Now it turns out some lenders haven’t merely been unhelpful; their actions have pushed some borrowers over the foreclosure cliff. Lenders have been imposing exorbitant insurance policies on homeowners whose regular coverage lapses or is deemed insufficient. The policies, standard homeowner’s insurance or extra coverage for wind damage, say, for Florida residents, typically cost five to 10 times what owners were previously paying, tipping many into foreclosure.
The situation has caught the attention of state regulators and the Consumer Financial Protection Bureau, which is considering rules to help homeowners avoid unwarranted “force- placed insurance.” The U.S. ought to go further and limit commissions, fine any company that knowingly overcharges a homeowner and require banks to seek competitive bids for force- placed insurance policies. Because insurance is not regulated at the federal level, states also need to play a stronger role in bringing down rates.
Petition: Bank of America President and CEO Brian T. Moynihan: Rescind Susan Leonard’s Foreclosure | Change.org
Bank of America offered Susan Leonard of Northern Michigan a HAMP trial loan modification in 2009. After completing her trial payments on time, Susan was told by Bank of America that she would be receiving permanent loan modification documents. Those documents never arrived and after making 25 payments on time, Bank of America sent the 26th payment back to her and proceeded with foreclosure. Susan’s home was auctioned on December 21, 2011.
Unfortunately this type of unfair and deceptive behavior is all too common. HSITrust hears stories similar to Susan’s every day. Please join us in demanding that Bank of America rescind Susan’s foreclosure and prevent this from happening to other homeowners!
Please use the link below to sign and share this petition with friends and family and help us reverse this wrongful foreclosure.
President Obama has recently appointed Richard Corday as director of the Consumer Financial Protection Bureau. Director Corday has promised to enforce mortgage rules and there will be real consequences for those that take unfair advantage of consumers. We are encouraging our clients (and non clients) who feel they have been unjustly treated to file complaints against the servicers of their loans.
We are hoping the Consumer Financial Protection Bureau will begin to see the same patterns of abuse that we are seeing on a daily basis. If you’d like to file a complaint please use this LINK.
(Pictured: Michele Varney, Chris Cuomo and Bruce Boguslav)
Chris Cuomo and his team from ABC News spent the day in our office yesterday. We taped follow up interviews for an ABC News Nightline 1 hour special that will air on December 10 at 8 pm.
We are excited that Chris is bringing more attention to the mortgage modification and foreclosure issues that our clients are facing.
If you or someone you know is dealing with foreclosure please go to our web page for more information.
We are collecting stories to share with our media contacts at ABC News. We want to hear about how your lender has treated you while in the process of a mortgage loan modification.
Has your lender treated you unfairly or unethically? Has your lender initiated foreclosure proceedings on your home while in the process of applying for a loan modification? Has your lender force place homeowners insurance on your home that has cost you more than what you would pay to obtain the insurance yourself? Have your mortgage payments been misapplied or just seem to have gone into a black hole? Are you being charged excess fees and interest while in the process of applying for a modification? Has your lender approved you for a modification only to tell you later that you’ve been declined? Has your lender initiated foreclosure on your home while you are active duty military?
Please reply in the comments section or email us at firstname.lastname@example.org.
Your lender has finally responded to your many calls. You’ve sent your documents in repeatedly and finally have a dedicated person handling your case. But then, suddenly that person disappears. He won’t return your calls and you are in limbo again. Then you get a call from your lender, it’s a new representative asking if you’d like to apply for a loan modification. You explain that you’ve already applied and are waiting for approval. This rep can’t seem to find your documents and asks you to send them again. Oh, and by the way, since so much time has passed he will need everything you send to be updated.You call several times to check with him – has he received your documents? He tells you your file is incomplete, there are several documents missing.
This scenario happens too many times to count but each time you are contacted by a new representative it gives you hope that this may be the last one! But it never ends because it is by design to keep you in a maze.
In the meantime, even though they are giving you the impression that you are on track to receive a modification (as soon as they receive your missing paperwork) there is something else going on behind the scenes. It’s called dual tracking. While your stuck in the maze of lost paperwork and representative turnover the lender is advancing your home into foreclosure.
Call your senator, representative and attorney general’s office and demand that legislation be passed to prohibit lenders from starting the foreclosure process while a homeowner is in the process of a loan modification.