Like the loan shark that promises not to break your knee caps if you make a partial payment, some banks will take a payment and then break your legs. Fortunately the banks got caught and their mortgage loan modification scam has been exposed. Most recently, a Palm Beach County judge ordered Wells Fargo to modify a homeowner’s mortgage instead of foreclosing, because the homeowner had met the terms of his trial loan modification. As is often the case, it appeared that the bank was simply trying to get payments from the homeowner, with no intention of modifying his loan. Additionally, some Bank of America employees exposed the fact they were told to lie to homeowners about loan modifications, just to get money out of them. They said that their employer actually paid them bonuses for delaying loan modifications and rejecting eligible applicants. Locally, a Stuart homeowner found herself facing the foreclosure sale of her home, even though she had just began a trial loan modification program. This was a case of dual-tracking, which is a violation of the Foreclosure Settlement Agreement. A Martin County judge agreed to postpone the sale, so that she could complete the program. This situation is just the latest saga in the long list of fraud committed by the banking industry. First we had the predatory lending practices that destroyed our economy. Then we had the foreclosure fraud that involved forged documents and robo-signing. Our government has been busy sending low level independent mortgage brokers and real estate agents to prison for trumped up charges related to fraud. When do they plan on sending bank executives to prison?
Posted on: Sun, 07 Jul 2013 12:02:57 +0000
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