Frustration Anger and Failed Modifications Profit Megabanks

Homeowners are still dealing with the frustration of loan modifications and getting angrier with every phone call, email and letter sent. The issues haven’t changed much from the onset of the Making Home Affordable Plan. Homeowners are still reporting that paperwork is being misplaced, that they are being bounced from one department in the lenders company to another, that lag time between when the paperwork is submitted to the time the lenders review it is inexcusable, and that communication between departments is non-existent.

The Megabanks such as Wells Fargo, Bank of America and even some regional Banks such as BB & T and Regions Bank truly don’t want to modify mortgage loans according to research done by the Federal Reserve Bank of Boston.

Foreclosures in the United States continue to claim largely in part to job loss. The rate of Foreclosures and Job loss continue to set new record levels every day. The foreclosure notices being sent out to homeowners are not limited to those homeowners who obtained subprime mortgages. Foreclosures are affecting even those with prime rate fixed mortgages.

A spokesperson for Well Fargo & Co noted that they are attempting to organize and offer more assistance to those homeowners in need of modification. Wells Fargo & Co continues to file default notices even on homeowners who are in the modification process which is resulting in additional costs and legal fees for those homeowners.

The greed of the Megabanks such as Wells Fargo & Co, Countrywide and JP Morgan Chase to name a few and the investment and insurance companies that back them is still what caused this crisis. They saw an opportunity to make large amounts of money by jiggling their purse string loose and changing the guidelines to obtain a mortgage loan. They allowed prospective buyers to purchase homes with little to no money down and in some cases without having to verify income. Buyers who would have never qualified for a home mortgage obtained financing under the new guidelines and it back fired in a big way.

The Megabanks are recovering from all accounts on the backs of the very people they made money off of and are now putting into foreclosure. The banks that took the TARP funds are now reporting profits for the first quarter of 2009. Megabank such as Bank of America, Citigroup, JP Morgan Chase and Goldman Sachs reported combined earnings of over thirteen billion dollars the second quarter of this year. These banks are also adding to unemployment figures while small banks are swallowed up by the larger lender institutions.

Bank of America recently stated they would be closing over six thousand branches nationwide over the next five years and have already closed eighty one. They are not alone JP Morgan Chase, Wells Fargo & Co and Citigroup have all closed branches as well effectively adding to the cycle of unemployment and the resulting foreclosure that will eventually happen.

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