Since the housing market crashed five years ago, and the area of the law known as securitized mortgage loan defense arose from its ashes, I have said many times that the Wall Street banks had built a house of cards which will come crashing down on them, just like the housing market did on the rest of us. Let’s face it — when you can turn a $1 loan into a $10 stock certificate without adding a cent of value, you’ve created a phony scheme which is built to fail. With the news report last week that former collectors of Bank of America (BOA) revealed it paid them bonuses for not qualifying homeowners for mortgage relief under HAMP, a major piece was pulled out from the bottom of the card house, leaving the rest of the structure in a very precarious position.
Jim, who came into our office earlier this week, is a poster child victim of the Wall Street banks’ flagrant violation of the federal HAMP law. He had filled out and sent in the required completed financial packages for a HAMP modification five times. Despite doing everything right, and despite qualifying for HAMP relief, Jim was repeatedly rejected. He is presently almost three payments behind, and without help from some source, no doubt facing foreclosure.
The good news for Jim is that because he has been falsely denied HAMP relief, we have what I call “the silver bullet defense.” That is to say that the federal HAMP law is not discretionary — it must be given if the homeowner qualifies, as Jim does. So even though Jim has been denied HAMP, we will call his bank out on its violation, and when we do so, there is little doubt his bank will cave in and give Jim the mortgage relief he has deserved all along.
It is indeed a sad fact of life these days that millions of homeowners are, like Jim, being denied mortgage relief when federal and state laws dictate they should get it. And whether or not the homeowner does receive it many times will be the difference between saving or losing one’s home. No doubt, the day will come when the house of cards will crash down on the heads of the Wall Street banksters. Let’s just hope that our crooked leaders who have turned their heads to the brazen lawlessness of the banks are in the house with the banksters when it does. In the meantime, however, all any homeowner can do is to educate him or herself regarding the mortgage relief laws, and use that knowledge to fight back against the bank which sees a home as nothing but a dollar sign.
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Copyright 2013 Daniel L. McGookey