As an profession neck-deep in defending foreclosures via Florida, we am regularly syndical when it comes to debt industry claims that it is doing anything to repair the complaint it created.
In the bit of unapologetic propaganda, Bank of America recently touted that it has “helped” 100,000 homeowners avoid foreclosure by the National Homeownership Retention Program (NHRP). BofA spokesperson, Jack Schakett brags, The NHRP is the single of the proprietary foreclosure impediment programs we make use of in further to the federal government-sponsored Home Affordable Modification Program (HAMP). Riiiight . . .
The problem, of course, with any promotion is that it glosses over sum that would refute the claim, as well as this square of “news” is no different.
Specifically, the article, published by the default servicing trade publication, mentions in passing, “Bank of America reached an agreement per the NHRP with state attorneys general in October 2008, 3 months after acquiring Countrywide Financial Corporation.”
That’s right. BofA was REQUIRED to begin the NHRP module because Countrywide committed debt fraud, as well as it was forced in to an $8.68 BILLION settlement. “Reached an agreement” my eye. By the way, the module usually applies to the loans acquired from Countrywide. You can view the allotment upon the California Attorney General’s website.
The essay deduction to throw out these big numbers to convince the center category that BofA is the single of the good guys. According to BofA, “80,875 customers received debt relief, ensuing in intensity total principal as well as seductiveness assets of $1.6 billion.”
What does “mortgage relief” mean? we don’t know, though we can discuss it we what it doesn’t mean. It doesn’t mean real debt modifications that residence the emanate of disastrous equity.
Nationally, 28% of all home loans are at or nearby disastrous equity, where more is owed than the value of the home. Until there is the imperative modification module that addresses this tremendous disastrous equity problem, there will be no meaningful as well as durability debt modifications.
What is the homeowner to do? Take counts in to your own hands. Gain precedence by fighting the foreclosure. Once the servicer as well as securitized trust comprehend foreclosure is highly improbable, they will engage in real negotiation that provides the permanent solution to the homeowner’s problem.
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