Remember Foreclosure Programs Like? HAMP – Bye Bye

by Ken Kappel on February 28, 2011

Below is an article which goes to the heart of our constant mantra, which we’re proud to say again:

With our book and this blog – our intent is to give homeowners: deep knowledge, current information, confidence, courage, and, tools to:

Repudiate Fraudulent Mortgage Debt.

House Republicans are coming down hard on federal programs that were put into place to relieve homeowner’s facing foreclosure. Of course these did not work for any number of reasons. The primary reason is that mortgage servicers did not want them to work. Making it nearly impossible for most homeowner’s seeking a loan modification to actually obtain one.  Worse, is that of all homeowners who finally qualified and received a permanent HAMP mod, within one year,  over 60% re-defaulted and lost their home anyway.

Bank of America was notorious for over and over saying: “Sorry, we didn’t receiver your docs.” When you had fax receipts and postal recipients proving you had sent them.  Then they would add on fees, and penalties, and worse, tell folks they had to stop paying their mortgage in order to qualify for a “trail mod.”  Again, they made / make more money if they can later foreclose.  Bad for homeowners and also very bad for the investors in Mortgage Backed Securities, who have taken huge losses as the loans began to default.

The investors are now engaged in active litigation attempting to “put back” the bad loans to the loan originators when they can prove the paperwork was not properly (not legally) transferred. Huge mess.  You heard about it.  Robo signing, ForeclosureGate, etc.  They are doing a great job with court decisions.  This is to your benefit if you’ll grab the clue.  Legal action that is bad for Banksters, is good for homeowners, if, and only if, you pay attention.

Anyway, this new litigation by the investor’s (with deep pockets) is working it’s way through the courts.  More mess. The take-away for homeowners is that you’d best follow the lead of these investors, and begin to prepare yourself to take action and defend your home – defend your family.

The article is based on new reporting from DSNews. See Carrie Bay’s complete article here.

To the article.
”Rep. Spencer Bachus (R-Alabama), chairman of the House Financial Services Committee, announced this week that he has scheduled a subcommittee hearing and full committee markup of four bills that will terminate what he says are “failed and ineffective housing foreclosure programs.” [Emphasis Added.]

“On the chopping block are the Home Affordable Modification Program (HAMP), HUD’s Neighborhood Stabilization Program, the Federal Housing Administration (FHA) Short Refi Program, and the Emergency Homeowner Relief Fund passed under the Dodd-Frank Act.”

“In an era of record-breaking deficits, it’s time to pull the plug on these programs that are actually doing more harm than good for struggling homeowners,” said Rep. Bachus. “These programs may have been well-intentioned but they’re not working and, in reality, are making things worse.” [Emphasis Added.]

“Rep. Barney Frank (D-Massachusetts), ranking member and former chairman of the House Financial Services Committee, said he was “very disappointed” by the move that would “eliminate programs which help the victims of the financial crisis.”

“Frank pointed out that the Emergency Homeowner Relief Fund, in particular, provides assistance to people who are unable to pay their mortgages not because they were imprudent or irresponsible but because they are unemployed. He notes that it is modeled after a program in Pennsylvania that has already proven successful, and he described the Dodd-Frank measure as “the single most effective anti-foreclosure program that has been put forward.”

“Frank added that HUD’s Neighborhood Stabilization Program provides funding to municipalities to cope with the blight, expense, and destabilization brought on by vacant and abandoned properties. He described Bachus’ plan for its termination as “an attack on cities.”

Ken here. We mentioned House Republicans at the top, and while we honestly believe Frank has the best intentions for homeowners, sometimes we wonder about him, the picture is cloudy. But be certain the Republicans in the article are shills for the Banksters. Be prepared. Stay tuned for more data / news as it becomes available.

It’s worth reading the entire article, it’s here, and is not too long.

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