Tag Archives: Wants

Addvent Funding Wants to Dispell the Myths About Bank of America’s New Principal Reduction Program and What it Truly Entails

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Tampa, FL (PRWEB) April 1, 2010

Addvent Funding LLC of Tampa Florida has released, as of April 1st, an updated version of their Principal Reduction Plan, which however can be misunderstood as a really related system to the a single Bank of America has produced public as of March 24th. There are even so, several misconceptions regarding the coverage of BofA’s recent announcement of a principal reduction initiative, particularly its relationship to the Home Affordable Modification System (HAMP). This confusion also extends to the Treasurys Friday announcement. There are extremely handful of firms that in fact supply a true way to decrease your principal balance and Addvent Funding is one of a really really modest few. Never be misconstrued by clever wordsmithing from Bank of America’s legal department, they are virtually being forced to do what they are covering up as a ‘new initiative’.

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The BofAs plan at concern is a response to an $ eight.6 billion dollar settlement with regards to a quite distinct set of loans inherited by way of BofAs 2008 acquisition of Countrywide, not a meaningful answer to the core issue of negative equity in residential genuine estate. (1)

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This specific missing context is disappointing, but the greatest concern relating to the coverage of this BofA program” is the conflation with genuine HAMP initiatives (both current and in-improvement) that seek to address the ongoing crisis and give support to the millions of underwater property owners. In spite of their (apparently effective) spin, the system announced by Bank of America is not such a approach it is simply a stipulation from an out-of-court settlement agreement.

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Additionally, the announcement by the Treasury Department is also being widely and inaccurately linked with Bank of Americas press release March 24th. Whilst the Treasury is rightly focusing on options aimed to help these in the most dire of situations, these initiatives do not address the millions of homeowners that are functioning difficult to make payments on a loan that overvalues their residence by up to 50%.

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While every person can hope that the Treasurys effort to encourage bank reductions in principal loan balances for struggling homeowners is effective, there is evidence to suggest widespread acceptance and implementation of this approach may possibly be challenging to receive. (two)

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In the case of a homeowner that is both able to make month-to-month payments and owes considerably far more than the house is worth, lenders will contemplate principal reduction only when acceptance of a principal reduction addresses the main issues of the lender capitalization requirements, liability reduction, and risk aversion.

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New Principal Reduction Applications (PRP) are emerging that can support homeowners otherwise ignored. Addvent Funding LLC is one example of a new economic organization that assists responsible home owners facing severe declines in house value via no fault of their personal to negotiate significant principal reductions down to existing market place values.

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In the current climate, lenders such as Bank of America are mainly concerned with asset valuation, danger reduction / avoidance, and capitalization specifications. In order for a lender to accept a principal reduction on an asset they personal, the terms of the principal reduction have to favorably address these issues. Addvent Funding LLC and its affiliates understand these motivating factors, and structure meaningful options in conjunction with lenders making use of leverage created by way of portfolio negotiation. (three)

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For further information of Addvent Funding LLC, please make contact with Mr. Zack Larson.

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(1) The lawsuit contends that roughly 45,000 Alternative ARM loans issued by Countrywide have been predatory in nature which means the lender, broker and/or economic advisor charged with fully disclosing the risks and obligations linked with this sort of loan failed to adequately do so, to the detriment of the borrower. Bank of America agreed to an out-of-court settlement of $ 8.6 billion dollars directed to address this certain group of loans. Bank of Americas principal reduction announcement is a distinct situation of that settlement.

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See – http://www.law.com/jsp/report.jsp?id=1202446753100

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(two) The Treasury Departments strategy does not address specific fundamental elements of the housing crisis, such as the following: For a lot of homeowners, reduction in principal and/or interest price does not necessarily equate to decreased monthly payments if that homeowner has been generating an interest only or minimum payment. In this case, the modification might not address the basic issue of monthly payment reduction, as a result failing to substantially minimize foreclosure danger.

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When calculating the 31% debt to earnings threshold, usually second mortgage payment obligations are not integrated in the equation. Consequently, the affordability of these solutions can be somewhat misleading.

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This is the second try by the Treasury Department to incentivize the lenders to minimize principal balances for struggling property owners. Lenders have primarily demonstrated an unwillingness to give principal reductions that would lessen the loan amount to the existing market place worth of the house. Alternatively, the principal reduction supplies short-term payment relief, but does not re-equify the borrower, meaning they nonetheless owe far more than the property is presently worth. The outcome is continued anxiety on the lenders balance sheet, and the genuine danger of an individual walking away from a mortgage alternatively of paying more for a residence than it is worth, even if they now can afford the payment.

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(3) http://addventfunding.com/&#13

Addvent Funding, LLC

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New American Funding Says Hope for Homeowners Program Wants Change

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Irvine, CA (PRWEB) April ten, 2009

Government programs to assist homeowners do not function. So says Rick Arvielo, president of New American Funding, a completely delegated FHA lender that works distressed borrowers by way of effective create-down negotiations and loan modification activities. Borrowers have inundated the firm with requests for the Hope for Homeowners item given that Congress’s creation of the system in October 2008.

