August 31, 2011

Why won’t my mortgage lender cooperate with me?

By Timothy Stull (

This is a question we are asked many times each day.  It seems very confusing to many home owners.  After all, it only seems logical that your mortgage lender wants to get paid….right??  They want to keep you in your house…..anything to avoid foreclosure….right??  Well….wrong.  There are three very distinct factors on why your lender is giving you a hard time.  This is why they won’t cooperate with you.

1.  Banks have turned them selves into giant collection agencies.  Since the mortgage meltdown began in 2006, banks have not been able to turn huge fee money on mortgage originations.  The mortgage origination business is a huge money maker….when that disappeared, so did huge profits.  Also, gone are all the junk fees charged for overdrafts on checking accounts….the new financial reform laws that were passed eliminated a 50 billion dollar a year business.  Hence, banks need to collect excessive attorneys fees, foreclosure fees & late fees associated with a foreclosure.  They can take any money you send them and apply them to these fees.  This is the new huge cash cow.

2.  The secondary scrap debt market has evolved.  Banks now trade mortgages at a discount.  It allows them to write off balances & avoid tax liability.  It also allows them to purchase mortgage debt at a severe discount ~ 10 cents on the dollar or less.  They can then collect money based on phony promises given to the home owner….then foreclose.  This is known as double tracking.  The banks make out like a bandit here.

3.  Federal Government Insurance Money.  Enough said here.  Nothing to lose for the banks.  Uncle Sam has it covered.  Then the tax payer gets billed.  Eventually this will cause serious problems in the macro economy.  But for now it is in place.  Why should the bank make a deal when they can cas in their chips?

The general rule of the day is that the bill collector needs to be pushed hard….otherwise you will never get any cooperation.  Strong legal force with serious leverage is the only strategy that will force your lender to cooperate.  The Fresh Start Legal Network has full network of very aggressive attorneys to handle foreclosure prevention cases.  They know the law and know how to get the job done.  Please call 877.297.7011 for immediate help or visit

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