Is this American...
Foreclosures across the country and in our own backyard, The OC, are continuing to rise...I believe the number is around 1.7M. Foreclosures are not a thing of the past and will continue to grow, says one FED study. But lets explore the situation in our own backyard and see what exciting and controversial subjects arise. Lets go!!
The HAMP modification makes the homeowner's mortgage payment 31% of their gross income. Oh, thanks you so much for the hero of the day. But wait. Hamp is at a 9% modification rate for eligible Americans. Whats going on? The banks do not want to lose any more money by changing the terms, they would rather take the property, turn a 10-20% profit, and foreclose. Homeowners are being modified under HAMP, however if you read this particular story, you will see what the banks are doing to prevent "go-it-alone" borrowers
Ask yourself is this American?..
Come October 11th, organizations, even if they are attorneys may not be able to charge advance fees for loan modifications in the state of Ca. And guess who is the author of SB 94?... Ron Calderon, the Chair of the Senate Banking Committee...How convenient? Of course, he has the most to gain, Can we all say together now "Funding for Life". And all you have to do is sell out your neighbor.
This is the deal: No attorney will take on a client and work for free for 3 months or more while the loan modification is in process. And then they have to try and get a 3k fee from some homeowner that hasn't paid their mortgage in 8 months. NO WAY!! Good luck. How will they pay their staff, how will they pay themselves.This bill is clearly designed to help the banks disqualify more and more homeowners and not modify their mortgages. Its a great way for the banks to screw over the American homeowner at the legislative level- Kudos for American Democracy!!
Senate Bill 94 was "supposedly" developed to protect the American Homeowner. Bottom line, no attorney will represent you for free. They require a retainer. Remember in Good Will Hunting, Ben Afleck exclaims, "RETAINER". If we are taking away a homeowner's ability to seek legal representation to level the playing field, what are they left with- nothing. Regular Joe, doesn't know how to change a legal document or even how to correctly calculate his DTI. How do you think he will fare against Chase-Manhattan bank, a multi-million dollar organization?...Thats what I thought!
Treasury's assistant secretary for financial institutions Barr said a strong housing market was "crucial" to a sustained U.S. economic recovery and described the slump in prices and demand in the housing sector as being "at the center of our financial crisis and economic downturn."
I guess the California Legislature missed this...Is that American?...I think it is becoming a nasty trend, but maybe sadly it is..
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