Showing posts with label Springhill Group Home. Show all posts
Showing posts with label Springhill Group Home. Show all posts

Tuesday, April 2, 2013

Fraud Prevention Against Mortgage



The distraught state of the national housing market, combined with high unemployment, has shaped a lush environment for deceitful fraudsters looking for a chance to take advantage of frantic homeowners. Several homeowners who go with loan modification or foreclosure “rescue” companies for assistance in the end discover that they have been scammed. An up-and-coming inclination in latest months engages mortgage aid relief scams. These scams intent homeowners by means of promising to save them from foreclosure, or maybe get them a reverse mortgage or at least lower their
mortgage payments. This is all in exchange for an advance or monthly fee. But as expected many of these homeowners never get the relief they have been promised.


These scams utilize a range of effortless strategies to spot their financially-distressed sufferers. Various scammers trace troubled borrowers from published foreclosure notices or other publicly-available sources. But others anticipate on mass-marketing modus operandi such as flyers, radio, television and Internet advertising to entice in distressed borrowers. Still others misleadingly propose an association with a government agency to hastily get the conviction of unsuspecting victims.


The Consumer Protection Branch in the Justice Department’s Civil Division is
committed to prosecuting these criminals and bringing justice to their victims because this fraud is so subtle, and looks for victims on folks who are at their most defenseless point. But persons are really number one as potential victims in the fight in opposition to mortgage fraud. Fraud prevention and scam watch id their goal. You can protect yourself from mortgage fraud by keeping the following fraud prevention tips in mind:


If their promises seem too good to be true, they usually are. Be cautious of those that get in touch with you by means of advertising such as flyers, radio/television or the Internet with guaranteeing to adjust the conditions of your mortgage.


Be apprehensive of loan alteration services that necessitate signing a contract or paying an up-front or monthly fee. Advance fees are normally forbidden by law. Loan counseling and modification services are usually offered free from your lender and/or a Department of Housing and Urban Development (HUD) counseling center. Contact toll-free 24 hour hotline to immediately speak to an expert advisor.


In no way you should convey title of your property, do mortgage payments to someone with no less than your lender, or discontinue making mortgage payments in general .These are definite habits to put your financial investment at risk.


Cautiously examine the names, seals, logos and representations completed by
mortgage rescue companies. They may perhaps be intentionally intended to trick borrowers into not doubting a connection with a government agency exists. The point of this is to swindle borrowers into thinking they are at liberty to the advantage of a government program rather than consigning to a loan that is an obligation to be repaid.
A government agency will by no means necessitate advance fees, or pledge a precise outcome.


Most scammers doing reverse mortgage loans are in reality want to drop off other financial products on borrowers. Be alert to keep away from brokers that would like you to get hold of a loan in order to purchase other products such as long-term care insurance, annuities, or other investments.

Sunday, December 16, 2012

Newscenter Springhill Group Home – Two Land Banking Fraudsters Convicted




Two men jailed in the UK’s first criminal trial involving land banking fraud in the City of London Police investigation

A £3 million was proven to be gathered from 300 investors the pair cheated, evidence was pointing the two as culprits.  Their strategies were to fool their victims like elderly and those who are vulnerable into buying plots of land that were either worthless or massively over-priced.

Found guilty of five counts of money laundering, the two men (42 and 32 years old) were sentenced to seven and six years at Isle worth Crown Court.

Their claim was that the locations of the supposed to be valuable plots were marketed as being in a prime position for development and would quickly increase in value.  But the truth of the fact is that investors were putting their money into plots located on farmland, in the Green Belt, within an Area of Outstanding Natural Beauty or on the sides of hills, with no chance of gaining planning permission let alone building houses.

The two were just funneling off the funds into a network of bank accounts while the investors received small returns while others lost everything.  In a matter of two years they manage to con 300 victims, one of which is an elderly man who was suffering from terminal cancer losing almost £300,000 and a woman fooled by as much as £373,000.  In order for people to buy their schemes, cold calling and high pressure sale tactics were put into play to target and then bully them.

According to DC Dave Parkinson, from the City of London Police, ”The pair preyed on the vulnerable, exploiting their desire to put their savings in something tangible that would provide them with long-term security. They cared not from whom they stole, but only for what they could take.”

