Great commentary Mr. Mandelmen! Just by reading your recap of effrorts really does confirm that our government is unquestionably in bed with the banks and that this entire mess has been purposely manufactured for some other agenda these american idols have in mind for their own political gains. What a country we live in... to be slaves to the very government which ironically was in our forefathers design to be "FOR" the people and "BY" the people.
Wow! STAND UP and receive yor applause!.
I have been waiting for SOMEONE to call he servicers out! I work as a negotiator for a small law firm. We handle Mods, BKs and debt negotiation. I was in the mortgage biz for 20 years prior to this job. I can tell you having worked the "front lines" of modification working directly with the servicers that I have NEVER witnessed such blatant misrepresentation and outright lies with zero accountability for servicers and their employees.
The idea behind modification is to HELP someone who is experiencing a HARDSHIP. When the "system" works it works well but when the system fails, it fails miserably. This is especially true when the servicers use lies and deciet against the borrowers.
cindie7777 Dud?
Joined: 26 Aug 2009
Posts: 9
Location: Stockton, California
Bravo Martin This is one of the best of your hundreds of articles on this subject. I wasn't old enough in the sixties to remember the protests but I think if things don't start changing we need to look at some footage and take to the streets like they did. It worked then didn't it?
cespringer Dud?
Joined: 23 Aug 2009
Posts: 2
Location: Phoenix, Arizona
I agree completely. I wish I had more clever commentary, but I'm just glad to know I'm not the only person who sees what's really going on here. Please keep up the commentary!
This needs to be reposted after President Obama returns from Copenhagen working on getting more sporting events to our great nation. If we just get the Olympics in Chicago, we'll be fine.
- Paul
_________________ - Paul J. Molinaro, Esq.
Fransen & Molinaro, LLP
980 Montecito Drive, Suite 206
Corona, CA 92879
1-888-7-LOAN-LAW
Borrowers at worst were guilty of bad judgment? Trusting bankers?
You don't really believe that do you?
I guess you must if you believed Obama's campaign promises and voted for him
No one, not any mortgage broker, not any wall street executive, not Henry Paulsen, not Barack Obama, not George Bush , not even Sarah Palin, NO ONE forced any borrower into taking a loan to buy a home.
People borrowing money the never intended on making payments on is what started this whole mess.
Cheap easy money was available, so what, that was the choice of the investors.
Borrowers took advantage of that and as long as prices were going up as you would expect when something becomes easier to purchase, no one got hurt.
Like most things there is a limit and when the price limits were reached borrowers who thought they could flip there home for a nice easy profit before payment 1 was even due suddenly had to make a payment or more payments then they planned, began walking away. That then became the implosion that we are witnessing today.
Wall Street creating crazy derivitives and banks lowering reserves didn’t cause one person to not make there payment. That is merely the result of bankers and investors trying to keep the whole mess a float.
Why should a bank do a loan modification, because the home value went down? What would you say if the bank called and wanted a portion of the increase in equity when home prices go up?
If they think it’s a good business decision to do a loan modification then great, but they don't need the government or you or anyone else telling them they have too.
You do realize that we are now WAY past the original first impact of flippers who walked away and people who lost a job and on to people who now just want the bank to do something. People who make their credit card payments and car payments but don’t have the money for their mortgage payment.
Of course there are people who are truly hurting unfortunately like all other government "Good intentioned" programs the people who really need the help seldom get it.
Even still so what? You lose your home. So you go back to renting, you would have never been able to own anyway. You had a crack at it.
I lost my home back in the early 90's when I was younger. I went back to renting and within a few years was able to get another shot at homeownership thanks to a "Sub Prime" lender. I won’t make those same mistakes again because I learned a lesson.
Who will learn any lessons from this? Not the borrower you want them to get relief from the bank.
Not the bank they are getting help from the government.
Worst of all, who will ever want to lend again, who will be there to give the borrower a second chance like I had?
Sadly while you make some good points and I am sure will find overwhelming support for your position given our current mentality of "Blame someone else". You miss the mark.
Continuing with your article:
"Banks are telling homeowners that they don’t need a lawyer. Isn’t that giving legal advice? Isn’t that the unauthorized practice of law? Why, yes… I believe it is. But who in the country has the balls to sue or bring charges against a bank? Likely, no one. "
Wrong again borrowers are suing banks everyday and coming up with every cockamamie excuse in the world why they can't make there payments, and hmmm no I don't think a bank telling a borrower they don't need an attorney to request a loan modification is giving legal advice, I think its issuing common sense. They are still free as most do to hire an attorney.
