The Washington Independent - Latest Comments in Bailout Bill Must Include Help for Homeowners

Re: Bailout Bill Must Include Help for Homeowners

Mississauga — Fri, 20 Feb 2009 11:27:15 -0000

Your last paragraph summed it up very nicely. It seems that with the way things are headed right now, it's clear that past solutions didn't necessarily have the desired effect. Thank you for this well-written piece.

Re: Bailout Bill Must Include Help for Homeowners

Modification — Tue, 10 Feb 2009 04:10:12 -0000

The government is about to give away more money to the banks I really hope there is better control. It is unbelievable that the tax payers have to pay the bonus structure for the banks

Re: Bailout Bill Must Include Help for Homeowners

FX — Sat, 24 Jan 2009 07:54:53 -0000

Too many people went too far without understanding the implications of what they were signing. The mortgage companies took advantage of the uneducated and under educated for there short term profits not completely understanding all the trouble they would be causing in the future. It is just a shame for so many.

Re: Bailout Bill Must Include Help for Homeowners

C. Pomanski — Mon, 12 Jan 2009 18:33:29 -0000

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Re: Bailout Bill Must Include Help for Homeowners

donna — Tue, 06 Jan 2009 16:09:27 -0000

why can we not get help for our forcloser home . ive tried every thing still nothing please help

Re: Bailout Bill Must Include Help for Homeowners

Lisa_P — Fri, 21 Nov 2008 00:36:23 -0000

The bailout plan is ambitious and is designed to bring stability to the shaken economy, it will affect only a narrow slice of homeowners in the U.S.
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

Re: Bailout Bill Must Include Help for Homeowners

Mark Argentino — Wed, 08 Oct 2008 20:56:38 -0000

Hello,
I agree with your post and feel that you have some excellent financial and market information. Your comments about the current marketplace should be considered by most in the industry. You can read about the current real estate market and some of my predictions and information at http://www.mississauga4sale.com you will see that my site is also packed with relevant information that would help your readers as well.

Keep up the great writing!

I wish you all the best,
Mark

Re: Bailout Bill Must Include Help for Homeowners

tenatious — Sat, 04 Oct 2008 12:43:59 -0000

In Oklahoma OSCN records show thousands of foreclosures by Banks as “Trustee of Holders of Mortgage Pass-Through Certificates which are Mortgage Backed Securities” The Holder of the securities is rarely identified in court, but is the real owner of the real estate and beneficiary of the money from the foreclosure sale that is administered by the Trustee. Many Banks servicing loans assigned the notes to a Trustee right before they were cited for loan servicing violations by the Office of Thrift Supervision.

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.

Re: Bailout Bill Must Include Help for Homeowners

LadyFLRealtor — Thu, 02 Oct 2008 17:54:37 -0000

Lauren, you are so correct. At the very least there should be a freeze on foreclosures until Congress figures out a solid plan, and I don't care how much of their 6 week vacation they cut into! They should have been working on this the last year. Bush put through a terrible plan, but Congress has not looked out for Americans, loyality to too many lobbyists and contributors. The housing plan they already passed did not help Americans either and we will owe on it for years to come.

Re: Bailout Bill Must Include Help for Homeowners

LadyFLRealtor — Thu, 02 Oct 2008 17:48:50 -0000

You are so correct.

Re: Bailout Bill Must Include Help for Homeowners

LadyFLRealtor — Thu, 02 Oct 2008 17:46:54 -0000

The Bankruptcy courts already allow for re-modifications of second homes and investment properties, but unbelievably there is no help for the homeowner. There could be a cutoff period so that this is not a precedent for filings in the future, but these times are different. Perhaps it could only affect those properties "upside down" financed between 2004-2007. If the loan balances were adjusted to the current market with a lower interest rate (arms went up 3% higher even on conservative rates of 6.25) requiring PITI (principal, interest, tax & insur) it would be far better for the economy for people to stay in their primary homes.

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.