“Plots of land that were good for nothing and worth a fraction of the asking price were marketed as a sound investment with planning permissions in the pipeline and development round the corner. The gang used all the tricks of the trade to give the appearance of legitimacy, picked off their targets over the phone and then disappeared without trace with their savings.” He added.

Tuesday, November 13, 2012

Springhill Group Home Loans: Avoid House Loans and Bank Financing Frauds


http://springhillgrouphome.com/2012/11/springhill-group-home-loan-avoid-house-loans-and-bank-financing-frauds/


Scams that are perpetrated through in house financing are almost limitless.  Having a house is not just a luxury but it is a necessity.  Buying a house is not just an investment but having a place you can call home.  This is a place where you can create memories and a place where you could go home to after a long day, a place where you can be with the family.   A place where you can be stress-free so buying should also be stress-free.  Nowadays it is hard to have one of your own added the trouble of being scammed by people who will do anything just to steal money to others.  Here are some tips to avoid house financing frauds:

Brokers will always find a way for you to extend payment terms.  Pay attention to the actual price and interest rate.  We often take more importance to the monthly rate rather than the actual price, remember it is always better to pay in shorter term; the longer you pay the higher the cost will be.  If ask, “what sort of payment you are looking for?”, he just wants to get an idea of how willing you are to pay so that he can tweak the loan to fit the payment by extending it.

Know your credit score, the scenario often goes like this.  A scam will let you believe that it is bad, he will tell you that he is not sure and he will talk to the manager and let you know.  And of course a few moments later he will go back and congratulate you because the manager granted and wishes to finance you.  They will give you an insanely high rate a 12 – 13 %, when you could have gotten a rate of half that you had financed trough your bank.  They have really approved you trough their bank but probably much less but they charge you above the interest.

Do not fall for “pay no interest for 6 months”, it is a trick!  Because it is definitely untrue, once the grace period is done sure your interest rate would skyrocket!

Fraud on the other hand is also being committed by the barrowers without the realizing it.  The FBI defines mortgage fraud as "any material misstatement, misrepresentation or omission relied upon by an underwriter or lender to fund, purchase or insure a loan."  Lying about your application falls under the category of mortgage fraud.  Even a tiny white lie wouldn’t do, it is considered to be a mortgage fraud.  But more often than not, barrowers are not aware of this because a real estate professional suggested it’s no big deal.

It is actually a big deal, you can be penalize or sued because of it.  The so called “creative financing” went out in the 70’s.  If the lender finds put about you false application, even a tiny detail on it, not only they can demand immediate full payment of your plan but they could ask you to pay 6-figures fines. That is aside from the possibility of being sued for it.

If approached by someone who gives you offer that is too good to be true, most likely it is a fraud.  Being part of a mortgage fraud has it consequences; remember house loans and bank financing frauds are against the law.  Always make your own investigation first before engaging in to businesses and availing plans.

Monday, July 9, 2012

News Corp Splitting Into 2 Companies


Embattled Rupert Murdoch’s empire, News Corp. appears to be planning a spin-off of its core businesses.

Its own flagship newspaper, The Wall Street Journal, has reported this week that the company’s board is considering a proposal that will make its publishing arm into a separate company.

Springhill Group Home analysts expect such separation of assets would appease regulators and could help it to avoid selling a USD 6.9 billion stake. Fortunately, the same became true for investors as the announcement was met with the rallying of News Corp’s stock to 8.3% high — the highest level it has reached since 2007.
“News Corp. has one of the best TV businesses, but some people like musty, dusty publishing companies that pay great dividends. It’s a good thing for shareholders.” said an analyst from Lazard Capital.

The media conglomerate has not yet specified which business units would be grouped together but the company is reportedly mulling to separate the entertainment operations from the book and newspaper publishing one.

News Corp’s publishing business brought in USD 8.8 billion in profit last year, accounting for about 7% of the company’s enterprise value or 24% of the revenues. This division includes a number of prominent newspapers (Times of London, The Wall Street Journal, New York Post, The Australian and the Sun) and HarperCollins book publisher, all of which are valued for around USD 5 billion.

Meanwhile, its entertainment business is more profitable with revenues of USD 23.5 billion last year, accounting for around 75% of the firm’s profit and almost all of the operating revenue in the first half of the fiscal year. News Corp’s television and film business consists of the Fox News channel, Fox broadcasting network and 20th Century Fox film studio.
Experts are saying that the move to split the news and media operations from its more profitable film and TV businesses might be a good one, as the former has been marred by the phone-hacking scandal in UK and is continuously under pressure from failing advertising target revenues.