Why do you need an ATTORNEY to ask a bank to lower your payments.
How is it that a borrower who can't make their house payment has enough money to hire an attorney to let the bank know they can't make their house payment ?
Why is it that over 40% of all loans modified just last year are already back in default? Is that Wall Streets fault, is that bankers fault or perhaps the mortgage brokers fault?
Maybe is just the borrowers fault!
While I am no fan of Barack Obama's, this has about as much to do with him as I do with the NY Mets winning the 1969 world Series
It is unfortunate that you are that naïve. Furthermore, you are so confident in your comments which only indicates the level of cockiness you carry with you. Being cocky does not mean you are correct, rather blinds you from the truth.
Although I understand your logic with respect to borrower’s making their own decision to purchase a home with no intention of paying and “flipping” them upon their quickest opportunity for their greed. It is AMERICA’S fault and especially George W. Bush’s to blame for not educating the American people as to what was is really going on.
Listen coherently and “continuing with your article”
“While I am no fan of Barack Obama's, this has about as much to do with him as I do with the NY Mets winning the 1969 world Series”
Incorrect would be nice. Barrack O’Bama has everything to do with fixing the mortgage meltdown. He is our leader and although this was not directly created by him it is his responsibility to step up and be a President.
It is a shame of what a steady diet of Rush Limbaugh, Bill O’Reilly, and Glenn Beck can do to the uneducated folk in America.
_________________ “I like that about the Republicans; the evidence does not faze them, they are not bothered at all by the facts.”
[quote="bmoran"]Borrowers at worst were guilty of bad judgment? Trusting bankers?
You don't really believe that do you?
I guess you must if you believed Obama's campaign promises and voted for him
No one, not any mortgage broker, not any wall street executive, not Henry Paulsen, not Barack Obama, not George Bush , not even Sarah Palin, NO ONE forced any borrower into taking a loan to buy a home.
People borrowing money the never intended on making payments on is what started this whole mess.
Cheap easy money was available, so what, that was the choice of the investors.
Borrowers took advantage of that and as long as prices were going up as you would expect when something becomes easier to purchase, no one got hurt.
Like most things there is a limit and when the price limits were reached borrowers who thought they could flip there home for a nice easy profit before payment 1 was even due suddenly had to make a payment or more payments then they planned, began walking away. That then became the implosion that we are witnessing today.
Wall Street creating crazy derivitives and banks lowering reserves didn’t cause one person to not make there payment. That is merely the result of bankers and investors trying to keep the whole mess a float.
Why should a bank do a loan modification, because the home value went down? What would you say if the bank called and wanted a portion of the increase in equity when home prices go up?
If they think it’s a good business decision to do a loan modification then great, but they don't need the government or you or anyone else telling them they have too.
You do realize that we are now WAY past the original first impact of flippers who walked away and people who lost a job and on to people who now just want the bank to do something. People who make their credit card payments and car payments but don’t have the money for their mortgage payment.
Of course there are people who are truly hurting unfortunately like all other government "Good intentioned" programs the people who really need the help seldom get it.
Even still so what? You lose your home. So you go back to renting, you would have never been able to own anyway. You had a crack at it.
I lost my home back in the early 90's when I was younger. I went back to renting and within a few years was able to get another shot at homeownership thanks to a "Sub Prime" lender. I won’t make those same mistakes again because I learned a lesson.
Who will learn any lessons from this? Not the borrower you want them to get relief from the bank.
Not the bank they are getting help from the government.
Worst of all, who will ever want to lend again, who will be there to give the borrower a second chance like I had?
Sadly while you make some good points and I am sure will find overwhelming support for your position given our current mentality of "Blame someone else". You miss the mark.
Continuing with your article:
"Banks are telling homeowners that they don’t need a lawyer. Isn’t that giving legal advice? Isn’t that the unauthorized practice of law? Why, yes… I believe it is. But who in the country has the balls to sue or bring charges against a bank? Likely, no one. "
Wrong again borrowers are suing banks everyday and coming up with every cockamamie excuse in the world why they can't make there payments, and hmmm no I don't think a bank telling a borrower they don't need an attorney to request a loan modification is giving legal advice, I think its issuing common sense. They are still free as most do to hire an attorney.
Why do you need an ATTORNEY to ask a bank to lower your payments.
How is it that a borrower who can't make their house payment has enough money to hire an attorney to let the bank know they can't make their house payment ?
Why is it that over 40% of all loans modified just last year are already back in default? Is that Wall Streets fault, is that bankers fault or perhaps the mortgage brokers fault?
