Skip to comments.More Than Half Leave Obama Mortgage-Aid Program (Just another 'bureaucratic nightmare')
Posted on 11/21/2010 6:28:39 AM PST by LibloatherEdited on 11/21/2010 6:32:55 AM PST by Admin Moderator. [history]
WASHINGTON (AP) – More than half of the 1.4 million homeowners who enrolled in the Obama administration's flagship foreclosure-prevention program have fallen out.
A separate report Thursday showed that the number of Americans at risk of foreclosure improved slightly over the summer. The Mortgage Bankers Association said that about 9.1 percent of homeowners had missed at least one mortgage payment in the July-September quarter. That was down from 9.9 percen6t in the April-June quarter and compared to a record high of more than 10 percent in the January-March quarter.
(Excerpt) Read more at memphisdailynews.com ...
My ex-brother in-law applied for one of these programs. But he had no intention of ever paying the new mortgage. His only motivation was to delay the ultimate foreclosure. I’m sure a lot of these applicants have the same idea.
Nothing that a little ol' national sales tax add on won't help.
Yep. I agree.
A lot of them were hoping for another ‘bailout’ so they could avoid paying at all.
How many had thought that Obummer was going to pay for their cars and houses when they passed this ‘stimulus’?
Anybody that applied, I’m sure, thought so.
More on Martin Crutsinger, Associated Propagandist...(thanks NewsBusters)...
Gee, My buddy must have written this article. They were told Documents were lost by a “Third Party” contractor to the Process, but no CITI was going to take over......please send documents again.
Then, they were told their ‘Insurance Documents” were not current, it was last years insurance....this coming from a mortgage company that actually PAYS the insurance company themselves........saying they have not proven they have insurance.
They asked CITI WHY were they sending out a $3,000 check to the Insurance Company each year if they couldn’t PROVE they had insurance on the home they were financing.
Maybe that program is actually run by the government ? And the Mortgage companies are just trying to conform to the bueaucratic FHA or somethin.....real corporations don’t work this way.
Not everyone was a dead beat. This was a trap intentionally set so that a lot of houses could be foreclosed on and then released to “the less fortunate” at a “good price.”
Here’s how it works:
You call about the program. You are told you HAVE initiate the program by paying the reduced rate on the next payment. They even tell you how much to pay. Its in writing!
When that happens, you are told that the paperwork to apply will be sent.
And it is. So you fill out the paperwork, and re send it back to the bank.
Two months go by (now you are in the third and last month of the temporary payment period) this is were it gets real cute.
You get a letter saying your paperwork hasn’t gotten here, or your paperwork was incomplete, or you didn’t send us the right stuff. So too bad, temp period is up, you are OUT. (Too many people’s paperwork was lost or declared “incomplete” to be a one time thing. The AGs of many states are not investigating the banks for not giving the discounts, they are investigating this blizzard of “lost or incomplete” paperwork.)
Then you hear nothing for about a month. Then you get a letter advising you that your loan is in default and the entire sum is due NOW.
You call them, write them, email them: nothing. You get a different person in a different state every time. They use their “customer service” leviathan as a font line of defense.
What they do is this, since you are not “eligible” for the “program”, now those “partial payments” you were TOLD to make, are now viewed as underpayments on your mortgage. In other words, you are declared a deadbeat for doing what you were told to do.
They take all THREE payments, apply it to the payment for the first month you started making the partials, use the balance for punitive “fees” (after all, you only sent us half of the payment, you need to be punished) and then declare you in default because you are now behind TWO payments.
They start foreclosure IMMEDIATELY. If you do not have the means to cover your short, too bad.
The whole program was trap from the start and yes, some deadbeats thought they could use it, but a lot of good people got caught in what looks to me to be another way to “redistribute the wealth.”
Know a little about this because I had to help a friend wiggle out of the trap. Also have someone close who works in this foreclosure thing for another bank.
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