/ who exposed the FDIC, ONEWEST BANK, INDYMAC BANK and the scam they pulled. I don't think the FDIC is able to answer all of the points they disputed in the video. But it breaks down to this. . . . OneWest Bank makes a fortune if they foreclose or approve a shortsale. OneWest Bank sits with a shakey loan if the agree to modify. So I will leave up to you to decide what you think OneWest is going to do.
It is clear that this whole system of judges, FDIC, politicians, banks, and brokers is a byproduct of our own voter apathy. How many people don't vote? By not voting the few chosen in this country have the laws written in their favor. Most Americans are destined for economic slavery in the form of unfair and predatory mortgages and credit cards. Where is Ralph Nader when you need him! Register to vote today at the very least.
Protect yourself if you want to save your house. File your bankruptcy if you are able, and do it now. Save your house with Chapter 13 now, or proceed with loan modification at your own peril!
