Americans must realize that everything the Obama administration and fellow Democrats does is about moving us that much closer to socialism. They are intentionally guiding Americans into situations and/or programs that will make them more dependent upon government.
GOVERNMENT CONTROL over the citizenry is the ultimate endgame for Democrats; therefore, it makes sense that these programs will achieve nothing the government said it would. Stop drinking the kool-aid because this is not about saving your homes.
Think about it. Step outside of the box. If Americans do not move to make it happen, then it will not because the government is setting people up to fail. The endgame has been in the works for some time and for many Americans is now coming to fruition.
Obama offers the banks $75 billion of our taxpayer money for banks to re-work troubled mortgages, i.e., banks receive $4,500 for every loan they modify. However, said modifications are re-worked upward and in a fashion that increases the monthly mortgage payments of homeowners, thereby prolonging the pain. Somebody is being set up here.
Homeowners many of whom should not have purchased a home in the first place will be blamed for failing. In turn, the government and banks walk away free and clear.
“Nine months ago, the Obama administration offered banks $75 billion in taxpayer money to rework troubled mortgages.
Yet so far, $75 billion hasn’t been enough to compel many lenders to permanently reduce monthly mortgage payments for millions of cash-strapped homeowners. Indeed, tens of thousand of borrowers who have asked for relief have instead seen their payments and loan balances increase under the Obama plan. A surprisingly high percentage are sliding back into default.
The Treasury Department announced Tuesday that 650,994 homeowners nationwide, including 12,933 in Minnesota, have received temporary, three- to five-month trial modifications under the administration’s foreclosure-prevention plan. That represents one in five eligible homeowners at least 60 days behind on their mortgage payments, according to the Treasury.
‘We’re reaching borrowers at a larger scale than any other modification program to date,’ Assistant Treasury Secretary Michael Barr declared Tuesday.
The $75 billlion approved for the plan, known as the Home Affordability Modification Program, or HAMP, was never meant to go to borrowers directly. Instead, the money would be used to encourage lenders to modify mortgages rather than foreclose on properties. Banks would receive up to $4,000 for every loan they modified. For banks, a loan modification may be less costly than a foreclosure, particularly if a house is worth much less than the value of the mortgage.
But despite the financial carrot, the percentage of homeowners who have seen their trial modifications become permanent loan restructurings, with payments reduced for more than just a few months, remains abysmally low. A mere 1,711 borrowers nationwide had successfully completed their trial period and received permanent loan modifications as of Sept. 1, according to a report by the Congressional Oversight Panel.
And many more who have been approved for relief under the plan have actually seen their loan payments and balances increase — as lenders simply roll back payments, fees and taxes into the remaining life of the loans. ‘It’s relief of a kind, but a lot of these modifications don’t get to the root cause of why the person defaulted in the first place — the mortgage payment was too high,’ said Mary Bujold, president of Maxfield Research Inc., a Minneapolis-based market research firm.
It’s too early to determine if these patterns will continue, but many experts say the HAMP plan overpromised and under delivered by giving lenders too much leeway in how they could modify loans. Others argue that banks have an incentive to keep borrowers in temporary loan modifications in order to delay having to foreclose on the house and take a loss.
‘I think the Obama administration probably underestimated how difficult it is to solve the mortgage problem,’ said Rick Sharga, senior vice president of RealtyTrac, a firm that tracks foreclosure.
Mortgage modifications come in many forms. In some cases, lenders can lower interest rates, extend the loan term, or reduce the amount of the loan by forgoing part of the principal. Of loans modified during the second quarter, 22 percent were either left unchanged or saw their payments increased, according to a recent report by banking regulators.
Yet, government data show that success rates on loan modifications are highest when payments are reduced. Indeed, only 34.1 percent of modifications that decreased monthly payments by 20 percent or more were seriously delinquent, compared with 63.4 percent of modifications that left payments unchanged, according to the Office of the Comptroller of the Currency, a federal bank regulator.
‘A lot of these modifications set people up to fail, rather than to succeed,’ said Thomas Bloomquist, a supervisor of financial counseling at Lutheran Social Service in Minnesota.
