(Nick Bastian)

Banks Received $814 Million In Federal Incentives For Mortgages That Ended Up In Redefault

According to the latest report from the Special Inspector General for the Troubled Asset Relief Program (or the much-cooler SIGTARP), the nation’s mortgage servicers have received more than $800 million in incentives for making modifications on mortgages that have ultimately resulted in the homeowner redefaulting on the loan. [More]


Drop In Number Of First-Time Home Buyers Is Cause For Concern

The notion of buying your first home, building equity, and eventually moving up the property ladder is still something many young Americans aspire to, but between more stringent underwriting procedures, lingering student loan debt, competition from real estate speculators and higher interest rates, first-time buyers are being squeezed out of the market. [More]


Bank Of America Attempts To Discredit Statements Of Former Employees

Last month, it was revealed that six former Bank of America employees and one ex-contractor for the bank, had given sworn statements in a lawsuit filed against BofA, and that these statements painted a picture of a system that deliberately lost mortgage modification paperwork and rewarded staffers for pushing employees into foreclosure. Now BofA has issued a detailed rebuttal of those allegations and why it believes that these statements misrepresent the truth. [More]


Homeowners Accuse Bank Of America Of Racketeering In Lawsuit Over Mortgage Modifications

Following the recent revelations from former Bank of America employees that the nation’s most-hated financial institution allegedly engaged in deliberate schemes to delay and deny mortgage modifications, a group of three homeowners have sued BofA, alleging violations of federal anti-racketeering laws. [More]

(Nick Bastian, Tempe AZ)

Losing Your House To Foreclosure Doesn’t Necessarily Mean You No Longer Owe Money To The Bank

There’s a commonly held notion that losing one’s home to foreclosure is the final act in a sad drama, that the homeowner has hit bottom and has nowhere to go but up. But thousands of foreclosed-upon homeowners are finding out, years after turning their keys over to the bank, that they may still be on the hook — sometimes for hundreds of thousands of dollars. [More]

(Ms. Marco)

Former Staffers: Bank Of America Rewarded Us For Lying To Homeowners, Losing Paperwork, Denying Modifications

In sworn statements provided for a lawsuit by homeowners against Bank of America, a half-dozen people who reviewed loan modification applications for BofA say the company encouraged staffers to lose applicants paperwork so that it could later be denied, putting homeowners at further risk of losing their homes. And if these people are to be believed, some folks out there may have lost their homes so that a BofA employee could get a Target gift card. [More]

Wells Fargo Forecloses On Homeowner Who Made Payments Too Early

Wells Fargo Forecloses On Homeowner Who Made Payments Too Early

A homeowner in Orlando is confused, and with good reason. He says he not only made his mortgage payments on time to Wells Fargo, but that he sometimes paid early and sometimes paid more than he was supposed to. And yet, the bank decided to foreclose on his home. [More]


Mortgages Slightly Easier To Get For Prime Borrowers, Still Tough For Subprime Applicants

Ten years ago, a potential home buyer could walk into a Countrywide office and get pre-approved for a half-million dollar home loan based on a bank statement written in crayon on a restaurant place mat and a pinky swear that the loan could be paid back. We all know too well the results of those lax standards, which is why regulators and banks ramped up restrictions on lending to the point where applying for a home loan is like auditioning for American Idol, without the washed-up celebrity appearances. But a new survey says that lenders are easing up… a bit. [More]


Should You Pay Off Your Mortgage Before You Retire?

Considering that the average retirement age is approaching 282 and a large number of people have taken out second mortgages or equity lines of credit in recent years, not everyone who is nearing retirement has the option or ability to get rid of that home loan early. But for those that do, there are some things to consider. [More]

(CBS San Francisco)

Foreclosed-Upon Homeowner On The Hook For Squatters Because BofA Won’t Assume Title To House

UPDATE: Bank of America now gives Consumerist its side of the story, saying it could not foreclose on the property because the homeowner had filed for bankruptcy. [More]


Homeowner Tries To Get Mortgage Adjustment, Ends Up Owing $14,500 More On Her House

When a retired Michigan homeowner applied for a mortgage adjustment back in 2009, little did she know that it would result in years of ongoing legal wranglings, a sizable increase in the amount of her mortgage and possible eviction. [More]

(Great Beyond)

Fannie & Freddie To Let Some Underwater Homeowners Walk Away From Their Mortgages

Since bailed-out mortgage servicers began dealing with the toxic loans made during the housing bubble, the focus has been on people who couldn’t pay their mortgages. Now Fannie Mae and Freddie Mac have an out for people who have continued to pay while their houses have lost value. [More]


CFPB Rules Aim To Protect Homeowners From Inept & Foreclosure-Happy Mortgage Servicers

One week after it announced a new set of rules that require mortgage lenders to prove that borrowers will actually be able to pay back their loans, the Consumer Financial Protection Bureau is unveiling a slew of new rules for mortgage servicers intended to curb some questionable practices and provide more safeguards for all borrowers. [More]


New Rule Means Banks Will Have To Make Sure Borrowers Can Actually Repay Mortgages

When the housing market collapsed five years ago, it was due in no small part to mortgage lenders who handed out loans without really considering whether or not the borrower could ultimately pay that money back. Hoping to minimize the chances of this happening again, regulators have introduced a new rule today. [More]

Chase Is Now Surprising People With Mortgage Adjustments

Chase Is Now Surprising People With Mortgage Adjustments

While we’ve seen many a story during the last few years of people stuck chasing their tail in an attempt to get a mortgage modification from their lender, some Chase customers are now finding out they’ve gotten a loan adjustment without ever having to lift a finger. [More]

New Guidelines Aim To Make Short Sales Less Of A Pain In The Butt To Everyone

New Guidelines Aim To Make Short Sales Less Of A Pain In The Butt To Everyone

Short sales now account for nearly 1-in-11 home sales in the U.S., so there’s a decent chance that anyone who has been house-shopping recently has visited a for-sale property only to have the realtor say, “Now I have to warn you, it is a short sale.” At this point, many of you would go running for the hills rather than be stuck in bank-approval muck for months. But new guidelines issued by the Federal Housing Finance Agency are aimed at speeding up the process. [More]

Report: Forced-Place Insurance Pushing Homeowners Into Foreclosure

Report: Forced-Place Insurance Pushing Homeowners Into Foreclosure

If you’ve got a mortgage on your home, it needs to be insured. So if you stop paying that insurance premium, the bank will often go out and get insurance for you. Problem is, according to Bloomberg News, those policies cover less, cost more and will likely just end up putting you into foreclosure anyway. [More]

Is 3 Weeks Too Long To Wait For My Bank To Refund $1,200 It Took By Mistake?

Is 3 Weeks Too Long To Wait For My Bank To Refund $1,200 It Took By Mistake?

Consumerist reader Josh is currently staring at a depleted checking account — and it could be several weeks before it’s back to looking healthy again — all because his mortgage lender screwed up some paperwork. [More]