Maybe is just the borrowers fault!
While I am no fan of Barack Obama's, this has about as much to do with him as I do with the NY Mets winning the 1969 world Series[/quote]
Your article is excellent in many respects. What fool thinks that a borrower went on his own and dreamed up 100% mortgages including subprime. No mortgage lender could sell the product if Wall Street and their convoluded abritrage system of bogus bonds could have been developed to defraud World Wide Investors.It is funny we dont hear about that Fraud at all. How Moodys rated Bonds which allowed the World Wide Investors to be tanked.
Now I agree, it was greed with everyone, Wall Street, World Wide Investors, Mortgage Lenders and Buyers. However, besides the Wall Street fraud, the tragedy now is to the American People and they dont even know.
Property Valuation Devastation: That is the real deal.That is why no modifications are working.. That is why Bof A and all others are delaying for 7 to 9 months modifications which are approved.. Why.. the investor is better off letting the property foreclose..he gets paid 100% and the servicer gets paid more for the foreclosure..
And the goverment knows and wont take care of this huge problem. Today property values in states that are not the big 5 foreclosure states will find their property worth 25 to 60% less than 3 years ago. As the gov knows, that puts over 65% of all mortgages underwater. If the property forecloses the gov has to pay the investor 100%, if it does not, they get to play mental emotional games with the homeowner, who now owns a decling asset which may never be worth what the mortgage is.. THIS IS THE CRISIS..
What was the stimulus money for the banks?? To unclog toxis assets and revalue a correct pricing to allow those to be sold off and free up the ability for banking to continue?? Yes.. then it has already been handled.. not for the consumer.. the game is lets see if we can keep the poor homeowner in his home.. knowing it is upside down potentially forever.. and at least on the books it looks as if the asset is paying with clever repayments terms.. modifications.. and the borrower is just paying twice for a home woth 50 cents on the dollar.
What can be done.. The gov do what the SMP from Bush was doing.. new mods at 90% of current value.. and write off the balance which is upside down. If we dont the majority of homeowners are out of the market for life, leaving only new home buyers.. causing a further economic nightmare.
Why wont they modify loans. they would rather delay, stall, frustrate borrowers until they give up and foreclose..
The problem is their is no governing body over mods, as their is over originating loans..I mean governing the actual underwriting of the loan mods, to ensure lenders are acountable.. which if you were to allow yourself to realize this, it is truly tragic to think the banks could help borrowers and stop foreclosures, however, until the gov changes the terms for investors. the investor is better to foreclose than to modify as they are paid in full. The investor must know the gov is going to handle the principal write down as they would handle the foreclosure.
How would you stop mass chaos.. from everybody wanting the mortgage principal written down.that is the concern.
It is truly amazing the same lenders that take 6 to 9 months to deny loan mods can underwrite and fund a new mortgage in days.
Who is paying the bill for all of the incompetence with banks stalling loan mods???
When the emotional aspect of their personal home is finally set aside, and the homeowner realizes they are upside down $150,000, that could result in a dramatically higher foreclosure rate. Why would a homeowner want to pay $150,000 more for his home. He is caught in an economic devasation and the only asset Americans have had is their equity in their home.
In respects to the buyer being the cause of all the problems is absurd. Yes a small percent, and that is a small percent. Too loose underwriting guidelines allowed it too easy for a buyer to own a home. Our economy is based on continual spending and debt as the Feds say, therefore it was all part of the overall scheme to get Americans to spend more, buy more, build more.. rather than being debt free and paying off all debt.
That does not support the economy.. 1% money, trillions in credit card debt, low interest rates allowing a housing boom. but then there is a reckoning day.. which most of us even those in our 50s and 60s have never seen this before.
Did the gov know this was going to balloon and then bust.. sure.. did they know 1% credit cards would result in trillions of unneeded debt sure.. this big economic wheel unforunately turns with continued spending.
I would rather see property values back to what they actually are regardless of how bottomed out. Americans pay off their debt. Bring back jobs and manufacturing to the US and stop our economy being based on further spending of consumers.
If not.. this will pass. and we will be here again. as the greed and gaff it too deep currently between politics and big business.. yes banks at the top.
The banks lobbyist used this economic devastation as an opporunity to change the mortgage market back to their hands and have won. Their will be few if any brokers soon, few if any wholesale lenders and all will be back in the hands of the banks. Amazing to think 80% of mortgage volume has been diverted back to banks, by the use of an economic devastation to increase market share for the banks
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