If I were the CEO of the Bailout Commitee I would....

By
Managing Real Estate Broker with CORE Realty (The Watz Team)

I want to hear from you!  Make a difference....be heard!

I thought that it would be interesting for all of us with helpful ideas to check in and voice our opinions as to what should be done with the bailout money.  It's really upsetting to hear that this money can go to buy up smaller banks, outside companies, pay $3,000,000 in Bonuses to one person, OMG!  Do you realize that $3,000,000 could have been used to save hundreds of homes here?

So let's make a list..(come on jump in, you know you want to) and then I'll update the list and than I'm sending it to my congressman and to the lenders.  You can do the same if you wish.  I think they need some help from us agents that are working out here everyday and seeing people lose their houses because the lenders will not take a partial payment, or can't do a loan modification because they don't have 10% equity, etc.  I've heard them all and I just can't believe how out of control these lenders have gotten!

If I were the CEO of the Bailout Commitee I would....

1. Contact all the people that have loans adjusting and offer to hold their rates for the next 24 months.

 

 

 

 

Posted By Vicki Watzlawick, Broker Owner, Exit Platinum Realty, Illinois CERTIFIED Foreclosure Expert, www.fightingforeclosuretoday.com

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Rainmaker
146,292
Vicki Watzlawick
CORE Realty (The Watz Team) - Algonquin, IL
Illinois Foreclosure Expert, The Watz Team

I feel your pain Laura!  I know how frustrating it is to offer the  bank $150,000 on a short sale, only to see them send the house to auction and sell it for $135,000 2 weeks later just because they Fannie Mae's guidelings state they can NOT postpone the auction until they get a release from the second lender.  Had thye of gotten on that 2 weeks earlier, this coudlnt have happened!  VERY FRUSTRATING!

And Ocwen telling me they will NOT postpone an auction with ANY offer no matter how strong the offer is??  Absurd!  Add that to the list!

Nov 10, 2008 12:13 AM #6
Rainmaker
305,174
Laura Levenson
APEX Properties - McHenry, IL

THIS IS WHERE THE MONEY NEEDS TO BE SPENT....ON SOLUTIONS TO HELPING PEOPLE...NOT HELPING THE PEOPLE THAT TRULY GOT US INTO THIS MESS! 

Definition of insanity:  Doing the same things over and over again, and getting the same results. IM THINKING THIS APPLIES HERE!

How can the 'little people' make an impact here? 

Nov 10, 2008 12:42 AM #7
Anonymous
Angela Morrison Broker Associate GRI EXIT Platinum Realty Lake i

I would tell lenders to freeze ARMs for five years or else refinance free of charge to a fixed interest rate. Failing that, lenders should insist on a short sale option to their homeowners instead of foreclosure. Homeowners who successfuly complete a short sale will not be excessively penalized with negative credit reporting. The lender may relfect no pays  but would not report the short sale at all or reduce the points reported by at least half to Experian et al.

Government should revisit the tax sale laws adversely impacting homeowners when they undergo a short sale or foreclosure. These penalities should be waived.

Nov 10, 2008 03:42 AM #8
Anonymous
Mark Nowak (Exit Platinum Realty)

Why should banks make any concessions to home owners that took out "cheater" loans? Are they going to pay or reduce principal balances or lowere the rates for homeowners who have been paying their mortgages on time for 5, 10, 15, 20 years? That is why it is called subprime. There were plenty of risks with these loans as homeowners and lenders a like have found out. The realty is it comes down to greed. Wall Street was pushing for mortgage backed securities, lenders were writing these loans  at whatever costs, & homeowners wanted more home then they could afford. So the realty is let the homes be foreclosed on, because in a couple of years the homeowners with these loans will be foreclosed on anyway. You are just delaying the inevitable. Let the foreclosures happen. Let the banks writedown & charge off the bad debt. Make buyers put money down so they have a financial interest in the property. And lets move a head in the cycle.

Nov 10, 2008 04:11 AM #9
Anonymous
Anonymous

Thanks Angela!   The government has come up with a temporary fix for these issues via IRS  982 which can be found at irs.gov and doing a search for 982.  Wether they will prolong this debt forgiveness or not beyond 2009 remains to be seen.

