I picked up the newspaper this morning and here is yet another article on how the plight of the homeowners has become a volatile political issue. On Friday (Dec 11, 2009) "the House passed a series of new financial regulations; it narrowly defeated a provision that would have allowed bankruptcy judges to modify the term of mortgages. THE MEASURE WAS STRONGLY OPPOSED BY THE BANKING INDUSTRY."What? Did I read that correctly? I thought they were reaching out to the homeowners, sending representatives from companies like Titanium to help these homeowners get their paperwork in, working with them so they can stay in their homes, and they are lobbying to prevent loan modifications?After a few choice words from the President that did not speak favorably about the financial institutions that got us into this mess in the first place, the article stated that the President will meet on Monday with representatives from Citigroup, JPMorgan Chase, Bank of America, Wells Fargo, and Goldman Sachs.Good Luck Mr. President.Any comments about the Loan Modifications?
Rob, that is exactly why they paid back the money so quickly. All the major banks paid back billions of dollars this week to keep the government out of their business. They don't want them telling them to limit bonuses, etc. I'm not sure they were "required" to do loan mods, just make an attempt.
Albert, thanks for your great comment especially "Once the decision to not modify is transparent there is no longer any reason for the banks to hold the assets on their books at full value"...so true.
I'm not claiming to be an expert in banking but it is my understanding that the financial institutions that took bail out money are required by those agreements to try and modify the loans. That does not mean they want to.
I am speaking with a homeowner in distress that has been denied a loan mod because her income is too low for the amount of debt she has. She may want to reapply and add her daughter's income since she lives with her now but she is not on the mortgage or title. Does anyone know if this is possible?
I think we as Realtors can go round and round with our ideals and or opinions about loan mods and their effectiveness. I like many of you do agree that the banks, primarily the larger banks, have no intentions of accepting the losses that these loan mods would result in. However, if I could, I'd highly recommend that the banks where contractually forced into stating their position as to what will and what will not qualify for a modification. This is something the administration and congress could pass in some form of “transparency” bill, I know this wouldn’t necessarily result in any onslaught of loam modifications yet it would ensure minimal confusion as to who will be able to keep their home and who should get their home on the market for a short sale hopefully preserving whatever credit they may have left. The time of finger pointing has passed, and to recover it doesn’t matter who knew what back in 2004 thru 2007. The major problem around these loan modifications is simply there has been no consequence for leaving the citizenry in the blind to the reasons for and against why any particular modification qualifies, so making the criteria visible-though may not change the number of modifications directly-will ensure timely decisions will be made instead of all the game playing. There are some unethical to outright crooked people out there and they’re on both sides of the fence, and this lack of transparency is allowing them to come right back out of the woodworks. This is why the banks should be required to clearly present whatever criteria they choose to evaluate or consider for loan mods. And as the criteria changes, document and inform the public of the changes. Once the decision to not modify is transparent there is no longer any reason for the banks to hold the assets on their books at full value. This writing-down of assets, which should be specifically regulated by a sub group of the SEC, will ensure some form of bank action/involvement.
Loan Modifications seems like they only work for a few! The problem is they are rewarding the same people that went into a transaction they knew they could not afford in the first place.
I have been out knocking on doors of homeowners that are about to have their rates adjust. They seem like they don't want to be troubled doing the papers work or they just don't want to attempt anything until it's too late. I read some time ago about a company that sent out 40,000 letters asking the homeowners to contact their loan servicer to see if they qualify for a loan mod. They got 40 replies.
I also been going out on assignments for Titanium Solutions and out of over 30 homeowners only one went forward and applied for a loan mod. Tell me who’s to blame for the mortgage mess. I for one did not do a 100% financing transaction because of the results I seem in the past. The only mistake I made was not getting into a home I knew I cause not afford so I too could change the deal I agreed on in the first place.
Homeowners are suffering no matter which way they go. You and I are suffering because of those homeowners not being realistic on purchasing a home they could afford.
I like the President's approach of making these large institutions be accordable for their actions --- well in this case the lack of action. They are playing this to the end that on one hand they are trying to put up the "lie" that they are really trying to help homeowners and all the time.... they are not. They finding ways to delay the process and still trying to make it look good. In other words lying to the country.
Homeowners are suffering no matter which way they go.
Comments
Albert, thanks for your great comment especially "Once the decision to not modify is transparent there is no longer any reason for the banks to hold the assets on their books at full value"...so true.
I have been out knocking on doors of homeowners that are about to have their rates adjust. They seem like they don't want to be troubled doing the papers work or they just don't want to attempt anything until it's too late. I read some time ago about a company that sent out 40,000 letters asking the homeowners to contact their loan servicer to see if they qualify for a loan mod. They got 40 replies.
I also been going out on assignments for Titanium Solutions and out of over 30 homeowners only one went forward and applied for a loan mod. Tell me who’s to blame for the mortgage mess. I for one did not do a 100% financing transaction because of the results I seem in the past. The only mistake I made was not getting into a home I knew I cause not afford so I too could change the deal I agreed on in the first place.
Homeowners are suffering no matter which way they go. You and I are suffering because of those homeowners not being realistic on purchasing a home they could afford.
Homeowners are suffering no matter which way they go.