In my lifetime, I have never experienced nor heard my parents talk about our current situation with foreclosures, short sales and the effort to do loan modifications. Frankly, yesterday when I heard Tim Gietner would be leaving, I said good..
It is pretty clear that a big percentage of homeowners are being forced to attempt a short sale, most it seems with little success. The Banks have not been approving loan modifications to any great degree, even with the federal program in place. leaving homeowners in distress. Up a creek with no paddle. I have seen, as I am sure you have, several instances where struggling borrowers try to work with their lender, with their bank, only to learn that the bank won't even consider a loan modification. When they call and ask about loan mods, the lender says, call us when you are three months delinquent. That is craziness !!!
In stead of giving the property away why cannot the lender really help the borrowers who truly are having a hardship? I don't agree with those of you who think these are bad people making bad decisions in the past. After all, they are your peers, your co-workers, your neighbors!! They are your friends who you hang out with, your kids play ball with their kids, you share carpooling. Their the policeman or fireman, or grocery checker you look to for help.
The bank would rather turn them into the homeless, living in motels or camping in their cars. They would rather have see the children go through trauma and embarrassment at school, their grades crash, become delinquents.
Qualifying homeowners for what they can afford to pay, reduce the interest to 2% or 2.5%. Adding the amount on to the end of the loan, extending the loan out to 40 years. Cut the fees banks and other vendors are charging for processing these foreclosures.
Frankly, take the short sales and bank owned property away from real estate agents by making it work long before it gets to us. Reduce inventory!!!! We would love nothing more than to have a settled market, to have regular sellers who are not under stress for a must sell.
Our government, congress, the White House appointees, the President is helping banks cover their losses, so we taxpayers, should have a voice as well. Cut the red tape, cut the loss of home ownership. Help America get back on real estate track.....
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