News Corp is retaining the investment banks Blair Ephron’s Centerview and Goldman Sachs in handling the process.

Q + A July 8 - Panel Discussions | Scoop News

http://www.scoop.co.nz/stories/PO1207/S00093/q-a-july-8-panel-discussions.htm

Sunday, 8 July 2012, 6:35 pm
Press Release: TVNZ

Panel Discussions
HOSTED BY GREG BOYED

In response to DAVID SMITH/DR ANDREW MARSHALL interviews

GREG BOYED
Time to welcome the panel. Dr Claire Robinson from Massey. Good to have you along with us. Heather Roy, former minister in the National-ACT Government and now head of the Pharmaceutical Association. Welcome along. Matt McCarten, head of the Unite Union, a political strategist and Herald on Sunday columnist. Got all that out of the way quite well, I thought. Matt, first of all, going back three years - Kate Wilkinson, the back down then. You were on the panel then. What was your reading of how all that played out?
MATT McCARTEN - Unite Union
Well, I think she just came unprepared, and she got spooked, and she didn’t know, she didn’t think about it, and she stumbled into it. It became a political management problem, not about the science itself. And as soon as she said, ‘We think it’s safe, but we’re not sure about the risk,’ it was all over. Key had to come in a step in, and they put the whole thing on hold, because Key is risk-averse. Now the debate’s back, and now we’ve got to have it, and it’s instructed that you’ve got to go all the way to Sweden to get somebody because everyone has run away. The people that were given the responsibility of making the decision on this won’t front, which then makes people even more concerned. So it is turning into a political football.
GREG Claire, are you satisfied that this has been politically transparent enough, as opposed to three years ago when it clearly wasn’t?
CLAIRE ROBINSON - Political Analyst
Well, I think the fact that it’s been out for public consultation for a few weeks now, and nobody is really knowing about it in the broader general public is quite telling. I think we haven’t heard- The minister, Kate Wilkinson, didn’t actually make the announcement of the public consultation period. That came out of the Ministry of Primary Industries. So it’s been kind of one of those clayton’s consultations. It’s one that they want to do because they have to do it, but they’re not really wanting to have a big public debate on it.
GREG Interestingly, no one’s really owned it. We’ve had education and Hekia Parata, we’ve had ACC and Judith Collins. Everyone’s just sort of-
CLAIRE I think because of Kate Wilkinson’s experience three years ago, she’s probably very nervous about it, and I think the government never really wanted fortification because they don’t like the idea that they have to instruct business. But I think, unfortunately, the evidence is showing that they have to have some position on it.
GREG Heather, what are your thoughts on this?
HEATHER ROY - Former ACT MP
Well, I think it’s hard to extricate the science, actually, and the decision should be based on science, not on a political whim or strong-arming by any particular sector. I think we’ve got it right with voluntary fortification. We are three years further down the field in the debate, and the science has progressed since then. I think that Andrew’s commentary about Professor Smith was- it’s always a bit untidy when you have scientists arguing in public. But, with respect, Andrew is a paediatrician. Professor Smith is a pharmacologist, and a very well regarded one with a high position at Oxford University. We’re not talking about a technical college from the back of beyond. And I think that there is emerging evidence that there may be harm. If we’re going to go down the mass-medication route, we need to be absolutely certain that the benefits outweigh the harm.
GREG Do you think people have been well enough informed, though, given that there comes a point that what they’re talking about and what the mass of us will understand-?
HEATHER You mean informed about the benefit of folate?
GREG Either way, actually?
HEATHER No, I don’t, and I think the education campaigns are the things that should be embarked on first before we go down the road of mass medicating the whole population.
CLAIRE Mass medication is a very emotional term. It’s a bit like mass extinction. It’s one of those triggers that people think, ‘Oh my God, how could they possibly do this?’ We were discussing this before. You look at a box of anything, a packet in the supermarket, there’s a thousand ingredients in there. We don’t have any idea, actually, what they do. They’re all in there. People are very scared of that they could potentially get cancer from something.
GREG But Marshall said it’s categorically, absolutely 100% safe.
HEATHER That’s one opinion, and that’s not what others around the world are saying, and the benefits do have to outweigh the risks.
MATT We’ve got to hope that the pointy heads that are studying the science of this get it right. It’s a bit like GE, you know? That, actually, was the boost to the Greens and shoved them in that whole debate. But it was political, and this is the danger of science and politics meshing. And then you’ve got fluoride. Same thing. It goes in the water for the greater good, and you can argue both sides to it. But the thing is that for the greater good, it has made a difference.
