MFI-Miami was In The Huffington Post

Homeowner Road Trip: Rally In Tallahassee

In a time when you can stroll over to the computer and rattle off an e-mail to your elected official because you think your taxes are too high or leave an anonymous comment on a blog or article voicing your disapproval with a particular reporter, it would seem that the days of face-to-face action and rallies are unfortunately a thing of the past.

Not for a group of activists in Florida heading to the Capitol in Tallahassee on Wednesday, April 21.

Michael Redman (4closureFraud), together with the Law Offices of Carol C. Asbury, Attorney Matt Weidner, and Lisa Epstein of Foreclosure Hamlet, in an effort to convince Florida legislators to listen to their constituents, are organizing a transport to the capital. An old fashion road trip of attorneys, advocates, and homeowners. Transportation is being organized and buses will be available from key areas throughout Florida and along major roadways. Redman and Epstein had initially dipped into their own pockets to charter buses for the event.

As of April 16th, according to Redman’s blog, in a Friday post,

“Team Ice in West Palm has sponsored their bus and now one of Pinellas County’s toughest foreclosure fighters has generously agreed to sponsor a bus to make sure any attorney and homeowner who wants to go to Tallahassee and make his or her voice heard has the opportunity to get up there and meet face to face.”
“One of the most inspiring things about all of this is seeing how the defense attorneys are all throwing their time, talent and treasure into this fight.  We all share our ideas, insight and experience because doing so serves the interests of not just our clients but those folks out there who cannot afford an attorney and it especially serves the Constitution we took an oath to protect and the judiciary we respect,” Redman says.

The most important piece of legislation the group was trying to stop was a push by bankers to change the way Florida handles foreclosures. Florida currently, and always has had Judicial foreclosures. The bank’s proposed legislation would have allowed banks to foreclose on Florida homes without going to court. According to Matt Weidner, a Florida attorney, the bill for now appears to have been stopped in the House, but the Senate will meet next week and according to an old Florida saying, “No one’s safe while the legislature is in session.”

A non-judicial foreclosure would mean that, “you the homeowner won’t automatically get your day in court if your lender tries to take your house away. The way it works right now is the lender is required by law to file a civil lawsuit against you in order to foreclose. You then have to answer it. If you don’t answer it or don’t show up to court, the judge issues a summary judgment against you. In a non-judicial foreclosure everything is done administratively and your right to due process is compromised and you have to beg for your day in court,” as explained by Steve Dibert of MFI-Miami.

Although the bill appears to have died, and the bankers appear to have conceded, this motivated band of advocates doesn’t want to leave anything to chance.

An e-mail from Weidner reads:

As Mark Twain said, ‘News of My death was greatly exaggerated.’ Although the legislation appears to have died, the passion and concern that its introduction incited has only increased with word of its demise.  Tapping into broad based anxiety and concern felt by homeowners all across Florida, the group has turned its focus from defeating this legislation to demanding legislation that will increase protections for Florida homeowners. Talk about turning the tables.  They are meeting with Senator Mark Aronberg and Rep. Darren Soto who introduced a “Homeowner’s Bill of Rights“. They’re asking that this legislation be resurrected… at the very least they want to make sure their legislators are fully aware of their concerns and the problems they’re facing.

According to Weidner’s press release,

“The response from legislators to this movement has been awe-inspiring. Our leaders in Washington may have trouble hearing the voices of their people, but the leaders who represent us in Tallahassee hear the voice of the people loud and clear! Already leaders from both houses have graciously agreed to meet with their voters, we’re confident many more will agree to meet with us when we arrive.”

Michael Moore spoke of the apathy and lack of action he witnessed despite his tireless work drawing attention to key issues affecting millions of Americans.

“Two years ago, I tried to get the health-care debate going, and it did eventually, and now where are we? We may not even have it. What am I supposed to do at a certain point?, ” Moore said in an 2009 Toronto press conference.

I wrote about that similar frustration with apathy in “Where are the Screaming Liberals?,” back in September 2009.

It’s refreshing and inspiring to think that may be changing.

Denise Richardson (givemebackmycredit.com) posted the following from Lisa Epstein on her blog:

This is not just for homeowners!We are ALL reduced by the actions behind the mortgage frauds and scams. Tenants! Anyone who relies on any public service funded by our now shrunken tax revenues! Anyone owning any property at all, fully paid off or not. Any business owner! Unemployed family members! Credit card/bank account fees victims! Those with drained 401Ks and college savings accounts!

We will be heard as was the Florida Bankers Association on their own “Capitol Day” on March 10, 2010. Florida Bankers, guess what? You wanted a “Taste of Florida”? You are gonna get one! We are having our own “Capitol Day”! But our collective voices will be a harmony; louder, clearer, unwavering, and with a foundation firmly planted in the historical roots of our country as a nation for WE, THE PEOPLE!

Bankers and other stealth foreclosing entities, listen up! We are NOT boobs, chumps, doormats, dupes, easy marks, fools, goats, gulls, patsies, pigeons, pushovers, saps, scapegoats, schmucks, sitting ducks, stooges, suckers, victims, or weaklings, And we most certainly are not “deadbeats”!

To find out more about the rally and let them know you’ll be along for the ride, see Redman’s site at 4closurefraud.org or Weidner’s blog for more information.

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Bank of America Now Supports Judicial Cramdowns

Shahien Nasiripour, Huffington Post

Bank of America, the nation’s largest lender and its biggest bank by assets, now supports changing the law to give federal judges the power to modify mortgages in bankruptcy.

