Wrongful Foreclosures Against Military Members Emerge from Scrapped ‘Reviews’

Wrongful Foreclosures Against Military Members Emerge from Scrapped ‘Reviews’ The more that surfaces from the scrapped “Independent Foreclosure Review” of improper evictions and messed-up documentation, the more troubling the findings.
The latest: big banks wrongfully foreclosed on more than 700 military members and seized homes from about two dozen other borrowers who were current on their mortgage payments, the New York Times reported.
Bank of America, Citigroup, JPMorgan Chase and Wells Fargo found the wrongful foreclosures while analyzing files as part of a $9 billion settlement reached with the Federal Reserve and the Office of the Comptroller of the Currency.
The settlement replaced the long-delayed and costly “Independent Foreclosure Review,” which attempted to uncover wrongful or improper actions against up to 4 million homeowners in 2009 and 2010. More than $1.5 billion had been spent on the reviews before the settlement was reached.
In January, regulators ordered the banks to identify military members and other borrowers who were evicted in violation of federal law.
The Times reports that the analysis by the banks was turned over to regulators in recent days. It provides the best glimpse so far into the extent of botched foreclosures amid the collapse of the housing market.
Homeowners advocates have been opposed to the settlement since it was announced in January. Lenders previously conceded that they had used erroneous documents to push through foreclosures. But the banks claimed borrowers were rarely evicted by mistake, including military personnel protected by federal law.
Consumer groups said the initial Independent Foreclosure Review should have been fixed and strictly enforced to ensure that banks are held accountable for wrongful foreclosures.
In a hearing before the House Committee on Financial Services last week, Fed Chairman Ben Bernanke only spoke briefly about the 18-month failed reviews of foreclosures undertaken by more than a dozen mortgage services.
But he admitted that the reviews went on for too long, cost too much and did not yield sufficient data.
“They (the consultants) had not made all that much progress, frankly, and at a very expensive cost per file evaluated,” Bernanke explained. “We were on a track where the money going to the consultants would be some multiple of the money that was suppose to go to the borrowers, and we take responsibility for this.”
In another recent revelation tied to the reviews that were conducted during the 18 months, the Wall Street Journal reported that the figure given by the Office of the Comptroller of the Currency — an error rate of just 4.2 percent among the self-selected and flagged foreclosures under review — ignored big variations between servicers.
More than 11 percent of files examined for Wells Fargo & Co. and 9 percent of those for Bank of America Corp. had errors that would have required compensation for homeowners, said people who have reviewed the figures, the Journal reported.
From the Journal:

A narrower sample of files — representing cases selected by outside consultants — showed error ratios of 21% for Wells Fargo and 16% for Bank of America, the people said. The OCC findings appear skewed by the outsize contribution of one bank, J.P. Morgan Chase & Co., which reported an error rate far below rivals that oversaw a much larger universe of loans.

3 thoughts on “Wrongful Foreclosures Against Military Members Emerge from Scrapped ‘Reviews’

  • March 7, 2013 at 12:10 pm

    After returning from a 16 month combat extended deployment, Wells Fargo foreclosed on my home. They knew I was on active duty, but kicked me out. I submitted the appropriate paperwork over a year ago for the scrapped review. I’ve been told they have my paperwork and I should receive notification by the end of March 2013. This process has taken too long and ruined my credit. At this point, I may never recover from this miscarriage of justices.

  • March 7, 2013 at 2:27 pm

    In 2009, I applied for a loan modification through Bank of America. After months of going back and forth, refaxing the same documents over and over and over again….i was told by a representative that it was unlikely we would be approved. So we moved and accepted the fact we lost our home. Then 6 months later, we received a fed ex package from Bank of America stating the modification was approved. So, we moved back into the home. Two months later, we received another fed ex package stating that we now qualified for the making home affordable program and was put on a 3 month trial payment. After 3 months, the trial modification was to be converted into a permanent one. We sent in every document that was requested several times and began making our payments on time. After the 3rd payment, I called and asked when would we receive the permanent modification. We were told to continue making trial payments because of the popularity of the program they were running behind and we would receive paperwork soon. So we made 5 more “trial” payments….for a total of 8. After making the 8th payment in September 2010, we received a fed ex package stating we no longer qualified and in order to keep the home we had to pay $10,000+ or a short sale. If we could not do that, which we could not afford to, the last option was foreclosure. We moved out and the home sold at auction in March 2011. We participated in the National Mortgage Settlement and accepted the $840 settlement. We also participated in the independent foreclosure review. The day of the deadline, the banks including bank of america settled for $10 billion. $3.3 billion is for cash payments to people like us who were wrongfully foreclosed on. The OCC and the Federal Reserve created a financial remediation framework that has different compensation. We fall under catergory 3A, which would have paid us $125,000, correct credit report, rememdy defiency, and plus whatever equity the home had. Now because of the deal we are unsure of what we will get. Participating in this does not mean we cannot persue other legal actions. We would like to sue because we feel that bank of america has robbed us of a home. I just tried to apply for a new mortgage and the foreclosure is affecting our ability. I tried using my VA elgibility to obtain a VA loan and after 2 years normally one would qualify. But, we had an 80/20 loan with bank of america and the foreclosure is only on the 80% portion of the loan. Because of this, lenders are wanting me to pay off the 20% mortgage($22,000) and I feel so horrible about this. I tried everything to save our home years ago and I feel that bank of america illegally robbed us of the opportunity of home ownership. I need help. I am not sure of my rights, but I did write a QWR to bank of america to have them send me all documents that i no longer have proving their wrong doing. I want a home again. And I want them to pay for what bank of america did. I was never late once I began making the modified payments. My credit was ruined because of the multiple moves and not being able to afford the cost of electric deposits, water deposit, home phone transfers, etc. This has caused me to have negative things on my credit because I couldnt pay final bills and for the new service. I had to borrow money, rent from places that does not conduct credit inquiries, and live in areas I would not want to. A murder just occured a few houses down from me. I hate it that my kids have to be here. When I bought the home in 2007, I chose it because of the neighborhood. Now I hate that my family had to settle. I want to buy my family a home. I really think Bank of America owes my family atleast that. If you think you can help, please, please contact me either by email or calling. Either me or my wife can provide you with any info you may need. Sorry such a long email and sorry for any typos, sending from my cell phone. I want so badly to provide a home for my family. A place to grow old in, a place for my children to grow up in. I hate having to wonder where we are going to live next.
    Thanks for your time. I know its going to be some negative comments, but I have tried on several occassions to make things right once I fell behind. My payments went from being a total of $757 to $1100 per month. This was because I had to catch up on the missed payments. My wife became ill in 2009, thats when I would always make a payment 30 days late. Like for example, I would make february payment in March, March payment in April, April payment in May…etc. My job does not offer paid time off or vacation pay so if I missed a day, I didnt get paid. So when my wife became ill, I had to help care for our then 3 children. We have 4 now. Then my son became very ill and had to have brain surgery. He is fine now with therapy. But I struggled making those payments. And never once did bank of america ever mention a modification, even though they received bailout money for that purpose. I heard about it from a neighbor called about it and thats how I applied. I made EVERY modified payment ontime. And when I say ontime, I dont mean within that 15 day grace period, I made every modified payment on the first of every month beginning February 2010. Then in April, thats when the trial modification payments began and I made all those payments ontime. After I received the foreclosure notice, I called and begged them to tell me why! After 10 calls and different reps, one finally told me that the reason was because I didnt turn in a check stub they requested in June. I know for a fact that I sent it because I spoke with Mr. Woods and took his info…email and fax number and faxed May and Junes check stub

  • March 29, 2013 at 2:47 am

    We had a home with Wells Fargo and was under bk protection and sent in all paper work for a loan modification on our home we purchased for a 340 k first and a 65k second with 30k down payment. But they approved a loan modification on first but denied the second loan why I don’t know and they said they mail the modification to us but bk lawyer and I never received the package and when I followed up to keep my home wells said it had expired and now we could not get one, received a Shef sale notice and some how we moved out of the home before being evicted and found a short sale buyer days before sheriff sale. Now we was left to up and move with a small trail and had to sell all belongings to make it Question will we get the max plus our equity we lost in our home, no recourse to get home back. Sent review board emails of wells going back forth about modification. Got a new home now but lost all vision in right and can not see good enough to work even now wells tells us they can’t help us with this loan also just denied a modification again after approving one for a 26 dollar reduction on the loan any advice from anyone would help or a call 214-868-1787 John please

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