Durbin Urges Congressional Action on Foreclosures

[...] News Sources wrote an interesting post today onHere’s a quick excerptEarlier today, the Treasury Department revealed that the administration’s anti-foreclosure program — which encourages banks to alter mortgages voluntarily — has enrolled roughly 360,000 struggling homeowners in trial modifications. Sen. Richard Durbin (D-Ill.) is hardly impressed. The upper-chamber’s second-ranking Democrat issued a statement just hours later pointing out that almost precisely the same number of homeowners had foreclosure filings on their residences in July alone . [...]

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I am one of the hunderds of thousands of struggling homeowners. I have been trying to work with my bank servicer, GMAC, since 12-08, which was when I first realized I was going to be in financial trouble, while I was still current with my mortgage payment. They refused to help. One month led to two months. (During these two months I was in constant contact with GMAC via telephone). I tried calling GMAC on 1-20-09 to authorize a EFT payment from my checking acct. for 12-08 full payment, which would keep me two months behind. I was unable to get thru everytime I called. Finally, I reached someone on 2-2-09, and was told I was now in default for three months and that they would be foreclosing if I didn't pay all late charges and Jan and Feb in full by March 1st. I had been trying to work out a plan with them and was in contact via phone several times before 1-20-08. But now, everytime I would call, I'd get their recording, put in my acct. # etc. be transferred from that recording to one that would say “due to high call volume we are not able to take your call right now, Please call back again later.” Then I would be hung up on. I borrowed money to bring everything current to avoid foreclosure. Money, that I fully explained to GMAC was not mine and would have to be paid back. I told them I could not catch up with two months payments. Then when President Obama passed MHA I applied for a modification. That was May. June 17th they informed me that they were working on my file, and that it would be about 45 days. I called them about every 2 weeks for status on the modification, and also kept paying every month thru direct EFT so I would not lapse into three months. Every time I called I would get a different answer from their representative, and never got the same person twice. When I did get thru to a live person it was only after being on hold and transferred from one person to another several times. I have been told since July that it looked as “if I've been approved for a modification thru MHA, but to be patient. Each time I was told this they also said “documents should be to you within two weeks via fed ex.” Iv'e been waiting for that fed ex truck now all summer. Waiting for a phantom truck that will never get here, and phantom documents that don't exist. What draws me to this conclusion? As I said, I would call every couple weeks, be told “two weeks documents should be there” etc. On 9-1-09 I was informed that yes, my modification did go thru, it was “approved 8-3-09, but that it was still in the system”. She told me exact details, percent it was set at, 3 month trial period after that set up for 5 years, the # of months to ammorization, maturity, and that it would be thru Freddy-Mac.” However, she said she needed to transfer me to loss mittigation for verification of what she was reading on my account. I was on hold for loss mittigation for 20 minutes, at which time they cut me off. I picked up my mail 9-4-08 and opened a letter from GMAC that stated I had authorized them to take a direct EFT payment on my acct. on 8-31-09 which I did. This payment was for July 1st payment, leaving Aug. and Sept. due. On the same day I received this letter, there was a seperate letter dated 9-1-09. This letter stated that I am now due for July, Aug, Sept, and am now in default and that if I don't pay the total due on these months plus late fees etc. they will begin foreclosure. They have my July payment in “suspense” showing they withdrew it from my acct. 9-1-09 but refuse to post it to my acct. I immediately called loss mittigation, they told me they don't know why it hasn't posted, and that they are still revuing my modification. I told them I'm afraid that my home will now go into foreclosure, even tho they have my money and I've done everything to save my home. I also told them I'm terrified that a sheriff is going to show up at my door with foreclosure papers. Their answer to me was: “Oh that shouldn't happen.” I asked them “shouldn't, or won't?” Their reply: “Well unfortunately mam, we don't have a crystal ball, we can't predict the future.” Oh, and did I mention, I also went to a HUD councilor in April. He helped me with my modifcation papers and also called GMAC with questions. We were put on hold, transferred from one dept. to another round and round for about 45 min. He got no answers, because every time someone would answer they said “we need to transfer you.” On one of the transfers the representative of GMAC refused to speak with my councilor. He tried to call loss mittigation on my behalf 9-9-09, but could not get thru to anyone. Also, I happened to stumble across a consumer complaint website http//www.consumeraffairs.com/finance/gmac_mortgage.html. There's story after story of people just like me who have or had mortgages with GMAC and lost their homes right out from under them. They were told the same things that I was. Why are these banks allowed to do this to homeowners? Why isn't somebody stepping in and taking action? Anyone reading this who has GMAC as a servicer, beware. DO NOT if at all possible let yourself become two months behind, because if your payment is left in “suspension” as mine is, legally it is then three months past due. Then they can start their foreclosure process. As I said earlier, I've tried everything in working out a way with GMAC so I can keep my home. But I can't do it by myself, GMAC has to be willing and they just don't care. They have billions of government money that's supposed to help homeowners from foreclosure, but aren't doing it. What are they spending this money on, where is it going. In closing, I want to say that I've fought hard, day and night to save my home, but it seems to no avail. There comes a time when one must realize that there is no more they can do. Also, they must realize, as heartbreaking as it is, when the time has come to just let go.