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My concern with the BAIL OUT and the government buying back the Mortgage Backed Securities is if a person is in foreclosure and the home is sold at auction how would anyone know if the government had already bought back the Securities? In Oklahoma as well as many other states the law permits the beneficiary in of a Trust to remain hidden. In Oklahoma all parties to a Trust can’t be cross referenced and the Mortgage Foreclosure Mills refuse to identify the Holder-beneficiary of the Mortgage Back Securities. The Holder is who really gets the money when the home is sold at the foreclosure auction. The foreclosure mills use Oklahoma law as their excuse to hide who the holder-beneficiary of the Mortgage Backed Securities is by quoting Tile 12 chapter 39 sections 1217(a) which says “Trustee’s do not have to enjoin all parties in a legal action concerning real estate”. This appears to be a trick scheme by the Banks to cook the books and get paid twice using deceptive state laws to hide who get the funds and where they went. Now the Banks scream BAIL ME OUT while they put the funds from the Trustee in a Hidden Account since no one knows who the Holder of the real estate really is! When looking at 10K filings of many of the Mortgage Holding Banks their Parent Company purchased the Mortgaged Backed Securities and the Bank assigned the note to the Trustees for foreclosures purposes knowing the Holder will not be identified in states like Oklahoma. The Bank writes all the Mortgages off as bad debt then dissolves while the Parent Corporation still gets paid. No wonder the CEO’s can bail out with 40 million dollar parachutes. Now congress is going to go along with this scheme!
Sounds a like the banks were taking lessons from World Com and ENRON!
In this state the Banks can badly fix-up homes with structural problems and not have to disclose this at a foreclosure auctions. Engineers say they can’t tell prospective buyers if a home is fixed correctly without past reports showing the previous damage. This is another trick scheme law that puts homeowners in jeopardy of future foreclosure when 5 years later they cannot sell the home due to laws intended to deceive buyers.
HUD sold millions of FHA MIP insured notes that were taken in on the assignment program between 1995 and 1997. The home buyer paid 1.5% of the loan at closing and a monthly fee for the FHA insurance. HUD sold those notes at discounted rates to Lehman Brothers LLC (a corporations set up by Ocwen Financial and Lehman), OCWEN FSB, OCWEN Financial, WaMu, and they were to follow HUD regs in servicing the loans. It turns out those Regs had NO TEETH. . . This was under a Republican controlled congress that overrode any veto. The lack of oversight aided Banks corruption. In 1998 HUD and Congress BRAGGED about the huge profits made by the sale of those loans, to what now appears to be Monsters Banks. One of the banks has 150 multidistrict lawsuits filed by homeowners for violations of servicing. Every bank screaming “bail me out” was one listed on Mortgage Servicing Frauds’ website as Fraudster and Co-conspirators.
Empty houses and foreclosures are driving the values of the neighborhoods down lower & lower with no end in sight. The bleeding has to stop, and throwing billions to reward Wall Street's speculative actions with no retributions is not the way to go. Perhaps Congress better take an extra week, listen to economics (and not just the financial institutions/politicians with their own agenda), and then put forth a plan than Americans can begrudgely support, with an end to the crisis in site.
Second part of the problem I know personally. I am a single Mom who works hard in a very expensive area in Florida. When there were no rentals available and it was a seller's market due to the lack of inventory in 2005, I bought a $485,000 fixer upper ($30,000 under the market). I put down $100,000 (my equity from a property I had for years) planning to refinance at a better interest rate after one incorrect item was removed from the credit report. Took an arm at 6.25% (fixed would have been 6.75), a one year pre-pay, and just needed 4 more points on credit to receive a 1% less interest rate for 30 yr fixed. The bubble burst 6 months later and couldn't get the appraisal to refinance. Property taxes continued to rise to almost $4,000 (from $1,700) along with insurance after Katrina. I am not in a flood zone. I have 20% in my property now worth 40% of what I paid for it. The lender will not negotiate lower, in fact wouldn't talk to me unless I went 90 days past due and by that time they already had a law firm filing papers at the courthouse. The lenders cannot fix this, only modifications done through local state offices to clear the inventory. Trickle down DOES NOT work. Have to start at the root of the problem by stopping foreclosures that are driving ALL home prices down until Congress can get economics to help them resolve an issue they don't have a clue how to fix.
