No Hope for Homeowners – Foreclosure Prevention Program Falters

Hope for Homeowners Program Update 11-19-08:

No Hope for Homeowners – Foreclosure Prevention Program Falters

Since the Hope for Homeowners program has been a failure so far in helping any homeowners avoid foreclosure, U.S. Housing and Urban Development Secretary Steve Preston announced today that standards for the program are being relaxed in the hopes that some actual borrowers might be helped by the program. The three most significant changes to the program are 1) allowing a loan to value of 96.5 percent for some H4H loans, 2) simplifying the process for removing subordinate liens by allowing upfront payments to lien holders and 3) Allowing lenders to stretch the terms on the mortgage to 40 years which theoretically could help with debt ratio problems.

Here are the full details:  http://fhaloanadvice.com/hope-for-homeowners-requirements-relaxed/

================================================================

 

 

Stunning feedback from readers of this article…

“I have been trying to get countrywide to adhere to this new program with zero results. I have made call after call on the HOPE FOR HOMEOWNERS program and keep getting the “run around” from them. They keep saying that they “have not heard about this program from upper management” so they cannot “process the paperwork on it yet”…meanwhile, each day that goes by, we wait and hope that we will not be thrown out on the streets. I know for a fact that they simply just don’t want to write down the differences….they are the worst culprits in this mess, I know….I used to underwrite mortgage loans for them until the “laid me off”, leaving us with no way to pay them the mortgage. I am since reemployed and have the capability to pay our mortgage after a 12 month mess. I firmly believe they will never use this program… they are too damn greedy.”  – Matt  (10-27-08)

“I thought it was just me. I have been trying for weeks to get someone at Countrwide to talk to me about the program. All I get is we have our own program coming out in December, and your account has not been flagged so you will not be eligible. On top of that I have to cancel my short sale in order to find out what they would do for me in a loan modification. My story is Matt’s story 20 years as an underwriter, Countrywide forced the lender I work for out of business, and I was unemployed for almost a year. Now I have a new job and want to modify my loan…..I just can’t get Countrywide to talk to me. Why should I have to give up a short sale contract to talk to the loan modification department? Why didn’t the government put some teeth into the new program and require that the lenders participate? After all they made all the money all those years on these loans and created this mess. God help us all because we are not going to get any compassion or leadership anywhere else.” – Kitty  (10-27-08) 
 
 “I spent hours on the phone today with Countrywide, called the Hope dept (which is the Home Retention department aka loss mitigation). Again I was told that they know nothing about the H4H program (Hope for Homeowners) I was actually told that I am lucky they have not foreclosed yet. When asking about a loan mod, I was told again that I would have to cancel the short sale process but today I was told that it is unlikely even with my income that they would consider me for a modification of any kind since the taxes on my home are due next month and that puts me over some threshold for what they can modify. So If I can come up with 25k I guess I can keep the house on a loan mod. Or I can continue the short sale process which has Countrywide loosing 78k based on the HUD my realtor submitted which is supported by the new appraised value of my home. Or do nothing and wait for the Sheriff to kick me out. I have no where to go, my wonderful realtor actually gave me the phone number for a shelter. I should take my 74 year old mother in law and my husband with congestive heart failure to a shelter. Countrywide should be working with me, I have the income to make the monthly payments. This is a travesty. God help us all.”  – Kitty  (10-28-08) 
 
As banks continue to line up for the taxpayer funded handouts designed to ease their withdrawals from years of dependence on high yields derived from ridiculously reckless lending practices, homeowners continue to seek avenues to prevent the looming possibility of foreclosure – typically cited as the root cause of the economic ‘crisis’ that currently grips world financial markets.
 

It’s reassuring to know that our dedicated civil servants are willing to put in the long hours required, on nights and weekends, to make sure their banking buddies and colleagues don’t have to suffer the same fate as many banking executives of late, having to retire with hundreds of millions of dollars that were fraudulently paid out as options and bonuses as reward for investing long and naked, and exposing their companies to tremendous risks.