Re: Bailout Bill Must Include Help for Homeowners

LadyFLRealtor — Thu, 02 Oct 2008 17:20:00 -0000

I am in the Real Estate industry. We now know this crisis began with the corruption of Fannie Mae & Freddie Mac. Hearings were held in 2004 for the fraudalent bookkeeping and outrageous salaries for those running the program, and those in Congress "on their payroll" overturned the proposal for more accountability and regulations. Subprime home loans were given at 105%, many "creative income". Spectators began investing in the more lucrative high interest (or potential) mtgs and banks began issuing loans for even W-2 workers as "stated income, stated assets" with good credit. This is how mainstream got into trouble along with the toxic millions of loans approved for low income/bad credit loans issued that never should have been. Spectators buying 2+ properties to flip drove up prices for primary homes, there were no boundaries and virtually anyone could be approved 2004-2006. The loans with no equity in the house are truly toxic and people should be allowed to walk with no repricussions IF they leave house in good condition and turn over title, or be allowed to rent so govt owns (after paying 50% on loan to mtg). Now taxpayers have the asset to rent or sell.

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.

Re: Bailout Bill Must Include Help for Homeowners

Maria — Mon, 29 Sep 2008 11:52:55 -0000

Why should those who a) bought more house than they could afford, b) used their house as a piggy bank to live way beyond their means or c) flipped houses as a way to get rich quickly without having to work for their money get any kind of bailout? I live in Miami where huge numbers of people were buying and selling the houses they lived in every couple of years or buying and selling half-million dollar condos as "second homes" with borrowed money, time and time again. Then they used their profit to buy expensive vacations, plastic surgery, designer bags and luxury cars. They used flipping as second incomes. They took chances they should now be liable for. Those of us who lived within their means are now being asked to bailout our deadbeat neighbors. Everyone has their hand out. Maybe I could stop paying my mortgage or take out credit and spend it recklessly?

Re: Bailout Bill Must Include Help for Homeowners

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Re: Bailout Bill Must Include Help for Homeowners

D. Curry — Sun, 28 Sep 2008 19:26:11 -0000

Homebuyers who buy a house that the cannot afford and hoping to benefit from the inflated home prices should not receive any help. This is called greed. They are taking a gamble and sometimes you loose.

Re: Bailout Bill Must Include Help for Homeowners

Lauren — Sun, 28 Sep 2008 18:27:31 -0000

I am in the Real Estate Business and I think that the government once again has screwed the American people. I believe that Corporate America should not be allowed to take one dime as pay outs. Why should they get up to $500,000 per person when a family can loose there home that was $200,000. This not fair and I believe that the American people should revolt against this bill being passed. The government is trying to sell this as a “must do" financial crisis, why can't Americans stand up and say OK "a must do for Americans in foreclosure is to write down the loan and the interest rate" and the banks must AGREE to that for every home that is in foreclosure. Call your Congressman, take a stand “do not let this pass unless this bill INCLUDES AMERICANS IN FORCLOUSURE

Re: Bailout Bill Must Include Help for Homeowners

Loans — Sat, 27 Sep 2008 22:07:59 -0000

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Re: Bailout Bill Must Include Help for Homeowners

Moe Bedard — Sat, 27 Sep 2008 13:40:51 -0000

The facts remain that without provisions mandating loan workouts and loan modifications, increased regulation on mortgage servicers, servicer accountability and without complete 100% control of these mortgages, themselves, this bailout plan WILL NOT work.

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!

Re: Bailout Bill Must Include Help for Homeowners

Murphy — Fri, 26 Sep 2008 13:20:35 -0000

Why are homeowners given such special status? If an investor who rents loses $20,000 in the stock market, how is that any less costly to the individual or the economy than a homeowner losing his down payment (if any)? Most of these deadbeat homeowners put nothing down on the house, and many were subsidized. They were basically renters.

I fail to see why one person's monetary loss should be treated any differently from another's.

Re: Bailout Bill Must Include Help for Homeowners

gilmanc — Fri, 26 Sep 2008 12:59:43 -0000

The government bailout legislation can include the ability of servicers to modify the debts, if that is more palatable than the necessary bankruptcy language.

It is this level of anonymity in the financial services world that has allowed us to ignore the plights of those around us.