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“The government’s want to give financing to borrowers in distress or even the appetite of investors to personal those loans mean really tiny unless each and every group or organization in the process is prepared to participate. 1 missing step will derail the entire strategy,” Arvielo says. “The major banks that retail loan centers, independent brokers and smaller sized interim banks rely on as a required step in the funding process do not have any want to fund and personal the responsibility of collecting payments from borrowers that are clearly in distress.”

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Even even though a borrower’s “loan” quantity is ultimately guaranteed by Fannie, Freddie or FHA, the responsibility for the payment collections falls squarely on these main banks. Due to current increasing default prices, the banks merely do not want the added workload, threat and upfront price associated with borrowers that have displayed a pattern of not paying their mortgage, regardless of the explanation, Arvielo says.

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Can you blame them?

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Arvielo says he was quite frustrated when Hope for Homeowners was introduced. New American Funding was anxiously anticipating a windfall of company opportunity when the suggestions had been initial released, but when Arvielo referred to as his contacts at all of the big institutional lenders — on which all mortgage banks rely to sell loans — he was met with zero interest in cooperating with the system.

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“Out of frustration, I went toe-to-toe with 1 of the significant investors at the Mortgage Bankers meeting in San Francisco, exactly where I even brought up the fact that they had just received billions in TARP income and weren’t going to use any of it for the Hope for Property owners plan when this gentleman stated anything to me that stopped me in my tracks,” Arvielo says. “He stated, ‘If we would agree to buy these loans from you, where you are on the hook for the borrowers’ 1st four payments, the standard timeframe for a mortgage bank, or you would have to acquire the loan backwhat would you do?’ Admittedly, I am no longer an advocate for the program.”

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Arvielo says the subsequent time money and time is spent making a plan to help homeowners, the government wants to apply a small discovery to the systemics of truly originating and funding loans. The government may well also do nicely to get the major banks to “sign off” on the plan and agree to some level of assistance, Arvielo says.

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“The Hope for Property owners plan should have included a ‘First payment default’ guarantee and funds earmarked for the servicing of these loans. Then, it may have had a possibility,” Arvielo says.

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For more details on New American Funding or president Rick Arvielo’s position on the Hope for Home owners plan, pay a visit to http://www.newamericandirect.com.

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About New American Funding&#13

New American Funding is a HUD authorized FHA direct lender. The firm staffs an expert group of loan specialists that can assist home owners get out of an existing adjustable rate mortgage and into an cost-effective 30-year government insured loan. In addition, New American Funding staffs a complete group of loan modification specialists to assist property owners in saving their houses from foreclosure.

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Bank of America Wants Death Certificate of Living Consumer to Approach Loan Modification

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San Diego, CA (PRWEB) March 15, 2012

Bank of America never ever questioned how independent filmmaker De Veau Dunn could be making mortgage payments from six feet beneath. They just kept sending letters, for months, saying they needed his death certificate in order to modify his house loan. So Dunn, along with San Diego based production firm Endi Entertainment, produced a video about the whole story.

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Throughout the loan modification procedure Bank of America had repeatedly requested and received the exact same documents from Dunn. Then the bank claimed to want homeowner Dunn to send official documents proving he was deceased, in order to complete his loan modification.

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At very first I gave Bank of America the benefit of the doubt, thinking they had created a mistake,” stated Dunn. ” I immediately contacted the bank to inform them that, not only was I still alive, but I was the only borrower on my house loan, and I was nevertheless seeking a modification.

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Dunn mentioned he spent several weeks creating phone calls, writing letters and emailing the bank’s client relations manager. Right after a lot more than a month of back and forth with Bank of America and nevertheless getting nowhere, Dunn received a new letter requesting not only his death certificate, but a statement of death benefits to go along with it.

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Dunn explained , “It was at that point that I’d had sufficient and I he decided to make a documentary about the expertise. I did not know what else to do, the expertise has been unsettling, on a lot of levels, said Dunn. What should have been a straightforward economic transaction turned into a relentless nightmare. It was weird. I felt like I was fighting for my life. At one particular point a representative laughed about it more than the phone I was in shock.”

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“I made this film not just for myself, but so that it might be the voice of numerous other people who may be becoming treating this way by lending institutions. I have been told several stories of older folks that some banks are bullying and most of those individuals don’t have a voice, according to Dunn.

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Dunn began his video with a $ 50 price range. Money is tight, but thankfully I had a handful of filmmaking friends that wanted to assist me. We shot the whole factor in a single weekend, and I did the voice-more than narration myself.” according to Dunn. Comedian Mark Serritella was so upset when he heard what the bank was carrying out that he asked to play Dunn in the film in exchange for gas funds and a location to crash. One more actor-filmmaker buddy, Nicholas George, helped polish the script and flew to San Diego to play the undertaker in the Bank of America Wants You to Die documentary.

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“Mark Serritella actually captured the feelings and Nicholas George was hilarious in the video,” mentioned Dunn. “After I shot the last scene for Portion One, I ultimately began to feel like all of this hardship had a greater purpose. Like the story of David versus Goliath, said Dunn. In this case, a modest bank buyer like myself is becoming bullied by the biggest bank in America, Bank of America. I didnt know what else to make of it other than is seems as although Bank of America wants you to die… prior to they modify.

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About Banking Poor: The Banking Bad documentary series about Dunn’s story may possibly speaks to an whole nation caught in a financial and housing crisis. You can find the video on the “Banking Undesirable” web site or at http://www.YouTube.com/BankingBad.

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