GREG What I want to know on this is what are we missing here? Because there’s been so many people apparently calling out with bits of information, but I don’t want to talk. Another bit of information, I don’t want to talk. What’s the great secret agenda we’re not hearing here? If we’re talking half a cent a loaf. I can’t see there’s a massive cost there. Putting that to one side, what’s going on?
HEATHER It’s not just that. If people are scared that there’s going to be harm caused, they will stop buying bread. And that’s a much greater risk than the cost of adding folate to the bread.
CLAIRE But on top of that, there’s this idea that we don’t want to be told to do something. In the other example that I’ve been thinking about is when they were going to ban smoking in pubs and clubs. There was this, ‘Oh my God, how could the government possibly tell us that we can’t smoke where we choose?’ But, again, it came in. Everybody’s happy. There’s little smoking areas. They cope. We just don’t like to be told that we have to do something.
GREG Is this the thin edge of the wedge? If this goes ahead, are they going to go, ‘Right, we’re going to bung this in your water, and we’re going to put that in your bread, and we’re going to spray your vegetables with this, that and the other’? Does this open the door to do it more?
MATT No. I think it’s got to be seen on its merits. I think genuinely that doctors do see the results, and they say this simple thing will cure it or fix it to some extent. So I get all that, and I think it’s real. The thing that we were discussing before, the whole point of us even having to do this is because our diets are inadequate. We eat processed food because we’re served the stuff up from a young age. Crap, crap, crap, crap, crap, and we have deficiency of nutrition. No one understands it. If the government spent more time putting resources into education when you read the bottles and the packages and there are laws actually preventing harmful materials being put in food, but no one wants to do that. So this is a band aid on a problem which has been with us for generations.
HEATHER That, combined with the fact that the evidence isn’t conclusive. If you read the Ministry of Primary Industries-
GREG You’re stuck on this one.
HEATHER I am. Because I was a physiotherapist once upon a time. I took folic acid when I wanted to get pregnant and I was pregnant because I realised the risk of neural tube defects, and I wanted to do all I could to prevent that.
GREG But a lot of women don’t, and that’s who this aimed at.
HEATHER That’s exactly right, but the voluntary regime - 34 breads, actually - and many of our breakfast cereals have folate now. The evidence shows that New Zealand women have the same or better than levels of folate than American women who already have mandatory fortification.
GREG All right. We will leave that there.
PANEL DISCUSSIONS
HOSTED BY GREG BOYED
In response to PETER DUNNE interview
GREG BOYED
First of all, Heather, if I can start with you. Peter Dunne’s stance on asset sales, has that damaged his reputation, which way he voted?
HEATHER ROY - Former ACT MP
Um, some people will say it might have, but I don’t think so. I think that he did signal before the election that that’s where he stood on this matter. I think the more damaging thing is people see him as one man who’s- the tail wagging the dog, if you like. But I don’t buy that either. He’s one man, one vote. To get something through, it’s the way democracy works. You need a majority. 59 National MPs, one John Banks, one Peter Dunne is a majority. And so he is one of that set.
GREG We have had this road with Winston Peters, and it was a little bit different. How do you think Peter Dunne has been perceived as a result of this and where he’s still not quite standing on the pokies aspect?
CLAIRE ROBINSON - Political Analyst
I think the remarkable thing about Peter Dunne is he’s the longest serving continuous electorate MP in the House. I mean, you have to give the man kudos for being able to do that, for having incredible political smarts to be in a Cabinet role in just about every government since 1984. You know, he plays this game better than anybody else, and the fact that he is this last vote on many things is just extraordinary. I mean, he’s a survivor, that man. Regardless of what happens in this current term over asset sales or over pokies, he will get to that election in 2014, and he’ll probably still be the electorate member for Ohariu.
GREG To a degree, though, has his longevity not, to an extent, been down to kind of keeping his head down and grafting? He’s now got no choice. He’s at the forefront at the pointy end of things.
CLAIRE He’s been in all sorts of ministerial positions over that period of time, and he’s dealt with lots of difficult positions. No, he’s a survivor.
GREG What did you take from what he said on the pokies, Matt? It sounds like he’s leaning maybe backing it.
MATT McCARTEN - Unite Union
He’s going to vote with Key. I don’t think there’s any doubt in that. He’s going to vote with him on every occasion where it’s down to his vote. He’s National-lite. He’s there because National, like John Banks, allows him to be there. He’s not going with Labour. Labour won’t have him. Because if it comes down to only his vote to determine which government it’s going to be, it’s National. Everyone knows it. So it’s all just playing games. For all intents and purposes on all the main issues, he votes with National, and he has consistently. The only time he was in with Labour because at the previous election, he got a good vote, and he had seven MPs, and Clark wasn’t sure if that could happen again, so she was better to have him in the tent. But that is gone. That world has gone by now.
