I have a confession to make here.  My husband’s job was outsourced to India two years ago and he has yet to find another job. Fortunately my own work life has improved so we have managed to stay in our home. We have, however, because of the displaced worker issue requested to modify our mortgage.  We have been trying to do this for a year and a half.  We fax our papers every two months (or more if they ask) showing paycheck receipts.  We  call Wells Fargo every week.  And still… nothing.

This is why as I read the article about the new task force investigating mortgage fraud, I feel a little sense of relief.

After a year of talks aimed at a settlement with five big banks — Bank of America, JPMorgan Chase, Wells Fargo, Citibank and Ally Financial (formerly GMAC) — attorneys general in all 50 states this week have been are poring over the 100-page draft of a the $25 billion deal requiring bankers to commit to modify problem loans that they have been slow to do until now. Under the proposed terms, the banks would also agree to follow strict foreclosure guidelines and procedures and contribute as much as $5 billion to foreclosure relief programs.

I don’t believe for a minute that it will help my husband and me – Mr. & Mrs. Joe Average – but it does give me a sense of satisfaction that perhaps SOMEONE will be helped.

We’ve all seen the funny picture of the yard sign pointing to the neighbor’s house saying he doesn’t have guns, so rob him not me (really, I don’t think the sign is that funny).  But in all seriousness, a bad neighbor can definitely hurt when you are trying to sell your home. Particularly when the neighbor has a loud, barking dog or a kennel full of mean-looking dogs, or poorly kept property thanks to a bad pet owner,

If these miscreants refuse to correct these conditions in a decent and acceptable manner, you can report them to the animal control department, the health department, and the district attorney’s office. In all likelihood, these complaints should motivate some form of positive response, and that will aid you in the marketing of your home. More importantly, it should help to eliminate a disgraceful condition for which there is no reasonable excuse.

Read the Inman News article for a creative solution another neighbor took!

Nothing makes me crazier than having to wait and wait and wait to get something done at someone else’s leisure, but when they finally take action you are expected to immediately JUMP.  If you don’t jump, you are bullied and threatened. Sounds like a bad boss, doesn’t it?  It is actually what happened to real estate agent Mike Cooper’s sellers who had to suffer a short sale at the hands of J.P. Morgan Chase,

On Friday, I was able to get all the players engaged so we can close on Tuesday. On Friday, Chase called again and left another message stating that if we didn’t close by the close of business on Tuesday they were selling the property on the courthouse steps first thing Wednesday morning. By this time, they have so frustrated all the players that attorneys in two different parts of the state, sellers and buyers in two different counties and me in another part of the state all agreed to cross the finish line at the last minute.

Congratulations on successfully closing a difficult short-sale!  Better luck with the next one.

I have a feeling the only way my kids will be able to afford a house when they’re older (because money runs through their fingers like melted buttah) will be if it’s financed by Mom and Dad.  Unfortunately, who knows if this Mom & Dad will be able to help like that. Heck, my daughters will be lucky if I can afford to buy them a $2000 dress when they eventually get married!

However, some parents are paying mortgages for their kids.  Loan Shak presents you an info gallery by CNN Money,

“Most important, we provided the bulk of his down payment as a gift,” said Curtis, who works as a water quality inspector. “Because of our help, he qualified for the best interest rate, and his principal was substantially lower, both of which in turn made his monthly payments affordable.”

Mitch has a good job for a 27-year-old; he’s an engineer at FLIR Systems, a maker of night vision and infrared equipment. Still, he simply hasn’t had enough time to build up his savings. Without the $25,000 his parents came up with, he probably couldn’t have afforded the modest three-bedroom house he bought in suburban Portland.

Wow.  A $25,000 gift. Kudos to the parents who CAN do that!

