(source: ForeclosureWarehouse.com)

Melody and Tom Stratton, who spoke to Michigan Messenger a year ago about their battle to save their home from foreclosure, say that while they received a loan modification agreement with JPMorgan Chase, they continue to receive collection notices, phones calls and on Saturday an in-person visit by a Chase representative.

The agreement came only after the intervention of Lansing Mayor Virg Bernero. Bernero connected Stratton with the office of Attorney General Mike Cox, and that led to a face to face meeting with the lender. Bernero, a Democrat, is vying for the governor’s office against Republican Rick Snyder.

The couple says they have made every payment due under the loan modification on time. And in each payment they included a letter — each one becoming increasingly frantic about getting their finalized loan modification agreement from the lender as well as an accurate accounting of what is due to the company.

Tammy Ferguson, an attorney and special projects director at the Lansing Franklin Street Community Housing Corporation, has been working with the Strattons for just over a year now. She says the Strattons are not the only homeowners dealing with this, she has several other clients in the same boat.

“There are some fees that [the lender] didn’t capitalize in the modification,” Farnum says of the cases she is dealing with. “As a result, the collections department and the loss mitigation departments are talking, and it takes months for these situations to reconcile and for the loan modification to be fully entered in the system.”

Farnum says the Strattons are the only clients she has dealing with the loan modification issue who are dealing with JP Morgan Chase. But on Wednesday, WLNS a Lansing CBS affiliate reported about an Iraq war vet who has missed no payments on his mortgage, but has received notification of foreclosure proceedings.

The money the lenders and servicers are seeking could be legal and other fees that mounted up while the person with the loan underwent the loan modifcation process. Those fees include title searches, legal fees and fees to send people to the home to verify that it is still inhabited. Those fees add up, says Farnum, but they should be included in the final agreement — not attached to the account after the agreement because the servicer failed to get final billing to capitalize those fees within the modifcation.

Gov. Jennifer Granholm issued the following statement about the Stratton’s loan woes.

“The situation Thomas and Melody Stratton are currently experiencing is one of the many reasons why I have sought in writing not only Chase’s suspension of foreclosures in Michigan, but Chase’s demonstrated compliance with Michigan foreclosure law. In a recent letter dated October 13, I called on James Dimon Chairman, President and CEO of JP Morgan Chase, to immediately suspend all foreclosures, all sales of properties previously foreclosed upon and all evictions of persons residing in previously foreclosed upon properties pending an investigation by state officials. While I recognize that Chase already participates in one of the three Hardest Hit programs providing payment assistance to currently unemployed homeowners, I would like to see them fully participate in the Helping Hardest Hit Homeowners Fund to help homeowners seeking assistance in preventing the foreclosure of their homes and to help homeowners who have fallen behind on their mortgage payments or taxes due to a medical emergency or lower income status.”

The letter Granholm references informed JP Morgan Chase that the state was undertaking an investigation of its foreclosure processes, and that the governor was prepared to file legal action to force the company to cease foreclosure in the state until the investigation was complete.

JP Morgan Chase spokesman Tom Kelly declined to discuss the letter or the investigation when reached by Michigan Messenger. “Chase does not comment about its communications with government agencies,” Kelly said.

And Mary Kay Bean, the Michigan spokesperson for JPMorgan Chase, said the company “was looking into the account of the Strattons.” She declined to provide any more information.

Granholm spokesperson Mitchell Rivard says the governor’s office has not received a reply from JP Morgan.

“JP has responded neither in word nor deed,” said Rivard.

How serious is the Michigan government investigation? According to Rivard it includes the state Attorney General, Republican Mike Cox, as well as various agencies and entities of the executive branch.

“In letters dated October 13, 2010, the Governor called on the nation’s top lending institutions that service mortgages in Michigan to suspend all foreclosures pending investigation of possibly fraudulent foreclosure filings. In those letters, the Governor also asked the lenders to demonstrate their compliance with Michigan foreclosure law by providing, among other things, detailed information regarding the lenders’ use of ‘robosigners,’” said Rivard. “All information provided to the Governor by these lenders will be forwarded to the Office of Financial and Insurance Regulation for review, investigation, and where appropriate, referral to the Attorney General to take legal action.”

