The big five mortgage servicers are selling off their inventory of mortgage servicing clients to non-bank entities.
Why are they doing this to the middle-class? It is clear, the non-bank servicers have much less regulation. They believe that these non-bank entities will not be a dogged by regulators in moving foreclosures through the illegal mills as these mortgage servicers are not participants in the National mortgage settlement nor HAMP, HAFA or the other federally mandated programs.
Responsible borrowers who are struggling to remain current on their mortgage payments are eligible if they are at risk of imminent default. Risk of default might involve a mortgage payment that has reset and is no longer affordable, a significant loss of income or other types of hardships.
A city in California has become ground zero in a battle with mortgage lenders and now the federal government in its push to implement a radical new plan to assist homeowners who cannot meet the terms of their loans...
California City Threatens to Use Eminent Domain to Stop Bank Foreclosures
A town in California is making headlines on how it is tackling its foreclosure crisis. In Richmond, almost half of the city’s residential mortgage holders are underwater. In a major development last week, Richmond became the first city in the country to offer to purchase mortgages of distressed homeowners from Wall Street banks and other lenders. Under a plan approved by the city council in April, the city can also use its emin...
Bankruptcy provides a mechanism for families to address all of their debts at once, in an orderly fashion. in both chapter 7 and chapter 13 cases, homeowners discharge most of their unsecured debts (credit cards, medical bills).
They emerge from bankruptcy with an enhanced capacity to pay secured debts, such as mortgage loans. A mortgage loan modification is more likely to succeed—benefiting homeowners and lenders—if the homeowner’s overall debt burden is reduced.