Today I heard about a couple’s predicament:  They just had their second child.  Mom is staying home.  So the couple went from a two-income household to a one income household.  However, they did not go from a two-mortgage home to a one-mortgage home at the same time! As a result of the blessed event, they also faced big credit card and medical debts.  What to do?

Well, they could file a chapter 7 bankruptcy – if they qualify through the means test.  Their previous six-months income was still high, but that would change within a short period of time.  They could also try to defeat the presumption they are abusing the system by showing the permanent change in their income since Mom is staying home with the kids.

This would eliminate a lot of debt, but not the debt that’s giving them the most headaches:  Their second mortgage.  It’s a high interest home equity loan.  And the house is worth even less than the first mortgage. So we discussed Chapter 13 as an option.

Despite the huge influence banks have over Congress, the bankruptcy laws still allow a couple to eliminate the second mortgage in the Chapter 13 if the house is worth even less than the first mortgage.  This is fantastic news for our couple because they can stop paying their second mortgage, and pay their chapter 13 Plan instead.  That plan will mean that those creditors will be old news in 5 years, and so will that pesky second mortgage.    It may seem counterintuitive – paying more money saves you more money?  But sometimes that’s just the way it works out. 

For financial relief in Kenosha, Racine, Walworth or Milwaukee, call Lakelaw today at 262.694.7300 and ask for Attorney Ryan Blay or David Leibowitz. 

This post was written by Ryan Blay, Supervising Attorney in Lakelaw’s Kenosha office.

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It’s not easy to contact a mortgage servicer.  They say they want to help you get a loan modification agreement.  But first, you have to find them.  Here’s a handy list of phone numbers.  Hopefully, this will help you on your way.  And if you need more help, call Lakelaw at 1 866 LAKELAW instead of the mortgage modification company scammers that the United States Department of Justice and Attorneys General around the company are trying to shut down

HOW TO REACH YOUR MORTGAGE COMPANY

• ABN Amro Mortgage Loss Mitigation:
  Customer Service: 800-793-8900
  Web: http://www.mortgage.com
  
• Accredited Home Lenders          (877) 683-4446
• AMC Mortgage Services (Ameriquest and Argent)          (800) 211-6926
• America’s Servicing Company     800-662-3806
  866-674-1430
  866-567-8439
  800-842-7654
  866-567-8440
  866-426-5569
  800-304-3100
• American General       770-614-6005
• American Home Mortgage Servicing. (877) 304-3100
• Aurora Loan Services Home Retention Dept.: 866-519-1456 – 800-550-0508
• AmTrust (888) 696-4444
• Avelo Mortgage LLC 866 992 8356
• Bank of America:
   Loss Mitigation: 800-846-2222 or 716-635-2000
  Authorization Fax: 716-635-7265
  Short Sale Package Fax: 716-635-7255
• Bank of New York Loss Mitigation:
  Phone: 212-495-1784
  Fax: 212-415-2035
  
• BB&T  Mortgage  800-827 3722
• Benefical (800) 333-5848
• Carrington Mortgage Services – 800 477 0192 (option 2) or 800 561 4567
• Cendant Loss Mitigation:
  Phone: 800-750-2518
  Fax: 856-917-8334 
• Central Pacific Bank (800) 342-8422
• Charter One
  CCO Mortgage
  Citizens Bank      (800) 234-6002 0r 877 745 7355
• Chase (800) 446-8939
  Homeowners Assistance Department (foreclosure)
   800-446-8939
  Fax: 614-422-7259
  Additional numbers
  Phone: 800-981-3792
  Fax: 858-605-3006
  Phone: 800-526-0072
  Phone: 800-527-3040 ext. 533 

  Phone: 800-848-9136 (Mortgage)
  Phone: 800-836-5656 (Home Equity)
  Phone: 510-652-0401
  Web: https://chaseonline.chase.com 

