IMPORTANT News For All Today. 09.22.10 | Real Estate News for Real Estate and Mortgage Professionals

Chuck@HRC: (September 23, 2010 4:49pm)

Jo4law: Boy, am I confused. Lets do this one issue at a time. If GMAC claims a mod was done, was it recorded (it should have been)? At the time the mod was purportedly done, was your client 2 or more tax installments delinquent? Did your clients have homeowner's insurance and do they have it now? It sounds like there was no mod to your client's payment, did the mod GMAC claims it provided stip to a reduced (hopefully) payment? If not, why? I've been in the industry over 35 years, done servicing and loss mit for most of that time in addition to originations, I can't figure out how GMAC could schedule, what you call, a trustee's sale without an NOD/NOS? Was there an NOD recorded before the mod GMAC claims it provided? I've heard of similar things happening in judicial foreclosure states, but not a non-judicial. Your case has a 'left hand doesn't know what the right hand is doing' written all over it!

JO4LAW: (September 23, 2010 3:27pm)

GMAC/Homecomings not only forceplaced T&I but "claimed" a modification was completed and instructed the borrowers to continue their pre-ARM payments then charged them late fees also deminishing their payments. GMAC & gang scheduled it for a trustees sale without a Notice of Default or Trustees Sale, the borrowers ONLY learned of the foreclosure after finding a cash for keys offer on their door. My clients intend to take this to trial to stop this abuse that many innocent borrowers don't have the funds to fight. It sounds insane, but it's true and well documented.

Chuck@HRC: (September 23, 2010 3:12pm)

Jo4law: I've been in the mortgage industry for over 35 years and thought, after the massive litigation against Beneficial (remember them?) for force-placed insurance, that this issue was settled, once and for all. Apparently, not! I know that GMAC Mortgage has loads of problems and mismanagement of a T&I account is certainly one of them. I don't know how GMAC could have imposed a T&I without notice... please explain.

JO4LAW: (September 23, 2010 3:02pm)

I'm a CA lawyer with a case against GMAC/Homecomings for creating a foreclosure situation by wrongfully foreplacing insurance and taxes then deducting these fees from the couple's monthly payment, enabling GMAC/Homecomings to charge almost 30K in fees, all without ANY notice, not even a Notice of Default! There are many lawsuits against GMAC like mine so watch out if you have a loan with GMAC!

Funrunners: (September 23, 2010 9:52am)

WOW, THE UNDERWRITER??? I was on the ohone with an underwriter while an associate was verifing some info. I asked how long have you been doing this she said 2 weeks, I said where did you work before she said she worked at Wendys. Huh Maybe she knows the Director of the Alabama Appraiser Board. She went to a 2 weeks school and is sitting there questioning an honest appraiser of 20 years about adjustments.

5pence: (September 22, 2010 3:44pm)

LoansInCo - I just called GMAC and there is no way they're doing no income verification loans. I wish they were, or that Obama's 2 year $50k zero interest loans would kick in for the states that aren't the ones with the highest unemployment rates. It already has for those states with the highest unemployment - according to HUD.

barryl: (September 22, 2010 3:08pm)

realist- after all that digging your still in the weeds! take up beer its healthier!

Realist 1: (September 22, 2010 2:51pm)

W.R. Thanks for your support. I couldn't agree more with what you are saying. The system is fundamentally flawed. Most of our elected officials are feathering their own nests and representing "they the corporate special interests" rather than representing the interests of "We the People". There is a serious problem with ethics. Lobbying is effectively legalized bribery. It needs to be made illegal. Establishing an independent ethics commission is a great idea and and that is exactly what should be done. We need checks and balances.

Realist 1: (September 22, 2010 2:43pm)

barryl - I have no doubt that if I keep digging deep enough, I will find you down there somewhere - way down down there somewhere in the bowels of the Earth, but I have better things to do with my time. Over and out.

barryl: (September 22, 2010 2:10pm)

John Lennon says all you need is love. In mortgage banking all we need good will. Absent from the scene. More regs are road blocks, all we need is better individuals.

W.R.Buchanan: (September 22, 2010 2:02pm)

Once we fix Congressional Ethics by installing an "independent ethics commission", and eliminate campaign donations from Unions, Large Companies, Special Interests, etc. Nothing but donations from individuals who can be proven to be individuals. Better yet, just make it so the Govt has to finance the campaigns of individuals running for office. No donations whatsoever. The politicians would not be beholden to anyone financially. Then all of the little problems would fix rather easily.

