Protesters invade bank headquarters to demonstrate against foreclosure practices

A group of about 50 protesters Thursday overwhelmed security, jumped turnstiles and briefly commandeered the corporate headquarters of OneWest Bank.

Members of Alliance of Californians for Community Empowerment and Service Employees International Union set up tents and blocked the narrow corridor in front of the employee elevators for several minutes as they chanted loudly in support of Rose Gudiel, who is on the brink of being evicted from her La Puente home.

“I’m here because they refuse to meet with me,” Gudiel said. “I believe I qualify for a loan modification, and they refuse to explain to me why I do not.”

Seven Pasadena police officers showed up to deal with the animated protesters, who ignored several requests to leave the private property. No arrests were made.

The group finally agreed to leave when Vice President Brandon Latman agreed to meet with Gudiel and her family.

Latman came to the front lobby, where he listened briefly to Gudiel’s story before asking one of his colleagues to set up a room with his laptop.

Protesters moved to picket the entrance to the building, while Gudiel met privately with Latman for nearly 20 minutes.

Gudiel said Latman would not tell her if he had the authority to authorize a loan modification. He scheduled a meeting this morning between Gudiel and “people with more authority,” she said.

“We asked him if he could postpone the eviction until the paperwork can be reviewed,” she said. “He said no.”

Latman and other bank officials declined to comment.

Gudiel, a state employee, has been attempting to get the bank to modify her loan for almost two years. The request came after her brother was gunned down in La Puente in 2009, causing the household income to drop, she said.

Although the income has long since recovered, the bank has consistently refused to give them a loan modification, she said.

OneWest Bank, which took over embattled Indymac bank two years ago, has been under criticism from consumer rights groups and others for its aggressive foreclosure practices on Indymac loans.

Read more here

Share

Banks drag feet on short sales, survey finds

Response times are long and many of the offers don’t end with a sale, says the California Assn. of Realtors poll.

Associated Press Via LA Times

Banks are dragging their feet when considering so-called short sales, an increasingly prevalent type of real estate transaction in which lenders allow homes to be sold for less than what is owed on them, according to a survey of California real estate agents.

Nearly two-thirds of the 2,150 respondents to the California Assn. of Realtors’ survey of member agents said banks took longer than 60 days to respond to short sale offers and that fewer than three out of every five offers ultimately resulted in a sale.

The response times are much longer than those specified in government guidelines for banks who agreed to participate in programs that help troubled borrowers when they accepted a share of the $700-billion Wall Street rescue.

“The survey results show that the short sale system is clearly flawed,” CAR president Beth L. Peerce said. “Increasing the number of successful short sale transactions is one important way we can help California families and move our economy closer to recovery.”

Although the survey only covered agents in California, National Assn. of Realtors spokesman Walter Molony said similar complaints had come from across the country, especially from states with hard-hit housing markets such as Nevada, Florida and Arizona.

“Banks just have not been equipped or willing to make quick decisions on this,” Molony said. “It’s unfair to all parties concerned.”

Short sales have played an increasingly large role in California’s real estate market, with declines in property values leaving many borrowers with crushing payments on mortgages that are greater than their homes’ worth.

The transactions allow troubled borrowers to dodge the hit to their credit scores that would come from a foreclosure, while banks are able to keep distressed properties off their books without going through the costly foreclosure process.

Read more here


Share

Even after foreclosure, lenders still pursue borrowers for repayment

Brian J. O’Connor, Detroit News

A grim echo of the housing bust is building for Michigan homeowners who’ve lost their homes to foreclosure or sold them in short sales. Without even knowing it, they could end up owing tens of thousands of dollars in mounting debts under a previously unenforced provision of the state’s foreclosure law.

Until a few years ago, when someone lost a home to foreclosure in Michigan, the owner walked awayembarrassed and financially battered, but owing nothing more onthe property.

Now, because of dropping property values, mortgage lenders are engineering foreclosures so they can pursue a borrower for the unpaid balance of a home loan for years to come. With added fees and interest, this phantom debt — called a “mortgage deficiency” — could swell to become more than the homeowner paid for the property.

“It’s a huge problem,” said Julia Gordon, senior policy counsel at the Center for Responsible Lending in Washington. “This is the last thing anyone needs.”

There are no figures to show how many Michigan homeowners could be liable for deficiencies, but foreclosure rates suggest there will be plenty.

Since 2006, the number of foreclosures in Michigan has more than doubled to nearly 136,000 last year, and the state has recorded nearly 500,000 filings for homes in or near foreclosure.

As a result, property values in southeast Michigan have plummeted. Home prices dropped 34 percent during the past decade and recently hit their lowest point since the summer of 1994.

Before the real estate meltdown, few lenders ever pursued borrowers for mortgage deficiencies, said bankruptcy attorney Stuart Gold of Southfield.

“We used to see it maybe once a year or very infrequently,” Gold said. “In the last two years it’s become more and more prevalent.”

From The Detroit News: http://detnews.com/article/20110216/BIZ/102160332/Even-after-foreclosure–debt-collectors-still-pursue-borrowers-for-repayment#ixzz1E85SxSdr

Share

Two MFI-Miami Clients Make Front Page of the Boston Globe

In a jam, more skip mortgage payments

Jenifer McKim, Boston Globe

Tens of thousands of Massachusetts property owners are living in their homes without making mortgage payments as they fight foreclosure, plead with lenders for loan modifications, or simply take advantage of free housing while awaiting eviction.

About 36,000 borrowers statewide have not written a mortgage check in at least three months, and one-third of those borrowers are a year or more in arrears, according to the most recent data from Lender Processing Services Inc., a Florida company that collects mortgage data nationwide.

Most homeowners fail to pay their mortgages because they are out of work, have had their wages cut, or are saddled with ballooning interest rates on subprime loans, housing advocates say. Some abandon hope of ever catching up, staying put for months — sometimes years — while lenders slog through the increasingly long process that leads to foreclosure.

“We have bank tenants that have been in their foreclosures after a number of years,’’ said Melonie Griffiths, a community organizer with City Life/ Vida Urbana, a Jamaica Plain nonprofit that works with tenants and homeowners in foreclosure. “Some people slip through the cracks.’’

Housing advocates say the extended time it takes to foreclose upon a property and evict someone gives homeowners an opportunity to save their homes or put away money to rent an apartment, and prevents neighborhood blight by reducing the number of abandoned properties. But economists worry the unresolved ownership of so many properties will imperil an already fragile real estate market.

Read more here

Share