Asked if the growing evidence of issues with JPMorgan Chase and other lenders would prompt Granholm to take immediate legal steps to stop the foreclosures, Rivard said it would would be “premature to comment on what, if any, legal action might ultimately be taken with respect to JPMorgan Chase.”

Meanwhile, the Strattons continue their battle to save their home and stop the collection letters and phone calls. They are also still waiting for an executed loan modification agreement.

“That’s very common,” says Farnum. “I don’t know any homeowner that has received a signed copy for their records. That gives the banks a lot of power. They can say we didn’t agree to it and there’s no signed agreement.”

The budget framework agreement between Dillon and Bishop would eliminate nearly $1.3 billion in state spending, including more than $100 million for the Michigan Promise scholarship. The scholarship was created in 2006 and rewards students who performed well on state standardized tests.

The letter was uncovered by Mitchell Rivard and the Michigan State University College Democrats. Rivard says it is hypocritical for Simon to publicly support the Michigan Promise Scholarship, while her name appears on a document supporting the elimination of the scholarship.

But MSU spokesman Terry Denbow says Simon supports the scholarship.

“President Simon (whose name, like those of Mary Sue Coleman, Jay Noren, [Oakland University] Gary Russi, and others is on the letterhead) has never seen the letter,” Denbow wrote in an e-mail to Michigan Messenger. “We yesterday received assurances from Rothwell’s office that in the future no such political positioning will be done in a way that allows folks to conclude that names on the letterhead necessarily share content of letters.”

Denbow said Simon spoke with Gov. Jennifer Granholm on Wednesday and restated her support for closing the funding gap between universities in the state, as well as keeping the Michigan Promise Scholarship.

University of Michigan spokesman Richard Fitzgerald tells Michigan Messenger that Coleman was unaware of the letter and its contents before it was sent to legislators.

He then issued the following statement from Coleman regarding the situation:

“I belong to dozens of organizations where the membership isn’t always in full alignment on all issues, and this is no exception. The issues surrounding this year’s budget are very serious, and they will continue to be so next year and beyond. It is in the best interests of the state to look to the long term and focus on the highest priorities—including higher education—as we lay the groundwork for the future.”

Rivard says Simon, Coleman and others should resign their posts with the Business Leaders of Michigan group.

Denbow said Simon had no intention of resigning because it was important for her voice to be heard “even when she does not agree” with a group, particularly when discussing redeveloping Michigan’s battered economy. Fitzgerald had no comment.

The appropriations bill does not identify a revenue source for the $120 million, and this is largely symbolic. A vote is expected later today in the full House on the joint committee’s bill to eliminate the scholarship altogether.

College students are wasting no time in defending the scholarship program. Student groups, coordinated by Michigan State University’s College Democrats have begun an intensive call-in campaign targeting 20 Democratic lawmakers in the House who are anticipated to support a budget compromise beign crafted by Democratic House Speaker Andy Dillon and Republican Senate Majority Leader Mike Bishop.

On Tuesday, students threatened to remember those representatives who voted to eliminate the scholarship. And on Wednesday the University of Michigan College Democrats issued an e-mail statement threatening to withhold support for Democrats who voted against the scholarship.

“On the other hand, it would be very difficult, if not impossible, for us to campaign in the future for any politician who did not support and defend the Michigan Promise. In the past, we have made countless phone calls, knocked on doors and campaigned on campus for Carl Levin, Debbie Stabenow, John Dingell, Glenn Anderson, Marty Griffin, Bart Stupak, Gary Peters, Mark Schauer, and many others. As one of the largest College Democrats chapters in the country, our large volunteer base is an invaluable resource.

“Furthermore, all students should take note of how their senators and representatives vote on higher education funding, as students are the ones who will be affected by the Legislature’s broken promise.”

The Republican-controlled Senate passed legislation earlier this year which eliminated the Michigan Promise Scholarship altogether. The House has not voted on the issue yet, although it is expected to take up a vote on the conference committee bill later Thursday.

The move comes less than 24 hours after students and lawmakers rallied on the steps of the State Capitol demanding lawmakers to “keep their promise” to Michigan’s high school graduates. The program was created to reward students who excelled on standardized testing by offering a scholarship of up to $4000. That money is parceled out in $500 increments. An estimated 96,000 Michigan students received the scholarship currently.

“We’re not happy,” said Mitchell Rivard, president of the Michigan State University College Democrats and one of the organizers of Tuesday’s rally. “They are damning these kids out of an education. It’s ridiculous. To think these people we instill our trust in think they can balance this budget on the backs of our students.”