By the way – none of those profits from the ‘boom’ are being appropriated in order to reimburse those now failing companies, and none of that money is going to be recovered in order to soften the blow to taxpayers.

That money is considered to be lawful compensation for a job poorly done. What is on the table is just exactly how much more bonuses they should get before their companies are declared illiquid then subsequently sold off to the lone bidder for pennies on the dollar, and how much of the bailout money they will use to buy up competitors instead of lending it out as promised.

And for the lowly taxpayer on whose backs both the illicit corporate profits as well as the cost of the bailout are borne? What has this unprecedented dash to action by the bureaucrats, political appointees, and elected representatives of the people wrought in the way of sanctuary from the economic tempest that has engulfed their citizenry?

How about the dandy “Hope for Homeowners” program, designed to help more than 400,000 homeowners avoid foreclosure by making as much as $300 billion dollars available for the effort.  What a fantastic idea, it would seem at first glance. Of course, the Devil really is in the details.

As of today, October 27, 2008 – nearly four weeks since the program was unveiled – a remarkable 79 people have applied for the program (Fox News 10-27-08).

Yes, 79 homeowners have been accepted (Fox News 10-27-08).

There are at least 77 banks participating in the program. I am not going to try to do that math in my head, but my best guess is that each of those banks has only helped about one homeowner avoid foreclosure on average in that 27 day period.

With all of the poorly underwritten loans Countrywide booked – and the tens of billions of dollars in profits they made in the process – one would think they might be on the list of participating lenders.  Not surprisingly, they are not.  Although a unit of Bank of America now, there has been no indication they will assume the responsibility for modification of existing Countrywide loans.

My first impression was that this had to be due to a simple lack of awareness by the public that such a program was available to them. Not the case at all I have found. The program has generated a great deal of interest from distressed homeowners since it was unveiled.

Lenders have been deluged with inquiries from interested borrowers, and the Congressional Budget Office has estimated that this program could help as many as 400,000 homeowners through September 2011, when the program ends.

“Our phones have been going crazy,” said Anthony Logan, president of Group Capital Mortgage in Cerritos, Calif, a participating lender.

What’s the hold up?  Why, it’s the program itself, which was designed almost certainly to fail. First of all, the program is completely voluntary for both the lenders and the participating banks. It also requires the lenders to forgive a portion of the original loan balance in an effort to bring the mortgage in line with the market and affordability for the borrower to enter a long term fixed mortgage.

It allows certain borrowers at risk of foreclosure to refinance into a 30- year fixed-rate loan insured by the Federal Housing Administration (FHA) if the current lender agrees to write down the existing loan to 90% of the home’s market value today. In plummeting areas such as California, if a lender holds a $500,000 mortgage and the home’s current appraisal comes in at $400,000, the lender would forgive $140,000 in all. Even before the program launched, lenders expressed concerns about the potentially enormous write downs they would face.

Incredibly, in the face of receiving the largest publicly funded bailout of private industry in history, supposedly caused by nonperforming securities backed by rapidly foreclosing mortgages, the banks themselves are refusing to use a portion of that bailout money to help alleviate the very circumstances that had predicated the public bailout in the first place.

Refinancing into the new government-backed program requires your current lender’s approval. If the home’s value is less than the mortgage — which real estate data provider Zillow.com estimates applies to nearly one-third of American borrowers who bought in the last five years — the note’s owner must also agree to reduce the amount owed on the house to 90 percent of its current appraised value. If you owe $190,000 on a house that’s only worth that much, the bank would have to agree to reduce the loan to $171,000, giving up $19,000 in principal, plus interest.”

Meanwhile, two million families are expected to lose their homes to foreclosure in the next two years.

There is a serious leadership vacuum in this country, especially at the upper echelons of both government and business. Their priorities and policies are bankrupting our nation, and the close relationship between these private industries and our government regulatory agencies should be rigorously examined.

Henry Paulson, former CEO of Goldman Sachs, was one of the major architects and proponents of the “self-regulating” banking model developed in the 1990’s.

