i have no faith." i'm jamie colby. thanks for watching "strange inheritance." >> from fox business headquarters and new york city, the new wall street week. maria: welcome to wall street week, the show that analyzes the week that was and helps position you for the week ahead. i'm maria bartiromo. thanks for joining us. here are some of the big headlines that will continue to impact investors and your money into the week ahead. markets ultimately closing in negative territory in a holiday-shortened week. investors are bracing for a rush of corporate earnings due out next week. first quarter earnings for the s&p 500 are expected to be up better than 10%. bank of america, netflix,

goldman sachs all among those reported, that are expected to report next week that may very well set the tone for markets. of course, the markets did move pretty volatile and slightly higher on wednesday after my exclusive interview with president donald trump. he said this to me on a timeline for tax reform. >> we're going to have a phenomenal tax reform, but i have to do health care first. i want to do it first to really do it right. maria: so where are they on that? more from my exclusive interview with the president coming up. also on wall street this week, the major banks unofficially kicking off the earnings season on thursday with strong results from jpmorgan, wells fargo's revenue fell short. we'll get a reaction from the policy coming out of washington when i come to a former morgan stanley ceo. this weekend marks the 105th birthday of the founder of north

korea. a lot of focus on what that means for the rest of the world. chinese president xi jinping is calling for a peaceful resolution after president trump redirected navy warships toward the korean peninsula last week in an effort to deter north korea from testing another nuclear weapon. high stakes meetings in russia, meanwhile, secretary of state rex tillerson meeting with russian president vladimir putin in moscow. the russian leader says the level of trust has deteriorated between the u.s. and russia after the u.s.' attack, the military strikes against syria. it was a very chilly news conference with tillerson and his russian counterpart on wednesday afternoon. and this story dominating much of the week, united airlines continuing to take heat after a video went viral of a passenger literally being violently dragged off an overbooked flight. the stock also took a hit following the incident. the ceo doing multiple versions of apologies, and the stock recovered a bit. at one point it was down a

billion dollars in value, congress is threatening new legislation. turning back the washington, the biggest headlines taking place when i sat down exclusively with trump in his first business network interview since taking office with the fox business network. he said he understands it will be hard, but the president says he has confidence in bringing a new bill on health care to the floor. followed very soon after by tax reform. he said if that does not materialize because of a battle in congress over health care, he is still committed at a minimum to lowering taxes this year. watch. >> we are going to have tax reform at some point very soon. i think we're doing very well on health care. it's been very much misreported that we failed with health care. we haven't failed, we're negotiating, and we continue to negotiate. and we will save perhaps $900 billion. you know, if you look at the kind of numbers that we're talking about, that's all going back into the taxes. and we have to do health care first to pick up additional money so that we get great tax reform. so we're going to have a

phenomenal tax reform, but i have to do health care first. i want to do it first to really do it right. health care has been going along -- you know, it's in negotiations. that's what i do. and it's just a negotiation. and it's going to take a little while longer, but as you are probably hearing, congress is coming along. we have some great people in congress, they want it to happen. we will have no democrats, zero. that means we have to get close to 100% of the republicans. not an easy way to run the government. you saw that with justice gorsuch which is, we're very proud of. he had almost no democrat support even though he was central casting, like the perfect supreme court judge. so we'll see what happens. i think we're doing very well with health care which surprises us, that's like breaking news, but they all know it, they just don't tend to write it. and after that we're going to start on tax reform and infrastructure. maria: do you have to do health care before tax reform? business managers say tax reform is so much more impactful --

>> they're all right, but because i'm saving a tremendous amount, hundreds and hundreds of millions of dollars we're saving on health care, so we're going to have a much better plan than obamacare which is failing each now as i came -- even now as i came in here, they're saying payments have to be made that weren't scheduled to be made. if you don't make 'em, it fails. obamacare's a total mess. so we're saving tremendous amounts of money on health care when we get this done, number one. and most importantly, actually, we're going to have great health care, and all of that saving goes into the tax. if you don't do that, you can't put any of the savings into the tax cuts and the tax reform. maria: how do you know you're not going to have a similar battle on the -- >> oh, i will. maria: because you've got a border adjustment tax, the deductions. so who's to say tax reform doesn't fail the way the bill, the house bill -- >> i think tax reform will be easier, but it's going to be tough. you have a lot of people that have their own agendas including a lot of supporters of different people that are in congress.

