FORECLOSURES: SHAMING BANKS NOT ENOUGH- THEY HAVE NO SHAME.

By
Real Estate Agent with FHAllen, Sonoma Country and Vintage

 I wrote about loan modifications not too long ago to get feed back from my fellow agents to see if they are aware of any clients, friends etc, who have reported successful loan modifications. Like me, they were disappointed with the results in achieving any REAL relief for homeowners who have been caught in this economic quagmire that we are in.

 I am posting a link http://tinyurl.com/ygyh7ms by Alan Zibel. on a follow up article that I read today regarding the foreclosure-prevention effort

We have seen an inordinate amount of money and protection toward the banks and wall street at the expense of tax-payers (you amd me) and I might add bonus after bonus going to wall street because wall street needs to 'keep these  exceptional people.' This is after a near fatal  collapse of our financial system through these 'exceptionally talented people' on wall street. Funny, I don't know a lot of people who get rewarded for such POOR JUDGMENT. DO you?

OF course it would be helpful if Larry Sumners and Tim Geithner (both from wall street) listen to people like Sheila Bair, chairman of the U.S. Federal Deposit Insurance Corporation (FDIC) who was fighting for the taxpayer last year. She wanted some of the billions of tax payer money to be used for loan modification programs to protect homeowners from foreclosure. Kudos to Sheila Bair for standing up and fighting for the average person. A great role model for woman today.

 

ISN'T CAPITALISM SUPPOSED TO WORK TOWARDS A DEMOCRATIC SYSTEM?

What we have now is a democratic system serving the interests of finacial capital! 

It would be simplier and more effective to have federal housing agencies refinanace qualified mortgages directly as was done in the great depression. 

 

Posted by

Kathleen Bonham

Vintage Home Specialist

Healdsburg, Santa Rosa, Sebastopol

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Tags:
fdic
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Rainmaker
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Robert Rauf
HomeBridge Financial Services (NJ) - Toms River, NJ

Kathleen, The problem with modifications is that the re-default rate is HUGE. So many of them have gone bad that banks seem to have pulled back on them....Some people cant be saved, or should never have purchased the home in the first place.  that is the big issue.

Dec 01, 2009 04:18 AM #1
Rainer
149,377
Paul Warkow
Paul Warkow-D.G. Weber Law Associates - Hauppauge, NY

How about if judges get mad enough at a lender and void the mortgage during the foreclosure process.  That is what happend in Suffolk County on Long Island.  Here is my post that goes into the details of this case.

Dec 01, 2009 04:22 AM #2
Rainer
14,912
Brian Kasprzyk
Remax Southern Shores - Little River, SC

I totally agree - the banks have no shame. Our democracy serves the special interests. Seems to me that we need a year or two of "philosopher kings" to straighten out our entire system

Dec 01, 2009 04:23 AM #3
Rainmaker
116,513
Jane Jensen
Century 21 New Millennium - Arlington, VA

Agree with Robert, some people can't be helped but really.......the banks are not trying very hard and I agree with Kathleen...they are acting shamefully. Wish I could say I am suprised.

Dec 01, 2009 04:26 AM #4
Rainmaker
60,648
kathleen bonham
FHAllen, Sonoma Country and Vintage - Santa Rosa, CA

Robert..bad loans should be a problem for both creditors and debtors. They both made mistakes.

One of the reasons the default rate is high is that banks have refused to reduce principal of the loan and structure a modification that fits the borrowers circumstances- even though banks have already written down and taken tax losses on those loans. The larger issue is what it is doing to the overall economy.

Great post Paul on the Suffolk County judge!

Jane...I know how you feel about 'not being surprised.'

Dec 01, 2009 07:37 AM #5
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Rainmaker
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kathleen bonham

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