Even so, the HAMP program, which got off to a weak start this spring, is gaining momentum, and many housing counselors and lending experts say it’s had a meaningful impact on the national foreclosure rate. Celia Chen, a housing economist at Moody’s Economy.com, expects at least another 3 million loan modifications next year.
Wells Fargo, the nation’s largest home lender, has begun 93,652 trial modifications, or 29 percent of its eligible mortgages, under the HAMP program so far this year, according to U.S. Treasury data released Tuesday. After initially being criticized for its slow pace of modifications, the San Francisco-based bank now has among the highest modification rates among large banks in the nation. U.S. Bancorp has modified 15 percent of eligible mortgages, even though the Minneapolis-based bank did not enter the program until September.
‘Many of these people who are in trial modifications will be able to convert to full modifications, and that will mean fewer foreclosures,’ Chen said. ‘It’s still a benefit…”
“Debate over the mortgage bailout swept the city, the airwaves and the Internet yesterday, with New Yorkers divided on whether it’s a necessary lifeline or a foolhardy handout.
One TV reporter threatened to lead a tax revolt, while a community group announced plans to form human chains around foreclosed houses to stop evictions.
It seems like everyone – even those who don’t own a home – has an opinion about whether the country should spend $75 billion to let strapped homeowners refinance at lower interest rates.
‘I’m going to be footing the bill for this,’ said transit worker Dave Roszkowski, 51. ‘My taxes are going to be insane.’
He and others scoffed at Saab‘s tale of struggling to pay a $555,000 mortgage on $80,000 salary after tuition and payments on $70,000 in credit card debt.
‘No one should have loaned this guy a half a million bucks if he makes 80 grand a year. I’m so sick and tired of these people.’
Ceci, a volunteer with the grass-roots protest group Bail Out the People, said opponents are in blame-the-victim mode.
‘When you consider how large this crisis is, it can no longer be considered an individual problem,’ she said. ‘I’m sure there’s individuals who weren’t thinking [when they took out a loan], but the majority of people have been hit hard by layoffs, reductions in hours and problems that were no fault of their own.’
Westchester retiree Patrick Welsh, 59, said the fact some people got themselves into this mess doesn’t mean the feds shouldn’t help them out.
‘I think it’s better for all of us for people to stay in their homes,’ Welsh said. ‘A hard-working person who can pay their mortgage will gain in the long run because the community will remain stable and housing prices will remain stable.’
Bailout proponents pointed out that many folks on the verge of foreclosure fell victim to predatory lending practices.
With her two-family home in foreclosure, her tenant moved out, so there’s no way for her to pay the bills.
The group ACORN – which is planning the human chain protests – got an auction of Parker’s home delayed.
Parker admits she was naive when she bought her house in 2005 and says the bailout is her only hope.
‘Otherwise, I’m going in a shelter,’ she said. ‘Where else are me and my kids going to go?’
Spada said he’s sympathetic to the plight of Parker and other distressed homebuyers – but doesn’t know why he should pay for their mistakes.
‘I bought my house 15 years ago – an $80,000 home – and I had $30,000 to put down,’ he said. ‘I’m gonna continue to stay in my six-room house because I can afford it. It’s called fiscal responsibility, and Americans don’t have it.’
What Bailout The People and ACORN are not getting is that people who could not afford homes in the first placed received went into these deals, purchasing homes and many knew that the day might come when they would lose their homes. While they hoped it would not come down to foreclosure, these people knew and they went into it anyway.
What happened to living within one’s means? Don’t people still do that? Furthermore, ignorance is no excuse when you’re talking about a half million dollars.
On the other hand, these two organizations probably do get it and could care less.
This is just one of the many tenant scams going on today. Know who you are doing business with. With the availability of the internet, it is too easy to investigate brokers and realtors. Do not give away your cash and personal information so freely. Most importantly, if it looks to good to be true, it is. Don’t be so quick to think you hit the jackpot.
Then we have a scam that has grown to humongous proportions. With foreclosures so high, tenant evictions have increased over 50% within the last few years. Most of these evictions are due to tenants who rent only to find out that the home in which they reside is in foreclosure.
“There’s a new scam hitting the housing crisis. Unsuspecting renters are being tricked into renting property that’s not actually available. And they’re being told they need to move out, right after they move in. 7’s Jonathan Hall uncovers this new tenant trap.
