To: Obama, please keep the fed. Gov't out of the private sector, simply mandate lenders to clean up the mess they createdSubmitted by wgga on Mon, 03/29/2010 - 12:05
There we go again, the foreclosure crisis may never end due to the Obama Administration's continuing involvement in the loan modification sector.
At the beginning of last week, the moment Bank of America announced that it would starting cutting on mortgage principals to help the struggling homeowners, most financial institutions were ready to follow BofA's lead; the fact some mentioned if they didn't, they would perceived as bad apples by their customers which could cost them future deals including one bank where a friend of mine works. That was about to give homeowners hope once again.
But, on Friday March 27, 10, by the time Obama mortgage policy makers announced their new plan which is no different than the old one, these financial institutions have retracted their words saying if they are given a choice (not obligated) to participate then they won't have to do a thing.
What the administration should do is to ask congress to act in order to force lenders to correct the mortgage/foreclosure crisis that they iniatiated by inflating property prices during the last several years. If any mortgage company, bank and loan servicer would fail to comply, then it should be fined millions of dollars, and that requirement would automatically fall into the hands of real estate tax appraisers around the country who would send a letter to that financial instutition's customers or mortgage holders indicating what their properties are currently worth based on the current or recent sales from each zip code.
Henceforth, these mortgage lobbyists seem to continue influencing on Capital Hill by pushing for foreclosure laws on behalf of their clients.
If you think your property is upside down and are unemployed, you need to get yourself a good real estate lawyer.
There is no where in the constitution that says foreclosure is legal.
Hopefully, everyone gets a good week. Don't be discouraged. Some good leaders out there would come up to the rescue.