W.R.Buchanan: (September 22, 2010 1:54pm)

Realist: I'll back you up on this one. All of this talk about this and that including todays topic are all just distractions steering your view away from the real problem which is that we have a system which is broke literally and figuratively! All I am doing is redirecting your gaze back to the root problem. REAL PROBLEM< Congressional Ethics and Campaign Finances>REAL PROBLEM. Both of these issues are the exact reason our system is in the position it is in. Sure there are daily occurances which are in themselves problematic but, they are made so you can't fix them or waste your life trying. Everything else that is happening is just a symptom of the total picture. And we all know what that is! Pretty soon we'll be a corrupt as Mexico! ~Si Patrone~

barryl: (September 22, 2010 1:50pm)

mr. realist, "everyone knows", only the shadow knows! keep on digging, an interesting found is down their, you might need a little help!

LoansInCo: (September 22, 2010 1:43pm)

barryl...I'll find out more abotu this alleged "NIV conventional" refi from GMAC as I follow it thorugh with my (former) client...I'll beleive it when I see it.

Plank: (September 22, 2010 1:39pm)

There is speculation that this has to do with the fact that most if not all these are all judicial foreclosure states. May this also be correlated with the MERS thing? Hmmmmm....

Plank: (September 22, 2010 1:38pm)

There is speculation that this has to do with the fact that most if not all these are all judicial foreclosure states. May this also be correlated with the MERS thing? Hmmmmm....

Realist 1: (September 22, 2010 1:37pm)

barryl - well... corruption may not be new. Everyone knows that. My intention was to point out how prevalent it is out there and that it's running at a fever pitch. In case you haven't noticed, corruption is what's discussed on a daily basis on this website. What is your motivation in trying to downplay it so much?

barryl: (September 22, 2010 1:33pm)

mr loansin co, is that before or after the transcripts?

barryl: (September 22, 2010 1:29pm)

wtf,,, GM must of got that contract producing bumper cars, sounds like jobs are commin back!

barryl: (September 22, 2010 1:25pm)

bucco- by the way, bucco in tagalog is coconut, spelling might be off, but one thing where missing is George Carlin, because he was a gem!

LoansInCo: (September 22, 2010 1:19pm)

I just spoke with a self-employed client who, after heaaring me speak this morning on FHA Streamlines, called his lender to see if he had an FHA loan. Although he confirmed that he had a conventional loan, his lender (ready?), GMAC, told him that they would refinance him anyway on a NO INCOME VERIFICATION conventional "streamline-like" loan...WHHHAAAATTT???

barryl: (September 22, 2010 1:09pm)

realist- my earlier posting addressed todays subject, your new addition: "corruption, is not so new, its kind of like 101 uses with windex per findings of the big fat greek wedding, or whats her name getting kicked out of Japan! We need some interest here, get that shovel out and start digging!

Chuck@HRC: (September 22, 2010 12:55pm)

Bucco: Don't know where you are, but just CA alone has 274,000 loans in the "shadow inventory" and that doesn't count the properties already in the hands on the servicers, foreclosures in-process or early-stage delinquencies. The litigation being discussed could stop ALL foreclosures in some states and has the potential of class litigation to get homes back after improper foreclosures (read here big time damages). This is certainly more than just a few deals getting delayed.

bucco: (September 22, 2010 12:36pm)

I guess I don't understand what the big deal is with this GMAC thing. What am I missing other than a couple properties that the closings are going to get delayed for a couple of months? What am I missing?

Realist 1: (September 22, 2010 11:58am)

barryl - weak argument and off topic.

5pence: (September 22, 2010 11:41am)

LOL, Lennar might be saying, why should we build homes that last 100 years? Let's get some planned obsolescence in there so the homes last 50 years at most. No one lives 100 years after they buy a home anyway. It will speed up rebuilding of neighborhoods and guarantee builders futures.

Nuke 'em Until They Glow and Shoot them In the Dark: (September 22, 2010 11:27am)

Wait 'til RESPA Reform Hits the Builders and wipes out their ability to scam borrower the where you have to use their lender. Then they'll use the 9mm AND Jump off the bridge or the other way around. Oh well time to pay the Piper you scamming Consumer Hostile Builders!

barryl: (September 22, 2010 11:19am)

get real realist, heres the George Carlin quote.... "Some national parks have long waiting lists for camping reservations. When you have to wait a year to sleep next to a tree, something is wrong." So why don't you make like a tree and leave.

schlumper: (September 22, 2010 10:32am)

Chip and FHA cert. Is this just a class to teach L/O's on FHA products and qualifying/marketing?

