Anybody Home? Going to the TOP to SAVE DOC’S Home!

Dear Mr. Herbert Allison Jr., Asst Treasury Secretary,

Mr.Potter Would Be Proud!

Update to Saving Doc’s Home: Litton Loan Servicing has POSTPONED the FORECLOSURE of Doc’s Home for 30 DAYS! Mr Potter in the famous Christmas movie “It’s a Wonderful Life” wanted to own ALL of the property in Bedford Falls. But George Bailey, played by Jimmy Stewart, doesn’t allow Potter to Win. He saves Bedford Falls from Potter’s Bank with the help of his small Building and Loan. Nice tearful story, but in real life the Banks rarely lose and in the case of saving Doc’s Home they have WON!

They were kind enough to postpone the Foreclosure through Christmas. Just to allow him to SELL his home. HOW NICE OF THEM! 

Litton Loan Servicing and Deutsche Bank have refused to allow Doc to modify his home loan because he FAILED their SUPER SECRET NPV FORMULA! So they will Foreclose in January if Doc can’t sell his home . Apparently owning a $250,000 home is extremely important to them.

Litton Loan Servicing and Deutsche Bank would make Mr. Potter Proud!

 Uppitybanker

U.S. Treasury Threatens Banks with SHAME and EMBARASSMENT!…;-)~

Geez What a Surprise…The White House and the Treasury Department are Aghast that more loan modifications aren’t being made!

And NOW before ALL is lost and millions more lose their homes, the Obama administration has decided to threaten the Lenders with EMBARASSMENT and SHAME! According to Michael S. Barr, Treasury’s assistant secretary for financial institutions. Read the complete story by Peter S. Goodman of the New Your Times.

“Some of the firms ought to be EMBARASSED, and they will be.”

And Mr.Barr went even further…

“The government would try to use SHAME as a corrective, publicly naming those institutions that move too slowly to permanently lower mortgage payments”

OMG the dreaded EMBARASSMENT WEAPON!  Followed up with SHAME….

Didn’t know it was that easy? Just point your SHAKING FINGER at the Banks and they will wither IN SHAME!…. begging you to let them go so they can do more Loan Modifications.

The Only Embarassment should be on an Administration that believed that a VOLUNTARY PROGRAM would be Instituted by the Servicer’s and Banks!

The reality of the Loan Modification process, as pointed out before on this Blog, in my August 24th article “Banks Find Foreclosure More Efficient Than A Loan Modification” is that the BANKS DON’T WANT OR INTEND TO DO LOAN MOFIFICATIONS!

Fannie Mae and Freddie Mac can approve a loan in seconds with their Desktop Underwriter and Loan Prospector Super Computer Programs. SO WHY CAN’T the Banks use the same programs to approve Loan Modifications in Seconds? Answer: The Banks make more Money dragging their feet!

Uppitybanker

Saving Doc’s Home Update….

Saturday Doc and I traveled 50 miles to Pine Valley, Ca., to a Free Home Clinic put on by Community Housing Works of San Diego. Akin to the story of a drowning man will grab at anything theory.

I didn’t realize just how bad Doc’s walking disability was until we had to walk more than 10 yards at a time.  The 100 yards we walked from where I parked the car took almost 20 minutes! But I couldn’t get any closer to the Gym at Mountain Empire High School, where the event was held.

We arrived promptly 10 am only to find they didn’t have any acknowledgement of the appointment I had made earlier in the week. NOT A SURPRISE with this whole loan modification process! So we waited 3 hours before we could see a counselor. During our wait we were subjected to endless presentations concerning short sales and the process of loan modifications. Most of the 30 to 40  in the audience had no clue what the presenters were talking about. It was as if they were listening to the process of execution just before the actual act. They all had a sullen hollowed eye look of uncertainty.

Doc couldn’t walk any further than the registration desk so they allowed him to wait at the registration desk resting his head on the table. He is so exhausted from the process. He is resigned to the fact that he is about to lose his home. I’m NOT ready to give up. I keep thinking that someone will look at this situation rationally. It’s sad that nobody at Litton Loan Servicing or Deutsche Bank will examine his particular situation as if HE MATTERED! It ALL comes down to bottom line numbers in the Foreclosure decisions of the Banks. The fact that he is a disabled Veteran is NOT entered in the NET PRESENT VALUE equasion. There is absolutely NO compassion in this Foreclosure Crisis!

The counseling session turned out, unfortunately, just as I had thought with NO possible way to fight the Banks Foreclosure Decision when they had made their decision based on their proprietary mathematical NPV algorithm that favored the Banks position. THE NPV FORMULA is the Banks back door when they prefer a Foreclosure to happen. It’s like playing chess with two sets of rules. Theirs and yours, with their rules having precedent!

Even though we were defeated on Saturday we fight on! I hope the YouTube Video describing Doc’s Story will get out to enough folks in the next week to cause an such an UPROAR at Litton or Duetsche Bank so that a HUMAN there will awaken to help Doc!

Uppitybanker

Help Save Doc’s Home!