Heavy deregulation and the elimination of the safety barriers that had existed between the retail banks and investment banks, as well as the experimental distribution of risk to world-wide markets through untested financial vehicles, led to the erosion of the credit markets.

This system, partially conceived and enthusiastically advocated by Paulson, directly led to the current financial crisis that threatens the first worldwide depression since the 1930’s.

Now, for better or worse, we have handed the job of fixing this mess to the very people most instrumental in it’s cause, namely Paulson.

Is it any wonder that the phones are ringing off the hooks as desperate homeowners look for help and scramble to avert financial ruin by refinancing out of predatory loans, and yet only 79 loans being made to save them nationwide?

If it is not for lack of a program, and if it is not for a lack of interest on the borrowers part, that only leaves the failure of the program to the usual culprits – the banks.

“We know the interest from the public is there, and the next question that can’t be answered yet is are the lenders going to do this?” says Bill Glavin, special assistant to the FHA commissioner, who notes that it generally takes at least 45 to 60 days to complete the process for a regular FHA loan.”

Well Bill, here is your answer from them banks:  “No.”

39 Responses to No Hope for Homeowners – Foreclosure Prevention Program Falters

  1. linda says:

    Although unfortunately the county in which I live doesn’t make its property records freely available online, the search is free, and this weekend when I searched for modified agreements during October, I got approx 130 results.

    I don’t have time to go to the records office but I plan on eventually looking at whether these are part of the new program (just by analyzing the numbers). Either way, I thought that was a LOT of modified mortgages for three weeks. (Though probably less than the number of foreclosures filed for one day!)

  2. But the banks have got their money! Amazing what people will just sit there and take, as long as it does not interrupt their daily routine…

    Be sure to let me know what you find –

    Thanks Linda!

  3. Matt says:

    I have been trying to get countrywide to adhere to this new program with ZERO results.
    I have made call after call on the HOPE FOR HOMEOWNERS program and keep getting the “run around” from them. They keep saying that they “have not heard about this program from upper management” so they cannot “process the paperwork on it yet”…meanwhile, each day that goes by, we wait and hope that we will not be thrown out on the streets. I KNOW for a fact that they simply just dont want to write down the differences….they are the WORST culprits in this mess, I know….I used to underwrite mortgage loans for them until the “laid me off”, leaving us with no way to pay them the mortgage. I am since reemployed and have the capability to pay our mortgage after a 12 month mess. I firmly believe they will NEVER use this program….they are to damn greedy.

  4. Matt – Is there any way you can tape one of those calls, or perhaps document what they say some other way?

    Plenty of people would be interested in seeing a letter or transcript of that BS!

    Good luck, and thanks for sharing your plight with us.

    Anybody else having problems with this program?

  5. Kitty says:

    I thought it was just me. I have been trying for weeks to get someone at Countrwide to talk to me about the program. All I get is we have our own program coming out in December, and your account has not been flagged so you will not be eligible. On top of that I have to cancel my short sale in order to find out what they would do for me in a loan modification. My story is Matt’s story 20 years as an underwriter, Countrywide forced the lender I work for out of business, and I was unemployed for almost a year. Now I have a new job and want to modify my loan…..I just can’t get Countrywide to talk to me. Why should I have to give up a short sale contract to talk to the loan modification department? Why didn’t the government put some teeth into the new program and require that the lenders participate? After all they made all the money all those years on these loans and created this mess. God help us all because we are not going to get any compassion or leadership anywhere elese.

  6. Bob says:

    Matt-Tell them you are going to call the attorney general for your state. Usually gets a very quick response

  7. […] Wall street workers run away from the problem Army’s next mission takes place in America Foreclosure prevention program falters « Gasoline October 27, 2008 Gasoline October 28, 2008 […]

  8. Janet says:

    According to HUD they’ve helped 400,000 families.

    Here is excerpt on HUD.gov’s website.

