Newly proposed loan program could help homeowners avoid foreclosure

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The creation of a newly proposed loan program could help as many as 400,000 unemployed homeowners avoid foreclosure. Essentially, homeowners who have lost their jobs through no fault of their own would be provided a loan for two years while they looked for work and got back on their feet; banks would get their money for the next two years; and a portion of the funds allocated to the failing HAMP program wouldn't go to pay servicer salaries and bonuses.

The provision has made it through the House and the House-Senate Conference Committee for the Financial Reform Bill will decide on or around the 22nd of June whether it makes into the final bill.

The program is based on a successful model used in Pennsylvania. The provision would make loans to unemployed homeowners to help them pay their mortgage for a maximum of two years or until they find new employment, at which time they would be expected to repay the loan amount in full. It would be paid for using federal dollars that have already been designated for foreclosure prevention and like the Pennsylvania model it is based on, could actually produce a profit for the federal government.

Read the Rest of this story by Richard Zombeck over at Huffington Post:
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First Thank You for all you are and have done since this began, some fifteen years ago Denise. I will support your book as soon as I can that is a promise. For ten years or more now I have been a victim advocate and helped people simply from my own experiences.

Aside from being an avid reader I am a victim (hate that word and implication) twice! Get this I get divorced for a very serious reason and in return obtain a home loan in 1998 as bad as the marriage I had with my ex-husband. Not only that, I escaped the first home without too much damage, but then proceeds and a move out of state to a small town with half the mortgage I had with my home in CO. to Wyoming on the river to quietly raise my son in a very healthy enviroment to have the fraudsters follow. CW lets me know certified I am in foreclosure for the home I sold even after the front and back of check from title company was sent to my then mortgage company "Fairbanks" the real lender was Countrywide after all and I sued to settle under a gag order for a mere 6,900.00 for damages. A class action ensued but to find my loan was with CW and it took a year to untie myself from them without a dime in restitution from "Fairbanks". I was even depositioned in Wyoming with the FTC just before it settled and I no longer needed to depose. Since the Ex had stopped his child support and Maint. from the day I moved (divorce decree allowed relocation since my ex did not show interest in seeing his son). So, legal fees going in two directions finally took its toll and I lost the home in Wyoming. ( it was an FHA loan) The mortgage was insured to be paid no matter what. Short sale with a buyer was rejected and why not they had it all buttoned up.

Our Real Estate Sales person said the Lender at our closing asked the Title Company to send back the original check to be replaced by another one for reasons I am sure she could not disclose I simply had a fight for my credit and proof to clear my name. Although I was disabled after an illness that started in 1993 I was on the mend and had started my Coaching business when I had way too many financial issues to help anyone else and fell into another relapse that lasted until 2006. In 2006 my now husband had a streak of luck with a 500,000.00 scratch ticket. We married, paid off debt and puchased a home with 133,000.00 down on a home in Morrison, Colorado that we paid 242500.00. I fell down again to have surgery but my husbands work more than sustained us. As our credit score rose we refinanced in 2007 recieved proceeds for a few more bills and my surgery payment as well as a Quit Claim to add my name change(marriage)and this is where it started to not make sence. I was required to fax my Bankrupsy from 2003 because of the foreclosure and divorce, two full years of energy bills, telephone bills, of course the divorce decree and child support order and income proof. We were transferred to Bear Stearns/EMC from M&I. Our original lender sold the loan immediately. We had a prepayment penalty that was charged when our original lender transferred the loan of 5000.00. The accounting is as Bush would say "fuzzy math" and made no sense then and now.

With an ARM in the new loan at three years I have been also an avid follower of Bloomberg I was learning more about what could happen and decided it was in our best interest to refinance away from the ARM just in case the Dam broke. Stock market was falling showing signs of real instability. With this loan we also had a reduction in interest because our credit was begining to recover(although I had A+ credit before I divorced)from the 2003 foreclosure and Bk. from 8.25 to 7.5 I felt was better. Payment not that much higher.

These documents also wanted an incredible amount of information and it seems like a sale was taking place in documents but the closing was held at our home by a Notary and I even called our lender at the time questioning the information that was on the documents like debt. We had to pay a credit card company Capital One, and a repossesion that was a voluntary surrender when we lost the home in Wyoming. They agreed to half and that was great. The documents were signed we had a month reprieve from a mortgage payment, but paid it anyway to have one ahead. The next thing I read all documents again, called my lender again and asked why it had not funded as it was the day before the 3 day right of recission would expire. I left message after message, and of course he called too late for us to recind.

The loan was sketchy, the notary left instructions on where to fax, other instructions that were odd and it became apparent to me we might have made a mistake. In September, two weeks since the closing we were asked to resign a document for the recission as the date was in 2028. I understand that, but the next day he was gone, our loan funded end of our relationship with our loan officer, and what was to be the end of Bear Stearns as well as our financial security.

The rest is history except for being in default before we were, always sent statements that shows two payments behind, and then my husband was so upset from these notices, his health started to fail and one month after the illegal default notice he is diagnosed with Congestive Heart Failure. His condition was very grave but has since improved with medication. He and I are both on SSDI working toward employment changes, my husband was fired from his employment because of the length of condition.

He and I both are working with Vocational Rehabilitation for retraining and myself to find a postion under the ticket-to-work from which I worked before in 2006.

Our HAMP program asked for two hundred more a month to escrow taxes, insurance and HOA. They have not paid anything and we were just notified this past week of HOA filing a foreclosure to secure their interest.

We also were ilegally foreclosed on by Lasalle Bank, NA who had no interest that we knew of to file this against us in December. So we fought this and it was recinded by EMC.

The HAMP program was offered to us after Chase had sent a letter to us saying we did not qualify but then EMC said we did so we paid our three payments and were told to continue these payments as we were being processed. It has been four months now. If we are not in a permanent situation could we be included in the June 22, 2010 program since it was through no fault of our own and can we ever get this loan that is rumored to be in a ABS of Bear Stearns resolved?

I have one other piece of information I do not feel comfortable disclosing at this moment but if you email me I would like to speak to someone about this it is unusual but key in how we will proceed.

This is the second home we will have lost to predatory, violation laden financial ruin and at our age of only fifty one have many years to work and pay our debts if only we can get beyond this one. We had counsel with legal aid but he said we would be hard pressed to litigate as we are truely in default although we were not before our credit was destroyed again.

Also, the lenders or whom ever, took my BK and sent it to Experian and they released every bit of it back to my report so I am being a hammered by debt collectors.

It is like a movie where you are tring to run from someone and they keep throwing trash cans, debrie of all sorts behind themselves to keep you from catching them, and catching up ever period.

Thanks Again,

Anonymously presented and hope it helps someone !

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A memoir exposing the steep price consumers pay when facing mortgage servicing errors, inaccurate credit reporting, illegal debt collection practices, identity theft and weak consumer protection laws. THE BOOK » DENISE'S STORY »