Foreclosure “Work-out” Myth

March 31, 2008

By Angie Moreschi:

The foreclosure work-out myth is being promoted by mortgage lenders right now, with catchy names like Countrywide’s “HOPE” program and the EMC “Mod Squad,” but it’s time to expose the hoax. Lenders are falling over themselves to make federal lawmakers believe they’re working with borrowers to avoid default. They cry, “We lose money, too, when we foreclose on a home!” It’s all about chilling the call for tougher regulations. “We’ll do the right thing, promise.”

Unfortunately, it’s smoke and mirrors all over again, just like the predatory loans that got us into this problem in the first place. The reality we’re seeing day after day is that lenders, despite their promises, are once again not living up to their end of the deal. They’re not really working with borrowers. Instead, they put homeowners into unworkable work-out plans, and get a few more thousand dollars out of them, before dropping the ax anyway. Families are being driven out of their homes unnecessarily. It’s just wrong, and it hurts the entire community.

What’s in it for them? Why won’t they work with borrowers? Read more

Countrywide’s Mortgage Meltdown

March 28, 2008

Countrywide Home Loans made a promise to help homeowners after Hurricanes Katrina and Rita and then reneged on that promise.  The company ended up slapping homeowners with penalties and fees that drove many into foreclosure or forced them to pay more.   This video shows the horrible impact on a family who lost their home as a result of accepting Countrywide’s offer of “help.”

Countrywide’s Hurricane Victims

March 28, 2008

Investigators Seeking Former Sallie Mae Employees

March 24, 2008

Over at the consumer investigative law firm, James – Hoyer, investigators are searching for former Sallie Mae employees. After receiving hundreds of complaints from student borrowers, an investigation was launched and recently a class action suit filed in U.S. District Court in Connecticut. The suit alleges that one of the nation’s largest student loan lenders is charging minority applicants higher interest rates than non-minority students. If you are a former employee of Sallie Mae, you can contact James – Hoyer here or call them at 1-800-651-2502.