    FHA HELPS 400,000 FAMILIES FIND MORTGAGE RELIEF
    Refinancing on pace to help half-million homeowners by year’s end
    WASHINGTON – U.S. Department of Housing and Urban Development Secretary Steve Preston today announced that 400,000 families have refinanced their mortgages with HUD’s affordable mortgage insurance program. Since expanding its refinance program in September 2007, HUD’sFederal Housing Administration (FHA) has helped more distressed homeowners keep their homes by utilizing FHA’s safe and affordable mortgage financing. FHA refinancing is on pace to help 500,000 families by the end of this year.

    “Thanks to FHA’s expanded programs, hundreds of thousands of families now have peace of mind knowing they have a stable, more affordable mortgage,” said Preston. “Today, we are proud to say that FHA has helped more than 400,000 struggling families keep their homes while also creating greater liquidity in the mortgage market.”

    The full article is at http://www.hud.gov/news/release.cfm?content=pr08-167.cfm

    Some how I just don’t believe their article.

  9. Mark McDonald says:

    (Non-Compensated Advertisement)

    Countrywide’s Home Retention Division (HRD, formerly the Loss Mitigation group) actively helps borrowers who are having difficulty making their monthly payments.

    Within HRD, the Countrywide HOPE Team pursues its mission of:
    Helping homeowners, Offering solutions, Preventing foreclosures and Envisioning success. As of Sept. 1, the 2,700 members of the HRD and HOPE Team have helped 35,000 customers avoid foreclosure. Their outreach efforts include:

    Proactive contact with borrowers to ask if Countrywide can be of assistance
    Distribution of brochures and DVDs that review potential solutions for borrowers facing difficulties
    A toll-free number to call a HOPE Team specialist
    Travel to local branch offices to meet with borrowers who need assistance
    Circumstances vary from customer to customer. Here are just two workout scenarios experienced by the Countrywide HOPE Team to help our customers:

    As parents of children that suffer from a rare eye cancer, one family was facing financial difficulties. The mother was the care provider for the children and unable to work outside the home, and the father’s business was affected by hurricanes. After evaluating their account, Countrywide was able to modify their adjustable rate loan to a fixed rate loan at a lower interest rate.
    One borrower’s son became very ill in December 2006. To care for him properly, she needed to be home more and could not work full-time. The borrower was the only one contributing financially to the household. Facing mounting medical bills, she had no way to bring in additional income. She accepted Countrywide’s offer of a loan modification which spread out six delinquent payments over the remainder of the loan.
    Through efforts like these, the Home Retention Division and HOPE Team members demonstrate Countrywide’s commitment to help borrowers preserve their homes.

    Spread the word about homeownership preservation. If you know someone who is facing hardship and falling behind on mortgage payments, share one of these following resources:

    The HOPE toll-free hotline for Countrywide borrowers: 888-219-7773
    Hotline for any homeowner, not just Countrywide customers: 888-995-HOPE

    (Non-Compensated Advertisement)

  10. cindy says:

    This program does not exsist. I looked at several lenders. Bank of America, GMAC, US Bank, Citi and several more…….. It is not out there. HUD/FHA may “announce” that it will insure it, but it a bank/lender won’t offer/underwrite/fund it, there is no loan.

  11. Bob says:

    This program is out there as I have prepared a short refi for a borrower at the 90% LTV. It becomes tricky when the borrower current rate is 6% and the rate they can refi at is 7.5% because the 1.5% hit due to MI.

  12. Janet – I think their site is merely echoing the in overly-optimistic intentions of the program. The 400k is a number they have thrown around for some time. Nice subtle twist to the wording, eh? Thanks!

    Mark CW – Thanks for the info, I hope it helps someone. In the future if you copy and paste some advertising materials from the company website, please put them in quotes and add a source link, otherwise you are plagiarizing!

    Bob – Thanks for the confirmation. How does it feel to have written one of less than 100 of those ‘Hope Now’ loans? You should be famous. Hey – if you have any UG’s, the GFE or HUD docs with the borrowers info removed, I’d love to see the totals. 1.5 is a hit for sure, but that 7.5 fixed will probably be market or better in a year anyway. Live and learn…

    Cindy – Let’s call the numbers tomorrow and see what they say. Thanks for looking into it.