Update to the efforts to save Dr. “M’s” home from Foreclosure on December 3rd 2009 by Litton Loan Servicing owned by Goldman Sachs and Deutsche Bank who owns the note:

Yesterday the Treasury Department essentially told me what I already knew! Which is that Litton Loan Servicing has denied his Loan Modification because HIS HOUSE WASN’T WORTH ENOUGH TO SAVE! Apparently HIS HOUSE  WORTH ENOUGH TO FORECLOSE ….So even though I spoke to the head of the HAMP Program at the U.S. Treasury Department they were unable to help push Litton Loan Servicing to reconsider a loan modification to save the Doc’s home.

Tomorrow I am taking the Doc to a Community Non-Profit Organization to see if they have any alternatives that would change Litton’s mind.

Please distribute this video to your friends on the net. IF WE EXPOSE THEIR ABSURDITY OF FORECLOSING ON A MAN’S HOME BECAUSE of LITTON’S and DEUTSCHE BANK’S NET PRESENT FORMULA …THEN MAYBE WE WILL BE ABLE TO CHANGE THEIR DECISION!

Uppitybanker

Goldman Sachs $3.4 Billion Dollar Magic Trick

Watch here how Dylan Ratigan of MSNBC explains how Goldman Sachs with the help of Congress and the Federal Reserve used The U.S. Taxpayer’s TARP Money to QUADRUPLE THEIR PROFITS last Quarter to the tune of $3.4 BILLION DOLLARS! The second largest quarterly profit in the companies history! WHILE THE AMERICAN PEOPLE SUFFERED RECORD JOB LOSSES AND FORECLOSURES GOLDMAN SACHS USED TAXPAYER MONEY TO GET FAT!

Remember in September of 2008 how then Treasury Secretary Henry Paulson and Chairmen of the Federal Reserve, Ben Bernanke panicked Congress into giving Wall Street Banks Billions in Bailout Money or we will see a Catastrophic  Collapse of our Financial system? Remember how this was the SAVE the Banks so they could HELP STRUGGLING AMERICANS? Well guess what…The PIGS HELPED THEMSEVES!

We need to STAND UP and DEMAND that GOLDMAN SHARE SOME OF THEIR ILL GOTTEN PROFITS WITH THE TAXPAYERS! THEY USED OUR MONEY INTEREST FREE…WE SHOULD SHARE IN THE PROFITS!

Uppitybanker

A Process Designed to FAIL?

Update to the efforts to save Dr. “M’s” home from the Foreclosure on December 3rd 2009 by Litton Loan Servicing owned by Goldman Sachs:

Our last post pointed out that Dr. “M” was denied a loan modification because Litton Loan Servicing had appraised his home and determined it wasn’t worth enough to save with a loan modification but it was worth enough to Foreclose?

If you’re scratching your head you’re NOT ALONE….

This was all done with the SUPER SECRET “NPV” NET PRESENT VALUE FORMULA that Servicers use to determine if you are worthy of a loan modification. This Super Secret Formula is causing thousands of homeowners across the U.S. to lose their homes, and there is NO easy way to fight it because they won’t tell us what’s in the formula! SO DON’T ASK WHY…YOU’LL GO CRAZY! REMEMBER HE WHO OWNS THE GOLD MAKES THE RULES!

In an effort to get to the Litton Loan Servicing to reverse their denial of Dr. “M’s” loan modification I call the offices of Congressman Duncan Hunter and was helped by David a very concerned and competent staffer for the Congressman. He directed me to the U.S. Treasury and a woman named Jennifer who very quickly got the HAMP SUPPORT CENTER to contact me with the promise of ESCALATING our case for review. Remember we have a short 2 weeks till Foreclosure! And here is where the help we so desperately need ended! While filling out the application for help from the U.S Treasury they asked if Dr. “M” had paid me for the loan modification services. I told them YES that he had paid me a fee for my six months of work in a Hurculean effort with Litton and his loan modification.  

Apparently the U.S. Treasury will not help a borrower that has paid a fee for a loan modification! You may receive HELP only if you use a HUD Approved Non-Profit like ACORN!

And see how effective a Non-Profit like ACORN can be…

Now you know WHY the U.S. Treasury prefers HUD Approved Non-Profits helping homeowners over a Mortgage Broker with 18 years experience in closing loans. I have NO experience with bolt cutters!

So tomorrow I’m dressing up like a Pimp and going to an ACORN OFFICE to see if I can save Dr. “M’s” home! I’ll let you know how it goes!

Uppitybanker

YOU FAILED “OUR NPV FORMULA”…So We are Foreclosing!

That’s the explanation I received from LITTON Loan Servicing yesterday after 6 months of waiting for their answer on a loan modification for a disabled former VA Doctor. Their denial did not address his income and ability to pay a modified payment. Their denial didn’t address the fact that he had always been on time until his health failed him and he had to leave the employment of the Veterans Hospital of over 20 years. Their denial was totally based on the fact that the house FAILED THEIR PROPRIETARY NPV FORMULA and they will just force the foreclosure on December 1st 2009. 

