Borrowers in Default Think Robo-Signing is Giving Them A Second Chance.

I came across a borrower, who is in default on their mortgage, who was excited about the robo-signning fiasco. She feels that now that her lender is reviewing her loan file to look at her modification, which was declined by her lender, will get a second look and will now be granted. She asked my opinion on her chances of her modification being approved.
I had to gently explain to her that the part of the file that is being reviewed is the lender assignment and the electronic transfer logs, to show that her lender actually owns the note which allows them to foreclose.
She is also under the impression that President Obama and the California Attorney General Jerry Brown are going to order all banks to stop foreclosures and that because the banks are now owned by the United States that they have to abide by Obama’s and Brown’s demands.
I had to break the news that this isn’t true and that FNMA and Freddie Mac are basically run by the government and that the banks can do as they please but that it is in their best interest to listen to President Obama and Mr. Brown and try to do as many modifications as possible.
Our conversatin never got argumentative, but nevertheless it does show the confusion many homeowners are experiencing.
There should be a main website, such as the hud.gov, that people should be able to go to obtain unbiased, accurate information and it should be promoted by President Obama, who is constantly speaking on the foreclosure subject.
Robo signing will delay foreclosure proceedings for awhile as well as our real estate recovery, however the homeowners in default need to be understand the robo signing fiasco is a lender procedural issue and not a modification review process.
Best
KW

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