Melissa Vazquez-Fuentes was excited to find a perfect place to live.
Melissa Vazquez-Fuentes, Renter
“I had just moved out of my mother’s house after eight months and I finally found an apartment that I loved.”
But her excitement was short-lived. Just two weeks after moving in with her two-year-old son, she got some shocking news.
Melissa Vazquez-Fuentes, Renter
‘I found a letter taped to my door addressed to the landlord stating that any occupants that were residing in the unit needed to leave within seven days.’
The place she just rented was in foreclosure.
Melissa Vazquez-Fuentes, Renter
‘I cried. I cried.’
What’s worse, Melissa says the owner, who she paid more than $2,000 to, never told her. And she says the realty office she worked with said they didn’t know about it.
Melissa Vazquez-Fuentes, Renter
‘The landlord went ahead and illegally signed the lease knowing that he was in foreclosure.”
Again, as hard as it is to get an apartment, it should be even harder for you to depart with your hard earned cash and personal information. DO YOUR HOMEWORK. Research the property by checking with your county registry’s office. Find out the status of the property before you hand over your cash.
And God forbid you are caught out there, states are starting to amp up their tenant protections in this regard. No one can just put you out of on the street. They need a court order. In the meantime, arm yourself with the law.
“If you find yourself in this situation, contact the financial institution involved in the foreclosure right away.
And you need to keep paying rent to the property’s legal owner, even if that means putting it in escrow. If you stop paying rent, you could lose your rights as a tenant.
Barbara Anthony, Mass. Office of Consumer Affairs and Business Regulation, ‘You have to be a tenant in good standing.’
And that good standing could help you take legal action to try to get your money back.
Barbara Anthony, Mass. Office of Consumer Affairs and Business Regulation, ‘They should probably consult with an attorney to demand that the funds be returned.’
So before you move in, watch out for warning signs.
If your prospective landlord does not ask you to sign a lease or doesn’t do a credit check, that could mean trouble.”
“WASHINGTON — Call it son of subprime. Experts warn that a new wave of mortgage foreclosures may be coming soon and could rival the default rates for subprime mortgages and slow efforts to find bottom in a prolonged national housing slump.
The mortgages in question are $230 billion of option adjustable-rate mortgages, creative lending products that flourished at the height of the housing boom. In an option ARM, a borrower can opt to pay less than his or her monthly balance due, and the difference is tacked onto the outstanding loan balance.”
Sounds like a tsunami is heading our way.
With billions of dollars for the taking and yours, homeowners must be even more vigilant and on the lookout for scam artists looking to take advantage of a good crisis.
Furthermore, since Congress remains in bed with these firms and has chosen to do nothing to police and penalize their partners in crime, it is up to the homeowner to educate and arm himself/herself against these predators.
“The economic crisis has spawned several unscrupulous companies that prey on homeowners who are having trouble paying their mortgages.
The companies promise to save borrowers’ homes from foreclosure in exchange for a significant upfront fee, often thousands of dollars, but consumers often end up worse off than when they started.
This week, the New York attorney general, Andrew M. Cuomo, said he planned to sue one company, Amerimod, of Uniondale, N.Y., and its owner. He also announced plans to investigate 14 other loan modification companies that his office received about 50 complaints about. The Federal Trade Commission has brought about 11 cases against similar companies in the last year and sent warning letters to 71 more for marketing potentially deceptive relief programs.
Consumer agencies and nonprofit counselors have also noticed a significant increase in the number of consumers who are victimized by companies making false promises.
Derrick Briscoe, 52, an airline attendant, is one of them. After Mr. Briscoe had trouble keeping up with mortgage payments, a friend told him about the government’s program for distressed homeowners. To learn more, he did a Google search for ‘Help for Homeowners,’ the name of the Obama administration’s program. He came across several other Web sites offering help, and ultimately called IMC Financial.
‘They convinced me they could help save my home and intervene on my behalf as a third party with my mortgage company,’ said Mr. Briscoe, who bought his Tucson home in 2005. The company charged him $2,000 and told him he should stop paying the mortgage for three months. ‘This is back in January of this year when I contacted the company,’ he said. ‘And here it is in June, and my home is in foreclosure.”