FORECLOSURE STORIES
HOW BANKS ARE CAPITALIZING ON FORECLOSURE INSURANCE
By Manuel Fernandez
So now, picture this scene: an office building in Marin County, California, seated around a conference table is a restaurant owner who was hit by a car, with his wife and two young children present.
Next, a 12 year homeowner and community activist, sitting next to his wife who’s a jazz singer, activist and event coordinator. (Mwanza, right, is “OUR” event coordinator. With a great group of volunteers, she pulled together many of California’s great musicians who filled the day with music last year; she is already at work on this year’s event.)
Next seat is woman who was abruptly abandoned by her husband . . . with the responsibilities of saving the house.
Then there’s the big-hearted, soft-spoken man, whose brother’s medical condition is such that he cannot be present to represent himself. Next to him is a builder, who’s been out of a job for six months, with his wife by his side.
The woman who underwent chemo just sat down, her locks of curls are starting to grow back. A new face to the group just walked in, a woman eager to share her story.
We see people from many walks of life at Marin Family Action. These are just some of the people who are fighting to save their homes!
Standing at the dry erase board is Manny Fernandez, Executive Director of Marin Family Action, and facilitator of the group. On the board he writes . . .
In order to make a claim against their foreclosure insurance, mortgage banks have been using loan modification as a cover-up to force families out of their homes through foreclosures, allowing the banks to receive payment from their insurance companies against their foreclosure insurance. They then sell the homes to investors. The banks get their insurance money, the brokers get their fees and investors get homes a rock-bottom prices. And the families, what do they get?
Marin Family Action (MFA) is working with these families to save their homes from foreclosure.
The above was written in 2009 at the beginning of Marin Family Action’s proactive stance in helping save homes from foreclosure — at that time, there were 38 families as part of MFA’s Home Save Project; all had denied loan modification multiple times and a few had the properties sold from underneath them while waiting for loan modification to come through. All of these families have been forced to file bankruptcy to stall the process of evictions. Once the new owner has purchased the property, an unlawful retainer is filed in which families have to appear in Marin County court for the sole purpose of eviction to vacate their property.
Now there are approximately 150 families seeking assistance. The newest member of the group is a young man who served in Kuwait and who has not been able to get help from anyone for the past year.
Loan Modification companies are a scam across the country. They have and are still taking advantage of families who do not know that, under the guise of getting better loans, their homes are about to be taken from them. Our group DON’T GET MAD, GET EVEN has discovered that in the original loan documents, families incomes were severely overstated, no proof of income was necessary, (1008-1003 tax verification) and brokers (along with mortgage company employees) were falsifying everything to get rich quick at the expense of these families.
Our loan officer conducted a forensic analysis of the original loan documents confirming our suspicions. MFA has produced a chronology of each families personal nightmare (or known in the loan industry as the modification process) and incorporated it into a complaint/lawsuit in the Marin County Courts. Three complaints that Marin Family Action has assisted in filing have already help provide a victory for the families by including a clause in the complaint/lawsuit which red flags the property which makes it hard to sell to a new owner.
Three complaints that Marin Family Action has assisted in filing against the mortgage companies and others involved for committing this fraud have already helped provide a victory for the families who were evicted from their homes after the property was sold at the auction date. In the lawsuit we include a Les Pendance, which makes the property hard-to-sell. Investors looking to buy the property are informed that there is a lawsuit against the mortgage company and that the house is part of the suit. It’s like putting a lean on the property. Think about it, would you buy a property that has a lawsuit against it.
We need to share our stories to other families in the Bay Area to bring awareness to this fraud being committed in our community. Please help us provide Bay Area families with the knowledge on the only way to fight back against the loan modification scam.
Marin Family Action is able to provide a great legal service outside the Marin Justice Center by way of fundraising only. We have no funding support and are solely relying on our fundraising efforts to continue our pursuit of justice.
Marin Family Action is fighting back with MUSIC – On Saturday, October 3rd, 2009 in Novato, Calif. at Hamilton Amphitheater, Marin Family Action is sponsoring its first annual MARINSTOCK FESTIVAL, a benefit to aid families in foreclosure.
Come join Marin Family Action, our families and friends, along with California Assembly Member Jared Huffman, Marin County Supervisor Steve Kinsey and Mark Ibanez of KTVU Channel 2 as we listen to some of the Bay Area’s most talented performers and celebrate with One Day of Music and Action!
“Dozens of families who are in foreclosure have brought their stories and urgent need for guidance and legal assistance to Marin Family Action. MFA is working to help families fight to keep their homes through any legal means necessary,” says Executive Director Manny Fernandez. “The MARINSTOCK Festival performers are donating their talents to help raise money for these families in this time of crisis and the lineup of artists is impressive.”
