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U.S. Treasury Slams Mortgage Servicers Who Hampered Miami Homeowners in Foreclosure

The U.S. Department of the Treasury announced recently it would withhold incentive payments to Bank of America, J.P. Morgan Chase and Wells Fargo until they substantially improve their performance in the federal Home Affordable Modification Program (HAMP), CNN reports.

This is more welcome news to Miami Foreclosure Defense Lawyers and for Miami homeowners who have fallen victim to big banks and their mortgage servicers, who have filed incorrect paperwork in countless foreclosure cases. As more and more evidence is revealed in the local and national news media of their incompetence, it makes fighting foreclosure in Miami a better option.

The Treasury said the banks need to boost their performance in several areas, including correctly evaluating whether a homeowner meets the HAMP income requirements. HAMP was created by the federal government to help eligible homeowners with loan modification on their home mortgage debt. The program applies to borrowers who originated their mortgage before Jan. 1, 2009 on their primary residence and who are delinquent on their mortgage.

This the first time the Obama administration is doing more than talk about holding banks accountable, CNN reports. Servicers are eligible for up to $4,500 over three years if they put borrowers into sustainable modified mortgages. The government has paid $1.3 billion in incentive payments to 84 servicers. CNN reports that through April, 700,000 homeowners have received permanent modifications through the HAMP program.

It is good news that the government has been finally starting to hold banks accountable for their shady actions. It’s been well-documented in recent years how mortgage servicers and banks have filed robo-signed paperwork — and often banks file paperwork in foreclosure proceedings that is wholly incorrect.

All of these errors have gotten the attention of judges nationwide, who have also begun to hold banks accountable for their errors, turning away their efforts to foreclosure against home owners without proper paperwork and proof.

The errors make it more advantageous than ever for homeowners to fight back in a foreclosure case. Lost promissory notes, bad original loan documents and other violations can make negotiating with a bank from a position of strength in Miami foreclosure cases that much better for homeowners.

Through government programs or through negotiating with a bank, many homeowners who want to stay in their homes try to modify their loans. Banks are often not willing to deal unless faced with a knowledgeable attorney.

For proof, the CNN story reports that while 700,000 homeowners have received help through the HAMP program, the Obama administration said it would help 4 million people. About $2 billion of the $46 billion in TARP funds dedicated to homeowner help have been spent, showing how resistant banks and lenders are to help homeowners modify their loans.

If you are fighting foreclosure in Miami or the surrounding areas, contact Jacobs Legal for a confidential appointment to discuss your rights. Call (305) 358-7991.

Previous Blog Entries:

More Bank of America Shoddy Mortgage Documents Revealed in Miami Foreclosure Cases: June 9, 2011
States’ Attorneys General Continue Assault On Miami Foreclosure Process: May 31, 2011

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