    Everyone: Let’s all call the numbers provided by Mark from Countrywide. Let’s also call the numbers of the 77 banks on the list linked in the article, and let’s find out if they are blowing smoke or not.

    If you live in the region where a participating lender is listed, call and ask a few questions – then come and leave a comment on what you find out…

    Thanks all,

    Anthony

  13. […] yourmortgageoryourlife: No Hope for Homeowners – Foreclosure Prevention Program Falters As banks continue to line up for the taxpayer funded handouts designed to ease their withdrawals from years of dependence on high yields derived from ridiculously reckless lending practices, homeowners continue to seek avenues to prevent the looming possibility of foreclosure – typically cited as the root cause of the economic ‘crisis’ that currently grips world financial markets. […]

  14. Kitty says:

    You can believe that I will calling Countrywide and Hope tomorrow.

  15. Kitty – Be sure to let us know what you find out, it will be interesting to see if we all get the same story. Maybe they are redlining some areas and not others.

    Thanks to you and Matt the UW for your first hand experiences – had to put your quotes in the article…

  16. Tom Lowe says:

    To all, your best advice yet: expect nothing from any lender except lies, obfuscation and predation, and act accordingly.

    Give them no quarter.

  17. Judy says:

    Where was the SEC in the past 8 years when realtors insistantly used the word “investment” without a securities liscense? How about the claim, realestate is the biggest single investment you’ll ever make in your life. You can’t go wrong. They tried it on me, but were dumb founded when I asked for a prospectus. Or, what is the rate of return on the mortgage payment. Even worse yet, do you have a securities liscence? This is just one more example of loose regulation that resulted in a lot of people getting scammed over the past 8 years.

  18. Kathie says:

    I live in Southern California and I heard that the New Hope for Homeowners Program will not be coming out until November after the election sometime. And there are three other types of programs out there to help, too.

  19. jason says:

    Anthony M. Freed

    What you said about Countrywide is incorrect. We are doing the program it starts in December 2008. you just have to call the correct group. i am in that group.

  20. […] bookmarks tagged illicit No Hope for Homeowners – Foreclosure Prevention Pr… saved by 6 others     LittleMisterCowboy bookmarked on 10/28/08 | […]

  21. Eric says:

    I read the following: “homeowners continue to seek avenues to prevent the looming possibility of foreclosure”. I have a plan that has worked for me at three properties over the last 21 years. The mortgage company sends me a monthly bill. Then I write a check for that amount and I mail it to them. It has never failed so far – I’m keeping my fingers crossed.

  22. gina says:

    Sadly the SEC is a arm of Goldman sach as are treasury and the fing fed

  23. Claude says:

    While I think the banking industry and its incestuous relationship with certain government officials is despicable I think that where does the responsibility come in for the “homedebtor”. If you’ve drank the koolaid about owning a home them you should be adult enough to accept the downside. These home should be foreclosed and the banks should be allowed to fail. Any attempts to bail out either homedebtors or banks is an attempt to keep alive the myth of ownership after it been shot dead and mounts on the wall…WILL NOT WORK!

  24. Kitty says:

    I spent hours on the phone today with Countrywide, called the Hope dept (which is the Home Retention department aka loss mit). Again I was told that they know nothing about the H4H program (Hope for Homeowners) Iwas actually told that I am lucky they have not foreclosed yet. When asking about a loan mod, I was told again that I would have to cancel the short sale process but today I was told that it is unlikley even with my income that they would consider me for a modification of any kind since the taxes on my honme are due next month and that puts me over some threshold for what they can modify. So If I can come up with 25k I guess I can keep the house on a loan mod. Or I can continue the short sale process which has Countrywide loosing 78k based on the HUD my realtor submitted which is supported by the new appraised value of my home. Or do nothing and wait for the Sheriff to kick me out. I have no where to go, my wonderful realtor actually gave me the phone number for a shelter. I should take my 74 year old mother in law and my husband with congestive heart failure to a shelter. Countrywide should be working with me, I have the income to make the monthly payments. This is a travesty. God help us all.

