Where Is The Bailout Money When You Need It?

Where is all this bailout money that we as tax payers have paid banks?  As a Sacramento Realtor/Broker and owner of Riede Real Estate I am here to tell you that the banks have taken our money and bought out other banks and no telling what else...but they aren't helping the distressed homeowner.

For over a year there have been TV commercials stating that all you have to do is call your bank.  If you would like to see what a typical scenario of "just calling your bank," is like you really need to watch ABC news video were Congresswoman Waters of Los Angeles tried to do just that with IndyMac Bank, Bank of America and Countrywide (was this when Countrywide outsourced these calls to India?...of course it's no better now, either). It is a joke calling the banks for help! If they treat a Congresswoman like this, how do you think they treat the troubled homeowner calling?

 

 

If that doesn't beat all! Loan modifications so far have been a joke with the banks. Many won't do them and some of  those that have simply buy the troubled homeowner a couple of months at a reduced rate with an exorbitant balloon payment at the end of 3 months. Who in the world do they think they are helping? No wonder their recitative rate is what it is. Who in the world do they think they are helping?

My guess is that the banks are hoping for more of a bailout and are simply buying time until they get it...we don't seem to give them any restrictions with the bailout money so what in the world do we expect? Until and unless Americans stand up, contact their congress representative and demand the U.S. Government either stop the bailouts or put restrictions on how the money is spent, this will continue. As long as we continue to have foreclosures, the economy can not and will not recover.

Today, Forbes reported on an article in the Associated Press that Wells Fargo is expanding their mortgage modification program. Supposedly, since they bought out Wachovia they are touting to extend loan terms 40 years, reduce interest rates and reducing the principal of the loan to troubled homeowners where housing prices have significantly declined.  Let's see if this is hype or if they actually perform. In the past they have not helped any of their current Wells Fargo clients needing loan modifications but there is also hope.

The Hope loan modification by Secretary Paulson was a failure and never even got off the ground. False hope for the homeowner. Watch this video with Congresswoman Waters who actually tells it like it is.

 

 

 

Loan modification certainly beats leaving vacant homes deteriorating neighborhoods and then finally selling at a much reduced rate as a foreclosure. Some of these people speaking for the bank in Washington need to call their own banks and see how far they get. They are full of words and say the right thing but unfortunately what they say and what they do are on either end of the spectrum. 

And then we have all the scammers taking what little money the troubled homeowner has and promising loan modifications. Everyone is on the bandwagon to "help" the homeowner except the banks. There are few and far between who are actually helped. I would love to hear from those of you who have succeeded in a loan modification along with the terms of your approved loan modification.

Am I the only one that sees our current practice as insane? What are your thoughts?

Please comment below and let's get real...

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