Sunday, January 3, 2010

What a Farce! The Making Home Affordable Program

The reality?

In Lakeland, Fla., Jaimie S. Smith, 29, called her mortgage company, then Washington Mutual, in October 2008, when she realized she would get a smaller bonus from her employer, a furniture company, threatening her ability to continue the $1,250 monthly mortgage payments on her three-bedroom house.

In April, Chase, which had taken over Washington Mutual, lowered her payment to $1,033.62 in a trial that was supposed to last three months.

Ms. Smith made all three payments on time and submitted required documents, Chase confirms. She called the bank almost weekly to inquire about a permanent loan modification. Each time, she says, Chase told her to continue making trial payments and await word on a permanent modification.

Then, in October, a startling legal notice arrived in the mail: Chase had foreclosed on her house and sold it at auction for $100. (The purchaser? Chase.)

“I cried,” she said. “I was hysterical. I bawled my eyes out.”

Later that week came another letter from Chase: “Congratulations on qualifying for a Making Home Affordable loan modification!”

When Ms. Smith frantically called the bank to try to overturn the sale, she was told that the house was no longer hers. Chase would not tell her how long she could remain there, she says.
+++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++
Bill's Comments
+++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++
The sale of her house was subsequently overturned in court, but not before Jaime had spent her last dime, and she still does not have a modification!

My to my clients is if you can no longer afford your home, especially if you are underwater, to stop throwing good money after bad. Accept the fact that the house is lost, why lose your children's college money, your retirement funds or your savings?

You will probably never see a return on that money. Your home's value will probably not return to its purchase price in your lifetime, especially if you are over 40.

If you are in a mortgage state, such as NY, Michigan, etc. I recommend that you do not move out! I can show you how to stay in your home for at least 1 year, maybe longer. In NY we have helped former homeowners remain in their homes for up to 3 years, allowing them to save thousands and thousands of dollars to use in the future.

Unfortunately, in Trust Deed States, you don't have that option.

If you want a free, private consultation with me concerning your predicament, give me a call.

Bill Young, 646-961-3818

No comments: