mortage practices

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Today's Mailbox: 'They Are Selling My Mom's Home Today'

UPDATE: I wanted to thank everyone for their help today. We got this from one of our contacts at ACORN: "After about 2.5 hours, the bank agreed to postpone the foreclosure auction on Ms. Leary's house for 30 days. We'll be using that time to pressure them to sit down with her and come to a long-term solution to keeping her in her house."

You wouldn't believe how many e-mails I get every day, pleading with me to help with this cause or that. Usually I delete them because there's only so much I can do about all these problems. But this one (via ACORN - you know, the group Bill O'Reilly loves to hate?) really jumped out at me because it's far too emblematic of what thousands of people are facing right this minute. I can only imagine if my mother was in the same position:

Dear Susan,
I love my mom. Her name is Irene. She's 84-years-old, and she is the most important person in the world to me.

Today, her bank is selling the house she has lived in for 34 years, and it's breaking my heart.

irene_795ce.jpg

The unbelievable part of it is that OneWest -- the bank -- doesn't even have to talk with my mom before selling her house right out from under her. That's because OneWest is among four big mortgage service companies that haven't signed on to President Obama's program to help stop foreclosures. It's the "Making Home Affordable" plan, and even though OneWest is the recipient of federal bailout money, they are still taking my mom's home away today.

Will you sign a letter to the CEO of OneWest before they sell my mother's home today? Click here. ACORN is sending copies of the letter to the CEOs of the other three banks whose mortgage servicing companies won't sign on to the Making Home Affordable plan (Litton of Goldman Sachs, HomEq of Barclays, and American Home Mortgage Servicing Inc, along with OneWest), because my mom isn't the only one who needs help right now.

But don't misunderstand me: my mother will lose her home today unless we can convince OneWest not to sell her house. Please help her. Sign the letter now. Click here.

I asked my mom to tell me about how she got into this situation -- she's been the same house for 34 years, after all. How did this happen?

Here's what my mom told me:

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“Kurland is seeking to capitalize on a situation that was a product of his own creation. It is tragic and ironic. But then again, greed is a growth industry.”

- Blair A. Nicholas, a lawyer representing retired Arkansas teachers who are also suing Mr. Kurland and other former Countrywide executives.

Talk about disaster capitalists! These creeps are like cockroaches. No matter what goes down, they just come back stronger:

CALABASAS, Calif. — Fairly or not, Countrywide Financial and its top executives would be on most lists of those who share blame for the nation’s economic crisis. After all, the banking behemoth made risky loans to tens of thousands of Americans, helping set off a chain of events that has the economy staggering.

So it may come as a surprise that a dozen former top Countrywide executives now stand to make millions from the home mortgage mess.

Stanford L. Kurland, Countrywide’s former president, and his team have been buying up delinquent home mortgages that the government took over from other failed banks, sometimes for pennies on the dollar. They get a piece of what they can collect.

“It has been very successful — very strong,” John Lawrence, the company’s head of loan servicing, told Mr. Kurland one recent morning in a glass-walled boardroom here at PennyMac’s spacious headquarters, opened last year in the same Los Angeles suburb where Countrywide once flourished.

“In fact, it’s off-the-charts good,” he told Mr. Kurland, who was leaning back comfortably in his leather boardroom chair, even as the financial markets in New York were plunging.

As hundreds of billions of dollars flow from Washington to jump-start the nation’s staggering banks, automakers and other industries, a new economy is emerging of businesses that hope to make money from the various government programs that make up the largest economic rescue in history.

They include big investors who are buying up failed banks taken over by the federal government and lobbyists. And there is PennyMac, led by Mr. Kurland, 56, once the soft-spoken No. 2 to Angelo R. Mozilo, the perpetually tanned former chief executive of Countrywide and its public face.

[...] It is quite evident that their efforts are, in fact, helping many distressed homeowners.

“Literally, their assistance saved my family’s home,” said Robert Robinson, of Felton, Pa., whose interest rate was cut by more than half, making his mortgage affordable again.

But to some, it is disturbing to see former Countrywide executives in the industry again. “It is sort of like the arsonist who sets fire to the house and then buys up the charred remains and resells it,” said Margot Saunders, a lawyer with the National Consumer Law Center, which for years has sought to place limits on what it calls abusive lending practices by Countrywide and other companies.