It is this level of anonymity in the financial services world that has allowed us to ignore the plights of those around us.
I fail to see why one person's monetary loss should be treated any differently from another's.
Well, at least for the people on Main Street losing their homes.
The proposed $700 bailout proposed by U.S. Treasury Secretary Henry Paulson, in its current form, will do absolutely NOTHING to help you, your family or your neighbors on Main Street. This bill’s costs will be gargantuan, yet it is suffering from famine in the substance department.
Meaning there is no meat and potatoes for Main Street. Only more gravy for Wall Street.
The way this bailout bill is written, our government and the Treasury would have very limited ability to gain “complete” control of troubled mortgages. What the Treasury has planned is to buy troubled assets from the various banks and investment banking institutions consisting of mostly residential and commercial mortgage-backed securities.
To put this is layman’s terms for my readers. The US Treasury, oops I mean us, the American people are going to buy up Wall Street’s bad and toxic investments in an effort to try stabilize Wall Street for a just a “little” bit longer.
Paulson has claimed that after the Treasury buys these bad assets, the purchase will have benefits that will trickle down to Main Street in the form of restored liquidity and credit for making mortgages and other credit to consumers available.
Why the plan will not help homeowners.
Every single Hope Now, FHA Secure, plan, bill and initative has made it “only voluntary” for mortgage servicers to comply and participate in these proposed solutions to our mortgage and housing crisis. Meaning they do not have to do anything they do not want to do and all of this Hope Now talk and puffing of foreclosure prevention chests has been nothing more than botoxed lip service and media propaganda.
This is all about the Benjamin’s (money) people. Please, never think, for a mili-second that this is about what is morally and ethically right. It’s business and servicers are in the business of collecting, demanding and making money off of homeowners.
They are definitely NOT in the home saving business!
Mortgage servicers have absolutely no or little financial incentive to help struggling homeowners. They are severely inundated and bottle necked with calls, faxes, pleas, cries, delinquent mortgages, short sales, loan modifications, foreclosure sale dates, disgruntled and under paid employees. They do not have enough space, staff and phone lines to properly assist the people who are seeking it.
Couple that with the facts that they actually make money when you’re delinquent on your mortgage and they also fear possible liability in the form of lawsuits from disgruntled investors.
The Mortgage Servicing Industry Has Failed! It’s broke and in need of immediate repair, cash and help. They know it, the banks know it, our Secretary Treasury and our government knows it.
Yet, nothing is being done to fix it.
Americans on Main Street need to demand that this bill provides relief to struggling homeowners:
Ø Open home preservation centers that are operated by third parties such as non-profits and legal aid agencies to insure consumer protection and safety.
Ø The bill must mandate all servicers to perform some type of loan workouts (whether it be a loan modification, repayment plan, short sale or deed in lieu, judicial or non-judicial).
Ø Foreclosure moratoriums on primary residences
Ø New mortgage servicing regulation
Ø Loan workout accountability and tracking system
Ø Prosecute and fine lawless mortgage servicers
Ø Give us all a do over like Wall Street gets!
Please write your state Senator who is supposed to represent you, the people, and tell them what you think and want. A silent voice will never be heard!
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Treasury Secretary Paulson’s Troubled Asset Relief Program was not the kind of credit repair scores the endangered homeowners needed. However, a new mortgage program is underway. Thanks to the Federal Deposit Insurance Corp Chairman Sheila Bair, 1.5 million homeowners will have a sturdy backbone when they’re facing foreclosure. This $24.4 billion program will be drawn from the $700 billion pool that TARP set up. With this straightforward system, lenders will be given a fixed amount of $1,000 per loan they renegotiate with financially stuck homeowners. In addition, the FDIC has promised to take on up to 50 percent of the loss in the event of a default on a loan. While others view the action on Bair’s part as a needed investment to maintain liquidity in the mortgage industry, Paulson has predestined this as mere spending that will only bankrupt the FDIC. Although this will no doubt require a lot of time to solve, it’s definitely a noble effort to help repair credit.
Click to read more on Credit Repair
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