Second Mortgage Sabotage Of First Mortgage Modification Plan
I would like to ask you, the blog readers, to help a reporter who is investigating practices in the mortgage modification programs. A national business publication is investigating overly aggressive second mortgage lenders. The reporter, Mr. Robert Berner (312-451-7149), is looking at situations where a second mortgage lender sues a homeowner after the homeowner has already entered into a modification agreement with the first mortgage. The second mortgage gets a judgment against the homeowner and then garnishes the owner's bank accounts or salary which causes the homeowner to default under the first mortgage modification agreement. These second mortgage lenders are sabotaging the modification programs set up and encouraged by the government to help homeowners. In some cases where the same bank holds the first and second mortgage the bank modifies the first mortgage and then sells the second mortgage to a third party investor which then agressively collects the second or even sues the homeowner for delinquent second mortgage payments. These mortgage lenders appear cooperative in modifying their first mortgages but then undermine the same modification by collecting or selling the second mortgage.
A related mortgage issue I have heard about from my own clients occurs when a homeowner has checking accounts at the same bank that holds his home mortgage. Some clients have reported that when they missed a mortgage payment the bank invaded their checking account and pulled the mortgage payment out of their checking account without notice. I have previously posted my general advice which is to move your accounts out of the bank that holds your home mortgage if you miss a mortgage payment.
Please get involved. If you have had a mortgage modification plan ruined by a second mortgage holder who sued you during the modification process, or if you have had your mortgage lender grab mortgage payments from your checking account at the same back before a foreclosure or other lawsuit was even filed, call Mr. Berner (312-451-7149) and discuss your experiences.
I have a second mortgage company refusing to accept contracts for a home that the fha appraiser set at 227,700, for a contracted price of 225,000 NO REPAIRS. To put this in perspective, the first lein holder was being paid in full and the second lein holder was due a minimum on the hud-1 sheet 19,500. The second lein holder refused. The buyersd paid for all inspections and even changed the utilities over into their name for the expected settlement date. Their mortgae was secure with theor lender, good credit and sourced funds. This is crazy!!!! The second lein holder is asking for 230,000 plus the realtors to take 4% instead of 6% and the attorney to waive his fee. Oh then they send a uncertified appraisor out to the home (not an FHA or even certified appraisor who was a realtor) who said "no the house was worth somewhere in the 230's". Mopst second lein holders get 1000 or maybe 5000 these guys would get over 19000 and still sabatoged this deal. And by the way refused to fix the loan at a lower interest rate permanently or I would have stayed there.
Is there any effective defense preventing the 2nd mortgage holder from being awarded a judgement? If a judgement is awarded, is there a way to prevent the judgement from being sold or transferred? I am in a similar situation and go to court next month. I haven't had the foreclosure hearing on the first yet, even though they filed over 1 year earlier than the 2nd.
The most common mortgage modifications are listed below:
lowering the mortgage interest rate
reducing the mortgage principal balance
fixing adjustable interest rates within the mortgage
increasing the loan term throughout the mortgage
forgiveness of payment defaults and fees
or any combination of the above
Check out this public service site: http://mortgagemodificationinfo.org
To understand more about loan modification Better check this site misuniversity.com/blog
Let us each remember that choosing to have a second mortgage is the main reason for having these issues in the first place. Unless there was a major medical reason for needing a second mortgage, we should never have one. Personal financial irresponsibility has created a number of issues that we like to blame on others. Let's get our houses in order and then see how nice it is.