GREG He said he’s the only MP who’s actually honoured his word. Given what he is about-
MATT I think that is right. I actually don’t get as upset as others, because people come to me. ‘He’s the swing vote.’ I said, ‘What did he say in the election?’ And they said, ‘Oh, he’s going to support it.’ And I said, ‘Well, he’s going to support it.’ And I think that’s his legitimacy. And I think today by him being able to explain it just now, I think that actually helps his position. ‘I said it before the election. I’m voting on it now.’
GREG Heather, you were in a similar position with civil unions. How much pressure were you under? How much pressure will he be under with things like pokies, alcohol reform and so forth?
HEATHER Quite a lot. But I think Matt’s absolutely right. He’s signalled that he’s part of this government. He’s going to vote with National when it’s important to them. There might be the odd thing. But also remember that most legislation actually gets through the house with about 80% support from everybody. Occasionally the Greens will vote against something, but the majority is usually there. So he does have some power, and let’s hope that he actually uses it for the greater good.
GREG That’s costing him in his electorate, though, isn’t it? Is that something Labour’s going to hone in on come 2014?
MATT Yes, but it’s a Tory electorate. Let’s not keep thinking it’s some swing electorate. It’s always been deep blue. It’s like Epsom. If National gives him the nod, he’s not going to have any trouble at all.
CLAIRE Also the other thing is that his vote actually, his majority over Charles Chauvel increased in the last election.
GREG But it was only 1400 votes.
CLAIRE But it increased over a thousand in the 2008 election, so he’s still there. The bizarre thing about that Ohariu electorate is that the combined vote of Labour, the Greens and National over United Future is twice.
HEATHER And that’s important, because MMP means that you can still support the party you want, but have a bit of a flutter with the person that you want in. I wouldn’t be surprised if that did go-
MATT You’re starting to talk like him now.
GREG The word flutter. I remember it quite well.
PANEL DISCUSSIONS
HOSTED BY GREG BOYED
In response to DR KERRY SPACKMAN interview
GREG BOYED
Heather, I’m going to start with you. Do we have winning politicians?
HEATHER ROY - Former ACT MP
Do we have winning politicians? Well, some people say that government’s lose elections, not win them, so I’m not sure. But I think that certainly politicians want to win, and that’s what they’re there for. They’ve got things that they’re passionate about. They want to be in power so they put in place the policies that they believe in.
CLAIRE ROBINSON - Political Analyst
We’ve got winning politicians. We’ve got politicians that do pay a lot of attention to being leaders and qualities of leadership that matter.
GREG Actually, watching Peter Dunne in action before, the footwork on him is akin to anything Cassius Clay every managed. He managed to just… (IMITATES DODGING) He’s done it for years.
MATT McCARTEN - Unite Union
Here’s my thing about New Zealand politicians. I don’t think they actually do. If you look at Shearer, you look at Key, how they win is they appear not to want to win. It’s almost like-
HEATHER That’s part of it. It’s a matter of style.
MATT It just becomes their turn. We have a thing in this country. The parties go backwards and forwards.
GREG But you contrast that with- The Helen Clark MO was different to that, though. Why did that work for so long?
CLAIRE Helen Clark has exactly the same MO. This is something I look at quite a lot. It’s all about the relationships that they build with certain people and how they appear to be building them. So, Helen Clark has an extremely good ability to be seen to be relating to ordinary people. John Key has also had that. Slightly more diminished now. But it’s really important. How do you appear like an ordinary person?
MATT Clark was in Opposition for nine years. Led the Opposition for nine years before she won.
HEATHER That actually shows perseverance.
CLAIRE Or nobody else. (LAUGHS)
MATT If we had an approach at the Olympics - ‘We’ll wait and we’ll go on.’ I’m saying that in New Zealand, I think they don’t put the big vision up, and you actually just wait your turn. We know perfectly well as political observers that when Labour lost and Goff because the Opposition leader, the scuttle bug within the party is we’re going to be out for two terms, and then we’ll have a real go. And it was just pacing time. Same with when a government comes in, we’ll get at least two terms, and we’ll coast along. I was quite interested in this technology-
GREG What about the exodus to Australia, because that would determine, ‘They’re the winners; we’re not.’
MATT That’s ok. It’s not winning.
CLAIRE It’s not about following winners. Those people are just following the dollar. You look at the news this last week. You know, you’ve got Australian businessmen asking John Key if he can come over the work over there because they want some of his leadership as opposed to Julia Gillard’s.
MATT Well, we should warn them. (ALL LAUGH)
GREG We’ll wrap it out.