 

 

Nov 10, 2008 05:14 AM #10
Anonymous
Angela Morrison Broker Assoc GRI EXIT Platinum Realty IL

Why?  Because the lenders created and marketed the risky products in the first place. I simply desire to see the banks keep the principle but they simply won;t make their projected interest. Mark they reduce the principle amount when they accept a short sale or foreclosure anyway.  And ifI recall we are specializing in helping these distressed homeowners by persuading their lenders to accept a short sale. We need to minimize the impact on both the bank and consumers for a few years. The lenders developed the risky loan products and sold them to consumers. They should share the problem. Foreclosures destabilize property values, remove properties from tax rolls, and can create nuisances for all of us. If we adopt a laissez-faire attitude, we will eventually imperil our own investments.

My plan seeks only to minimally impact the lender and homeowner without the problem spilling onto us.

Nov 10, 2008 05:53 AM #11
Anonymous
Rodney Sterne Exit Platinum Realty

 

First of all it is easy to blame both the buyers and the lending institutions for their greed. What our country needs now is not blame but fix. We are way past the finger pointing stage and should accept the facts as they are. Fix the problem so that we do not repeat the same mistakes in the future. Too often we cry over spilled milk and want some ones head on a stick. I have worked with sellers of home that for one reason or another have sold their home via the short sale method and it has helped them tremendously. Many of my clients have had earth rattling setbacks in their lives. Should we penalize them for their hardships when CEO's of major corporations are running their companies into the ground and getting millions of dollars in golden parachutes as a bonus? I went on a short sale presentation just last week and met with 2 women, both were upside down with their mortgages. Both not because they were greedy and bit off more than they could chew but because of the economic hardships they have faced with their husbands being unemployed for a very long time! Have you ever had to face people crying with heart felt tears because they were about to loose their dream home that they spent years getting just the way the wanted it to be and then be told that you are going to loose it just like that? Pardon my French but that really SUCKS! Our country is facing an economic crisis equaled only by a few who can remember the 1920's and 1930's. The banking industry has screwed the pooch and is getting bailed out with our tax dollars. Next bailout will be the Auto Industry along with other major players holding their hands out for some of the hundreds of billions of dollars appropriated. Good one congress. I feel for my clients and they are not getting any financial help with their mortgages. What a tragic situation that is. When is the government going to realize that giving to the rich and wealthy and hoping that it will filter down to the common worker (Trickle Down Economics) won't work  just as it didn't work under the  the Reagan administration. It is time that congress earns their salary for a change and helps the people that actually voted them into office and not the businesses that paid their campaign bills.

 Thank You, Rodney Sterne

Nov 10, 2008 06:32 AM #12
Rainer
495
Jorge A. Flores
Mortgage Direct - Chicago, IL

FORCE all the banks to modify all the high interest rate mortgages, adjustable rates and  stop foreclosures immediately.  There are a lot of BAD loan officers out there that put most of these homeowners into those bad loans without explaining the loan they are getting into and its not fair for these hard working individuals to lose their homes.

Nov 10, 2008 06:42 AM #13
Anonymous
Anonymous

THANK YOU RODNEY for putting a human face and heart on this issue. It is very hard dealing with seniors who have to pay for chemotherapy or find their pensions plans have been devalued by 35% this past month and they can't meet their mortgages.  When they cry, you cry on the inside too. We need to remember we are in the people business first.

Nov 10, 2008 09:04 AM #14
Rainmaker
2,518,984
Charles Stallions
Charles Stallions Real Estate Services - Pensacola, FL
800-309-3414 - Pensacola, Pace or Gulf Breeze, Fl.

Well lets see.