Realist 1: (September 22, 2010 10:27am)

barryl - Just because George Carlin died doesn't mean he was wrong about what he said. Does that mean we shouldn't believe anything that anyone in the past who ever said? I will take the liberty of summing up what he said: Corruption runs rampant. We see it not only in Congress, but also in the Senate, White House, Judicial system, Banking system, Too Big to Fails, Regulators, Monetary System, White House and in the Media. It's like a cancer.

tlc: (September 22, 2010 10:11am)

Frank & Brian - I keep getting e-mails from my Republican friends that are warning that Obama and Pelosi are planning a 1% transaction tax after the elections which would affect every bank deposit, ATM, credit union transaction etc. Is there any truth to it? I would think not and that it's just another bogus scare tactic to vote against Democrats this Nov. but would love to have you guys check it out and discuss it on your video soon.

barryl: (September 22, 2010 9:56am)

except the low paying yeilds should have been in the basement instead of the roof top deck. "Quantum of control, your lost in space!

HomesNEllensburg: (September 22, 2010 9:52am)

I am a Realtor in Ellensburg WA and it appears that Washington State is NOT on the list of GMAC, at least at this time and I must say that I am glad. I just completed my first Short Sale with GMAC and I have to tell you that I was shockingly amazed with the professionalism of the negotiator and timely response - unlike the recent nightmare of doing a SS with Bank of America! I actually questioned the GMAC negotiator that it was true.

Chuck@HRC: (September 22, 2010 9:47am)

HannahFliegel: Although you are correct that CA uses a non-judicial process, the party that engages the trustee to act MUST have proper authority from the "owner of the loan". In the case of GMAC, while it may have been the securities-issuer and servicer, it may only own some portion of one tranch and certainly isn't a majority-holder in an individual RMBS to allow it to exercise a quantum of control (remember your contract law classes).

Chuck@HRC: (September 22, 2010 9:46am)

HannahFliegel: Although you are correct that CA uses a non-judicial process, the party that engages the trustee to act MUST have proper authority from the "owner of the loan". In the case of GMAC, while it may have been the securities-issuer and servicer, it may only own some portion of one tranch and certainly isn't a majority-holder in an individual RMBS to allow it to exercise a quantum of control (remember your contract law classes).

barryl: (September 22, 2010 9:43am)

George Carlin is going to "sum it up, do you know what happened, he died! get over it, he can't help us understand anything, except for of course Germany, to think they were going to take over the planet, ole GC continuted, "those nazi bastards, are they nuts, thats our job!

bpolka: (September 22, 2010 9:37am)

HAHA!

Realist 1: (September 22, 2010 9:36am)

W.R - the corruption is like a cancer that pervades our congress too. Voting the bums out will certainly help, but a lot of damage has been done that can't easily be reverse. Please watch this video link from George Carlin - I think he sums it up quite well http://www.youtube.com/watch?v=acLW1vFO-2Q&feature=related

Chuck@HRC: (September 22, 2010 9:34am)

The situation with GMAC is, in fact, the same as was discussed yesterday regarding MERS, at least as it applies to possibly invalid NOD's. Everyone should read the article in today's WSJ (See page C5). It continues to amaze me that the mega-servicers haven't yet learned that skirting legally required steps in the foreclosure process only exposes them to more costly and avoidable litigation. These revelations also speak to the trend that loss mitigation today is viewed as a profit-center (consider HAMP and HAFA as examples) and not for the purposes intended.

KS LO: (September 22, 2010 9:34am)

This may shed some light to why Kansas was listed. The Supreme Court opinion is at http://www.msfraud.org/KansasSupremeCourtKnocksOutMERS.html

barryl: (September 22, 2010 9:33am)

for areas hit hardest with the F word, GM will be giving away free cardboard boxes they got from the salminella outbreak. They ask for patience and understanding during this most difficult period. Please note, a moving man, or woman will not be included, so please take time to pack all things quickly. You may tip the sherriff on the way out.

barryl: (September 22, 2010 9:28am)

GM is trading away convertable eldorado's for keys in areas hit hardest with global warming. Please note, in areas that have been impacted with reverse engineering, the ford pinto will be substituted, unfortunately it will be a hard top.

W.R.Buchanan: (September 22, 2010 9:27am)

Realist: I wonder if Congress is enabling them? I wonder what we should do about it? Suggestions please?

HannahFliegel: (September 22, 2010 9:17am)

The reason that GMAC is cherry picking those particular States such as Florida, Ohio and others is because they foreclosure through the Mortgage in a Judicial Foreclosure Process. The difference in California we foreclosure through the Deed of Trust and typically foreclose Non-Judicial Foreclosure. A huge difference! Good work!