Sunday, March 11, 2012

News Center - Springhill Group Home Loan | springhillgrouphome.multiply.com

Springhill Group Home is a housing finance company with the principal goal of achieving a social requirement of motivating home ownership by offering long-term finance to households. Springhill Group Home has turned the idea of housing finance in Springhill into a world-class business venture with outstanding reputation for dependability, honesty and outstanding services.

Springhill Group Home has a wide network of contacts from different loan companies within United States and Asia catering to towns & cities spread across the country providing housing loans and property advisory services.

For inquiries, email us at springhillgrouphome@gmail.com




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Thursday, January 12, 2012

News Center - Springhill Group Home - Zimbio | RedGage

Springhill group Home Loans


News Center – Springhill Group Home Loans : America’s Choice Home Loans LP Opens In Oregon And Welcomes Jerry Holman To The Team Mes Jerry Holman To The Team


By Angie Barrett | November 28, 2011 10:09 am America’s Choice Home Loans announced the opening of Branch 1013, located in Newberg, Oregon. Managed by Jerry Holman, a long time veteran of the mortgage industry, the branch opened on October 20. “Please give Jerry a warm welcome and let him ...


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News Center – Springhill Group Home Loans:Fed Seen Buying $545B Of Home-Loan Debt : Report


By Joseph Woelfel NEW YORK (TheStreet) -- The Federal Reserve is poised to start a new round of stimulus, Bloomberg reported, citing the biggest bond dealers in the U.S. The Fed will inject more money into the economy next quarter by purchasing mortgage securities instead of Treasuries, the bond dealers said. The ...


News Center – Springhill Group Home Loans : Rates For Home Loans And Savings Could Swing Again


The deteriorating situation in Europe has increased the chances of a December interest rate cut. Australian banks are coming under increasing pressure from the ensuing European debt crisis, and have become nervous about lending to each other because of their exposure to risky European debt. Consequently, there are concerns about the ...


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isabelamber.blogspot | Springhill Group: Newsvine - Springhill group Home Loans and Deposits

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Sunday, January 1, 2012

News Center – Springhill Group Home Loans : Home Loan Modifications – Aid Or Scam?