  25. Kitty –

    Email me at: anthonymfreed@gmail.com

    I want to help, and I have an idea how we can do it together.

    Hang in there – we can stop this. Contact me…

    Everyone else – If you know how to help Kitty or others in a similar situation, please post the information here –

    Thanks!
    Anthony

  26. Dave says:

    Kitty (and others),

    I am an agent that does nothing buy short sale loss mitigation. I have about 40 of them in process right now. I have written many articles about the fallacy of government mandated loan modifications.

    In a nutshell, mass loan mods don’t exist because there is no real “bank”. There are investors. It is pretty much a violation of contract law for the government to mandate that contracts be changed to satisfy a distressed borrower. I’m not hear to say that this is right or wrong. It just is.

    Countrywide’s program is based on an 11 State Lawsuit centered on predatory lending. If your file doesn’t qualify, it’s because you didn’t meet the criteria that is outlined in the lawsuit. I have customers that do qualify, and they are still pursuing a short sale.

    Kitty, I don’t know your situation inside and out, but I would be very skeptical about giving up the short sale to pursue a loan modification.

    You made a comment in your previous post about compassion, and I agree with you, sort of. But, if you want to resolve your problem, you need to think like a loan servicer, who by nature, are not compassionate. You cannot force compassion.

    It’s important to remember this, because CW is not necessarily the bank. They are the loan servicer. Most likely, they can’t even make the decision. The guys (or gals) that own the loan make the decisions. The only decisions that they will make are the ones that make financial sense.

    Call them cold-hearted, but that is how business works. The only way to beat them, is to join them. You need to prove to them that your solution is better for them, than the alternative, foreclosure. If your plan is decent, they will listen.

    I have only had one customer get foreclosed. And that’s because his ego got in the way and he wanted to “stick it to the bank”.

    Hang in there and you can get this taken care of. If you ever want to email or call, Anthony has my info.

  27. Momm says:

    I fail to see why people in houses they couldn’t afford deserve help — heck, I fail to see why there is a “bail out” at all. It goes against every budget-minded, didn’t do this to myself, why should I pay for it?, fiber in my body.

    You people won’t be thrown out in the street, I’m sure, if you could sign a damn mortgage loan, you can sign a rental contract. Just like the rest of us.

    Cry me a waaaahbulance about your troubles with “greedy” banks. You deserved a home. And you deserved this mess, too. You are NOT blame free and the government shouldn’t be coming to your rescue. IF they do, which it looks like they might provide you some sort of welfare (for the rich), you should be whole-heartedly wondering if someone worse off than you might need a MEAL versus your fancy schmancy home that you still won’t be able to afford, even IF you got a loan modification.

    jus’ sayin.

  28. Wow Momm – you drank all the Kool-Aid!

    So a grocery clerk goes to the bank to get a loan, the bank tells them how much they will qualify for, then the borrower goes out an buys the house.

    Are you telling me a grocery clerk has to go get an MBA to make sure the MBA at the bank is doing their job and fulfilling their Fiduciary duty?

    The borrower did not set the terms of the loan to screw themselves over – the bank screwed them over and sold the risk of the loan to other in MBS in the derivatives market.

    Also, the clerk might have had 20% to put down, but the bank talked them into investing it – offering them a lower rate on their first mortgage to do it (-.25%) – then sold them an 80/20 piggyback that they would never be able to refinance out of.

    Their investment is gone in the stock market crash, and all they wanted to do was buy into the American Dream that the Gov and everyone else was ramming down their throats.

    Sorry Momm, the blame is on the banks.

    Grow a heart, or a brain, or maybe some courage.

  29. Kitty says:

    Dave thanks for your insite. You said : “In a nutshell, mass loan mods don’t exist because there is no real “bank”. There are investors. It is pretty much a violation of contract law for the government to mandate that contracts be changed to satisfy a distressed borrower.”

