A REAL FAMILY STRUGGLES FOR LOAN MODIFICATION

By
Real Estate Agent with FHAllen, Sonoma Country and Vintage

 Earlier this month I wrote an aticle and asked if anyone was a aware of a successful loan modification.

Our local paper, The Press Democrat devoted the the front page of the Business section to a story titled "Trying to Modify" which describes the struggles a local family is going through to obtain a loan modification. The hurdles that they have encountered would depress anyone and I am sure that there are stories like this all over the country.

These are some of the hurdles they have encountered.

1. Submitting paperwork numerous times without any response from the bank.

2, Borrowers can be ruled ineligible for earning too much or too little money, or having too many assets

3. With their initial down payment of $120,000 in 2005 their house was worth X ..now the value of the house is less and the amount of improvements they have made have put them further under water.

4. Rents have declined. The family is caught between a rock and a hard place. They cannot rent or refinance because there is not enough equity in the house.

This is hard working young family with 2 young children. They bought their house to be in a neighborhood were their children would go to the local school.They have done all the "right" things and continue to work within a system that is not working for them and millions like them.

Elizabeth Warren, Chairman of the Congressional Oversight Panel for TARP and a professor at Harvard Law in her most recent report said, "This is NOT working."

All of this confirms that Obama"s plan is in desperate need of Plan B!

 

 

Posted by

Kathleen Bonham

Vintage Home Specialist

Healdsburg, Santa Rosa, Sebastopol

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Topic:
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Location:
California Sonoma County Santa Rosa
Groups:
ECO ALL-STARS & GREENIES
Tags:
equity
rents
foreclosure
tarp
congressional oversight panel
elizabeth warren
loan modificatio
local family struggles
home imporvements

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Rainer
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Mary McGraw
GLREA - Rockford, MI
2015: Solar Energy Is Still A Simple Machine!

Hi Kathleen ~ while I was in my last year of the mortgage industry I was starting to get many customers who were struggling like this...sorry, I bailed! It is very sad to know the banks are so unwilling to modify, will evict hard working folks like these, and then ultimately sell the house at a "loss."

Something needs to be done.....

Dec 14, 2009 11:10 AM #1
Rainmaker
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kathleen bonham
FHAllen, Sonoma Country and Vintage - Santa Rosa, CA

Hi Mary...yes it is shameful and I am disappointed that the Obama administration has not helped main street very much. When it comes to the banks and wall street we all "NEED" to keep them going but main street USA is going under. This is democracy working for capitalism...instead of the other way around.

One of the reasons that the banks are letting them foreclose is because they get tax right offs to offset the huge amount of money that they have made from borrowing at .025% from the fed. I simply cannot understand why Obama doesn't get rid of Larry Summers and Tim Geighner ..they are Goldman Saks guys and follow Rubin's (economist with Clinton adm.) economic policy. It has been brutal on middle America. There has been a huge loss of wealth from the middle class in the last 3 years.

Thank you for your comment Mary. It is great to see you involved in renewable energy!

Dec 15, 2009 01:17 AM #2
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