Thursday, February 26, 2009
The Economy 'Dear President Obama,' Or: Remind Me Never to Do Business with First Franklin Loan Services
Posted by Jim Ridley on Thu, Feb 26, 2009 at 5:29 AM
Just to recap: First Franklin Loan Services, now owned by $45 billion bailout baby Bank of America, wants to take away the home of a cancer patient who has fallen behind in payments--not because of neglect, but because of catastrophic medical expenses. Now she's told her mortgage is held in a trust with the prefix of corporate-welfare moneypit Merrill Lynch. For the $131,000 that former Merrill CEO John Thain reportedly spent on two rugs, Secours could own her whole house.
Unfortunately for them, Secours is a fighter. With media coverage of her case just a shove away from going viral, she's taking her battle to the very top: an open letter to President Barack Obama. Full text after the jump. Dear President Obama:
I wish this letter were simply a congratulatory note thanking you for the sacrifices and struggles your family has made in order for you to become our 44th President. Your victory has been a personal highlight for me. And like millions of others I, perhaps for the first time, feel hope and optimism.
Although I write you today about my personal struggle, I am only one of countless others facing the same fate: foreclosure. As you read the following paragraphs, imagine the millions in a similar predicament.
I'm a freelance writer/filmmaker living in Nashville TN. A year and a half ago I was diagnosed with uterine cancer and spent much of last year in chemotherapy and radiation. In spite of never missing a single mortgage payment during the entire time of treatment--thanks to all my friends in Nashville and across the world--I have for the past 8 months been unable to convince First Franklin Loan Services (owned by Bank Of America) to refinance my 9.8% loan. With the accumulated medical bills and debt incurred during chemo, it was my only hope of keeping my home. I was later told that until I was 2 months behind in payments, negotiations were unlikely.
Well now I am nearly three months behind, and only because of your moratorium on foreclosures will my March 2nd deadline be pushed back to March 12th. But according to First Franklin, I do not qualify for refinancing under your program.
After weeks of persistent inquiry, it turns out that of course First Franklin can't refinance my loan. First Franklin doesn't even possess my loan. When I asked for the name and number of the person who possessed my loan and who might help me refinance, I was told that my mortgage was actually packaged in a trust under the name 'Merrill Lynch First Franklin Loan Trust 2007-2'. Not surprising, he couldn't give me a good contact number for these Merrill Lynch First Franklin folks. Out on a Caribbean cruise, I imagine.
I was further told that First Franklin Loan Services priority and commitment is to be fair to the owner of the loan underwritten under their guidelines and that the terms to my loan could not be altered.
Are you still with me, Mr. President?
As part of my cancer recovery I have been advised to keep a low stress level in order to assure continued remission. Mr. President I must be honest. While going through chemotherapy and radiation was excruciating at times, dealing with the devious and rather underhanded practices of First Franklin Loan Services (Bank Of America) over this past 8 months has been almost as brutal--and in some ways even worse.
Last summer, in spite of the massive debt and medical bills, I still had good enough credit to refinance my 9.8% loan with another bank. But because First Franklin refused to forgive the exorbitant pre-payment penalty, my house was upside down in value and refinancing with a reputable bank became impossible. Eight months later because of the economy, my house is valued at $18,500 less than I owe, and now selling and/or renting are no longer options.
The details of obstruction and uncooperative dealings with First Franklin are endless and I know you have heard the same stories from people across the country so I'll spare you the specifics.
What can you do? When Bank Of America appears before Congress next month, please demand that they answer the following questions. While it may be too late for me by then, maybe it will help millions of others:
1) What exactly are the 'guidelines' that loan service providers like First Franklin Loan Services are held to in their agreements with folks like Merrill Lynch First Franklin Loan Trust 2007-02?
2) Can these guidelines be made public for ALL Americans? Since First Franklin claims that for people like me that 'there is no way to alter the guidelines governing' my loan. Perhaps transparency might help.
3) We already know that First Franklin Loan Services is owned by Bank Of America. Mr. President, I am wondering why First Franklin Loan Services was unable to benefit from the bail out package received by Merrill Lynch and Bank Of America this past year? That way they could work with folks like me to stay in their homes.
4) Given that the trustees of my loan are "Merrill Lynch" I am thinking maybe there is a way to locate some of the funds allocated to help people in my situation? How many billions of dollars was it that Merrill Lynch and Bank Of America received? Perhaps Congress would help First Franklin Loan Services garner some of that or the new stimulus money from their parent company Bank Of America?
