California Bankruptcy Group's blog

Mortgage loan modifications continue to fail as foreclosures rise.

CNBC’s Diana Olick reports that mortgage modifications geared to help distressed home owners continue to fail while home foreclosures continue to rise. Some may think that this is because home loan modifications are dwindling in number, the real case is that many borrowers do not qualify and the banks prefer to push these loans to foreclosure. The hard truth is that with the delinquencies in the millions and the loan modifications only in the tens of thousands, we know that the vast majority of troubled loans will go to foreclosure.

Failure of federal mortgage aid continues to effect loan modification process.

Recent reports regarding the status of the mortgage aid programs laid out by the Federal government is that they have fallen far short of expectations. As of November 30, the monies spent on loan modification programs was just $2.8 billion of the $46 billion devoted to the housing crisis. One such mortgage aid program was the Federal Housing Administration Short Refinance program, which intended to help 500,000 to 1.5 million loan modifications only helped about 400 homeowners. With only a .06% of the money set aside for mortgage aid spent, what are ailing homeowners to do?

Mortgage loan modification program a failure according to the inspector general.

Early this year, a congressional oversight committee reported that the loan modification program aimed at helping distressed mortgage owners is failing. Neil Barofsky, the inspector general for the government’s bank bailouts, has labeled the record for the loan modification as “nothing short of abysmal”.  He credits the failure to the fact that regulators are afraid to rein in or impose penalties on the mortgage servicers.

Debt collector abuses reaching new heights. Protect yourself with Chapter 7 Bankruptcy!

USA Today recently reported, complaints against debt collectors are growing faster than in any other industry. Consumers are finding it hard to pay their bills such as their credit card debt. With the recent financial crisis, many consumers have had to use credit cards to get by. This mounting consumer credit card debt has lead to an increase in creditor calls. The increase in calls has also generated an increase in the abuses by collectors trying to collect on the credit card debt.

The banks are protected federally, but who protects your mortgage?

During the financial crisis in 2008, the U.S. Federal Reserve bailed out major banks by providing them with over $7.7 trillion in loans. Known as the TARP bailout, these monies were intended to help the banks offset their massive losses caused in part because of the mortgage lending practices they implemented. So if the banks where protected, what federal protection do mortgage owners have? The only protection distressed homeowners are provided with will be filing under federal bankruptcy.

Fannie Mae and Freddie Mac offer a foreclosure reprieve, but is it?

Lending and mortgage giants Fannie Mae and Freddie Mac have announced that it will not evict foreclosed homeowners during the holidays.

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