As the downfall of the economy is taking a dark and dangerous turn, mortgage holders are afflicted the most from those bad economy conditions. A vast number of home owners are now subject to bankruptcy and are threatened to leave their homes for good. And the lenders are not showing any compassion, as what they always want is more profit, no matter if this is on the cost of defaulted Home Owner.
Many Business Analysts suspect that lenders are incapacitating their lenders in the pursuit of more fees and push them to a quick financial hardship. This is due to the fact that lenders and loans providers are not required any longer to submit the practical procedures and regulations concerning the computation and implementation of a fair value of the mortgages. The lender should facilitate the borrowers’ needs and help them not to fall into foreclosure, not the other way around. Loans’ originators act this way because they receive a couple of hundreds dollars of foreclosures’ fees, and when all the fees are added together, they can make millions.
The mortgage problem is getting bigger and no one is helping. That forced the US officials to make decisive actions toward solving the crisis. They came up with programs to help borrowers and prevent lenders from issuing inaccurate charges against people with foreclosures who are at the edge of bankruptcy. Those actions are attempting to benefit the mortgages’ holders, without jeopardizing the loans companies’ businesses.
One of the most well-known cases related to mortgages’ foreclosures and bankruptcy happened when the Chapter 13 trustee in Pittsburgh claimed that the nation’s biggest loan provider, Countrywide, has canceled more than half a million of checks from its borrowers’ foreclosure. It was a claim that shocked the whole country, and made people suspicious of the
the integrity and creditability of such a large corporation and in turn the entire mortgage system.
One of the executives in Countrywide replied on this claim by saying that the company records did not show any receipts of those checks, and this is because the borrowers never paid what is due.
The loan modification industry is very lucrative and easy to abuse. The process goes on in two major steps. Creditors give the loan services companies the money. The loan service lends the money to borrowers. Then the whole process goes backward. The borrowers give payments to the loan service and give them back to the Creditors. The station of the loan services company is that it stabilizes the mismatch between borrowers and investors needs, in exchange of a fee on every payment made by the borrowers.
What makes this a economic scourge without a solution is that the big loan services drive their customers into bankruptcy by imposing large fees on their mortgage, and even larger fees on their foreclosure assessment.
Those companies also reduce the number of issued mortgages, which prevent some homeowners from acquiring anew mortgage to finance the previous one. This leads to more revenues and profits from the already exhausted homeowners. That is proven by the high revenue statements made by big companies in the last year.
Article Review by: 911-foreclosure
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