There have been too many news regarding errors on foreclosures and the paperwork that accompanies it. Given that homeowners on default have the option for loan modification, it is a wonder why banks do not just go that route. An attorney with the National Consumer Law Center gives the reason behind this.
National Consumer Law Center’s Diane Thompson explained why banks and servicers would rather foreclose than modify loans even if it’s being predicted that soon foreclosures will outnumber loan modifications by approximately two million foreclosures to 1.7 million modifications. According to her, those who service loans – does the paperwork, sends out bills, and collects monthly mortgage payments – actually earn more for foreclosing homes rather than modifying loans.
Investors do pay for routine work like collecting and passing mortgage payments. This is a small percentage though, comparing to how much servicers will get for foreclosing on homes. With foreclosures, servicers keep the late fees collected and all the other fees associated with foreclosure. But if a servicer fails to grant a modification, there are no penalties given.
“The easiest way for servicers to make money continues to be through fees that get tacked on in a foreclosure process, not through anything else. And there’s no penalty for their failure to pursue a modification. Until you make it cost them something not to pursue a modification, then you’re going to see them continue going down the path of least resistance which is to do foreclosure,” Thompson says.
Wells Fargo , through communications consultant Jason Menke, disagrees saying that the bank only forecloses after all options are considered. Menke further explains in an e-mail that Wells Fargo’s foreclosure rate is only three-fourths of the industry average. Both Deutsche Bank and Bank of America have not provided any comments.
Servicers are now facing the wrath of homeowners who have been denied loan modification and had their properties foreclosed. A New York lawyer who defends these homeowners says that some of those who faced foreclosure were not even in default. These homeowners duly paid their mortgages but went into default because banks told them they can only qualify for loan modification if they were 60 to 90 days in default.
Regulators are looking the other way and allowing big banks like Wells Fargo to violate state and federal laws and defraud homeowners like us. Shame!
Wells Fargo teamed up with its attorneys and spent last 4 years in Nevada courts defending its appraisal and mortgage fraud.
Wells Fargo and its attorneys knew it’s Category C Felony to make mortgage loan based on fraudulent appraisal.
Wells Fargo and its attorneys knew it’s Category C Felony to foreclose home based on fraudulent appraisal.
Wells Fargo chose to violate the law and chose to defraud us.
Hold Wells Fargo Accountable! Save American Dream! Restore banking integrity.
Please sign the Petition at http://www.wellsfargomortgagefraud.com. Let our voice be heard!
WELLS FARGO’S TIES TO FORECLOSURE MILL FRAUD IS NOT CONFINED TO FLORIDA. In fact, as proven from the “gang rape” story, fraudulent conduct by Wells Fargo is WORSE than foreclosure mill lawyers!
Foreclosure Gang Rape, Louisiana Style. . .(re: Wells Fargo)
http://www.lawgrace.org/2010/11/11/foreclosure-gang-rape-louisiana-style-absolutely-verifiable/
“Not in a sexual sense, but “rape” here synonymously describes the following things that were forced upon the victim: defilement, molestation, exploitation, humiliation, bigotry, betrayal, invasion, revilement. . .
“It was perhaps a year later that the homeowner learned that WF’s predatory modification was not only fraudulent, but also not lawfully enforceable. The salient reason why the loan modification that Wells Fargo constructed is not valid is because (to the homeowner’s oblivion) the modified loan on the home [unlawfully] binds the homeowner and a SHAM lender.
. . . foreclosure mill lawyer used the identity of GE Capital Mortgage Services, Inc., to fraudulently obtain his court order to seize my home, (without my knowledge, and in my absence), Adcock was reported to have completed his [simulated] auction of my home. According to Adcock, GE Capital Mortgage Services, Inc., was the May 19, 2005 “successful” bidder, for which Adcock had the property deed for my home recorded. . .
A simple look at the Louisiana Secretary of State database for corporation proves that GE Capital Mortgage Services, Inc., became defunct in October 2002 when it merged into GE Mortgage Services, LLC. . . “