April - 2009
Grim Reality for Loan Modifications
Banks, loan servicers, debt settlement and loan modifying agencies…
You can’t hammer a wooden stick through their hearts because they don’t have one!
Banks are following their cold numbers… which tell them to push homeowners over the foreclosure cliff. Lenders’ servicers, settlers and modifiers are flying overhead to take one final stab at the fallen homeowners with twisted promises, lies and half-truths. The first one, that it’s not out of their noble hearts —banks are commissioning them.
From this Miami Herald article, we get a clear picture of how Ocwen, a loan servicer company, has grown into a $42 billion loan modification portfolio.
As a VP for Ocwen, Paul Koches states:
“In the first quarter of 2008, we established a psychology department headed up by a former college professor who is a Ph.D. in consumer behavior research. We have brought behavioral research into our technology and hard-wired the results of that effort into our loan modification processes and platform with, among other things, scripting engines that are driven by artificial intelligence. It assists our home retention consultants in the most effective communications with borrowers in distress.”
Which should really read that Ocwen has perfected a system to take advantage of homeowners’ misfortune, their weak spots and how they will react in distress. I wonder how these vultures get to sleep at night. I guess it must be quite a drain to face one’s daemons through the day.
As to the advantage of a loan servicer like Ocwen, over loan modification agencies, he states:
“They should absolutely contact their servicers. They should be aware that there are these sort of independent loan modification vendors that are popping up on the horizon, and some of them may be effective, but generally they charge a fee. The borrower’s own loan servicer does not charge a fee.”
Of course the wolf under the sheep’s skin forgot to mention the bloated fees that are appended to the new modified loan, which you will be paying for years to come, while Ocwen collects upfront.
Sad, and more so, because banks are not taking up the government’s loan modification subsidies to homeowners —they couldn’t care less about you and me! So, the window is closing down on homeowner’s facing foreclosure.
Call your senator (202-224-3121) to let him know how you feel. We have to stop the abuse. Tell your senator we need Bill S61 now!
Update: Gruesome reality of the pain and chaos inflicted to foreclosed homeowners from rehashed subprime brokers, further warnings and advice here.