Posted on 11/16/2010 6:33:17 AM PST by WebFocus
Nearly 90 percent of home owners have stayed current on their mortgages throughout the housing meltdown. Yet, in what should be his final act as chairman of the Senate Banking Committee, Chris Dodd is holding hearings today about how the 10 percent of homeowners who are either seriously delinquent or in default on their loans are being screwed by the banking system.
The hearing, of course, won't dwell on the mistakes of the vast majority of alleged victims of this scandal -- namely, how they rolled the dice on the housing bubble, taking out loans they knew they couldn't afford.
Its title -- "Problems in Mortgage Servicing From Modification to Foreclosure" -- tells you all you need to know about the goal: to stoke anger at the big banks by portraying all those who've been forced from their homes in the last two years as innocent victims, seduced into taking out unaffordable loans and now victimized by the same banks and their teams of "robo-signers," who denied them "due process" by rubber-stamping foreclosure documents without proper review.
Dodd, of course, should have a special insight into the seamy side of the housing bubble and its ultimate meltdown. He got VIP treatment from one of the bubble's biggest instigators -- former Countrywide CEO Angelo Mozilo, whose business model centered on lending money to subprime borrowers. When it wasn't handing out subprime loans to risky borrowers (loans that were then guaranteed or bought by Fannie Mae and Freddie Mac, thus contributing to their demise), it was helping "influentials" like Dodd gain access to low-cost loans through its "Friends of Angelo" program.
Don't expect to hear much today about Friends of Angelo, or whether Fannie Mae and Freddie Mac stoked the housing bubble by enabling Countrywide to lend to anyone with a heartbeat.
(Excerpt) Read more at nypost.com ...
I'm going to enjoy the howls and lamentations myself.
Thanks for your post. But if someone doesn’t know what type of mortgage they’re applying for, they must seriously addled.
They haven't fallen enough to match the original teaser rates. The mortgages are still going to reset upwards, though not by as much.
The problem is the MERS corporation has hopelessly muddled clear title on millions of properties. Honest homeowners are going to get screwed as well. Imagine paying off your house, and not being able to get a clear title because of the frauds perpetuated by the banksters just to avoid having to pay title transfer fees.
And they played it crookedly.
Since when is shilling for the TBTF banks a conservative position?
The original teaser rates on some of these mortgages were very low, and though they won't adjust up by as much as they might have, they'll still adjust upwards.
And if the bank is going to switch terms on you, do you really think they are going to switch it to terms friendly to the borrower? No way are the new terms going to match what's currently and publicly offered to the next round of suckers.
FR is strange today, every body seems so friendly to the nice neighborhood banker. It's like nobody expects to live in Pottersville, it's all Bedford Falls - even as we read that 80% of the bank loans securitized by Citibank were in some way fraudulently handled. If there was that much fraud in the backroom, why is it hard to believe that the fraud didn't start right at the signing of the mortgage in the first place?
Pay your damn mortgage or quit squatting on the realestate!!!
No bank should ever renegotiate a loan, especially lower the principle!!!
Any that do are defraduing me as a depositor!!!
Pay your contracted amount or go live on the street!!!
Ummmm...no.
Oops! No mortgage and still foreclosed on
And this guy should do what ...?
“And this guy should do what ...?”
Contact his Title Insurance policy company.
Not a businessman, I see.
A bank lowers the principle or the interest if and when it's a matter of getting 70% back instead of 50% or less back. Doing anything else violates their fiduciary responsibility to you, the depositor.
No. I want to see anyone not paying their morthage thrown out in the street!!!
All my money is in either Real Estate or in banks waiting to buy more real estate FOR CASH.
I don’t buy anything on payments and never have except for our first home that has been paid off for over 30 years.
1. The servicer to whom you send your check might not be able to guarantee that it's actually getting to the entity that holds the note.
2. If you do try to pay off your note, the servicer might not be able to give you back clear title. http://chinkinthearmor.net/ . If the bank can't follow through on their side, why should the homeowner continue to pay?
If the banks had the required documentation for foreclosing, it would happen. But it appears the original note has often been destroyed as an 'efficiency'. To me, that just makes the loan into a gift. Tough luck for the bank, but it wasn't the homeowner who burned up the note.
This is a royal mess, and just throwing the small guy into the street without looking into the situation isn't going to solve anything.
Well, it might make money for the folks looking to scoop up cheap real estate. And apparently, some of the bank dealings have been underhanded in such a way as to cheat the bank shareholders out of full value, cheat the homeowners, and slide the profit out to such vulture investors.
dalereed,
Here are the financial realities of what YOUR type of thinking cost the investors in my bank. When all this mess started, I had $200K in equity in my house. As the markets collapsed, I went upside down by $200K ... that is a $400K swing in my houses value.
The bank had idiots that thought exactly like you. They told me to write them a check for how much I was upside down on the house, then they would talk to me about refinancing the balance. In short, I was expected to not only eat the loss of all my equity, but also the difference between what I still owed, and what the market would bear today.
Now ... from your comments I see you seem to fancy yourself a saavy investor. You already took a $200K bath on an investment, and you had a choice ... willingly write a check for another $200K so that someone else does not take a bath but you are now down $400K, or renegotiate so you are both at current market value and start over.
What I was offering the bank was a chance for them to limit thier losses to ONLY $200K. But ... someone like you worked at the bank. Now, the depositors and investors in the bank dont have to worry about a $200K loss, now they have a house that is continueing to drop in value, no cash flow from it, and they are paying out of pocket to maintain it. They sent it to auction, and could not even get $350K less than what my note was for.
So I am a bum in your opinion, and I should have been thrown out. Yet had they actually been worried about thier depositors and investors, thier losses would have been cut, and today they would have had positive cash flow.
That is absolutely correct. When the bubble was expanding, foreclosure rates were practically nil.
Pay your mortgage or get out you squatter!
You know ... the more I think about your skreed, the more apparant it is that you are a troll. You are saying what you are, because you are trying to promote a stereotype of conservatives as cold hearted bastards. Well, it wont work. I know a lot of conservatives, and you dont sound like any of them ... you do however sound exactly like a liberal mocking a conservative. Be gone.
I know dalereed. He’s a friend of mine. He ain’t no troll.
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