5) I am interested in knowing if I go into foreclosure would the tax benefit go to "Merrill Lynch First Franklin Loan Trust" or would it go to First Franklin Loan Services or would Bank Of America receive the tax write off? This might help me understand more why it has been so difficult to make an agreement before now. There must be some great foreclosure benefits for so many people to be on the verge of losing their homes.
You see Mr. President, I'm not looking for a bailout or a hand out. I'm just looking for a good faith deal and fair shake without the smoke and mirrors.
Like millions of Americans, my house is not just the place where I sleep and eat. It is a source of comfort and healing. And although it is true, home is where your heart is, these days my heart is my home.
On behalf of millions who are facing fiscal, emotional and physical devastation, thank you for your leadership, compassion and humanitarian spirit.
Ever faithful,
Molly Secours
Comments (9)
Showing 1-9 of 9
Molly makes a good point regarding the transparency of mortgage lending. For what other $1500/month investment would you be unable to locate someone responsible?
Molly, good luck to you, and thank you for being so eloquent about what's bugging everyone in the broken lending system.
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She needs to take First Franklin to court.
Others have been doing this across America and demanding that lenders produce the "original paperwork". Most lenders can't because they sold them off a long time ago and the papers have been lost from the excessive selling/buying.
CNN reported something similar about this, and most judges are delaying foreclosure. It might not save her from ever foreclosing but could buy her time to come up with the money or maybe find someone to buy her home and for her to make plans.
This is a really sad story. Would her community be able to host a benefit?
I do not know Miss Molly, but have read similar articles about her and her past work. She seems like an honest decent person who has always helped others and at the very least been an asset to her community. Could the Nashville Scene host a benefit in her honor? Maybe have local artists play a concert and all or a portion of ticket sales could go toward Ms. Molly's Bailout.
It's a damn shame that so many people are facing this type of situation.
Why can't those who work so hard get a bail-out, and the guys buying rugs worth more than my life get another yearly bonus for an underperforming company at the expense of taxpayer money? Isn't it ironic that someone like Ms. Molly has probably paid more than her fair share of taxes every year and just needs less than $150K to buy a house? Yet, our government will give billions to corporations who purposely evade taxes and find every loophole under the sun in order to give out bonuses at year's end?
Miss Molly's of the world need a fucking bailout. We would buy your shitty Chevy's and your shitty financial products if we had any money to spare.
Keep fighting Molly!
I think Durham and Dread need to take this one on a pro bono basis. She needs a mouthpiece, and they'd get more publicity than they could ever buy.
If you were a bank wary of media attention, could you imagine anything scarier than having Judge Dread on your ass?
Recent Correspondence:
Feb. 27, 2009
Dear Mr. Lewis:
Yesterday, Attorney Lynda Jones spoke with First Franklin Loan Services/Bank Of America in the hopes of negotiating an agreement regarding my 9.8% adjustable mortgage.
Rather than negotiate a lower payment, they insist that increasing my principle by nearly $6,000 (which now makes my house upside down $24,000)
with an ANOTHER adjustable rate of 6.85 % is their best offer. This of course is unaffordable for me.
She was also told that First Franklin/Bank Of America couldn't very well make an exception for me because then EVERYONE would expect the same treatment.
How about if everyone who has been diagnosed with cancer and is struggling to make their payments presents First Franklin and Bank Of America with their pathology reports and
are able to demonstrate that they indeed were subject to harrowing doses of chemotherapy and radiation for nearly 11 months? Would that be enough to satisfy the shareholders
of the loan trusts that perhaps some allowances should be made?
I was hoping that First Franklin and Bank Of America were serious about cooperating with President Obama's mission to keep people in their homes.
That is apparently not the case.
Congratulations, you just got yourself an overpriced house on a street in a neighborhood that is in transition with numerous 'for sale' signs.
Sincerely,
Molly Secours
Molly Secours
One Woman Show Productions
writer/filmmaker/speaker
www.mollysecours.com
615.429.6817
Oh Molly, As if the cancer wasn't enough to challenge such a courageous woman...now you must endure foreclosure? I can only think that Spirit has chosen you for your active, determined, eloquent voice. You have spoken up for many people from racism to, health care, to cancer and now this! Remember," that which does not kill us only makes us stronger." You are a survivor and I know "this too shall pass" Molly, As for you Mr. President, I know you know, there is much to be done.
Light Ahead,
Lorelei Shellist.
