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

Barney Frank Promises Death Panels for Mortgage Brokers!

Here is Barney Frank (and Treas, Sect. Tim Geithner) SMUGGLY discussing the KILLING of thousands of jobs in the Mortgage Industry. He promises DEATH PANELS for Certain Financial Institutions. Namely NON-BANK Entities, who in his words are “NOT TO BIG TO DIE”.So he has WASHED HIS HANDS for his part in the HOUSING BUBBLE and is going to KILL those BAD Mortgage Brokers who in his opinion MUST be the culprits that caused the Housing Crash. How convienient for him to forget how he and the Democrats in 2005-2006 killed any legislation to reform of the lending policies of Fannie Mae and Freddie Mac.

Listen to a TOTALLY DIFFERENT BARNEY FRANK talking out of BOTH sides of his Mouth…2005 and 2009…

The REAL purpose of this NEW attack to put Mortgage Brokers and NON-BANK Entities out of Business is simple. Wells Fargo, Bank of America and CitiMortgage would love for the consumer to be driven to their front door through the elimination of the Mortgage Broker. Good luck at finding a competent loan officer or any service on the weekends! Yes there were abuses in the Mortgage business, but forcing the Non-Bank Entities and honest Mortgage Brokers out of business with onerous regulations is not going to help the consumer. As many of you know, there is pending legislation that would regulate the compensation of Mortgage Originators. See page 54 of the 195 pages of the New Federal Reserve TILA (Reg Z) changes being proposed 

As a Mortgage Broker for 18 years I saw what caused the demise of the Housing Market. It was unrealistic housing prices and unrealistic loan guidlines designed and funded by Wall Street and the Banks, while being protected by the House and Senate Banking Committees. It wasn’t the Mortgage Brokers. They had NOTHING to do with what products or guidelines Fannie or Freddie Mac would fund.

So it appears that Barney Frank and the Federal Reserve have found whom to punish for the Housing Crisis. And it doesn’t appear to be anybody who was overseeing the BANKS! Who’s next to Attack? Real Estate Agents? Escrow Officers…?

Uppitybanker

Capitalism Collapsing? No Problem…We’ll just PRINT some more Money!

Marc Faber predicts…

“The future will be a total disaster, with a collapse of our capitalistic system as we know it today, wars, massive government debt defaults and the impoverishment of large segments of Western society,” Marc Faber writes in the September issue of The Gloom, Boom & Doom Report.

A statement like that pretty much speaks for itself, but it’s a bit more complicated than appears on first blush.

Faber has been bullish — especially on commodities and emerging market stocks — for some time now and believes the current global recovery trade will last another two-to-three years, as discussed in more detail in a forthcoming clip. But he has major long-term concerns about the dollar’s long-term viability given rising U.S. deficits, massive unfunded mandates and the fact “we have a money-printer at the Fed.”

This combination will eventually lead to runaway inflation, wholesale debasement of the dollar, and a major lowering of living standards for most Americans and many Europeans as well, says Faber, who is “highly confident” in this grim prediction.

Gee… creating TRILLION DOLLAR DEFICITS we can’t possibly pay for will cause a ECONOMIC COLLAPSE!

WHO KNEW?

Uppitybanker

TOP 10 States for FORECLOSURE!

Foreclosure filings, defined as a default notice, bank repossession or auction sale notice, were down 0.47 percent in August over the previous month but showed an 18-percent increase from August 2008, according to RealtyTrac‘s U.S. Foreclosure Market Report. In August 2009, one in every 357 homes in the U.S. had received a foreclosure filing.

Here’s a look at the states with the ten highest foreclosure rates in August 2009.

1. Nevada: One in every 62 households are in Foreclosure

2. Florida: One in every 140 households are in Foreclosure

3. California: One in every 144 households are in Foreclosure

4. Arizona: One in every 150 households are in Foreclosure

5. Michigan: One in every 234 households are in Foreclosure

6. Idaho: One in every 241 households are in Foreclosure

7. Utah: One in every 282 households are in Foreclosure

8. Colorado: One in every 329 households are in Foreclosure

9. Georgia: One in every 332 households are in Foreclosure

10. Illinois: One in every 401 households are in Foreclosure

BANKS FORMULA’S PURPOSE: How to MAKE the “MOST” MONEY off a Particular Borrower.

NOT CITIMORTGAGE’S COMPUTER MODEL BUT CLOSE ENOUGH…