Rivard said the fight to save the scholarship was not over, as the approved bill has to be voted on by both the House and the Senate. And in the event the budget ax can’t be stopped there, Rivard said his group and students from around the state would calling Gov. Jennifer Granholm to ask her to veto legislation which did not fund the scholarship.

The Republican-controlled Senate has already passed one bill which eliminated the scholarship, while the House, which is controlled by Democrats, has not taken up the issue yet. Both houses are working to close a budget gap of about $2.8 billion.

“It doesn’t mean it is over. We are not throwing in the towel,” said Rivard. “We are not advocating for a reduction, we are advocating to keep the promise we made to the students in 2006. You cannot go back on your promise.”

Students protest at the State Capitol on Tuesday. (Photo by Todd A. Heywood/Michigan Messenger)

LANSING — With the shot clock running on a final budget, state lawmakers joined Michigan college students at the State Capitol on Tuesday to demand that legislators protect the Michigan Promise Scholarship.

“Why call it a promise if it’s not a promise?” asked Rep. Mark Meadows, a Democrat from East Lansing.

“A promise is a promise,” said Barb Byrum, a Democratic representative from Onondaga. “Hold us accountable.”

The Promise Scholarship was signed into law in 2006 by Gov. Jennifer Granholm and it assures young people who graduate from high school and have done well on standardized tests up to $4,000 in college tuition assistance. That money is generally doled out in $500 increments.

But some lawmakers, lead by Senate Republicans, want to eliminate the scholarship because they say it is too costly for a state facing a budget gap in the billions. A bill passed the Republican-controlled Senate earlier this year which eliminated the scholarships completely, but the Democratic-controlled House has not taken up the issue.

“As both the House and Senate continue their negotiations, some members in both chambers are looking to balance the budget by killing the dream of college for students,” said Mitchell Rivard, president of the Michigan State University College Democrats. “We are here on the steps of the Capitol with one message to these lawmakers — you cannot go back on your promise.”

Rivard and about 50 other students delivered more than 2,500 signatures to House Speaker Andy Dillon and Senate Majority Leader Mike Bishop. The signatures were on petitions demanding lawmakers keep the scholarship. The signatures were collected at the University of Michigan, Saginaw Valley State University, Central Michigan University, Western Michigan University, Albion College, Lansing Community College, Michigan State University, Wayne State University, Northern Michigan University and Lake Superior State University.

“Any legislator that supports cutting the Michigan Promise Scholarship will certainly hear from the 96,000 people who got the scholarship in the next election,” said Brad O’Donnell, president of the Central Michigan University College Democrats. “It’s a promise we are making and a promise we intend on keeping,” said O’Donnell, a beneficiary of the scholarship.

“These are Promise grants, not ‘we’ll get you the money if we have it’ grants,” said Senate Democratic Leader Mike Prusi of Ipsheming. “Nearly 100,000 students are watching to see if we mean what we say as lawmakers, and it would be unconscionable to break the promise we’ve made to them. As we try to attract jobs to Michigan and have a highly-skilled workforce, investing in education should be at the top of our list of priorities.”

State Rep. Joan Bauer, a Democrat from Lansing, said she will not vote in favor of any budget deal that eliminated the scholarship. No Republican lawmakers were present for the rally.

Lawmakers have until Sept. 30 at 12:59 p.m. to come up with a balanced budget, or the state government will shut down, which happened in 2007 as part of the budget battle that year.

Beck’s appearance has riled up campus groups, such as the MSU College Democrats, who intend on protesting the controversial speaker. Mitchell Rivard, president of the MSU College Democrats had this to say about Beck’s appearance in an email seeking supporters for the group’s planned protests:

Recently, Beck asserted that President Obama is “a racist with a deep-seated hatred of white people.” He also is a staunch opponent of health care reform on his Fox News show, where he continues trying to sabotage any reform trying to be made by Congress by promoting scare tactics such as “death panels” for seniors. His rhetoric is so twisted that 62 advertisers have pledged not to run advertisements during his show, and the number keeps growing.

Rivard also claims the Chamber, which is a huge political donor in the state, is spending $25,000 to host Beck.

The Chamber told Michigan Messenger on Monday that the event was sold out. Kathy Barks Hoffman of the Associated Press reports the group has logged 500 confirmed attendees for the event at MSU’s Kellogg Center.

