In Fine Print, Banks Require Struggling Homeowners to Waive Rights

In Fine Print, Banks Require Struggling Homeowners to Waive Rights
Posted: May 9, 2011 at 9:14 am

May 9, 2011, 7 a.m.
This story was co-published with Slate.


A few months ago, Bank of America offered Sergio Cortez of Staten Island, N.Y., the help he desperately needed to stay in his home: a break on his mortgage. Like millions of others, he was facing foreclosure. But there was a catch buried in the fine print. Cortez had to waive any possibility of ever suing the bank for anything relating to the loan.

Cortez isn’t alone. While regulators have banned the practice, some banks and others who handle mortgages have still been forcing homeowners into a corner: You want a chance at saving your home? Then you’ll have to waive your rights.

“It’s just unfair,” said Jane Azia, director of consumer protection for the New York State Banking Department. “It puts borrowers in a very vulnerable situation.”

We identified eight banks and other mortgage servicers who offer help that limits homeowners’ ability to sue or fight foreclosure. When we contacted them, they offered a variety of responses. Some said the inclusion of the waivers had been a mistake and would stop. Some argued that language that seemed to waive the homeowner’s rights didn’t actually do so. One argued that a loophole in a rule barring the practice meant their inclusion in certain agreements was proper.

The complete piece is at: http://247wallst.com/2011/05/09/in-fine-print-banks-require-struggling-homeowners-to-waive-rights/#ixzz1LuJm0qe4

is down the first 10 days of each month?

it is for me. as I need to refi and need to bolster my credit score. thus I thought i would try to pay online the first of each month... yet the online bill pay is always down (at the beginning of the month anyway.)