they have their own agendas. they want certain things. tax reform's going to be tough, but it won't be as tough as health care. look at hillary clinton, that failedand you hook at so many of the others, and obamacare failed. obare wast, they just in the end just gave up to get the vote. you look at what they had to do in nebraska where they essentially gave out away for nebraska to get that final vote. maria: and we know the premiums up -- >> premiums are up. in many, many of the -- and this is going to to be a much worse year than last year, to obamacare's a disaster. it's really gone. essentially, it's gone. if obamacare isn't bailed out almost on a monthly basis, it fails. it immediately fails. we have a great health care plan that i think will happen, and if it happens, then i go immediately to tax reform, and that will happen. that will be easier than health care. maria: how are you on the border adjustment tax? have you decided? >> i haven't really wanted to talk about it. i don't like the word adjustment

because our country gets taken advantage of, to use a nice term, by every other country in the world, so when i hear border adjustment, adjustment means we lose. so i don't want like the term border adjustment. maria: any tax at the border? >> let's call it an import tax, a reciprocal tax. maria: so it's in there? >> we have countries, maria, that charge us -- our companies -- 100% tax if they sell a motorcycle or if they sell, they make it in america, they make it in the united states, they sell it to various countries. they sell very little because the tax is 100% in some countries. the tax is 50%, 30%, 40%, but if they make a motorcycle and they sell it back into the united states, they have no tax. now, do you think that's fair and do you think that's smart? so i love the idea of reciprocal. you can call it a reciprocal or a matching tax, or a mirror tax. there are numerous terms, but

it's very important. and nobody gets angry when you say reciprocal tax. we'd be a rich nation if we did it, by the way -- maria: it sounds evil. >> when you say i'm going to charge a 10% or 20% border tax, everyone goes crazy because they like free trade. well, they don't say that the other countries are charging much more than that. but when you say a reciprocal tax, and i'm not saying that's what i'm doing, but there has to be a certain reciprocal nature to it. but when you say it, nobody can get angry. even the other countries, if, like, they're charging 50% tax, you say, okay, whatever you charge, we're charging. maria: like china and india. >> they may not like it, but they can't get angry, because they can't win that battle. maria: to you prefer just cutting taxes? if you had to do one -- >> yeah. well, we could keep trade and surgeon things separate. -- certain things separate. we have a lot of different things. don't forget, we're going to be

bringing back as part of this, i think the number's closer to $5 trillion. you know, you've been hearing, you've been using -- you keep using it, $2.5 trillion, rights? but the money, the corporate inversions, and the money over there is $2.5 trillion. we've been saying that number for, what, five years now, would you say? i know it's much more. it's probably $5 trillion or $4 trillion. that money's coming back. war going to charge a very small tax on that money, and companies are going to bring that money back into the united states and do lots of good things with it. right now they can't bring it back. and it's not only the high tax, it's also because the bureaucracy is so horrible. i have friends who are willing to bring the money back, the bureaucracy, the paperwork, the work to get it in, it's not worth it. maria: which is why you're rolling back regulations. corporate tax or individual tax, what's more important? >> both. maria: if you had to do one this year? >> both. i almost think individual

because the middle class has just been taken advantage of in this country for so many years. but in terms of jobs, i think both, but i think probably corporate. but they both go hand in hand. it's not going to matter. maria: have you moved off this soft deadline that your team put in place of august? are you looking later in the year? >> i put a dead lauren on health care, and the fake -- deadline on health care, and the fake nemmediately went cry because when i didn't make the deadline -- maria: that you set. >> don't forget, i said withdraw, don't even take a vote. well, that same thing is being negotiated, and great points are being won and lost, but great points are being won that are going to lower premiums and make our health care incredible. but by putting a deadline they say, oh, trump didn't make it. so i don't want to put deadlines. health care's going to happen at some point. now, if it doesn't happen fast enough, i'll start the taxes. but the tax reform and the tax cuts are better if i can do health care first.

