Skip to comments.Firms are getting billions, but homeowners still in trouble
Posted on 10/04/2009 5:59:09 PM PDT by underthestreetlite
WASHINGTON The federal government is engaged in a massive mortgage modification program that's on track to send billions in tax dollars to many of the very companies that judges or regulators have cited in recent years for abusive mortgage practices.
The firms, called mortgage servicers, have been cited for badgering, manipulating or lying to their customers; sticking them with bogus fees, or improperly foreclosing on them.
Mortgage servicers are the middlemen between homeowners and the investors that hold their mortgages, collecting homeowners' checks and disbursing payments for the mortgages, property tax and insurance. They're a necessary player for any modification.
The reliance on such companies points to an ironic paradox for federal regulators: Cleaning up the nation's financial crisis often rewards the firms that helped create the mess. Those Wall Street banks and mortgage servicing companies argue that they're best positioned to repair the damage they've helped cause. In the case of the mortgage program, the firms getting the taxpayers' money are, after all, the firms that control the troubled mortgages.
To make matters worse, the Government Accountability Office , Congress' watchdog, has said that the Treasury Department hasn't done enough to oversee the companies participating in what's known as the Home Affordable Modification Program, which emerged from the bank bailout bill Congress passed last fall.
(Excerpt) Read more at news.yahoo.com ...
Duplicate (and garbage).
Home Affordable Modification Program is in fact a good program for those people who may be in need for help. This is not a handout - this is not a welfare program - this is not a bailout - the program does none of that. It actually helps the homeowners renegotiate the terms of the loan. So, for those homeowners who are facing tough economic times, this may be a good thing to look into. Check this:
Every one of them should be thrown out on the street!
Loan modification is criminal theft from everyone that ever paid a cent in taxes!
And smaller banks are being forced to declare bad loans as losses by this ‘Administration.’ Thus are banks not being responsive and must be closed or taken over by the Feds.
if homeowners can get better loans then why are banks failing? are lending firms and banks different? does re finance get banks their money/ WHAT KIND OF LOANS ARE FAILING BANKs?
“Loan modification is criminal theft from everyone that ever paid a cent in taxes!”
Do you have ANY idea what you are talking about? No? didn’t think so.
How is renegotiating the terms of a loan criminal theft from tax payers?
If my income had gone down due to employment dislocation, I would be glad if I was able to renegotiate my loan ... I won't be stealing from the bank - It would be a renegotiating of terms.
And the banks would only agree to renegotiate if they believed that this would help their bottomline. Would they not prefer to renegotiate than deal with another foreclosure!
Point Well Taken.
Life isn’t fair. Its in the banks best interest to modify the loan if they can rather than foreclose in a market already overrun with foreclosed homes.
If you made your payments on time then you didnt take the hit on your credit.
Those people signed an agreement and should he held to it!
Most of them didn’t put down anywhere close to 20% and shouldn’t have been allowed to purchase in the first place.
Since they did agree to pay their mortgage and didn’t they should be thrown out in the street!
“How is renegotiating the terms of a loan criminal theft from tax payers?”
If they lower the principle it’s theft from me as a depositor, if they lower the interest it is lowering the return on my money in the bank!
The bank uses my deposits, CDs, and money market money to multiply the amount they can loan and my income is predicated on the return to the bank!
Any bastrard that doesn’t live up to the total agreement of the loan is stealing from me!
“Those people signed an agreement and should he held to it!”
Thats kinda up to the bank isn’t it.
“Most of them didnt put down anywhere close to 20% and shouldnt have been allowed to purchase in the first place”
Oh so you’re the king of the world now. Again, thats up to the bank. If the bank chose to make a business decision they should be accountable for that decision, gather the risk as well as the reward. Unless you or I are a stockholder than we have no say.
“Since they did agree to pay their mortgage and didnt they should be thrown out in the street!”
yes you Majesty!!! again, thats up to the bank.
On the broader scale its MUCH better for society for people to stay in homes. Here in Florida the foreclosure rate is very high. Some neighborhoods have 10% of the homes in one stage of foreclosure. Thats 10% of the homes that are not being cared for, tall grass, stagnant swimming pools. Oh yeah they are also crime magnets.
What would you do with the millions of homeless families that would otherwise be out on the street? Would you laugh at them and throw stuff at them?
“If they lower the principle its theft from me as a depositor, if they lower the interest it is lowering the return on my money in the bank!”
Are you really that ignorant of the banking system? Did your balance go down? Did they reduce the rate on your CDs?
Foreclosing on a property results in a much greater financial loss to the bank.
“Any bastrard that doesnt live up to the total agreement of the loan is stealing from me!”
yes and its all about you.
“yes and its all about you.”
I sure don’t give a rats ass about anyone else!
Especially anyone that doesn’t pay their obligations 100%!
And no I don’t believe in bankruptcy!
When my corporation was losing money I pur over $250k out of savings into it before I closed it after 57 years in business so that every bill was paid in full before I closed it.
What the heck are you talking about. Loan modifications and bailouts are not connected. TARP monies did NOT go to the loan modification programs. Largely its not the banks decision to modify the loan since in many cases they’ve sold the loan are only the servicer.
Let them sink or swim on their own. Let them enjoy the risks as well as the rewards. Unless you own a bank then you have NO say whether they modify a loan.
“I sure dont give a rats ass about anyone else!”
“And no I dont believe in bankruptcy!’
Good for you, I bet you believe in debtors prison though. Fortunately the rest of America believes society is better off when people can have an opportunity to start fresh financially. Since this isn’t really your kingdom but a republic the opinions of other people do count.
“When my corporation was losing money I pur over $250k out of savings into it before I closed it after 57 years in business so that every bill was paid in full before I closed it.”
You sound bitter about it, buy why shouldn’t you have done that. If you had that much money in the bank it would have been better to pay those bills off before you were forced to close the business. Carrying debt is not a good thing for business or personal.
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