Michigan Messenger will be on site tonight reporting about the protests, the Beck speech and whatever else might happen.

In The State News, editors opined that eliminating the Michigan Promise Scholarship is a necessary evil.

In the editorial, the S’News wrote:

The scholarship is a great luxury to have, but a luxury nonetheless.

The editorial comes at a time when MSU just jacked up tuition by 10.1 percent over the next two years, and the University of Michigan tuition was increased by 5.6 percent. All the while Michigan, is seeing double-digit unemployment rates, the highest since 1983, putting a college education out of reach for an increasing number of students.

Mitchell Rivard, president of the Michigan State University Democrats, and one of an estimated 11,000 MSU students who has benefited from Michigan Promise, had this to say in an email to Michigan Messenger:

Just as with the Republicans who voted to slash the funding that allows almost 100,000 students to go college, I believe The State News Editorial Board is myopic, uninformed and clearly delusional on how much this scholarship means to students across the state and their ability to continue going to college.

They clearly are not suffering as much as their fellow students across the state, which is clear by their rhetoric and apparent facts that are not backed up by credible sources.

Rivard said his group has filed complaints with the paper and its editorial board, and will be organizing a move this fall to have students request their student tax be returned. The State News is funded by a student tax, but students have the option to request that funding back each semester.

Rivard also raised concerns about the accuracy of the information provided in the editorial. Specifically in question is the following:

Seventy-five percent of recipients don’t require any financial aid to attend college and the remaining 25 percent still can be eligible for need-based scholarships

Those figures are actually the State News’ re-wording of an article from the Detroit News, Rivard said.

Rivard cited the following as the source:

Only about 25 percent of Michigan Promise Scholarship recipients are estimated to have financial need, according to Kyle Jen, associate director of the House Fiscal Agency.

But Rivard notes that the editorial presumes that 75 percent of the students receiving the scholarship don’t need the money to attend college, when many of those students may in fact have financial need, but not qualify for needs-based scholarships because income levels are too high under the guidelines.

MSU spokesman Tom Oswald told Michigan Messenger that 72 percent — or 35,306 students — received some form of financial aid in the previous academic year.

Next year’s increase could be reduced by 2 or 3 percent if the university receives federal stimulus money to offset the tuition hikes.

On Thursday, the University of Michigan Board of Regents increased tuition for undergraduates by 5.6 percent.

During its meeting, MSU trustees also agreed to increase financial aid offerings by 17 percent this academic year, and 13 percent next. At U-M, the regents OK’d an 11.7 percent increase in financial aid, something The Michigan Daily reports is the largest investment of its kind at the university.

MSU spokesman Terry Denbow told the Lansing State Journal that top administrators — those holding the titles of dean or vice president — will be required to donate any salary increases to scholarships of their choosing.

“In these difficult times, we believe that everyone is going to have to scale back in order to accommodate these difficult times. We do not support forced pay cuts but hope that our administrators will make appropriate decisions, including about their own pay rates,” Mitchell Rivard, president of the MSU College Democrats told Michigan Messenger.

“What a disappointing day this is in American history,” said Mitchell Rivard, president of the Michigan State University College Democrats. “The California Supreme Court reminded us today that we cannot sit back and wait for our system of government to do the right thing.”

Building on Rivard’s call to action, Julie Nemecek, co-director of Michigan Equality, a statewide LGBT civil rights advocacy organization, made a promise of marriage equality in Michigan a reality by 2012.

“I am here today to tell you that … marriage equality is coming to Michigan,” she said. “I am confident a resolution to approve bring marriage equality will be approved in the 2012 election, if you help.”

Nemecek said in order to achieve that goal, activists would have to collect over 500,000 valid signatures on a proposal to remove the state constitutional ban on same-sex marriage approved by Michigan voters in 2004.

“What this is about is this was a referendum on our lives. It was a referendum on whether we are full citizens or whether we are second class citizens,” said Denise Brogan-Kantor, chair of the board of trustees of Triangle Foundation, a Detroit-based LGBT advocacy group which focuses on hate crimes. “Ladies and gentleman, this is a hate crime. This is a hate crime against us. We have to do more to protect us.”

Kantor also echoed Nemecek’s call for an effort to put a marriage equality proposal before voters in 2012.