• Chevy Chase  Bank   866 391 8688
• Citi Financial Mortgage (800) 753-3673
  Foreclosure: 800-424-3562
   800-423-8158
  800-848-7491
  Dial by extension: 800-888-600 
• Citimortgage (800) 283-7918
  Loss Mitigation: 800-682-2286
  Foreclosure: 877-202-3846
  Loss Mitigation: 866-357-6015
  Loss Mitigation Fax: 248-488-7727
  Workout Fax: 248-488-8357
  Loss Mitigation: 866-357-0614
  First American: 800-511-1278
  Workout Fax: 636-256-2884 
• Citi – all entities – Loss Mitigation:  800-422-1498
• Countrywide (800) 262-4218 or 800 669 6607
• Ditech (800) 852-0656
• Downey Financial Corp. (800) 824-6902
• EMC (800) 723-3004 0r 888 577 4011 (Loss mitigation)
• Equity One (866) 361-3460|
• Fairbanks Loss Mitigation:
  Phone: 888-818-6032
  801-270-7713
  Fax: 904-232-4607 
• Fifth/Third Bank  800-375-1745 (option 3) Loss Mitigation
• First Franklin (Home Loan Services/NationPoint) 800 622 5035 (Loss mitigation)
• First Horizon Home Loans  – Loss Mitigation 1st Mortgage – 800 707-9988 x 33805
  Loss Mitigation:
  Phone: 800-707-0139 — ext. 17305 
• First Horizon Home Loans -
  Loss Mitigation 2nd Mortgage - 800 396 6184 
• Flagstar Bank    800 968 7700 ext 9780
• Fremont Investment & Loan  866 484 2901
• GMAC Mortgage  (800) 850-4622
• GMAC ResCAp (GMAC Mortgage,
  Homecomings, GMAC Bank)   800 799 9240 option 5 ext 8743285
  Phone 1: 800-206-2901
  Phone 2: 858-874-7417 
• GreenPoint Mortgage (Serviced by Countrywide) 800 669 6650
• Green Tree    (877) 816-9125
• HSBC all entities -  800 395 3489
  Collection Counselors (if short term problem)
   Phone: 800-338-6441
  Default Resolution Team (if long term problem)
   Phone: 888-648-3124
   Fax: 732-352-7519
  Web: http://www.us.hsbc.com 
• Home Loan Services, Inc (First Franklin
  Nation Point, National City Bank) 800-622-5035 ext 24267
• HomEq    877 -867 -7378
• Home Side Loss Mitigation:
  Phone: 904-281-3900
  
• Household Finance (800) 333-4489
• Huntington National Bank (800) 323-4695
• Huntington Mortgage Group – 800-323-9865
• Indymac Federal Bank (877) 736-5556
• Irwin Mortgage Corporation
  Phone: 888-444-6446
  Pre-Foreclosure: 888-218-1988
  Web: http://www.irwinmortgage.com
  
• JP Morgan Chase   800-446-8939
• Litton Loan Servicing (800) 247-9727 – default counseling  (800) 999-8501
  Phone 1: 800-548-8665
  Phone 2: 713-966-8803
  Fax: 713-966-8820
  Web: http://www.littonloan.com 
• MERS (not really a servicer but you may need to contact them) (800) 646-6377 – fax (703) 748-0183
• National City (800) 367-9305 or 800 622 5035
  Phone 1: 800-523-8654
  Phone 2: 937-910-3563
  Web: http://www.nationalcitymortgage.com 
• Nation Star Mortgage   888-850-9398
• Nationwide Advantage Mortgage Company (800) 3563442
• New Century Financial (800) 790-9502|
  Phone: 877.206.9904
  Web: http://www.newcentury.com 
• Ocwen Federal Bank (800) 746-2936 or loss mitigation 877-596-8580
• Ohio Savings Bank (Now Amtrust) 800 860 2025 ext 8917
• Option One Mortgage Company  888-275-2648
  Web: http://www.oomc.com 
• PHH Mortgage (Delinquency ) 800 330 0423 (Foreclosure) 800-750-2518
  Phone: 800-257-0460
  Web: http://www.phhmortgage.com 
• Popular Mortgage Servicing 800 383 2292
• Prodovis Mortgage Company 888-878-0522 option 5home retention department
• ResMae Mortgage Corp.   866 794 80444 ext 5944
• Saxon Mortgage Services  – 888-325-3502 (Delinquent) 800-594-8422 (not delinquent)
  Phone 1: 262-502-6724
  Phone 2: 817-665-6537
  Phone 3: 414-278-8068  

   

• Select Portfolio Services  888-349-8968
  Loan Resolution Department: 888-818-6032
  Fax: 801-293-3936
  Web: http://www.spservicing.com 
• Sun Trust Mortgage (800) 634-7928
• US Bank (800) 365-7900
• Wachovia Bank (866) 642-8608
• Washington Mutual (JP Morgan Chase) (866) 926-8937
• Washington Mutual Bank – loss mitigation – prime 888 926 8937
• Washington Mutual Bank – loss mitigation – subprime – 888-708-4696 option 2
• Wells Fargo (800) 766-0987 – loss mitigation 800-275-9254 05 800 416 1472
  Wells Fargo – Loss Mitigation
  Phone: 888-231-0757
  Loss Mitigation: 877-216-8448
  Borrower Assistance: 800-551-9808
  Homeowners in Foreclosure: 800-868-0043 or800-352-7654
   
