Foreclosure Activity Picks Up Again
One state tries to do something about it
11/11/2011 | By Mark Huffman
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ConsumerAffairs.com
| Homeowners
Americans are still losing their homes to foreclosure, and the pace increased last month, according to a report by the foreclosure marketing firm RealtyTrac.
The company counted 230,678 foreclosure activities in October – everything from notices of default to auctions or bank repossessions. It's a seven percent jump over the previous month and the largest number in seven months.
The only bright spot is the comparison with October 2010. A year ago, there were lots more foreclosure activities – 31 percent more to be exact.
While most of the early foreclosures were related to subprime mortgages, many of the newest relate to the economy, and homeowners losing their income. David, of Hamilton, Ala., is a prime example.
“I lost my job, fell behind on my payments, got another job and started making more than my usual mortgage payment,” David told ConsumerAffairs.com. “I did this for over half a year and all checks were cashed. In Oct. 2010 Bank of America notified me that I qualified for a modification. I signed and notarized all papers and was told to begin making the modified payment, which I did till June 2011 when my check was sent back and I was informed that I owed a large amount and I was in foreclosure.”
Connecticut steps in as mediator
This kind of disconnect between mortgage servicer and homeowner has been a constant in the modification process, pushed by the federal government in early 2009. Trying to eliminate this confusion and frustration, one state – Connecticut – is holding an event next week where distressed homeowners in the state can meet face to face with representatives of their mortgage companies.
“I encourage any homeowner who is struggling to keep up with their mortgage to take this opportunity to sit down with their lender and explore their options,” said Connecticut Governor Daniel Malloy. “Our hope is that anyone who is at risk of foreclosure will receive the information they need to get back on track.”
Connecticut Attorney General Jepsen said the Nov. 15 event is a response to the many Connecticut residents who have complained that they are frustrated with the lack of communication, lost paperwork and other customer service issues involved with their loans.
Ending the run-around
“We are working with the banks to make sure those issues are addressed,” Jepsen said.
Among the banks sending representatives are: Bank of America; Citibank, NA; GMAC Mortgage, LLC; HSBC National Bank USA; JPMorgan Chase & Co.; First Niagara Bank; McCue Mortgage; People's United Bank; Webster Bank, NA and Wells Fargo Bank, NA.
The mortgage assistance forum is scheduled from 10 a.m. to 7 p.m. at the Connecticut Convention Center, 100 Columbus Boulevard in Hartford.
Susan Canada (Fri, 11 Nov 2011 22:31:28 +0000): Last year went to a forum in Fl. The government reps. were great. Wells Fargo reps were useless, although they did admit to sending a man to my home after 9 p.m. They not only had no authority to correct mistakes that I could verify on paper, what little bit they advised me conflicted with what I was told later.
Joseph Stager Jr. (Fri, 11 Nov 2011 22:57:26 +0000): None of this will do me any good. I have an inflated mertgage due to Fraud and Breach of Contract from the manufactured home dealer I bought my home from. When I finally got all the legal papers, or so-called legal papers, there were a ton of hidden ffees in my contract, which wasn`t even signed in fornt of me by a Notary Public. It was mailed to me. I would never have qualified for a mortgage that`s over $600.00 a month for a cheap manufactured home! Where is the help for something like this?
Marianne Sippel (Fri, 11 Nov 2011 23:23:25 +0000): Would love to be a fly on the wall as they briefed the representatives being sent to this event...would it go something like, "Now, you make it clear that you are there to help, give them hope. We're not legally obligated but we don't want these folks to be out on the streets too soon, so tell them anything and then send them through the 2 year maze to nowhere...hahahahahahahaha!" Be a smart fish and don't take the bait. And don't draw any attention to yourself. Occupy in groups. This isn't going to end the runaround with the banks because the run-around works!