Any time I go into a foreclosed home, I can’t help but wonder about its story. What were the people like who lived there before? Were they happy? Why did they leave?  Agent Linda Murphy of Reno, Nevada had one of these questions answered at a recent showing,

“Hope You Will Love This Home as Much as We Did”
No, this was not the parting sentiment from seller to buyer at a happy closing. It was wistfully painted above the front door, surrounded by an artistic vine of leaves and flowers, of a bank-owned property I showed to some first-time buyers. We didn’t notice it until we were leaving, where it stopped us dead in our tracks. No one spoke for a long time as we resumed our places in the car for the ride to the next potential home.

It is so true that we all sometimes lead lives of quiet desperation.

The only thing I’ve ever managed to pay off is a car or three.  The idea of making the final payment on a home loan is just … heavenly!  To write that very final check on my mortgage payment – well – I admit that I DREAM about the day!  However, it appears that some companies will do whatever it takes to stretch the money owed to them as long as possible.  According to Wakdjunkaga’s Blog (and I hope I spelled that right!),

First, after more than half a decade of handling our payments nearly perfectly — no delays in check-cashing to force late fees, as I had suffered under other institutions — on our penultimate payment, they somehow ignored the amount for which I had made out the check and cashed it for the monthly payment only, without the additional thousand of additional principal. A mistake? The probability of driving up our final payment by a couple of bucks a day made the coincidence of this “error” seem overly convenient to me. So I called the company (with three motives in mind — to complain about their deliberate error and get it corrected; to verify the final payment procedure and, after the “error” correction to determine the appropriate timing of our payoff; and to investigate our acquisition of the funds in our [currently rather hefty] escrow account).

That he spent forever getting through the voicemail barricades is another good reason to get mad! Ouch! Congratulations nevertheless, Mr. Burrow!

A real estate agent from Lancaster, Pennsylvania posted recently on his Active Rain blog that a mortgage company locked him out of the house he had listed.  It is a short sale home and periodically the company sends their own contractors out to inspect the condition of the property.  However Realtor Michael Perry was locked out as a result of the inspection,

We just had a Short Sale buyer withdraw from a possible sale on this property and I now want to relaunch the listing in the MLS. But I’m locked out ! I immediately informed the sellers that I’m locked out and so are they ! They have authorized me to regain entry for me and for all future MLS activity. My next step is to enlist a locksmith to yet again change the locks so I can regain entry.

Of course the lender is just protecting its asset, as one commenter stated.  In the end, the agent was able to regain access because the property management gave him the code.  But this is another caution for people behind on their mortgage. Keep an open line of communication with your lender to possibly avoid this type of problem.

The Home Affordable Refinance Program is expanding eligibility requirements, allowing homeowners who are underwater to qualify.  By refinancing, homeowners gain a lower interest rate, therefore save money on their monthly payments.  According to Bargaineering, more people may now be eligible,

Before, in order to be eligible for HARP, missing a mortgage payment was not allowed. Now, as long as you haven’t missed a payment in the past six months, it won’t disqualify you if you missed a mortgage payment in the last 12 months. The program has been extended through December 31, 2013, and gives time for homeowners to work to meet eligibility requirements for an eventual refinance.

The catch? Your mortgage has to be a Fannie Mae or Freddie Mac backed.  That makes it too good to be true for many.

Photo by nikcname.

I akin this to sending a collection notice – spending 44 cents, plus paper and staff time – to collect a 20 cent overdue amount.  A guy hit the “0″ button on his phone instead of the “8″ and now may lose his home.  From ABC News.com,

He said he was advised to send a check for 80 cents to try to resolve the issue, but both that check and his second payment were returned to him in the mail.

A few days before Christmas, he said he received a letter that read: “Your loan is not eligible for the Fannie Mae modification program because you did not make all the required trial period plan payments by the end of the trial period.”

Mudie said he was alarmed that the letter said loan modification was not an option anymore and the only option was a short sale.

The bank has promised to clear up the confusion. Hopefully they will.

Photo by Maggie not Margaret.