maria: what about infrastructure? how do you see it? >> 100%, very soon. i see it as part of, perhaps, the health care plan, because phase two in order to get the votes, i need 60% for that, and if i put that in, the democrats are actually going to love the infrastructure plan. maria: for more of my exclusive interview with president trump on foreign policy and more on the economic policy plans expected, tune into sunday morning futures this weekend on the fox news channel and head over to foxbusiness.com. "wall street week" comes right back. >> when it comes to washington, voters are used to bickering, but president trump says it's worse than ever. >> the level of hatred is incredible. >> as the fighting heats up, will americans be left out in the cold? wall street icon john mamamamama

♪ ♪ maria: welcome back. health care, tax reform, justice gorsuch and really all things trump all have led to serious

arguments on capitol hill. it's likely no coincidence that since it all started, the bull run has gone flat. i had the opportunity to ask president trump about the divide on capitol hill right now. >> the level of hatred is incredible. and i'm not just saying in the last 90 days, i'm saying this has been for the last few years. there's a great level of hostility, and they're putting, they're putting their hatred way, way above, way above the country and the benefit to the country that, you know, things that they do can have such benefit. maria: former morgan stanley chairman and ceo john mack is joining me right now, senior adviser to morgan as well as senior adviser to bdt, and, john, it is good to see you. >> pleasure to be here. maria: thank you so much for joining us. you just heard president trump. congress used to go out and have lunch together, have coffee together. it just seems there's so much disagreement and hatred, they can't get anything done, john. >> well, it's hard to get things done, and this is not a shot at

cable news, but there's so much news that i think you're always looking for what is the story. everyone wants to say something different, and i think that puts a lot of pressure on the politicses to respond. politicians to respond. so we want the news x we love cable news, but in my view, there's so much directed at or attacking different congressmen whether it's the democrats or republicans, it makes no difference. maria: okay, so tax reform and infrastructure. there's a thinking now that maybe these two policies can go side by side, maybe that's the way donald trump can get the democrats involved and under the tent, do an infrastructure package. you think that's critical, infrastructure. it's a job creator too. >> well, it is critical. all you have to do is drive the streets or new york or go to -- streets of new york or go to laguardia airport. the president and the leadership need to figure out a way the cut certain programs and add money to other programs to make sure we foc on infrastructure. i mean, our train system vis-a-vis what they have in

europe or asia is really obsolete. it's a great way, i think, to create jobs, to get people to move from a to b city without, you know, going through the rigamarole that we do today. so i think those are very important focuses. on tax reform, you know, i think that's an issue, but i don't find it a huge issue. i think the most important issue is let's look at where we're wasting money. and i think president trump is doing that. where are we spending that we don't need to spend, where can we cut back. if that can create tax relief, i'm all for it. maria: that's one of the reasons why a tax -- a health care plan couldn't get past go, because they're trying to make it more cost effective, you know? they're trying to bring premiums down. the same thing with the tax plan. the committee for a responsible budget says it's going to add to the deficit, so what should we be cutting back on in terms of spending? these are the decisions they're all talking about right now, and i know it's the million dollar question, by the way. >> well, we have to look at all the programs.

let's start with farm subsidies. let's start there. let's talk about what's going on in the oil and gas industry. let's figure out can we cut taxes if we incent people to build alternative energy, whether solar, wind, etc. i think there are a lot of things w let's look at the foreign aid we give and who we're giving it to, and is it a good investment for us. i think the president is right, we need to look at everything. there's no one bullet you can shoot that will solve these problems. maria: john, you've been investing a hot since you stepped town from -- a lot since you stepped down from morgan stanley. stay with us. we're going to take a short break. when we come back, we'll hear from john mack on investing opportunities. more "wall street week" after this short break. >> could john mack become the next tech giant too? he tells maria how the tech sector is revolutionizing the banking industry and where he's