Recent correspondence:
Dear President Obama, Foreclosure Deadline Today. And Still Waiting to hear from Mr. Lewis at Bank Of America Inbox
Molly Secours
to ken.d.lewis, comments, senator_kennedy, Tami, Vanessa, Adam, Bob, Brenda, me, Speak, bpwynn56, senator, jridley, jsilverman, jack, Mary, dlewis, Mitch, Ernesto, Gary, senator_bennet, senator_bingam., senator_roland., senator, Senator_Hagan, senator_leahy
More options 4:19 am (3.5 hours ago)
Dear President Obama:
Sorry to bother you again, but your staff did ask that I keep you posted. I realize this email comes at you pretty early Monday morning but I'm not sleeping well these days
and was hoping that perhaps writing you might help ease my mind. I remember being touched when I heard you speak of the suffering your mother endured while forced to battle cancer and
insurance companies at the same time. As you know well, stress while trying to recover from cancer treatment (or any other) is devastating. And that is why I write you
once more, Mr. President. Whether it be insurance companies or institutions like First Franklin Loan Services owned by Bank Of America, the effects are similar.
As I mentioned in my previous letter, March 2nd is my original deadline for foreclosure (although I did send by certified mail a 'produce the note' petition) and I haven't been able to get an offer from First Franklin Loan Services (Bank Of America) that is affordable or according to your program, reasonable. As it stands now I will be forced into bankruptcy and foreclosure--which is not only extremely stressful at a critical point in my recovery (I am nearly a year
in remission)--but seems counter to everything you are advocating. And if I am understanding your plan, won't bankruptcy judges have the authority to strip away mortgages for some homeowners who
are upside down?
As I mentioned in my last letter, Mr. President that even though my house is upside down $18,500, First Franklin (B of A) instead of accepting my offer to pay them the full principle
if they would lower the interest to 4.75% they offered to increase my principle by nearly $6,000 by applying penalties which makes my house $24,500.
I realize that perhaps the owners of my loan, Merrill Lynch First Franklin Loan Trust 2007-02 were counting on that 9.8% interest they've been getting from me the last couple of years (all during chemotherapy
and radiation) to redecorate their summer homes but I was thinking that given the national crisis they might hold off on the new carpeting and drapes for a bit.
As I told you before, First Franklin (B of A) says they just can't make an exception out of me because then they would have to make allowances for everyone who has been in chemotherapy and radiation?
What's interesting Mr. President is that in the beginning of our conversations First Franklin Loan Services said that they couldn't negotiate because they were bound by the terms of their agreement with the 'trustees' of my loan and that my
terms were 'inalterable'.
So which one is it? My suspicion is that if First Franklin Loan Services--and others like them-- really wanted to make a serious adjustment to prevent someone like me (who had never been late or missed a payment) from foreclosing that it is well within their means to do so. Especially when First Franklin (B of A) stands to lose tens of thousands of dollars through foreclosure proceedings.
It's been a little confusing trying to figure out why First Franklin is not privy to all the bail out money and/or upcoming stimulus package. I'm wondering,
does First Franklin Loan Services hide behind their loan agreements to avoid renegotiating or does Bank Of America hide behind First Franklin Loan Services?
Both perhaps?
My priority has always been to keep my home and it's not because of the asset--it clearly has little value-- it's that I don't want to lose the healing my home provides during a time when I need it most.
Even if it is too late for me, perhaps you may help address these loopholes and save thousands--if not millions--of others facing the same fate.
Sincerely,
Molly Secours
Molly Secours
One Woman Show Productions
writer/filmmaker/speaker
www.mollysecours.com
615.429.6817
my husband had a heart attack than we had a fire which we rebuilt and paid first franklin 6000.00 than they did not sell our house. but the next month first franklin refused our payment that was 4 days late. the next month they refused our payment because the month before we were 4 days late, first franklin said they could not help us. then the beginning of the 3rd month they sold our house without telling us. I found out when a man came lookin around outside I asked him what he was doing and he said he had bought the house for First Franklin the day before. It funny how they can do that without letting the buyer know considering we had the money to catch it up. But First Franklin would not take our payments because we were 4 days late. I feel for you I hope you fight just like we are. We are not giving up we are going to fight this to the end. Maybe if the president sees that First Franklin is sticking it to their consumers he might start looking to see what profit they are making. Are the doing the same thing as some of the other banks the President caught about them foreclosing and then turn around and sell and make a profit. So Molly if you can please fight what is an injustice to you. What they are doing is very wrong. Thank You listening; KEEP FIGHTING
Hello and God bless you all:
As you read this letter we hope that you still have a home for your family.
Like many of you our homes are in foreclosure due to the actions and non-actions of First Franklin (FF).
We know there are many persons out there trying to abuse the system and get a free ride, yet many of us, if not all of us, are in this situation not because we wanted to be in this situation, but because life went on. Some of us found ourselves in default as a result of loosing our income, having medical issues, the raise in the cost of living but not in our salaries, family emergencies or just live itself. Whatever your case, we did not asked to be in it.
