SCHEME OF THE DECADE, Why mortgage companies "WANT" to foreclose on you.

Hello,
I am writing this for others to be informed of what I have and am still going thru. Well it started about 18 months ago when my company closed its doors and laid off all employees, because of the decrease in our income, I asked the morgatge company I have if I could modify the loan due to job loss. They took all the info needed and put me on a deferment; a deferment is when you pay only the intrest on the loan not princapal untill the modification is complete. Six months later my modification was done and I was sent the new contract to sign and start normal payments.Problem is they only decreased the payment by $75.00...WHAT!!!! I lost $2000 dollars in monthly income and they come back with a $75.00 savings!!!! Needles to say I called them to express my dissatisfaction and told them this would not help me at all, so they put me in for a different modification and put me on another deferment.... After 3 months of waiting I called to see the status, I was told they needed my new finacials because the ones I sent were more then 30 days old. Puzzled I sent them the info. This time I followed up with the info I sent as was told 'they got everything they need". Now I wait again for 2 months and called them, I again was told that the info thay had was past the 30 day mark and they need new ones!!!!!

"How long does it take for someone to put in my info from the documents I sent them" i asked. The anwser I got was " We are trying to complete them as fast as possible"
As fast as possible huh?..........Now it has been 18 months and still no modification in sight, I have sent my info to them no less then 5 times to always get the same response of my info is too old, or something was lost on thier end.... and am still on a intrest only deferment.

I have now given up on the modification and have decided to short sale the house because of the negitive equity in it by $30,000, I inlisted a realtor who specializes in short sales and was told about a HAFA program that puts $3000 in my pocket at close and also not to be responseable for the residule amount on the short sale...YES YOU ARE LIABLE FOR THE REST OF THE LOAN AFTER THE SHORT SALE.
So off we go to sell the house, now 3 months later ...I was declined for the HAFA program because I never applied for a loan modification!!!!!!!

I sent them the info numerous times!!! What the F%^*

I have since learn from a Bankruptcy lawyer that Forclosure and short sales do about the same amount of damage to your credit ...so I am letting them foreclose on my house.
I cant believe that the mortgage company would want this!! But they do...... why....???
I asked my mortgage company if I let you forclose ..how long do I have to move after the auction of my home???
I was told if a private person buys it then maybe 10 days...

BUT... if they buy it( the same ones foreclosing on it) I would have 30 days.... WHAT DID YOU SAY IF YOU BUY IT!!!!!
THERE IS THE SCHEME OF THE DECADE FOLKS ..THEY WILL SHOW A LOSS FOR TAX REASONS BUT THEN BUY IT BACK AT A HUGE DISCOUNT... I dont get the logic behind this, if anyone else might know why please tell me...... so needless to say Everhome Mortgage company is screwing me and the American taxpayers because they were part of the bailout. So you pay for the forclosure loss with the bailout and they get a house at a discount...what a racket they have.... RENT DON'T BUY!!!!

If you have any helpful advice for me please respond.


Ok i am editing to put in more info... I have told them time and time again I would pay and live for as long as possible if they could get my payments down to $1100 i am currently at $1450 but they didnt seem interested.

It would suck if you accidentally spilled oil based paint all throughout the home prior to them taking it back. I know we try to be careful while carrying paint but sometimes we trip and stuff happens.

Right lets look at this from the Mortgage company View, They have a client who has borrowed money off them per contract that this money is paid in installments back to them, However if this contract is breached you are in they're control and they have a possible opportunity to not only Regain the amount of money you originally borrowed to buy the house, By selling your house after they chuck you out, Plus they also have the added bonus of whatever youve paid to them so far, It is in their interest to Sell your house and make a substantial profit, Its a sad and paththetic thing but most Banks/companys are out to get your money these days, Is there any sort of Payment protection insurance on your policy?

reply to post by bozzchem
Amen, also i think some kids came in and played baseball in there also....

reply to post by TedHodgson


I do pay mortgage insurance but was told that for the lender not me....

reply to post by Lost in america


I may be wrong but i allways belived morgage insurance is paid so that if you cant pay the agreed amount the insurance pays for it, Then again im pretty fuzzy on the whole subject.

reply to post by TedHodgson


The insurance is to pay the lender the residule amount left on house due to forecloseure....but i was told I am liable for the residule.... ?????

reply to post by Lost in america


As your in america it may be different from here, But i would certainly reccomend getting in touch with whatever version of our english "Citizens advice bureau" you have over there, Im sure there will be something your missing that could act as an advantage in your predicament

reply to post by Lost in america


Lost, I am so sorry to hear your story. It is one I have heard repeatedly since this disaster began both in forums and personally from individuals I know.

The banks are TOTALLY gaming the system.

From what I understand (no expert, but fairly well read) mortage insurance makes the bank whole in the event of a short sale or foreclosure.
www.themoneyalert.com...

Banks are being given a monetary incentive to place people in loan modification programs, whether it becomes permanent or not. www.hmpadmin.com...

Banks are foreclosing on homes they don't even hold the mortgage on anymore. The Florida Attorney General has handily uploaded the documents that prove it.
www.slideshare.net...

They've been loaned money by the Fed to cover any potential losses and the loan security given was more of the mortgages.
research.stlouisfed.org...

This money was loaned to them at .025% and under the TARP program AND, they are being paid interest by the Fed on any that is not invested elsewhere. This was never the case before TARP was passed.
en.wikipedia.org...

So, the banks can't lose! (Principal anyway) As near as I can tell, the only advantage in all of the foreclosures is they can collect the principal now.

Really, 2/3 of the income a bank receives on a mortgage is interest so I don't understand why it wouldn't make sense to negotiate the rate.

I really don't understand the endgame in all of this. As I'm sure you can tell I've done a bit of research trying to. Please, if anybody does understand the objective, share.

Further, the banks aren't really issuing much credit now, even mortgages for highly qualified borrowers so, everyone takes a hit because they have to lower their price for the few demanding cash buyers that are out there.