    These are dire times for everyone, and my point being the H4H program listed on the FHA website is a viable option IF the option exists for many homeowners. (This is not to be confused with the program that Countrywide is rolling out due to the lawsuit for preditory lending) It is reasonable and less costly than taking a loss on the short sale, it offers lenders the ability to recoup the losses with a shared equity program. It would not be a modification but a refinance based on current value, with a higher hit for the MIP to help mitigate the risk. I was pushed to the modification department because Countrywide is not offering the H4H program, and in fact most lenders do not want to participate. They need to stop putting programs out there that give false hope to those of us in need. This is just another bad campaign promise that will never come to fruition for most of us out there. The government is willing to boost the banks and the lenders up, but not able or willing to pass mandates stating they have to participate in these programs. Meanwihile the banks and lenders are hoarding money, and the investors who won’t bend will loose the security instrument they are unwilling to modify.

    Again I appreciate what your saying. I may have to do the short sale in the end, I will not have so much pride or ego that I will force a foreclosure to stick it to the bank, any way you slice it we all loose.
    Thanks again for your kind offer of help.

  30. Kitty says:

    Momm – I wish you the best in life. If you read the posts you would understand that myself and Matt and thousands others have had catastrophic events beyond our control happen to us as a result of downturn of an industry and the economy. If the moguls on Wall Street had an fiduciary accountability this mess never would have happened. Best Wishes to you!

  31. Dave says:

    “I was pushed to the modification department because Countrywide is not offering the H4H program, and in fact most lenders do not want to participate.”

    and

    “They need to stop putting programs out there that give false hope to those of us in need.”

    Kitty,

    I precisely know the differences in the programs…and you hit the nail on the head. THEY need to stop putting out programs that are designed to win elections.

    Most lenders do not want to participate because it does not make financial sense for them to do so. If it did, then they would. That is one thing that you can bank on (pardon the pun)!

    I truly do feel for you, and will do anything I can to help.

  32. Kitty says:

    Dave – Your right it is all about profit. Unfortunately they are so busy chasing the profit right now that they are willing to take us all down with them.

    The program overall would work if there was a mandate that required the lenders to participate. They would have the opportunity to realize the equity in the future, which given how cycles run could net them a very nice profit. It’s not guaranteed and there in lies the rub.

    What is certain is that this is not an easy fix and there is no accountablity for the laws and lawmakers who made this possible by deregulating the banking industry.

    Thanks again for your support.

  33. Dave says:

    To many tax-payers chagrin, it is expected that the Government will announce $50B to distressed borrowers tomorrow.

    Watch the news.

  34. […] to articles I have seen quoting Fox News (although I haven’t found the source quote yet), only 79 borrowers have been accepted into the program in the month since it officially began. Although, to be fair, […]

  35. Bart H. says:

    I am reading two articles that just surfaced Nov 4th speaking bto a proposed Fed Mortgage Bailout costing up to of $441 billion. My understanding of the proposed bailout from the two articles is; Homeowners residing in the home with the mortgage now in default will be granted a THREE YEAR MRTGAGE PAYMENT FORGIVENESS (some cases 5 years). The logic; The market is presumed to continue upward in 3-5 years equity should be available for refi or sell (Do the feds no more about projected inflation than we do, maybe now is the time to buy folks). Additionaly all the extra monthly income will stimulate the economy (this income should be saved to help repay the loan when the 3 – 5 years are up). Has any one heard of this historical proposal?