so you're having a party? how nice. i'll be right there. and the butchery begins. what am i gonna wear? this party is super fancy. let's go. i'm ready. are you my uber? [ horn honks ] hold on. don't wait for watchathon week to return. [ doorbell rings ] who's that? show me netflix. sign up for netflix on x1 today

and keep watching all year long. ♪ ♪ maria: welcome back. we're talking with former morgan stanley chairman and ceo john mack. john has been investing through private equity on his own and, john, i want to talk to you about that because the growth story has been technology for a long time. you're finding lots of different areas within technology that are opportunistic. tell us about it. >> well, number one, i'm fascinated by these young men and women, the way they think, and how creative they are. number two, technology, as we can tell, continues to accelerate and change in our lives. and for an old guy like me to be around young men and women who are so creative and so thoughtful and be able to give some coaching on some of the issues they do miss, i think kind of an overlay, they're so focused on their technology, sometimes they don't cross the ts and dot the is.

and, again, from my experience, you have to cross every t and dot every i, so i feel like i can help them and i can coach them. but what i'm learning and see the creativity is what really turns me on. do i want to make money? absolutely. but just as important is to see how people are thinking and how technology's going to change our world. that's really, to me, a turn-on. the negative be of all of it is, maria, i'm concerned about jobs. not jobs growth. i mean, it is what it is, creating jobs. technology is going to continue to erode our people and the opportunities to work. so i think that's a big issue for us, and a good friend of mine, david segal, he and i talk about it, and i said the only real growth industry looks like senior living and assisted living. it's got to be broader than that. maria: you were telling me earlier about one company, an app that you can actually be at the airport and get the audio of a live program. >> right, sure. the free app is called tunity,

and it allows you to be in an area, let's say you're in a sports bar, the airport, the tv's on, you can't hear anything, you put your phone up, it scans the picture twice, sends it to the cloud, all of a sudden you get audio. maria: that's incredible. >> and he, the gentleman who built this, i think we have a little over a million users of it now. spent no money on advertising, kind of word of mouth. but it's an interesting app and kind of makes your life a little easier if you're waiting for a plane at the airport. maria: you're also investing in financial technology? be what's that? >> for sure. financial technology whether it was in lending club or some of the mortgage companies i'm involved in, listen, again, we talked about jobs earlier. i think financial technology, let's say you're a community bank or even one of the major banks. more and more banking is going to be done online, and as that

happens, where are the jobs? are we going to be eliminating jobs? the financial technology, clearly, is moving very quickly, and it's changing the way we invest, the way we save, the way we get our information and also where we get our advice on what we should be doing. so i do it because i love fin-tech, i love the financial markets each more. maria: it's a special time -- >> it really is. maria: what do you think about this rally? i mean, in terms of the stock market? >> well, i'm net long, no question about that. i do have some concerns about what, ase all do, the global world and what's happening. you know, a while back i did put on a short with the s&p's just the get me some balance. i've been way wrong, it's not worked for me -- maria: are you ticking to it? >> -- sticking to it? >> yeah, i think it's always good to hedge a little bit.

♪ ♪ maria: welcome back to "wall street week."

the week ahead looks like this, a couple of big markets events that will likely impact your numbers, the housing starts, beige book, manufacturing pmi, existing home sales, all key economic indicators to watch. but it'll largely be the earnings story that drives stocks next week. it's going to be in full swing. investors anticipating a strong earnings season, as i mentioned at the beginning of the program, 10% plus is what i'm hearing in terms of earnings growth for the first qrter: interestingl revenue is going to be the mover and the notable event of the first quarter. revenue expected to be up 6%, and there's a look at some of the notable companies reporting, dish, bank of america, goldman sachs, the blackstone group and general electric, all the names to watch in the week ahead. that'll do it for us here on "wall street week." thanks so much for joining us. next week, join us for our special exclusive guest, larry

fink, chairman and ceo of blackrock, will be with us. i'm see you sunday morning at 10 eastern, and but first, property man begins right now. >> i'm bob massi. for 35 years, i've been practicing law and living in las vegas, ground zero for the american real-estate crisis. but it wasn't just vegas that was hit hard. lives were destroyed from coast to coast as the economy tanked. now it's a different story. the american dream is back. and nowhere is that more clear than the grand canyon state of arizona. so we headed from the strip to the desert to show you how to explore the new landscape and live the american dream. i'm gonna help real people who are facing some major problems, explain the bold plans that are changing how americans live, and take you behind the gates of properties you have to see to believe. at the end of the show,

i'll give you critical tips you need to know in the "massi memo," because information is power. and the property man has got you covered. [ woman vocalizing ] thanks for joining us. i'm bob massi. you know, technology has changed the way we do just about everything, from how we communicate to how we shop. it also has changed the landscape for anyone looking to sell property. >> in the olden days, what used to make one real-estate agent stand out over the other is his actual advertising budget. how much money did he have to spend on newspaper and actual print ads? technology has made those things 100% obsolete and totally worthless. >> people who are living on the cutting edge, people who want to sell the most homes, they're taking advantage of new marketing techniques and new video production equipment. >> suddenly, posting a few pictures online -- it's just not enough. >> if your competition is using this technology and you are not,

you're just simply not gonna get the listing. you're not gonna get the business. >> some of these technologies you can employ yourself. you can take pictures on the ground. you can take video on the ground. you can take stabilized video. you can do 360 video. >> and then there's the real game-changer. >> what a drone enables you to do like no technology before is show a property in context in the neighborhood. we can go from up to down. we can go from side to side. we can show you inside to outside. we can fly through a pergola. or we can fly over the top of a dock. >> but flying drones is something that most realtors are not allowed to do without permission from the government. >> the faa has a regulation called faa part 107. and you actually have to be certified to fly a drone for commercial purposes. >> to have anybody just off the street going out and buying something and thinking they're gonna make money taking video, even if they do have the experience, right now is illegal. >>adding mode.

>> it's now live. it's recording. rotors are armed. >> before the faa changed their rules, you had to have something called a 333 exemption. this was a special permit that actually allowed you to fly drones. >>take off. >> douglas trudeau of tucson, was the first realtor in the entire country granted an exemption. >> when i first got this, bob, i could not answer my phone. if i saw a long-distance phone call, i wouldn't answer it because it wasn't somebody wanting to buy or sell a house. they wanted to know how did i get my permission from the faa to fly drones. this is the exemption at theaa senme. and thisxplains that... >> granted exemption. >> ...i cannot fly within five miles in an -- of an airport. >> but flying drones is something most realtors aren't equipped to do. >> so that's where companies like aerobo come in. >> aerobo is a faa-certified company. >> they design, build, and fly drones for all types of clients, including realtors. >> our entire company is built around safely and professionally operating drones for realtors

and other aerial-video needs. we file all the paperwork ahead of time. we make sure that where we're flying is gonna be safe. >> and there are a lot of rules and regulations we'll get to in a minute. but, first, back to the toys. in addition to drones, aerobo deploys many tools that most realtors could utilize themselves. >> some of the other toys that we have to play with are really affordable stabilized cameras. >> this is called an osmo. and this is a gimballed camera. and so it's gonna look like a really professional video. and you can get that for just a couple hundred bucks. >> that's amazing. >> why don't you try it out? so you've got zero shake. it's fully stabilized. so it's gonna look like it was really professionally done. and what a gimbal really does is it takes that shake out. you can twist your wrist. if you twist your wrist, camera's staying level. >> this would be a fantastic tool to help a prospective buyer who's looking at the property on -- on the internet to feel the home. >> here we are on our walking tour through the home. and we're showing beautiful,

stabilized images that help us show a prospective buyer what they would see. now, we have a couple other tools that we can use for that, as well. and we've got a camera that's gonna shoot full 360 spherical images. so this has a lens on the back and a lens on the front. >> giving the user the ability to move the view this way, move the view up, move the view down. buyers want it. and sellers love to have it on their homes because it obviously enhances the desirability. >> and all you need is your cellphone to trigger this. and this costs a couple hundred bucks. i think this is $300 or $400. >> for those willing to spend a bit more, you careally take things to the next level. matterport is an immersive media technology company that makes special cameras which allow users to explore three-dimensional spaces. the cameras, which cost about $4,500 and are controlled by an ipad, take three-dimensional scans of any room. the scans are converted into 3-d models from which you can explore the entire property

and fly through each room as if you were there. >> buyers are increasingly looking more for this technology so that if they're sitting at -- behind their desk in another state, they're able to witness and feel as much as of that property as they can without being there. >> but if seeing the home from sitting behind your desk still doesn't feel like you're there, never fear. >> you can use virtual reality goggles to see the inside of the home in an immersive way. so you're gonna have "wow" value and usefulness.he home for the tastes of a specific buyer? you can use the 3-d models to change pretty much anything you want -- floors, paint colors, and even furniture. when we come back, i'll explain the rapidly-changing drone rules. plus, a couple wrote to me after getting their foreclosure overturned in court. now the bank is saying they owe tens of thousands of dollars in fees. [ woman vocalizing ]

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>> welcome back. i'm bob massi, the property man. real-estate agents are letting buyers see properties in a whole new way these days as the use of drone photography has exploded. >> pictures and video from the ground -- you know, everybody's seen that for years. so drones are a great way to get a different perspective of properties, uh, to really something different. >> what a drone enables you to do is show the surrounding area in a way that you could never really do before, even with a ladder. >> so all i do is just go straight up. and see on the screen... >> oh, yes. >> ...how dramatic that looks. >> so how has drones changed your -- your life as a realtor and the whole industry? >> oh, gee. the last year of my life has changed dramatically. i started out wanting to market homes that i -- that i normally sold in the $200,000, $300,000 range. >> mm-hmm. >> now i'm in the $500,000 to $1.6 million. >> because of the use of drones? >> because of this.

>> this is really not an expense. this is really an investment in your business. realtor aaron o'connor is working with aerial-photography company aerobo to showcase two unique properties. >> in the two homes that we saw today, a great portion of their value is the lot that they sit on. and both of them were on gorgeous golf courses. one of them has the country club behind it and a desert wash. >> we're showing the listing and the context of the listing. >> we're trying to get some just really beautiful shots of different scenarios, panning movements and rises, reveals. >> previously, what you could see was really the facade of a house, diffent flat angles. now, what we've enabled you to do with a drone is show the property three-dimensionally. >> we'll take off. we'll start doing movements around the home or what have you. it'd take a lot of ground communication between the camera operator and the pilot. >> you can put 'er down. >> we'll actually go through what we think we want to get, how we're gonna go about doing that. >> more than 2 million people bought drones this year.

that's estimated to grow to 7 million by 2020. >> one of the hardest things with this, bob, is what's called directional acclimation. so, if i wanted to go to our left, because it's facing us, i have to make it go right. and that's where a lot of people run into problems. >> what's the cost of a drone like this? >> about $1,200. >> but, just because you can walk into a store and buy one doesn't mean that you can use it to shoot real-estate video. >> if you want to fly a drone for commercial purposes, you have to comply with all federal regulations. you have to have your part 107 certificate. you also have to comply with every tenet of it. before the faa created a drone rule, you actually had to have an exemption called a 333 exemption. that exemption was very tough to get. >> how long did it take you to get that exemption? >> 177 days. >> you were counting? >> yes. >> although the rules are changing fast, they are strict. >> the law surrounding drones is evolving at a rapid pace right now in america. you can't fly above 400 feet.

you can't fly over sensitive locations, like federal buildings, hospitals, or schools. you can't fly in locked-down airspace. you can't fly near airports. you need to actually know the airspace that you're going to be flying in. you should have insurance. finally, be courteous about where, when, and how you fly a drone. >> i have a letter that i'll give to the neighbors. i let them know, "look, i'm flying my drone, uh, for your neighbors who want me to market their house. do you have any concerns?" nobody has complained about it. >> and listen up, guys. with aircraft near-misses and drones crashing nearly every day, the government isn't messing around with this stuff. >> recently, the faa passed a $2 million fine on someone who was illegally flying drones. you're liable for any damage that you cause. you can be find exorbitant amounts of money that make it not worth it. >> so leave the flying to the pros. but just know that when your listing needs that extra boost, it might be time to take to the skies. up next, i'll meet a couple

who successfully fought to get their foreclosure overturned. but now, the mortgage servicer is burying them in thousands of dollars worth of unknown fees and threatening to foreclose yet again. [ woman vocalizing ]

