Many clients have asked why they cannot modify their mortgage when there house is upside down. A simple answer is that Florida’s Republican Attorney General, Pam Bondi, is fighting against it.
On March 3, 2011, several federal agencies and state attorneys general delivered a 27-page settlement proposal that would set standards for how mortgage servicers conduct foreclosures and service loans. The terms would force procedural changes on the servicers, including banning companies from initiating foreclosure proceedings while a loan modification is pending, providing borrowers with a single point of contact, and informing borrowers of denied modifications in writing.
Not so fast, said Pam Bondi. She and four other Republican state attorneys general, are trying to scuttle the proposal, which would grant home owners relief. The poor banks, argues Bondi, need protection not the homeowners. The settlement offer “appears to reach well beyond the scope of our enforcement role, and, in some instances, far exceeds the scope of the misconduct which was the subject of our original investigation.”
So far, the objections by Florida’s Pam Bondi seems to have been effective. Bank of America Corp., JPMorgan Chase & Co. and Wells Fargo & Co., 1 – Homeowners 0