Message to Distressed Borrowers: You Have to Help Yourselves

As it stands, the banks and financial institutions will be the only ones receiving anything in the way of support during this crisis. Homeowners will be left to the mercy of the lenders, who will decide for themselves whether or not they want to use our tax dollars to stop the tsunami of foreclosures, or whether they just want to sit on our money and pad their pockets with hundreds of millions of dollars in unjustifiable bonuses.

I think it’s safe to say we are all on our own for now.

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Refinance is the obvious first choice for everyone involved. The problem is that the vast majority of troubled mortgages were structured in such a way as to make refinance all but impossible. This is, of course, completely contrary to the “expert” advice the borrower probably received from the Broker or Loan Officer.