  36. Jim says:

    To all who care to read: I am in foreclosure and have been for A long time. I have been trying to work with my lender ASC (America’s Servicing Company) for almost 2 years now. I’m glad I’m not in the street yet. Sale date (Dec 10 2008). I’m going through my 12th loan modification application. It is in review for now and they are supposed to postpone my sale date. It has not been done yet. I bought my (the banks) house in Oct 2005 just at the height of the rise of housing upswing. Hurricane Wilma hit 2 weeks after. I owned 2 houses at the time, had over $60,000.00 in the bank, and was making approx $4000.00 a month. After the hurricane I had to repair both houses, roofing, Fencing for my pool (safety issue), complete inside of rental property (water damage throughout)which I had just moved from 2 weeks prior. I spent approx $40,000.00 of my money and my own labor to fix them. I received $18,400.00 from my insurance company for everything. I lost $22,600.00 approximately for supplies only not including the 5 months of labor I put into the houses. I lost my job in Nov 2006, my own fault for being stupid. (I lost my drivers license for a while and since I drove a tractor trailer cross country therefore lost job). So my income went from $4000.00 a month to $1200.00 a month, and have been struggling ever since. I am willing to pay my “debt to society” for being stupid but does that mean that I have to lose everything I worked so hard to get for 1 mistake 1 night in which no one got hurt but me and my family (financially). Oh well that’s another subject. Sorry got off on a tangent. I lost my rental property to a foreclosure in Oct 2007 because the second Mtg company wouldn’t release the house at $180,000.00, They wanted $190,000.00. My buyer would not budge therefore no sale. So second Mtg company bought first Mtg company out at county auction for $120,000.00. Now house asking price is $79,000.00. Go figure. Lost car, could no longer afford, so voluntarily gave it back. Now just trying to hold the only thing I have left. My house. I only have 10 days to get the foreclosure stopped or I will be moving. to where I don’t know yet. I am asking for 120 day postponement to try H4H or a new program called Streamline something coming out Dec 13 2008 supposedly. Oh by the way my original Mtg payment of $1400.00 is now $3700.00 a month. So who is not trying to pay their Mtg they signed up for when it was not explained how the bank would raise it so high in 3 years time. No figures were given at closing. I even have done the 8 monthly payments of $1700.00 a month on time for the loan Mod only to be denied. I will not pay another dime to them unless we get a concrete agreement at which time I will gladly pay them. I feel the Mtg company ASC (servicing company) is not doing what they have promised in the past. I hope we can resolve the situation and everybody is happy. Even though they tend to make another 10 years of interest off of me. Maybe in 5 years I can refi, we’ll see. I don’t want sympathy or handouts, I just want an affordable agreement for us both. If the sale date is not postponed by ASC by Tues Dec 2, I am going in front of the Judge myself to ask for an extension. Hopefully It will be postponed. If I cannot resolve the issue by these Gov’t programs supposedly to help me I plan to just give them Deed in lieu of foreclosure, but save my money for the next four months if I can to start over. I really like my house I have waited a long time for something somewhat nice (has a pool) and really don’t want to lose more (over $100,000.00 last year). I understand some of the blame is mine maybe 20% but I don’t think the banks, Mtg brokers and realtors were fair in the real estate “BOOM” either. Just my 2 cents worth. Jim

  37. David says:

    Good luck Jim, sounds like you have done a fairly good job of buying time.

    Is the house “under water” in terms of the mortgage due, including whatever late fees you cannot get removed? If so, I might be happy for the time I had and move on.

    It sounds like BK would not help you, since this is the only significant debt, or maybe it would?

    See a lawyer for sure right away, even if you have to pay a few hundred cash for the advice, if you are not already working with one. I’ll repeat this, see a lawyer who specializes in this area of practice.

    Good luck.
    David

  38. George Haney says:

    HOPE is a JOKE and the HOPE Foundation is even more Pathetic.

    I lost my job last month and made my bills for December by emptying savings, selling all my investments, etc.

    So I call them to see what programs are available.

    Their advice? SHORT SELL MY house.

    I am not even late yet! But if I were, there would be a couple options for me.. but being in GOOD STANDING is a bad thing????

    What is going on in this country?

    With all the millions out there you are telling me that there is no help for me to keep from becoming late? ?Nothing…

    I have been reading it, now I am living it.

    HOPE IS A JOKE perpetrated on the US Citizens by politicians…

    Think about it!!! We all called for action…. it wa all over the news for months… then HOPE … now where it the PRESS?????

    All the pressure went away.

    So what is HOPE…. HOPE that the populace will go back to thier little lives while the politicians get on with stealing out everything!

    George

  39. […] This article has been reposted from Your Mortgage or Your Life. The full post can also be viewed on Your Mortgage or Your Life. […]

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

%d bloggers like this: