Thursday, April 19, 2007

Foreclosures Bring the Frauds Out

by Tanta on 4/19/2007 12:10:00 PM

How interesting. Just yesterday, MSNBC had a fairly decent story on scam artists who claim to "help" distressed borrowers negotiate work-outs with their lenders, but who don't seem to be helping much.

And this morning, what should appear in my email inbox but the following:

Your site mentions that Tanta was an executive at a major lender, and I was wondering if you could help me. We help owners who are behind on their mortgages avoid foreclosure and actually obtain a SUSTAINABLE workout solution, as opposed to the garbage that collections and many of the Loss Mit goons try to cram down their throats. About 40% of our clients either defaulted on the workout plan they had negotiated on their own, or were previously denied by their lender. Despite all the rhetoric about lenders becoming more "flexible," we've found that they're creating more obstacles to obtaining a solution.We pull out all of the stops to obtain a workout that actually works... so, a colleague of mine attended the recent MBA servicer conference to try to get upper management contacts at some of the lenders, so we'd have a back door means of getting someone a workout if the loss mit trolls were uncooperative. Today, as a result of one of those contacts, I was able to speak to the Loss Mit director at GMAC and obtained a performance mod on a loan that had just been modified in July of '06 AND this loan had been discharged in a Chapter 7. [Believe it or not, we expect this one to work out long-term, but I won't bore you with the reasons why.]What we're really in need of right now is a contact at Wells Fargo/ASC. They've bought a LOT of bad paper, and they SUCK... for a lot of reasons. They're big, and dumb, and don't give a rip about the borrowers, and it's unclear whose interest they represent, as they let a lot of homes go to sale where the loan could have been salvaged. I'm not sure who wins in scenarios like these... the investor? No. The borrower? No. Heck, they eventually lose the servicing rights... I don't get it. I've been saying for years that if the investors knew how their money was managed- particularly in the Loss Mit departments- they'd pull out of the mortgage business.I was hoping that maybe you might have a contact at Wells... doesn't have to be Loss Mit. V.P. level would be preferable, as you seem to have to climb that high to get to anyone who's not a somnambulent sloth.If you could help, it would be greatly appreciated, even if you could possibly connect me with someone else who might have a contact. One way or another, we are going to track down someone there... if you can help in any way, I would appreciate it. Thanks for your time.


Ah, yes. A reputable foreclosure-workout business who needs to ask an anonymous blogger for a phone number to reach the Loss Mit department at Wells Fargo. That happens a lot.

Note to any other scam artists who may be out there: Calculated Risk is not your preferred source for suckers who will aid and abet you. Furthermore, it might occur to you that somebody smart enough to operate a blog can use Google.

Note to homeowners in distress: the only party who can work out a loan with you is your mortgage servicer. If you are going to hand over money to anyone, please hire a real attorney who will represent your interests, not some goofball who has "industry contacts" only by trolling the web for them, not by having an established business relationship with your lender. The MSNBC article linked to above has some other good advice for you.