This morning I read an article in the Sacramento Bee about the former executives of Countrywide that got rich on bonuses and golden parachutes after they made tons of questionable loans which we are all now paying for. Believe it or not they have taken their wealth and created a company that buys up bad loans from failed banks. They are paying pennies on dollar for these loans and making a killing on collecting. The economy is in the tank, the everyday guy is suffering and these guys are making millions again!
Why do I feel that when this is all said and done the people that will have prospered are the ones who helped create the problem and the borrowers who made risky and poor financial decisions to buy homes they couldn't afford? Those of us that bought homes we could afford and are making our monthly payments, even when our income has declined and other costs have skyrocketed, will maybe just be lucky get through this recession.
Today, another Washington scheme was announced called the "Making Homes Affordable" initiative. I am not saying the housing market and homeowners shouldn't get help but there are now so many plans and programs it is confusing and most of my clients, who we help avoid foreclosure, say when they call their lenders and ask about these Government sponsored plans the answer is generally something about we don't care what you read, send us money or we will foreclose.
There seems to be a breakdown in the communication between Washington and the lenders. Why when we are giving banks billions don't we get commitments to follow the program? You don't need to be a rocket scientist to understand "make loans and help borrowers."
If you want a bit more detail on the latest plan to help you keep your house, check out my column, "Dizzy in Sacramento" over at Rocklin & Roseville Today.
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