This is an ANSWER that all too many borrowers are receiving and it is hard to FIGHT! How do you fight a formula that THEY DESIGNED?

The Net Present Value test is a complex computer model used by loan servicers to determine whether a homeowner qualifies for the federal loan modification program. The test compares two scenarios – modification and foreclosure – and determines which would be more profitable for the lender. If it’s foreclosure, the lender has no obligation to modify the loan. But the model is a black box. What goes in isn’t entirely clear, and what comes out isn’t always reliable.

The Treasury Department has refused to release the exact formula for the NPV model, bringing criticism from homeowner advocates and industry experts. Cloaking the NPV formula in secrecy makes it difficult to identify any potential flaws in the design of the program, which has generated fewer modifications than anticipated . There are assumptions built into the model, and they may not be the right ones, said Diane Thompson of the National Consumer Law Center. “Someone needs to be able to review it.” [1]

The Doctor should of easily qualified for the Making Home Affordable Program that was instituted by President Obama and the Treasury of the United State on March 4th 2009. He has a TRUE HARDSHIP with his health problems that forced him into retirement from the VA. And he still has the ability to PAY a reasonable reduced payment. 

I believe the LITTON Loan Servicing NEVER tried to qualify Dr. “M” for the Making Home Affordable Program. Doctor “M” was denied was because LITTON DIDN’T WANT to modify the terms of the loan. As of August 2009 Litton wasn’t MODIFYING ANY LOANS under Obama’s Making Home Affordable Program known as HAMP? BUT THEY SAID THEY WERE GOING TO? But this was only after they were embarassed with the news in an August AP article that exposed HOW the Banks were dragging their feet to help troubled borrowers.  And as of August LITTON hadn’t participated in the the program at all!

So WHO is LITTON Loan Servicing? LITTON Loan Servicing is owned by Goldman Sachs. And the last Treasury Secretary, Hank Paulson, left Goldman Sachs as CEO to be President Bush’s Treasury Secretary, and was the architect of the original $787 BILLION DOLLAR BAILOUT. You know, the BAILOUT that was necessary to SAVE THE WORLD from financial collapse. Remember how the money was to be used to buy TROUBLED ASSETS from Banks so they could HELP SAVE THEIR CUSTOMERS with new lending programs? NOTHING could be further from the TRUTH! So far The Banking Industry, along with the likes of Goldman Sachs and Litton loan servicing have fattened their balance sheets with over 3 TRILLION of TARP MONEY.

As far as helping Dr. “M” save his homeI have contacted Congressman Duncan Hunters Office in San Diego, and the U.S. Treasury in a effort to rectify the travesty of the NPV Formula. I’ll keep my readers informed of the outcome!

Uppitybanker

[1] http://blogs.creativeloafing.com/theclog/2009/09/16/secret-test-that-ensures-lenders-win-on-loan-mods/

How to Buy a Bank-Owned Home

Gee they left out the part where the Buyer gets NO DISCLOSURES, NO WARRANTIES, And it “AS IS”

TARP: Heads I Win! Tails the Taxpayer’s Pay For It!

Neil Barofsky, Special Inspector General overseeing the TARP program.

Christine Spolar of the Huffington Post interviewed Neil Barofsky who is the man who tracks the historic bailout known as the Troubled Asset Relief Program, or TARP. As Special Inspector General. Mr. Barofsky monitors a dozen separate bailout-related programs that now account for nearly $3 trillion in financial commitments. He has audited 364 Financial Institutions that received TARP Funds in an effort to determine just WHERE AND HOW THE MONEY WAS SPENT since December 2008. His efforts to audit the banks was considered a waste of time by the Treasury of the United States and has not been fully supported by the U.S. Treasury in his efforts. 

Despite the barriers he had to cross Mr. Barofsky has made progress in finding where the TARP Money was used. Unfortunately the TARP Money which was intended to give liquidity to the market and increase lending has not been realized. It appears according to Mr. Barofsky that the Banks that were TOO BIG TO FAIL have used their TARP money to:

1. Aquire other Financial Institutions
2. Buy Securities
3. Pay off Credit Lines
4. Hoard the money as a Capital Cushion 

Unfortunately for the American Citizen I don’t see any of the money going to save anybody’s home in foreclosure? Or to provide needed Capital to those that need business and commercial loans?

And Mr. Barofsky acknowledges that the original purpose of TARP has be re-stated to be  AVOID A SYSTEMIC COLLAPSE of the Financial System.

And the little guy gets?

Mr. Barofsky stated that some of the biggest banks and institutions, with the Governments encouragement, have gotten bigger, and he has heard the moral hazard “HEADS I WIN, TAILS THE TAXPAYER’S PAYS FOR IT” and admits that with TARP we have not moved away from this attitude. He states that when TARP was announced the whole purpose was a statement that we aren’t going to let our large financial institutions fail and with that “WE MAY BE IN A FAR MORE DANGEROUS PLACE THAN WE WERE A YEAR AGO!”

Uppitybanker