Our government is really trying. What they are trying to do is beyond me at this point in time, but they are trying.
Take, for instance, HAFA and HAMP. No one can claim ignorance to these programs for no matter who you are, where you live, or what you do to earn your living everyone of us knows someone who is facing foreclosure. At the very least, we have seen signs in our neighborhood advertising short sales or offering free big screen televisions with the purchase of the house.
Worse yet, we have all noticed the houses which suddenly sprout overgrown lawns and have window coverings that never budge.
Yes, HAFA and HAMP have been put into place to help the struggling homeowners. Yet, let us consider where the government bail outs went. Most banks are ditching FDIC insurance which means your money is gone if they go belly up, yet they continue to pay bonuses from TARP.
Most recently, we have seen whistle blowers. That rare employee with a guilty conscience who is simply not comfortable with the lack of ethics displayed by these organizations is shedding light on why more control over these programs where the banks are concerned is necessary.
On April 5, 2010, the world of mortgages and real estate will take another drastic turn. All other options will have to be examined prior to foreclosure. Here is where we say “Houston…we have a problem”.
To date mortgage modification programs are not working for the majority of those that truly need help. The banks have found a way around it. Borrowers are required to go through a trial period, ensuring that the modified payments can be made in full and in a timely manner in order to qualify for the Mortgage Relief Act program. A struggling homeowner goes into the bank requesting modification. The modification is permitted. The loan is paid in full and on time through out the duration of the trial period. Three payments are received by the bank. Although all conditions have been met, the homeowner then receives notification that they are not qualified for the program and foreclosure begins. The bank has collected money, squeezing the payments out of the homeowner by giving them false hope then intentionally denies the applicant and forecloses on the property.
The news we have seen lately is discouraging. Stringent regulations need to be placed to control the banking industry and stop the highway robbery. We cannot simply blame sub-prime lenders, and trust that the Big Banks are going to step in and cure everything. They obviously will not. Unfortunately, this is just the tip of the iceberg. As the days progress, I am certain that we will see all of the disturbing practices of the banking industry come to light.
Short Sales and Loan Modification are viable options when they are executed with knowledge and experience. Contracting experienced and knowledgeable processors to work with you to successfully execute your transactions is a very wise option. Checking into ratings, complaints filed and past history of a company are very important when making a decision on who to partner with.