Realist 1: (September 22, 2010 9:12am)

PMBVA - Great post! I read the links and all I can say is that the fraud and corruption is off the charts. We have foreclosures with cloudy title, Title companies reluctant to issue policies, corrupt judges who stick their heads in the sand with cloudy title issues and top it all off - the risk of buying a foreclosure with cloudy title is now passed off to the home buyer because Wells Fargo and other banksters have a new addendum so that they are not held accountable. Great. What's next?

FatBassedHooker: (September 22, 2010 8:14am)

I live in Nevada, one of the states not listed here. I think this will have a huge impact in the near future! I deal with a number of short sale and repo's from GMAC. While it may not hit me yet, I will probably see some immediate impact in a round-a-bout sort of way. As a Realtor, I need to be on top of things and plan accordingly. I hope that I am wrong and never see any complications from this issue. P.S. You guys ROCK!!!

Utah Mortgage&Real Estate Guy: (September 22, 2010 8:07am)

I am one of those people that have said GMAC WILL NOT AFFECT ONE THING IN MY BUSINESS.In the mortgage business for over 12 years and I have never (I know that is a strong word),NEVER had one single dealing with GMAC.Overall,as a wholesaler,they would fall in about 25th place out of 25 companies that I would do business with. Dealing with wearhouse lines, I do not do business with ANY company that has ties to GMAC. And old grizzly friend of mine,told me once long ago.DO NOT EVER HAVE ANY DEALINGS WITH ANY BROKER,CORRESPONDENT,LENDER that has ties to GMAC.This warning came in 1999,I have followed it.I have also passed this word around through my years.GMAC has no traction in this market, partly because their servicing, products, and rates SUUUUCK.Overall a terrible company, and I cannot believe it took this long to put them out of their misery.

metrahughes: (September 22, 2010 7:49am)

Finance Companys sold the paper without Deeds. Since they sold the deed all they have is paper and this is illegal to repo without being the holder of the deed.

bpolka: (September 22, 2010 7:36am)

One thing that people might want to remember is that GMAC is a heavy hitter when it comes to warehouse lines. If GMAC is in some sort of financial trouble, or has the potential to be in financial trouble soon, it may have an effect on how willing they are to leave those lines in place. It will certainly have an effect on their willingness to approve new lines of credit. As of this post, 53% of the people out there say it'll have zero impact on their business...I say it has the potential to have a huge impact in days to come. But hey...I'm certainly no mortgagiologist or financiologist...just another originator who thinks a day ahead & plans accordingly.

PMBVA: (September 22, 2010 7:05am)

Agents and loan officers have not educated themselves to what is really going on in the Foreclosure Mess. Please read tow attorney blogs http://mattweidnerlaw.com/blog out of Florida. http://livinglies.wordpress.com/2010/09/21/gmac-halts-foreclosures-admitting-false-affidavits/ The GMAC problem is the tip of the iceberg it is not about homeowners not making payments or a technicality as reported yesterday. It is about Fraudulent paperwork being filed by foreclosure mills on behalf of the foreclosing entity with the courts. Read this it will expalin alot about what is happening http://mattweidnerlaw.com/blog/2010/09/the-ticking-time-nuclear-bomb-faulty-title-to-foreclosed-properties/

pb123: (September 22, 2010 7:03am)

it has something to with the fact the nation's largest mortgage companies used a single document processor who said he signed off on foreclosures without having read the paperwork - an admission that may open the door for homeowners across the country to challenge foreclosure proceedings.

dal671: (September 22, 2010 6:45am)

I have two deals pending with GMAC now that were frozen.

Opt1: (September 22, 2010 6:38am)

The states listed by GMAC all are judicial foreclosure states. That does make some sense when you look at the time line for FC in other states. Wonder if perfecting liens needs more time.

Slicksleeves: (September 22, 2010 6:18am)

The GMAC freeze came to light in Orlando yesterday. And along with GMAC, Wells Fargo is also included. Good job and full time I guess keeping up with all the 'hope and change' we keep seeing.

Bama Joe: (September 22, 2010 6:10am)

The new K cars are here!!

Gnotboxchecker: (September 22, 2010 6:05am)

Amazing...the Feds & Friends just grab and redistribute. The real story will be hi-jinks during the lame duck session of Congress. It all looks crooked.

Lwood: (September 22, 2010 4:07am)

Did you figure it out yet?

Roger.R.Martinez: (September 22, 2010 4:07am)

Appreciate that fellas! Keep it up.