News Center – Springhill Group Home Loans
Home Loan Modifications – Aid or Scam?
test4Bank Pirates!
Vinnieby Vince Meehan Editor, Mission Valley News(Mission Valley News, San Diego, CA) – Southern California has been hit hard by the housing crisis and many San Diegans are in danger of losing their homes to foreclosure if that hasn’t happened already. Many homeowners have enrolled in loan modification programs offered by their banks in hopes of reducing their monthly mortgage payments to an affordable amount. These programs were enacted at the request of the government as compensation to the American public who’s taxpayer money was used to bail out these large banks in 2008 as a result of the Emergency Economic Stabilization Act. But people in the programs have had no success in lowering their payments, and feel as if the banks never had any intention of modifying loan payments from the beginning.Echoing that sentiment is attorney Jason L. Jones of Avatar Legal, P.C., who sees a lot of the misery endured by homeowners as a bankruptcy specialist. Jones contends that the banks have no incentive to modify loans, so they don’t. Since the mortgages are bought and assigned to a trust outside of the banks, they do not suffer if a foreclosure happens. Indeed, it is more profitable for the banks to foreclose on property because of the fees and surcharges involved, typically around $30,000 per foreclosure. Anytime property changes hands, fees are paid to all sorts of companies such as appraisal, title, and escrow. And many times, these companies are actually owned by the banks, so everybody makes out. It creates a situation where the banks actually try to force foreclosure instead of modify the loan. So the homeowner loses as well as investors of the trust which often includes groups like public servant unions and teachers unions who invested into the trusts as a part of their pension programs.What bothers Mr. Jones is that if you do apply for a loan modification, the banks will start the foreclosure process at the same time. Jones says that these two processes occur “parallel” to each other, happening at the same time. And the homeowner is not aware that the foreclosure process has begun. He says many people hold off on paying their mortgage during this process, and the banks start piling up late fees that return to haunt the homeowner.In 2009, the government created the Making Homes Affordable program which was supposed to create relief for homeowners in danger of losing their homes. Underneath this umbrella is the Home Affordable Modification Program known as HAMP in which banks were supposed to streamline the modification process. But participation in Making Homes Affordable is strictly voluntary for the banks and there is no penalty for refusing to participate. That aside, homeowners are reporting that even the banks who claim to be participating in the program are not serious and play games instead.
  • In the loan modification process, the banks create a win less scenario where countless forms are filled out, receipts mailed in, and then promptly lost by the banks. The process is drawn out over time and the foreclosure clock is ticking the entire time. The sentiment is echoed by countless homeowners who have applied for loan modifications to no avail. Indeed, finding a homeowner who has actually succeeded in a loan modification is impossible. Stated one homeowner, “Whether they are calling it HOME, HOPE, or HAMP, the loan modification program is a complete joke and a lie to the American people.” As the National Taxpayer Union puts it, “HAMP has proven to be a colossal failure that has done more to harm than help debt-laden homeowners.”
  • This frustration has led to public anger that has manifested itself in public demonstrations such as Occupy Wall Street and Occupy San Diego. Lorena Gonzalez, Treasurer-Secretary/CEO for the San Diego and Imperial Counties Labor Council recently organized a rally downtown  for “Withdrawal Wednesday” where citizens were encouraged to withdraw their savings from large national banks as a protest. She says that after the bailouts, banks hoarded the money and did not use it to help ease the mortgage crisis as promised. So she and others across the county asked people to withdraw money from large national banks and deposit it in local credit unions. Said Gonzales, “After the bailout, the banks continued to foreclose on homes and CEOs got huge bonuses. This fueled the anger that resulted in “Occupy Wall Street and Occupy San Diego.” She added that these foreclosed homes also began to create blight in neighborhoods, so this even effected homeowners not involved in foreclosure.
  • Gonzales is currently trying to pursue legislation that would fine the banks of foreclosed homes for any code violations, but that it is currently stalled in committee. Gonzales said that the banks don’t like the legislation, and the banking lobby is is even more powerful than the union lobby in Sacramento. Mission Valley News asked Gonzales if she was aware of any of her constituents who achieved a loan modification, and she said she could not think of any who were successful. Mission Valley News could not find one example of a successful loan modification.
  • But even if you do qualify for a loan reduction (which is a feat in itself) and jump through the hoops laid out by the banks, you run a good chance of having your payment actually increase as a result. In many cases, one of the terms of beginning a loan modification is to pay into an “escrow fund” where the banks pay off your home owners insurance and property taxes in advance. This actually makes your payment far more expensive at a time which couldn’t be worse. Failure to pay this escrow will result in late fees and default.
  • Jason Jones says “Right now, the loan modification process goes hand in hand with the foreclosure process because most banks will not consider a loan modification unless the borrower is in default. The homeowner has to stop paying on the mortgage before the bank will talk to him. Only then is he allowed into the modification process. Meanwhile, the bank begins increasing the amount owed by the homeowner by tacking on late fees and penalties, will start making collection calls, and will decrease the homeowner’s credit score. The bank will also file a notice of default, which is the first step in the foreclosure process.”
  • Jones adds “Being in the loan modification process prevents the individual homeowner from facing the actual underlying problem which is the need to move to more affordable housing. As a result, the affected homeowner makes poor decisions and their emotional and physical health can suffer as a result of the false hope offered by a bank’s home loan modification program.” The message he wants to get out is the futility of loan modifications and the reality of foreclosure which is inevitable. Jones says that as a bankruptcy lawyer, his issue with the loan modification programs is the false hope that they create. He said it would create better financial health as well as mental health if the homeowners knew the truth about losing their homes.