FORECLOSURE - 2010

After all the “hoopla” of government bailouts, mortgage relief, and the disingenuous assertions of banks and mortgage companies that they are willing to work with borrowers in an attempt to rescue homes from unnecessary foreclosure, I think it’s time to bring everyone to their senses again.

In the last week, our firm has had to answer three actions in foreclosure for clients. In each case, there were good reasons why the loans were delinquent but, more to the point, the borrowers were making good faith offers to bring the loans current; none of the homes were close to being “underwater,” and all were principle residences. In one case, they were offering to pay more than half of the amount needed to bring the loan current, were able to continue to pay their current  monthly payments, and only needed the remainder either wrapped around the back of the loan, or spread over about 18 months and added to the current payment. They were not even asking for a diminution of the principle balance or interest rate.

In each case, the lender absolutely refused to make any adjustments or discuss mediation even though, in at least one instance, their own attorneys encouraged them to do so. So, if anyone still believes that banks and mortgage companies are reasonable, or can be left unregulated, take heed. The next home up for sale may be yours!

THE MORE THINGS CHANGE . . .

When I opened my mail yesterday, I found a notice from my health insurance company labeled, “Important health and health benefits information.” Although it came as a post card that was easy to miss, lose or throw away, I have been reviewing the new health law prior to publication of a legal guide, regarding it, so I decided to read the notice. Most of it involved things like their interpretation of the Women’s Health and Cancer Rights Act or how to choose a doctor online. There was a last section, however, that most people are unaware of, believing that HIPAA protects their privacy.

HIPAA does, in fact, protect patient privacy when it comes to “providers” (physicians, nurses, pharmacists, etc.). Like most laws in this country, though, the insurance companies get a nearly free ride. They proceed in the postcard to explain that they share your personal and “protected health information” with:

1. Health Care Providers,

2. Payors,

3. Other Insurers (of ANY kind),

4. Third party administrators,

5. Vendors (yes, they can give your information to other companies they deal with),

6. Consultants (whoever THEY consider to be consultants),

7. Government Authorities and their respective agents (whatever the government wants to know, they tell them; perhaps even without a warrant).

They then proceed to discuss all the ways in which your personal information is used, eventually ending with the statement that “[w]e consider these activities key for the operation of our heath plans . . . [and] we use and disclose personal information . . . without member consent.”

Isn’t it nice to know that while you were all worried about “government medicine,” our beloved insurance companies have retained the right to do as they please without recourse? The more things change, the more they stay the same.