Discussion on Investor Tired of Servicers Not Modifying Tak

Schumpeter Reincarnate Joined: 24 May 2008 Posts: 50039

http://mandelman.ml-implode.co.....ke-action/

Posted: Tue Sep 22, 2009 9:58 pm

Dear Sir,

This is the heart of the problem. The left hand is clueless what It's counterpart is doing.

I recently called GMAC for a loan mod. Please note I have 25 years experience in loan origination for a bank.

It was a brutal experience. The person at GMAC, who is supposed to be experienced in matters of modification, was so uninformed it was breath taking. She flat out told me in 3 minutes that I was not qualified for a mod.

When I explained to her that my modification request might be a little "out of the box," but would benefit the bank more than me, she shot me down without understanding what my request even was.

Do you think the servicers man the phones with obviously unqualified employees in an effort to save money, or to simply make people give up hope?

Posted: Tue Sep 22, 2009 11:05 pm

Banks will never relent to investor interests in a big way. Two main reasons why.

First, banks are in large part still "drinking their own kool-aid" on how the properties couldn't possibly be worth much less than they lent for. From that perspective, greed would imply foreclosure.

Further, there was so much fraud in origination, that the banks fear entering into negotiations with investors to modify loans. Once you start re-examining the loan and its issuance, there is the opportunity to uncover fraud ... which is in large part fraud on the investors.

This would be so widespread (possibly a majority of loans) as to destroy the financial system (which is going to happen anyway eventually, because the loans were just so damn over-valued).

What would you do if you were a sleazy originator, facing steep mark-downs in value, and the prospect of your sloppiness/fraud being discovered? Probably convince yourself the properties were still really worth most of their original "value", and then pretend, extend, postpone, or foreclose (and then not sell).

It's a lot like all those Ponzi schemers who swear to the grave that it was all just "innocent" (Madoff only said otherwise to avoid his family and close associates taking any of the heat).

Dud? Joined: 28 Oct 2008 Posts: 5 Location: Richmond, VA

So how exactly do you find out who the investor is? My husband and I have been trying to get a modification done with Countrywide/BOA for over a year now. We never hear from them and when we call there is always a new excuse. At one point we were finally approved, made two payments and then they called us back and told us they screwed up the paperwork and they have to rework the loan! That was in June 2009.

Any suggestions?

Dud? Joined: 28 Sep 2009 Posts: 5 Location: Orange County

Hello,

You have to write them a "Qualified Written Request" Letter. It is c**p really. At first I thought the investor was the ones hidding, but now it may be the servicers hidding who the investor really is in fear the borrower will just go directly to them.