  1. I would reset everyone that has an adjustable to what they originally got anf tell the banks that is their share of the bailout.
  2. All the vacant foreclosures I would give to the veterans from th Iraq and Afganistan, any left over would go to any veteran of war and then their families. Tell the banks to not look a gift horse in the mouth they would get the taxable value from the counties and states and wouldn't have to maintain them while looking for buyers. The munitiapalities would get them back on the tax roles.
  3. I would ship every new gas guzzling car over seas and sell them to the rich arabs or chinese and this would liquidate the Detriot problem inventory.
  4. I would eliminate all foriegn aid of any kind, let other countries take care of em and then see how much they appreciate us. We would wipe out all US debt with this one thing and havea surplus of 2 trillion dollars.
  5. I would split the 700 billion with every born American that has filled out a tax form in the past 10 years.
Nov 10, 2008 09:28 AM #15
Anonymous
Vicki Watzlawick

Thanks for weighing in Mark. 

Rodney...phew.  SO all said ...what would you suggest that could change with the use of the money right now?

Nov 10, 2008 09:34 AM #16
Rainmaker
146,292
Vicki Watzlawick
CORE Realty (The Watz Team) - Algonquin, IL
Illinois Foreclosure Expert, The Watz Team

Jorge  I agree.  I can't tell you the number of sellers that I run inot wekkly that had NO clue what type of mortgage they had, or that it was adjusting, etc.  Especially those that don't speak good English.  Those lenders should be brought to justice!

Nov 10, 2008 09:38 AM #17
Rainmaker
146,292
Vicki Watzlawick
CORE Realty (The Watz Team) - Algonquin, IL
Illinois Foreclosure Expert, The Watz Team

Nov 10, 2008 09:44 AM #18
Rainer
54,749
Chad Baird
Re/Max Spirit - Dayton, OH

Ask for additional 1 billion dollars to give myself a raise and then go and visit every city in the nation and survey the need.  Then I would think for a while and then decide. 

Nov 10, 2008 09:51 AM #19
Rainer
54,749
Chad Baird
Re/Max Spirit - Dayton, OH

My responce is assuming I have an expense account and private jet. 

Nov 10, 2008 09:52 AM #20
Rainmaker
146,292
Vicki Watzlawick
CORE Realty (The Watz Team) - Algonquin, IL
Illinois Foreclosure Expert, The Watz Team

Wow that's a lot of traveling Chad!  I think the money might gone within the year.  But I guess it's no worse than what some of them will be spending it on!

Nov 10, 2008 10:08 AM #21
Rainer
54,749
Chad Baird
Re/Max Spirit - Dayton, OH

I would try to make up the deficit in Vegas though. 

Nov 10, 2008 10:58 AM #22
Rainmaker
146,292
Vicki Watzlawick
CORE Realty (The Watz Team) - Algonquin, IL
Illinois Foreclosure Expert, The Watz Team

So lets build a casino called the BBB  Big Bailout Bonus and all the profits will go to pay us taxpayers back!  Hey that's more realistic than where some of the other funds will be going!

Nov 10, 2008 11:58 PM #23
Rainer
202,246
Greg Wilson
1st Cornerstone Realty - Schaumburg, IL

I personally think the bail out is just a way of paying people to do a bad job.  Image running your company into the ground and then getting paid more money for doing it.

Nov 18, 2008 11:55 PM #24
Anonymous
Steve

Fortunately, there are still some Americans who have jobs and are still making a good living and are able to meet their financial obligations. And yes, there are many who say, why should I care about  other people when I still have a job and I still pay my mortgage on time?  Problem is, it is very likely that  if the Depression continues to worsen, you too will be out of a job and then what?  Looks like we can either help the banks, and we all know that has not worked, or get to the root of the problem and help the people who are having trouble making ends meet so they can make their payments.  People with a family, medical or dental bills, or children in College have a hard enough time making ends meet let alone saving $20,000 for a down payment on a house!  The Fed could use the "Bailout/Stimulus" money to pay down, or refinance individual consumer's personal debit including one single family personal dwelling, and if unemployed or under employed at the time give those people 6-12 months to make the 1st payment.  The Banks would be paid off and now have money to loan, consumers would now have manageable debit payments and feel confident spending again!  The Fed is currently lending to Banks at around 2% interest right now!  They could lend to the American Taxpayer at 3%, 30 or 40 yr. fixed rate, and might actually make a profit.  Some say why, I say Why not?

Jan 29, 2009 04:12 AM #25
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Rainmaker
146,292

Vicki Watzlawick

Illinois Foreclosure Expert, The Watz Team
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