♪ >> i received an e-mail from a couple named kent and lisa who had been struggling to save their home ever since the recession. they bought their home in 2003. and when the financial crisis hit in 2008, lisa's company went under and she lost her job. in 2009, the contacted their bank looking for a loan modification. >> at the time, the servicer was indymac, and they said that they'd be able to help us. it would be available within two weeks. two weeks end up being a month.

a month, two months -- i called probably once a week for the first six months. >> they were still current on the mortgage but knew that they wouldn't be able to keep it up much longer. >> then i got a letter september 23, 2009. >> the bank said, as we've heard so many times, "stop paying and we'll work with you." >> they said, "the only ones we're working on are those that defaulted." >> how did that make you feel? >> i was upset, 'cause i have great credit, and i go, "we need help now. why would i want to default?" >> eventually, they couldn't keep up anymore. and they fell behind on their payments. >> i was unemployed at the time. >> okay. >> i was trying to work side jobs, but just not making enough. and so, then it was like that perfect storm where we just couldn't make the payments anymore. and so, that's when we defaulted.we didn't mean to deft that's when we g the letter from indymac that "you have four options." either sign over the mortgage... >> a deed in lieu of foreclosure. >> yes. one of them said, "loan

modification," and i said, "yes. i want a loan modification." and so, they said, "get everything in." >> what is it they wanted you to send to them? >> the application, our finances, our monthly... >> income. >> ...income. >> for months, the bank asked them to resend information or send more information. >> and then i get this letter saying, "you've been denied 'cause your husband's year-to-date's not on there." i called indymac again, let them know we did submit everything in. it's all there. i even circled it. the lady said, "yes, everything's in. let me resubmit the paperwork again." >> eventually, they got word back that it didn't matter. the bank was moving forward with foreclosure. >> they waited until, you know, new year's eve. they were saying that our -- my year-to-date was not on the first page and that they were gonna foreclose. but they waited till the 31st. >> the 11th hour. and knowing most people couldn't respond anyway. >> yeah. >> they were even offered some cash on the spot to vacate. kent and lisa said, "no way!" >> the young man sat down on the table right here and said, "we're gonna give you money."

and i said, "no. i am not leaving. we had everything in. there's something not right here." >> after the foreclosure, then you did your research. >> i met with fannie mae, and i showed them what i turned in. "i had everything turned in. do you think you would have approved us?" and he said, "yes." >> they were able to convince fannie mae to rescind the foreclosure because they should have qualified for the loan modification. >> we got the pre-trial fannie mae. the pre-trial fannie mae was supposed to be set up to help us to get started if we met the criteria -- >> get started for what? >> to get a hamp program. >> okay. >> they had to go to court to get the deed transferred back and get their home back in their name. fighting this drained every penny they had. they had garage sales to raise money, even moved in with a friend and rented out their house. >> we sold our cars. we sold everything just to survive, to pay our attorney fees as well as the mortgage. >> to recoup some of their cost, well, they sued for wrongful foreclosure. but they lost. they got their home back. and they thought they were back on track until they started getting their rtgage staments.

>> we were so excited until we opened up the statement. >> they get a delinquency statement with other charges, more than $1,400 per month, listed as unpaid. total amount owed, more than $54,000. and they don't really understand where that number comes from. >> you gave me a document from the servicer of the loan, ocwen. and that document states, "you are late on your mortgage payments. your account first became delinquent in february 2015. failure to bring your loan current may result in fees or foreclosures and the loss of your home." do you have any idea the amount that they're talking about here, what it represents? >> no, i do not. >> and, suddenly, they started getting letters in the mail every month from the law firm that represented the bank. >> we have a whole stack here. they're very consistent. she gets one, i get one every month, and it's been for, what, two or three years now? >> two years. >> it's very upsetting, because they basically are threatening to foreclose every month. >> but yet you are current on