Some of us purchase our home and gave up most of our life savings to get it, not because of greed or luxury, but because we needed a home to call our own; for our families and specially for our children.
Yet in our time of need the people that were supposed to help us and work with us not only turned their backs on us, but they did everything in their power to take away our home and turn many of our families into battle grounds full of tears, anxiety an uncertainty. “Yes, send us your paperwork we’ll look at it” we were told. Do not worry, we were being “helped” and told to hold on while we complete our review.
And we believed. Only to have our hopes shattered in a court of law or with realtors offering cash for keys, or with people just knocking on our home doors with a notice that basically read “get out in x number of days”. While this was going on, and just to add insult to injury, many of us were in dismay after learning that we did not qualified for a modification for one of the many reasons, we could not do a short sale just because, etc.
End of the dream, end of the hope, end of our homes.
Why? A question that have crossed the minds of many of us, who knows how many times and that was the first of worse questions to cross our minds and hearts as the reality of seeing our children cry because they have to move settled in. Then more questions flooded our minds. What do I do now that I’m on the street? Where do I live? A
Many of us have been put in a situation where we have nothing to lose as even our dignity was taken away with a phone call to FF. A phone call where we were asked the same questions only to be told we can not help you. Or the day we receive the court documents like we are some sort of criminals. Or the date we were made go into a court or that they put a sign in front of our houses. Or the day we received a call at work from a FF person demanding to know where the money was. Or maybe it was the day that we were offered the false hope of a so called “payment plan”. All this while, as stated by an alleged FF ex employee, they were really making money our of taking our homes away from us while giving us no real chance of solving our situations and putting us in a no win situation.
Being that we have nothing to lose is why we are writing this message. You see, we have nothing to lose but much to gain. Divided most of us have encountered the same word: foreclosure. But what if we unite and give it a good shot. At least one good one. We are not saying yeah things will happen. We can not promise that each one of us will get a solution that will be of benefit. That is beyond us. What we are saying is: let make some noise and let our voices and stories be heard. It is time that people know what is really going on with the “so called” helping hand that FF is giving us people that are not asking for a free pass, but for chance to have a roof over our heads with dignity. To pay something that will be fair, but that will also allow us to put food on the table.
What we are doing, at least three of us, is this:
1. We will draft a letter to the White House (our President) and to CNN that will explain in general our situation. This letter will also ask for help in dealing with FF.
2. We will include our stories with that letter. Now here’s where you have a choice. You can join this effort by emailing your story with FF. What is your situation? What happened when you contacted FF? What did they do or didn’t do? How they treat you? Broken promises? How they proceeded with the foreclosure? How did it affect your family life?
PLEASE BE SPECIFIC AS TO YOUR SITUATION. PROVIDE DETAILS LIKE DATES THAT YOU CALLED FF, NAMES OF THE PERSONS YOU SPOKE, FAXES AND LETTERS YOU SEND TO THEM ETC. DO NOT STATE ASSUMPTIONS OF THINGS THAT YOU THINK MIGHT BE HAPPENING. STICK TO THE FACTS AND WHAT YOU CAN PROVE.
3. People, we are writing to our President. You may agree or disagree with him. You may have voted or not voted for him. But the truth of the matter is that he is our President. THUS, PLEASE KEEP YOUR FREE OF ANY FOUL LANGUAGE AND WRITE PROPERLY. Remember; we want to present ourselves like what we are honest, hard working people with values and dignity. Let us not go down to the level of FF.
4. Please include your name and the ages of your family members. Also, please provide a contact information for you so that you can be kept posted on what is going on with this. This could be your email address, mailing address, or phone number.
5. DO NOT, repeat DO NOT INCLUDE YOUR LOAN NUMBER, SOCIAL SECURITY NUMBER OR ANY SENSITIVE INFORMATION. Again, we only need to contact you in case we receive a response so that you know what happened with our inquiry.
6. Remember we are not saying things will happen. We are just trying to do a coordinated effort to help our cause. The reasoning behind this is simple, many of us have contacted the government agencies only to run into dead ends. But many of us, I hope we are not ignored. United we stand, divided we fall.
7. Pray so that we can get what we need: Help, peace and the dignity of a home for our selves and our families.
8. Remember, we are not attorneys, rich people, politicians, or anything like that. We are regular people like you. So whatever happen, please don’t come back at us with some stupid lawsuit if things don’t go your way etc. If you do so, we can probably (and gladly) will give you have we have at this point. Debt.
If interested, you can email your story or any questions that you may have to the following email address: hope4ourfamilies@yahoo.com
We will be submitting our letter along with our stories to both the President and CNN on Friday April10, 2009
