Saturday, February 26, 2011

Treasury Chief Geithner Denies Role In Mortgage Mess

Revisionism: re-writing history - one mortgage contract at a time - puts intense pressure on banks, home ownership, the basis of personal wealth

Rewriting the basic contracts that govern the parameters of personal wealth causes merchants, real estate operators, manufacturers, and big ticket marketers to have the heebie jeebies...Congressional investigations coming soon...


Jesus - Obama's guys scare the hell out of me. They are academics who still don't understand how contract law governs an economy. I understand numbers. Guys who should, don't. I'm certain that we are f___ed beyond imagining. Today I got a call from my 401K administrator asking if I wanted to make changes. I told him I wish I could take my money and put it into ammo and canned food and maybe a 55-gallon can of gasoline... - a local business man staring into the abyss from the edge of the precipice



The numbers are in and plain to see. The top 10 U.S. banks have $11 trillion of the $13 trillion in total banking assets.

There is a problem: With more than 7,650 U.S. banks federally insured, the banking oligopoly leads to a concentration of wealth at the top.


THE ARRAY OF GOVERNMENT ASSISTANCE AVAILABLE TO RE-WRITE MORTGAGES:

For Homeowners Who Still Have Equity

With the traditional FHA loan program a homeowner can get a fixed rate loan for up to 97% of the current appraised value of their home. Via the new Home Affordable Refinance Program (HARP) homeowners with conforming loans can now refinance up to 105% of the appraised value of their home. By taking advantage of Government Refinance Assistance you could save thousands of dollars on your mortgage payments over the next few years and have the peace of mind of knowing that your home is financed with a low fixed rate. Plus FHA allows homeowners in most states to get a cash out refinance for up to 85% of the current value of the home.

If you would like to learn if you are a candidate for a government-backed loan contact us today by filling in the contact form on the right. Also, if you are age 62 or older and have significant equity in your home you could look into a reverse mortgage — a type of loan that allows borrowers to remain in their homes until they die without making any further payments and in some cases allows the homeowner to receive regular checks from the equity in the home.

For Homeowners With No Equity

There are a few options for the millions of U.S. homeowners who owe more on their home than the property is currently worth. Here are a few:

1. FHA Streamline Refinance — If you are upside down / underwater on your mortgage and currently have an FHA loan then getting a refinance to an improved mortgage is possible if you have kept up with your mortgage payments. Contact us today if this applies to you.

2. A “Home Affordable Refinance Program” (HARP) loan — With President Obama’s new plan qualified homeowners can refinance a conventional first mortgage for up to 105% of the current value of the home (and in some cases 125%). However this program does not always work well for people who have second mortgages, credit scores below 680, or who currently pay mortgage insurance (PMI). Contact us in the sidebar to learn more about this program.

5. Loan Modification Programs — If you owe significantly more on your first mortgage than your home is worth or are on the verge of foreclosing your best bet is to seek a loan modification from your current lender. Loan modifications normally reduce payments by lowering interest rates or extending the loan period. Obama’s new “Home Affordable Modification Program” (HAMP) gives lenders incentive to modify troubled loans as well. See this page or contact us in the sidebar if you would like to discuss strategies for seeking a loan modification.

4. FHA short refinance — See here for details and the latest news on the new FHA short refinance program. The FHA short refinance program is a variation of the loan modification theme but involves principal reductions rather than just rate reductions. Like loan modifications this program requires the voluntary cooperation of your current lenders and that can be tricky.

5. Selling short — A short sale is when a homeowner sells a home for less than they owe. In many cases the lender(s) will accept the sales proceeds as payment in full. Click here to connect with an agent to investigate that route. The Obama administration recently announced a program designed to give incentive to more homeowners and banks to use this strategy.



RIP AND READ FROM A POPULAR FINANCIAL BLOG - "Common Dreams"

A Frustrating Pattern: Banks Losing Documents

Like many other homeowners, Dahlmer says she's been tearing her hair out faxing in proof of income and tax documents, only to have the bank lose them.


For her that's especially hard because of her vision problems. Still, she takes notes about the process in huge print with a black magic marker.

Over the past year, she's repeatedly asked call center workers what's going on. She says they tell her, " 'I'm sorry, but you haven’t sent in the documentation.' "

Dahlmer says she has sent in all the documentation. But it gets lost again in a never-ending cycle. The bank then asks for something they never asked for before.


"It just goes on and on," she says.

Dahlmer says she's been getting all kinds of foreclosure-related junk mail, and that's getting her very nervous again.

After NPR contacted Bank of America, the bank says they're looking into Dahlmer's case and hope to resolve it within a few weeks.

Sharp Criticism From A Government Oversight Panel

A congressional oversight panel this year has been harshly critical of the Treasury Department for failing to enforce the agreements the major banks made to take part in the administration's HAMP program.

All of the major banks have been having similar problems — losing documents and rejecting homeowners who appear to qualify for unknown reasons. Hundreds of thousands of homeowners are now falling out of the federal program.

"The foreclosure modification effort has been a real mess," says Mark Zandi, the chief economist of Moody's Analytics. With millions of people facing foreclosure, he acknowledges that it's been a very difficult challenge for the banks. But, he says, "even considering that, it just hasn't gone well."

1 comment:

  1. Loan Modification is arguably the most effective tool that can be used by homeowners in midst of financial hardship to prevent their homes from entering foreclosure.

    what is a loan modification california

    ReplyDelete