The bank joins Citigroup, the nation’s third-largest bank by assets, in supporting a change to existing law to give homeowners more leverage. Unlike other forms of debt, bankruptcy judges presently lack the power to change mortgage terms. The banking and home mortgage industry want to keep it that way — by not allowing judges the authority to change the terms, troubled homeowners are at the mercy of their lenders. They take what they get.

But Tuesday, before a nearly-empty Congressional hearing room, Barbara J. Desoer, president of Bank of America Home Loans, said her bank now supports leveling that playing field.

“As we’ve gone through the lessons that we’ve learned with modifications and other programs, there probably is some segment of borrowers for whom that would be an appropriate alternative,” Desoer said before the House Financial Services Committee.

“So you would support that in some circumstances?” asked Rep. Brad Miller (D-N.C.) in a follow-up to his original question.

“In some circumstances, yeah,” Desoer responded.

In December, the House failed to pass an amendment to its financial reform bill that would have given judges this authority, despite the fact that it passed the chamber the previous March. The Senate defeated it the next month after banks and mortgage lenders of all sizes mobilized to kill the measure.

Bank of America, though, is the nation’s largest lender and servicer of home mortgages. Desoer oversees a home mortgage unit that accounts for “about 20 percent of the U.S. mortgage origination market, with a $2 trillion servicing portfolio serving nearly 14 million customer loans,” according to the bank’s website.

Its support now gives homeowner advocates in Congress added ammunition to pressure lenders to either do more to give distressed homeowners sustainable mortgage modifications, or to threaten the rest of the mortgage industry with the possibility of reintroducing a bill that would allow federal judges the authority to unilaterally do it on their own.

Citigroup supported the change last year as Congress debated the proposal. Its position has not changed, bank spokeswoman Molly Meiners told the Huffington Post. Together, Bank of America and Citigroup hold a combined $4 trillion in assets, according to regulatory filings with the Federal Reserve.

After Desoer appeared to qualify her support, committee Chairman Barney Frank (D-Mass.), who supports giving judges the authority to treat home mortgages like other forms of consumer debt, interjected in hopes of getting additional clarification.

“Obviously the law would have to be modified to allow that circumstance,” he said. “We should make clear that we can’t change the bankruptcy law obviously case by case, so it would have to be an [inaudible] change.”

Miller then asked a follow-up question.

Read more here: http://www.huffingtonpost.com/2010/04/13/bank-of-america-breaks-fr_n_536283.html

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Principal Cuts May Be Coming For Homeowners, Yet Many Questions Remain

Shahien Nasiripour, Huffington Post

More than one year after the Obama administration launched the most ambitious effort to help struggling homeowners since the Great Depression, the White House took another step forward Friday by announcing a plan to reduce the amount owed by underwater borrowers

The administration’s much-criticized $75 billion effort, Making Home Affordable was supposed to stem the rising foreclosure crisis through multiple initiatives, the most prominent being the Home Affordable Modification Program (HAMP), an incentives-based approach to helping homeowners avoid foreclosure by paying lenders, services, investors and homeowners for every successful loan modification.

That approach has largely been ineffective, according to analysts, consumer advocates, and government watchdogs, because it doesn’t attack the core of today’s foreclosure problem — underwater homeowners and unemployment. One top analyst said it was “destined to fail.”

There are more than 11 million homeowners who owe more on their mortgage than the property is worth, representing about a quarter of all homeowners with a mortgage, according to real estate research firm First American CoreLogic. But the administration’s offers of assistance have largely failed to help them.

The new plan consists of two parts. One, through HAMP, will work by encouraging lenders and servicers to consider principal cuts early on in the mortgage modification process, rather than first relying on interest rate cuts and extending the life of the loan. Mortgage servicers forgave principal on less than two percent of HAMP trial loans, according to a report this week by the Office of the Special Inspector General for the Troubled Asset Relief Program. That’s despite the fact that on average, homeowners in HAMP owe $1.14 on their mortgage for every $1 in their home’s current market value, according to Treasury Department estimates cited in the report. “HAMP allows principal reduction, but it is not typically implemented in practice,” the report states.

read more here: http://www.huffingtonpost.com/2010/03/25/obama-to-order-lenders-to_n_513990.html

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Obama Foreclosure-Prevention Plan Lagging, New Data Shows

Shahien Nasiripour, Huffington Post

Only about a third of the homeowners who have successfully completed the trial period of the Obama administration’s mortgage modification program have been offered permanent relief, according to new federal data obtained by the Huffington Post.

The conversion rate — about 33 percent — is woefully short of what the Treasury Department had forecast. Treasury thought the rate would be “ranging up to 75 percent,” Herbert M. Allison Jr., assistant secretary for financial stability, told the Congressional Oversight Panel in October.

The other two-thirds of homeowners who have gone through the trial program and made the necessary payments remain in limbo. Some of those homeowners — more than 350,000 of them — will ultimately lose out on the kind of relief the administration has repeatedly promised: averting foreclosure through lower monthly payments.

“I remain very concerned about the relatively small number of conversions from trial to permanent modifications for homeowners,” said Richard H. Neiman, New York’s superintendent of banks and a member of the COP, in an email to HuffPost. “Hundreds of thousands of homeowners are left in limbo by [mortgage] servicers and [are] once again at risk of foreclosure.”

Read more here: http://www.huffingtonpost.com/2010/03/09/obama-foreclosure-prevent_n_492376.html

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