your mortgage payment? >> yes. >> next month, new letter, new foreclosure date. >> "this letter is being sent to you as a courtesy to inform you that the foreclosure sale date that was scheduled for the property," da, da, da... and it's every month. they just move it up one month. >> so what do i think happened here is what -- when they sued for wrongful foreclosure and lost, the bank was able to tack their attorney's fees on to the back of the loan. >> i've been outside, working in my garage, and i've had people driving up. they stop and look at me, like, with a puzzled look. and they're like, "your house is in foreclosure." and i'm like, "we're staying here. this is our home." okay? it's every month. >> did you know at the time that you got your home back that there was any issue of you paying attorney's fees to anybody at all? >> no. >> we didn't understand that. >> there's nothing on our mortgage, until we got our home back in april, all of a sudden, there's the attorney fees on our mortgage. >> the $1,400 and change that you showed me, the bank statement -- you've been paying that every month. >> yes. >> yes. and take chaamerica is there

to overseehat. >> take charge america is a nonrofit credit and counseling agency that works with people in situations like this. >> they're an advocacy program for the consumer. >> do they give you an accounting as the payments are being made? >> yes, we get a statement from ocwen every month to let us know that they did receive the payment. >> what we're gonna try to do is to see, number one, if we can get an understanding of the statement that came from your servicer and the statement that came from the law firm and try to get an understanding of what that really represents. i gave you a couple things i need you to do for me. >> okay. >> it's a simple phone call. avoidance does not solve the problem. avoidance complicates the problem. we want you to ask them specifically, "what does this number represent as it relates to my mortgage payment? 'cause i'm making my mortgage payment." and see what answer they give you. >> okay. >> and then i know you have a present lawyer. i will talk with her and see if she could call this law firm to find out what this really means. what is it that you're in

default in? finally, for those people that are viewing, there are many americans still that are going through problems in this country. what is your message to them? >> not to give up. >> you know, stay in the battle. >> i'm going to check around and see if there's anything we could do to help them out so they could finally move on with their lives. we're gonna keep following their story and update you in a future episode. [ woman vocalizing ]

♪ >> time now for the massi memo. we met kent and lisa. "you must bring this amount to bring your loan current." they are getting notices every month saying they owe tens of thousands in unknown charges and letters saying the home is going to be foreclosed once again. now i'm working with their attorney to get these fees removed and sort it all out. but there's a good lesson here for everyone. stay on top of anything and everything you get from your bank. make sure all of your payments are being applied to the right thing. and question any charge if you don't know what it is. foreclosures are expensive. and fighting them has costs. but you need to make sure you understand every penny that you're told you owe and why do you owe it. now, there is some good news when it comes to mortgages. back in april 2016, fha decided to make it a little easier and not as strict on lenders. but that's controversial. and here's what i mean. as we've read over the years,

many lenders got in trouble for bad loans. and they've been paranoid, very paranoid, about giving mon to anyone. and any little mtake that was made by a lender, fha would penalize them severely. so what they've done is, if the mistake that was made by a lender in no way would effect somebody qualifying for a loan, life is good for the lender. but what we think is gonna happen is the lender will not work under a fear of penalties any longer from the fha. and that's important. what's important to understand is, when you decide to buy a home, go to a mortgage broker. have them explain all the new programs that are out there and also some of the changes in the fha insurance. that's important for you to know as a homeowner. that's all the time we have for today. be sure to send me your property stories, questions, or pictures of your property bloopers. send them to propertyman@foxnews.com, and don't forget to check us

out on facebook and twitter. there's also plenty more information and videos on our website, foxnews.com/propertyman. [ woman vocalizing ] charles: all right, folks. lou dobbs. lou: good evening, everybody. a defiant north korea issuing more threats against the united states as gee no political experts -- geopolitical experts warn the rogue nation is primed and ready to conduct what would be its sixth nuclear test. that test could come as early as tomorrow. celebrating the 105th birthday of kim jong un's grandfather. the rhetoric from pyongyang has risen exponentially over the past week. a north korean official today warning of a preemptive strike against the united states if america takes what it called reckless military action. the north korean vice minis