• Wendover Financial Services Loss Mitigation:
  Phone: 888-934-1081
  Phone: 800-436-1022
  Web: http://www.wendover.com
  
• Wilshire Credit Corporation 888-917-1050 
• Whitney National Bank – Loss Mitigation. Phone: 800-347-7272

These numbers and the identities of the banks and mortgage companies are changing every day.  If you find out any updates, please let us know and we will post them here.

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Lakelaw has joined forces with Legal Aid Society of Milwaukee to help Wisconsin homeowners fight foreclosure.  Under a grant from WHEDA, the Wisconsin Housing and Economic Development Authority, Lakelaw will be providing foreclosure prevention advice and assistance to Wisconsin homeowners from every county other than Milwaukee.  Lakelaw Wisconsin maintains offices in Kenosha and LaCrosse.  These services will be provided pursuant to a grant from the National Foreclosure Mitigation Counseling Program’s legal assistance funds.  

While services under this program will focus on non-litigation strategies, Lakelaw continues to serve its clients directly in all aspects of foreclosure defense in state, federal and bankruptcy courts, in Wisconsin as well as in Illinois.

More information can be found at WHEDA’s foreclosure resource website.

David Leibowitz of Lakelaw and Catey Doyle of the Legal Aid Society of Milwaukee will be presenting a series of training programs for attorneys throughout Wisconsin during the month of April.  These sessions will be held in Milwaukee, Madison, Eau Claire and Green Bay.

Details will be posted here, on the Legal Aid Society of Milwaukee’s website and on WHEDA’s foreclosure resource website.

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This will be a very short blog entry.  That’s because the meat is in the link you’re about to see.  The National Consumer Law Center is one of the finest consumer advocacy organizations in the nation.  I’ve learned so much there.  Hat’s off to them.  They are terrific!

Here’s a link to their website with a very wide array of contacts about loan modification resources, both public and private.  Please click here to check it out.

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There are so many scam mortgage modification companies out there – it’s ridiculous.

If you can get your mortgage company to slow down or stop its mortgage foreclosure case, you may have a fighting chance to get a legitimate mortgage modification now.

The best way to do this is to visit: http://www.makinghomeaffordable.gov/

This is the official United States “Making Home Affordable” website.  This site will help you determine if you have a mortgage eligible for refinance or modification under the two programs already in existence.

You don’t have to wait until S. 61 – the “Helping Homeowners Save Their Homes in Bankruptcy Act” passes in Congress.  You can take some steps right now to help yourself.

Of course, you do need to get your mortgage foreclosure to stop.  Lakelaw defends people in Illinois and Wisconsin against mortgage foreclosure.  We can help you with this. 

Don’t pay a mortgage consultant a penny to get the help you need to apply for government sponsored mortgage modifications.  Instead, visit the source:  http://www.makinghomeaffordable.gov/

And while you’re at it, please contact your Senators and Representatives and urge them to support S 61 and HR 1106.  Do it now.  Your home may depend upon it.

Click here to contact your Senator and Congressman to support S. 61 and HR 1106.

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 Watch out!  Borrower beware!  Your mortgage modification company may be a fraud.  It may be run by the same sub-prime scammerswho got you into this mess in the first place.  People in foreclosure want and need mortgage modification agreements. 

Many very slick companies are springing up promising homeowners quick and easy mortgage modifications.  They will ask for up-front fees of $2000 or more.  They claim to be “MORTGAGE EXPERTS.”  Mostly, they are experts at marketing and taking your money.  Mostly, they are engaged in the unauthorized practice of law.  Mostly they are cynical retreads from the sub-prime mortgage industry trying to sucker you out of your money.  Run away from them!

For example:

• OUTREACH HOUSING – sued by the Florida Attorney General for unauthorized practice of law
• WJW ENTERPRISES – non-lawywers working with attorneys on mortgage modifications – attorneys disciplined by the Ohio Supreme Court
• HOPE ALLIANCE – not related to the legitimate and totally free “HOPE NOW ALLIANCE” accused of fraud by Connecticut Attorney General.
• AMERICAN MODIFICATION AGENCY (AMERIMOD) – sued in $100 million class action
• FIRST GOV – FORECLOSURE PREVENTION SERVICES – LIFETIME FINANCIAL CORPORATION – all put out of business by the California Attorney General

What to watch out for:

1. Copycat names – does it sound like a legitimate agency?
2. Official sounding names – does it sound like a government agency?
3. Upfront fees – are they demanding money now even though they haven’t gotten results?

