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Dishonest Banks & Fake Loan Modifications- Solving our Housing Crisis

By
Real Estate Agent with Isaac Real Estate &TriStar Mortgage

Dishonest Banks & Fake Loan Modifications-Solving our Housing Crisis.  It looks like we are just in for more and more every day. Yeah, let's just keep giving money away to people who do not need it while the rest of us struggle, that is the American way, after all.  I am just sick to my stomach about all this nonsense.  Do you know that if you add up all the money that was spent by the federal government on the loan modification program (Where there is less then $5k of actual money per deal doled out by federal government in compensation to all parties involved), that if you add up all the money already spent & divide it by how many loans actually got modified that it comes out to a whopping $177k per loan!! Really, as of the end of August this is a fact.  So my question is, where did all the rest of all that money go? I mean, I understand the there is red tape and bureaucracy, etc, but $172k for each deal done, totally unaccounted for?! That is more then the value of a lot of the homes.  The banks could almost have just given the house to the homeowner for free and been down with it.

Foreclosed HouseBernake

 

Dishonest Banks & Fake Loan Modifications-Solving our Housing Crisis.  Bring everyone's house debt down to current value & current interest rates, then if they can't keep up their house payments, take the house away from them immediately.  No need to do any paperwork at all, no qualifying.  This would have been a lot less expensive then what we are doing now in the long run.  Most people would then be able to stay in their homes resulting in less inventory, stabilizing home prices, and then the economy. It would all have been back to normal within a year. (And still could be if done now.) This would have to be done automatically for each loan by the current lender with no paperwork, qualifications, income verification, nothing done at all except have the homeowner sign on the dotted line & start making the new payments immediately.  Then, if they can't make the payments, and a few of them will probably not be able to, take the house back immediately upon missing 3 payments & sell it to someone that can p=make the payments.

Dishonest Banks & Fake Loan Modifications-Solving our Housing Crisis. But, of course, this is too simple and easy to do and how would we keep up all the bureaucracy that has to get paid & all the real estate agents that list the REO's & all the loan officers that have to write loans & all the money that the banks get from the feds, etc, etc, etc..  So we just keep keeping on & the economy goes to you know where & unemployment stays high.  All because we have to keep thing so complicated.

Comments (8)

Tim Lorenz
TIM LORENZ - Elite Home Sales Team - Mission Viejo, CA
949 874-2247

The amount of theft and fraud is enough to make me tear my hair out.

Dec 09, 2010 05:58 PM
Ben Benita
Ben Benita - Gainesville, VA
Speaker, Author, Game Changer, Coach

politics my friend, politics....your solution is simple and would work 100%....no more BS and games, BUT, the banks make the rules, they get PAID more money to drag out the process and collect cashola from Uncle Sam (our tax dollars hard at work).

 

I have been dealing with short sales and loan mods. for the past 5 years and COULD go on for pages and pages about teh BS......the problem is, NO ONE LISTENS!!!!

Dec 09, 2010 06:06 PM
Robert T. Boyer
FHA Loan, VA Loan, Jumbo Loan,FHA Loans,VA Loans,Jumbo Loans - La Jolla, CA
San Diego Real Estate & Mortgage Loans, Ph.D. | VA Home Loan

Wait, next you are going to tell me you want a flat tax rate to apply to everyone.  Oh no!

Dec 09, 2010 07:28 PM
MichelleCherie Carr Crowe .Just Call. 408-252-8900
Get Results Team...Just Call (408) 252-8900! . DRE #00901962 . Licensed to Sell since 1985 . Altas Realty - San Jose, CA
Family Helping Families Buy & Sell Homes 40+ Years

I agree with your thoughts. If people would actually look at the bottom line and figures you qutoe, there would be lynch mobs waitng for the banks to open tomorrow.

Dec 09, 2010 07:40 PM
Dan Edward Phillips
Dan Edward Phillips, Humboldt and Del Norte Counties, CA - Eureka, CA
Humboldt and Del Norte Counties, CA

Good Morning Jirius, thank you for sharing the excellent post, it does create thought!

Dec 09, 2010 09:46 PM
Jirius Isaac
Isaac Real Estate &TriStar Mortgage - Kenmore, WA
Real Estate & loans in Kenmore, WA

Ben, you ar exactly right on.  Politicians, all controlled by big money, have no way of actually coming up with a real solution.  If they ever tried to implement something like I suggested they would be out of office shortly, or even be assasinated.  Seriously.

Tim, Yes it is appalling.

Robert, that would be too simple & then we could do our own taxes without tax programs & accountants.  Ain't gonna happen.

Michelle, We gotta lynch the people in power that make the decisions, not the people working in the banks and you could never get to them.

Dan, you are welcome

I have been wanting to write this blog for a while & I really hope a lot of people will read it.  That is why I made it public.

 

Dec 10, 2010 04:20 AM
Dennis Erickson
Berkshire Hathaway Home Services Montana Properties - Bozeman, MT
My Best..., Always!

Jirius,

We agree 100%!  Your premise is spot on!  Now, you have the attention of some of the most knowledgeable people ON THE PLANET about this problem, keep pusing until collectively we can come up with a real answer or solution to this thing.  Will it take an organized protest march?  How about an organized, coordinated email effort by all AR members? 

Great post.

 

Dec 10, 2010 05:56 AM
Jirius Isaac
Isaac Real Estate &TriStar Mortgage - Kenmore, WA
Real Estate & loans in Kenmore, WA

Dennis, Thanks for agreeing. The problem is the guys in power have no clue or have their hands in their pockets & will never listen to us.  We need to take our country back.  Left, right middle of the road, it does not matter.  All the powere now is with money & not the people.  Time for another declaration of independence!

Dec 10, 2010 08:07 AM