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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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The bailout money will not make it down to help the people who truly need. Instead we are going to see troubled homeowners get the boot while big wig executives line their pockets with government money.
Toby, it seems that’s what we have been seeing but I am hopeful that will come to an end. The greed of wall street, the car industry and the banks has certainly been transparent.
Congress Waters should propose a bill to have Fannie Mae and Freddie MAC do streamline refinance such as FHA is doing. Her first Homeowner who was not behind could have refinanced for a substantially lower rate without appraisal or tax returns.
I am going to try to contact her to see it this can be done.
Richard, You go guy! As you can see by the videos if they treat a Congresswoman like that how in the world will they treat the consumer.
I hear horror stories daily. I’m hoping this current administration can step-up and put an end to this madness.
Wells Fargo Bank and many other banks took the Bailout money for the so called “BAD PAPER”, but NO homeowners saw a dime of that money. Not only did a homeowner see the money but that’s not enough for Wells Fargo Bank. They are going to continue to Foreclose on as many homes as possible so they can re-sell our homes for points. They make money on Foreclosed homes. The Bailout was not enough for them. If they wanted to help in not being the problem but help being the solution they would Modify home loans left and right. Will they, I doubt it, but I wish they would. We too are waiting and praying.
To be honest, most homeowners in trouble need more than just the typical modification where the loan is extended for more years and the interest rate is reduced. This simply in my opinion, just puts off the inevitable foreclosure down the line. The loan amount needs to be reduced. That will help end the foreclosures not only now but also down the line.
I wish you the best and hope that you are helped.
The BANKS received a BAILOUT. There is NO INCENTIVE to help us. The banks will foreclose without a second look becuase the government(tax payers) are buying up the toxic assets. This whole bailout iniative was such a bad idea, expecially without having any stipulations on it.
I have been trying to work with HSBC and ACORN since February to get a loan modification and reduce my lower monthly payment. After months and months of never ending faxes, emails & phone calls, the best they could do was lower my interest rate to 5.25% for 6 months and I would have to reapply when that ended for another loan modification. The payment is only $60.00 less a month than what it was before. What a joke!!!!
Jo Ann,
I hear this story time and time again. I feel for you!!!
I live in FL, unable to find employment in my trade and my husband is in construction which is a dead market here. I have tried for months to work with Bank of America, continuously calling without having any success for a “bailout”. I called before I got behind-explaining our situation and they said they couldn’t do anything because we weren’t behind. The person on the phone also said that our loan was guaranteed by Freddie Mac, so in not so many words, they were guaranteed to be paid so why would they want to help me? Then as times got even tougher and we started to fall behind they said we were in too bad of shape to help us. After the President passed the new plan, I was hopeful, but there were too many gaps in the plan. It wouldn’t help us because we have a 1st and 2nd with BOA and our 2nd is a balloon due in 2 years. This really angered me because this was the type of loan their mortgage specialist recommended and put us in when we bought the home. Of course, now we can’t refi because our value has dropped 30 grand and even if that weren’t the case, now our credit is shot. So, if they can’t do anything with our 2nd, we’ll be in the same boat 2 years from now. To be in this situation for us is totally humiliating being that we’ve had several homes and have always paid on time, never had a blemish on our credit, as well as our for our other creditors. However, over the past few years with gas prices as they were and still are, having to live off credit to get by, by food, go to the doctor, etc….then having to pay ungodly amounts to credit cards because you are a few days late, you start to sink and just can’t get your head above water and no one is helping. Gas prices are still too high and are getting higher which I believe is the root cause of everyones problems.
Just recently I heard the President added the ability for the banks to do something about the 2nd mortgage issue that many face such as myself, but in my case BOA still won’t budge and no one is talking about it. We got served our papers from the court and I understand the courts are now moving faster to foreclose? Who’s got the hands in the banks pockets now?
I just can’t understand it all? Bottom line, the incentive to the banks is a joke. They should be forced to help those in need rather than letting these homes go into foreclosure which will further make our economy decline. Who wants to see homes sit with overgrown yards and deteriorating? Many citizens get it….I don’t understand why the people running our country do not! Our government also seems to have forgotten about the gas issue. Get the prices down….there is no reason why prices are still so high. They need to do more about the credit card companies as well. If these issues aren’t resolved we are all going to go broke.
Amen to that! Melissa your situation is one I have heard many times thoughout the past 4 years. Banks convincing the buyer the loan they gave was one that was the best…now we are sinking more and money into these banks. It’s time America wakes up. We started as a people FOR the people BY the people not against the people.
Call your Congress person, write your Congress person. Until and unless more letters and protests are evident and people stand up, this will continue. Don’t think that you are just ONE, think you are ONE in a MILLION!
Thanks for taking the time to share with the readers your personal anquish. I wish you the best and hope you will take the next step.
Thanks Gena,We also have a situation very similar to yours and our home which we paid 242 for over 3 years ago is now short selling for $160k.We put down $30K and paid 2k a month. Now BOA wants 1/2 of the 2nd mortgage repaid. These banks are criminal and they do not help with loan modification at all as my wife tried for 6 months to get some help.
The problem is and always has been credit driven. Too many people rely on credit to survive and pay the cost of living. Often spending the majority of their monthly income in principal and interest payments. The monster that has been created through lending is the primary problem, that is accentuated by other rising costs such as gas and food. The lenders are simply catering to a need. With out a demand for lending their business model is eliminated. I couldn’t buy my first home until I was 27 and now after paying interest to the bank for 5 years I am going to lose the house. It isn’t the banks fault, it is my fault. Housing was and is too expensive for my income. I am the only one at a loss since I have paid almost half the original loan amount in interest already. The banks will continue to profit as long as people are willing to pay the ridiculous interest charges. It is a system that has been in place for a long time and we have become dependent on it. If EVERYONE that doesn’t profit from bank interest stopped paying them – then what? Are they going to kick all of us out of our homes? Who is going to buy the homes? If we didn’t need credit to live we wouldn’t need the banks. Lots of people get along just fine with no credit/bad credit, every one would get by even better if we eliminated this system in it’s entirety. It is a select few taking advantage of a large mass. If power was properly applied, the large mass would most likely overcome the select few profiting from this current system. STOP paying them! The legal system would HAVE to adapt to the change and we would effectively revolutionize the monetary system as we know it. As the number of people struggling increases exponentially, this type of change is inevitable. It is those left with a glimmer of hope that are impacting progress. WAKE UP!
Mike, looks like you put a lot of thought in this. I appreciate you taking the time to share your thoughts and feelings.
One question I have is when you bought your home did you buy more than what you could easily afford. There are homeowners out there who haven’t lost their houses because their income and expenses are in line and they have a 6 month reserve account in case they need it.
For those who have lost their jobs, become ill or divorced they too have issues with losing their homes. As a Realtor most of the time, I see home buyer who want more than they can afford. Many of the homeowners who are losing their homes took out equity lines of credit to buy things which certainly isn’t the folk of the lenders other than the fact that they make it easy for people to rob their home equity. The biggest thing I see and continue to see is the lack of interest home buyers seem to have about their loans. Many only worry about the interest rate and not the meat and potatoes of the loan.
I’m sorry that you are losing your house and hope that you will consider making sure the next time you decide to purchase, you don’t over extend yourself and buy within your means while looking very closely at all the language in your loan.