There are many TOTALLY FREE – NOT FOR PROFIT MORTGAGE COUNSELLORS WHO CAN PROVIDE LEGIMITMATE HELP.  Find them in your area at the link here.

Lakelaw can help you defend your mortgage foreclosure case in court while you get the mortgage modification help you need from a legitimate counselling agency.  Steer clear of people who make false promises. 

See our pages about defending against predatory mortgages.

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The Chicago Tribune reported on February 22, 2009 that people are fighting back against their mortgage companies in foreclosure court.  It’s hard to win.  But it is possible to gain valuable time.

Lakelaw has been at the forefront in fighting mortgage foreclosure.  And we have now joined forces with experienced Chicago attorney, Arnold Kaplan to aid us and you in this fight.  Arnie is a veteran in the area of mortgage foreclosures.  He used to represent lenders and knows all their strategies.  As a result, he’s developed, with us, very effective counterstategies to help homeowners fight back.

We can’t promise you that you will win.  But we will promise that you’ll get a fair shake in court and informed and aggressive representation with the lender.

Watch our website for more and new information about Arnie and his group as it becomes integrated with our Lakelaw team.

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 John Leland, in the New York Times, wrote and interesting article entitled “Swindlers Find Growing Market in Foreclosures.”   Every day, I meet people in Illinois and Wisconsin just like you, so fearful that you will soon lose your home to foreclosure.  You bring me the piles of letters you receive from all kinds of people who say they will “help” you.  

In most cases, they only want to take money from you.  They won’t help you at all.

Here are some facts.

If you get a summons or complaint from the court – it’s not a “letter.”  It is a legal demand in court.  You can’t ignore this.  You have to do something in court.  You need a laywer to do this who specializes in mortgage foreclosure defense.  

You can try to make a modification agreement with a lender. You don’t need a consultant to do this.  There are Not-For-Profit agencies in your community who can help you.\

The US Department of Housing and Urban Development has made a list of approved agencies to call:

Here’s a link to the Illinois list .  

In Illinois, all homeowners have a “Bill of Rights.”   Check them out.

Lakelaw represents people defending their homes against mortgage rescue fraud in Illinois and Wisconsin

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Clients ask “can I keep my house if I file for bankruptcy” more frequently than any other question.  The answer depends on many factors.

• If we reduce your debt, can you continue to make your mortgage payments?
• Are you presently current with your mortgage?  Otherwise, we must file a chapter 13 case to allow you to catch up.
• Does it make sense to keep your house if the amount of debt against the house greatly exceeds the value of the house.

So the answer is, “Yes, you can often keep your house – but not always.  And it doesn’t always make sense for you to do so.”

Things could change under a bill now being considered in Congress.  Under the “Helping Families Save their Home” Act, HR 200, people with mortgages greater than the value of their home, facing foreclosure, will be able to modify their loans in chapter 13 cases.  There are more than a few conditions.  So called “cram-downs” of mortgages in chapter 13 might face resistance from lenders and might turn out to be pretty expensive.  But it might be a lot better than the alternative of losing your home altogether.

When thinking about bankruptcy, particularly in these changing times, look for legal counsel from people at the front-lines of the bankruptcy practice.  Like the people from Lakelaw.

Sign up for our RSS feed to track important developments in Congressional legislation as they occur

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If you own a condo and it’s in foreclosure, you may be facing bankruptcy.  This is particularly true if your mortgage balance is now much greater than the value of your condo.  You may find that it is cheaper to rent somewhere else than to keep paying on the mortgage after bankruptcy.

If your condo is in foreclosure, however, you have to be very careful about the timing of your bankruptcy.  This is because your bankruptcy will result in a discharge only of debts which existed at the time you filed your bankruptcy case.  Condo associations are strapped for cash.  You remain the owner of your condo until the mortgage lender finishes the foreclosure and actually gets a deed to your property.  So you could remain liable for condo assessments, fees and even special assessments after the filing date of your bankruptcy.  

So, it’s in your interest to live in the condo until the foreclosure is complete.  This way you get the benefit of your condominium assessments. You prevent damage to the unit.  You limit your potential liability to the condominium association when you can least afford it.  

Lakelaw helps people file bankruptcy and defends people against mortgage foreclosure.

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