NEGATIVE EQUITY - A FORMULA FOR ECONOMIC DISASTER - BUT NO RELIEF FROM CONGRESS!

Reblogger Charles Fischer
Real Estate Broker/Owner with Housing Market Realty

Original content by Lenn Harley 303829;0225082372

Here come the judgeTHE BIG BANKS WIN AGAIN.  Through the lobbying efforts of Bank of America, J.P. Morgan Chase and Wells Fargo, the "people"'s representatives in Congress again exhibited their skill in:

Keeping home owners with negative equity safely imprisoned in their real property for the foreseeable future. 

SENDING THIS BILL FOR RELIEF FOR HOME OWNERS, MANY WHOM ARE CURRENT WITH MORTGAGE PAYMENTS, erffectively removed about 15,000,000 home owners from the retail, real estate, education, travel, consumer markets.  Again, Congress can't see beyond their last political contribution.

Rewarding the big banks for their perfidy in the mortgage mess by denying consumers the ability to remove the heel of the mortgage industry from the necks of home owners who cannot sell, move up, move away, sell their property, or do much of anything except pay about 50% or more of their monthly gross, and in many cases, net income to their mortgage company.

The more things change, the more they stay the same.  Big bank wins again.  American home owners lose again.

Mortgage Bill Fails in Senate

Legislation that would have allowed bankruptcy judges to modify mortgages died in the Senate yesterday, handing the Obama administration a significant defeat in its plans to mitigate the foreclosure crisis

 

Courtesy, Lenn Harley, Broker, Homefinders.com, 800-711-7988, E-mail.

 

close

This entry hasn't been re-blogged:

Re-Blogged By Re-Blogged At

Spam prevention
Show All Comments
Rainmaker
1,068,748
Rob Arnold
Sand Dollar Realty Group, Inc. - Altamonte Springs, FL
Metro Orlando Full Service - Investor Friendly & F

This legislation is a tough call.  The negative equity is an impossible long-term burden on the homeowner unless they plan on staying in the home for 10++ years or more while the house appreciates back to previous levels. 

On the other hand simply wiping out the amount owed to lenders isn't fair either.  If someone loaned $200K to someone using a self-directed IRA and then a bankruptcy judge, reduced the principal amount to $50K that would not be a good day for the lender either.

May 02, 2009 01:07 AM #1
Show All Comments

What's the reason you're reporting this blog entry?

Are you sure you want to report this blog entry as spam?

Rainer
25,014

Charles Fischer

Professional Real Estate Services
Ask me a question
*
*
*
*

Additional Information