Page 5 - Loan Modification News Today

The home when in fact she did and she happened to have the foreclosure papers served on her in the home that the bank said she didnt live in. another example, a married couple in their 50s trying to make the best of everything, they asked for a loan modification of west bank, and then -- which they were eligible for, and instead, they were foreclosed on. explain to the committee, if you would, and i think youre an earnest, well-intentioned person, but youre sitting there as a ceo, and this stuff...

These legacy loans were included in the purchase. the responsibility landed on me to clean up the mess others made but we inherited. we worked very hard to help homeowners remain in their homes through modifications wherever possible. ultimately, one west extended over 100,000 loan modifications to delinquent borrowers to try to help them out of a bad situation. i am proud of the fact that loan modifications started at indy mac under the leadership of the fdic. however, the fdic loan modificatio...

The home when, in fact, she did and she happened to have the foreclosure papers served on her in the home that the bank said she didnt live in. another example, a married couple in their 50s trying to make the best of everything, they asked for a loan modification of west bank and then -- which they were eligible for and instead they were foreclosed on. explain to the committee, if you would, and i think you earnest, well-intentioned person but youre sitting there as this stuff is happening, whi...

Crisis. >> i was committed to loan modification, intended to stop foreclosures. i ran a loan modification machine. independent government reviews routinely showed that we had the most effective loan modifications of any bank. >> democrats are going after mnuchin about his vast wealth. theyre also telling some sad stories about constituents who lost their homes during the financial crisis. march that? >> mike in terms of governor rick perry, former governor of texas, how did it go today he was in...

Providing a loan modification. and to the extent that the net present value was higher on foreclosing, we unfortunately had to follow the hamp rules, or we would have been severely penalized if we had not proceeded with foreclosures. >> these were not your rules. >> no, they were not our rules, senator, these were rules that were driven by the administration under hamp. >> which administration? >> the obama administration. >> let me ask one more question. there is a wide agreement that the tax l...

They just would not work with any of us after false promises, after leading us into foreclosure, saying that we had to be three months behind in our mortgage payment before they would -- >> thousands if not tens of hundreds of thousands, millions of people were told by banks that you had to be late on payments so that you could qualify for loan modification, and then once you went late on a payment, they foreclosed on you? >> they foreclosed on us, added hundreds of thousands in fees. illegal fe...

Mortgage payment before they would -- >> thousands if not tens of hundreds of thousands, millions of people were told by banks that you had to be late on payments so that you could qualify for loan modification, and then once you went late on a payment, they foreclosed on you? >> they foreclosed on us, added hundreds of thousands in fees. illegal fees. they had sloppy accounting. the amount they stated i owed varied in three months by 130,000 in three months. >> let me ask you this, you voted fo...

Are persuading the banks to modify the loan or doing a short sale, which means selling the property for less than what is owed on the mortgage. >> you had to be in such a sweet spot to get a loan modification. you couldnt make too much money. you couldnt make too little because the banks wanted to see you could afford the payment long term. so, if you werent in this little, tiny piece of pie that they cut out, you were going through months and months, if not years, of supplying paperwork to the ...

People to pick it up. >> making their mortgage payment was the top priority. they tried repeatedly to reach someone at the bank who could work with them. >> their staff have a certain script that they read, but you cant really get into actually sit down and speak with anyone. >> we have a record of having been here for 18 years, all of this time. were not going to all the sudden abandon our property and run off somewhere. were, i would think, a very good risk. >> this is our home. and its small....

>> that law was december 3 1st 20shgs 14. if you were looking to do a short sale or loan modification, be prepared for a big tax loop next were. >> if the bank is forgiving $200,000 of your mortgage, they wouldnt count that as income, meaning that you are overall income for the year is not only what you are making, but the debt is forgiven, which is going to kick you into a higher tax bracket and have you tax liability for you. >> just because a bank agrees to a short sale or loan modification, ...