Category Archives: Debt Management

Three phone calls lasting more than an hour to an independent 3^rd party processor for the new, temporary Independent Foreclosure Review program may bring back memories for those involved in loss mitigation in 2008-2010.

Calling a “Loss Mitigation Department” in 2008 left many people with the feeling they were speaking to someone who was using their free hand and feet to make noise as if they were in an office with people processing applications.  Continuing a conversation with someone whose most developed skill is giving reasons why progress can’t be made through no fault of their own.  When following months and in many cases more than a year of similar calls the realistic conclusion someone would arrive at is:

1. The “Processor” is not equipped to service my request;
2. The “Processor” is not willing to service my request.

Following this type of resistance it should come as no surprise that the Attorney General of the State of Delaware has found 25% of MERS foreclosure filings he researched to contain errors and consequently has litigation pending regarding their 60,000,000 loans.

A likely reason for the “Independent Foreclosure Review” having an eligibility period between January 1, 2009 and December 31, 2010 is the obvious lack of results banks were “equipped” and/or “willing” to provide to homeowners experiencing financial hardship during this period.  (The State of Nevada was able to institute the Foreclosure Mediation Program in 2009 to address this.)

“It is the present responsibility of the participating banks to provide the Request for Review form to the borrowers that were potentially harmed”.  What is less clear than the time-frame is why these same banks have the responsibility to “Mail” the ”Request for Review Form” to the borrowers they potentially “Financially Damaged”.   Wouldn’t it be more efficient, timely, and environmentally friendly to have this form available as a download from the  processor website and/or all 24 banks listed on the Independent Foreclosure Review website?  Is it reliable to mail anything to someone who has gone through foreclosure and if so what address do you use?  How much effort do you put into delivering a complaint form that someone is going to use against you?

Comparing this new “Independent Foreclosure Review Program” to the years of information available from the  “Home Affordability Modification Program” may lead to criticism of the new “Independent Foreclosure Review Program”.  Initially loan modifications (through the Home Affordability Modification Program) were expected to reach 3-4 million.  Later those estimates exceeded 10 million with a processing and eligibility time of years that will likely be extended.  Presently banks participating in the “Independent Foreclosure Review Program” have until December 31, 2011 to provide the “Request for Review Form” to those involved in a previous foreclosure action.  The borrowers have a deadline of April 31, 2012 (4 Months) for submission of the complete application to the “Independent Foreclosure Review Program”. No one ever having completed this application complicates the responsibility, time for research, organizing years of documentation, edits and potential re-submission.  This was more than evident in the implementation of the “Home Affordability Modification Program” with arguably much less required supporting documentation.

Following implementation of the “Making Homes Affordable” program a “Handbook” was made available providing requirements for the program.  These requirements were for both those applying to the program and those processing the applications.  There have been a multitude of extremely beneficial revisions to the “Making Homes Affordable Handbook” prior to implementation of the “Independent Foreclosure Review Program”.  It is surprising applicable standards have not been applied to the new “Independent Foreclosure Review Program”.  These previously introduced standards protect applicants in the “Making Homes Affordable” program while providing a much more efficient framework for both sides to interact.  Without these more efficient standards in place for the “Independent Foreclosure Review Program” how much more work will applicants have to do this time around to get the results applicants were getting that caused the need for the “Independent Foreclosure Review Program“.  At least we know homeowners need to get it right the first time.

According to the Independent Foreclosure Review website any attorney-in-fact can sign/endorse the “Request for Review Form”.  Preparation of the “Request for Review Form” would likely be the best way to endorse it.  It is presently the policy of the independent 3^rd party processor not to make available by download, fax, email, or mail the “Request for Review Form” to an Attorney-in-Fact.  It appears to be an unfortunate trip back in time to when licensed service providers were willing and able to step up and provide submission services free of charge  but were met with lenders who were less than willing or able to do their part.