Barack Obama
A statistic released on the mortgage crisis revealed only a fraction of Americans, who are eligible for the modification programs, have taken part in it. The government is perplexed, why I don't know. A number of people I have spoken to that are trying to obtain modification loans told me the banks are making it as difficult as possible to do so.
One person I know, who paid tens of thousands down on her home of 10-years, told me she sent in the documents to the bank several times to obtain a modification, even using tracked mail, which shows the bank received the documents, yet each time they told her, "We did not receive it." So it's their word against Fedex and the U.S. Postal Service.
She finally obtained a modification by going to a service and paying a woman $800, who has a connection at the bank and she finally received the modification, after trying unsuccessfully for nearly a year. The fact of the matter is the banks are not cooperating with homeowners.
In another case, I filed bankruptcy for a neighbor, who sought my advice. I did so without charging. I was concerned that due to her preexisting health problems she would have a stroke, because of the stressful and unethical way creditors were coming after her. After filing Chapter 7 for her, I quickly submitted the necessary paperwork to the bank indicating she would keep her home of two decades and continue with the payments they kept inflating. I sent it registered mail with the U.S. Post Office.
The bank pretended they did not get it, even telling me that over the phone, prompting me to read off the delivery confirmation number and the fact the U.S. Postal Service did deliver it to them. Within seconds the bank's representative said "Oh, here it is. I found it. Sometimes the computers don't show it." While I'm thinking, yea, if you say so. My friend has a lot of equity in the house and the bank wanted to take it and began walking along that treacherous path to do so.
In another case, another person I know sought a modification in an attempt to consolidate an inflated first and second mortgage and for over a year got nowhere with the bank. They kept pretending and giving her the run around. She then went to a service who said they would help her, but demanded she pay $2,000 per month for a year in order for them to do so. That's $24,000 that could have gone to paying down her mortgage and she was given no guarantees they would actually succeed, so she is still trying to fix the first mortgage, having disposed of the second one on her own.
According to CBS News, the government did not properly advertise many of its programs to help people, so the deadlines came and went to enroll and people did not get the help they needed. Many of these foreclosures would not have happened in the first place if the government had proper legislation in place preventing banks from significantly raising interest rates on balloon mortgages, which put many people out of their homes, as they simply could not afford to pay double the mortgage they once did.
Some foreclosures were due to people taking on homes they could not afford, which is regrettable, but many were due to interest rates mysteriously rising in what appears to be banks colluding with each other and it put many Americans out of their homes. The government should have used legislation to put a cap on how high interest rates could go, in relation to the principal of a mortgage and a person's income.
I know people whose mortgages went from $1,300 to $3,500 or $400 to $950 and if you are on a fixed income, like the average American, where are you supposed to find that extra money. Overnight some people's mortgages began to exceed their monthly income.
In short, the government is not doing a good enough job in making sure people get the help they need and many folks are being ripped off and left disappointed by so-called modification service companies. The government, on a basic human level, need to do better, as it is a terrible and traumatic thing to lose one's home.
If appealing to the government's conscience doesn't work, they should think about it this way, if you don't help the people that need it, they are simply going to vote you out, then you'll be jobless too. That goes for Congress as well. They are going to step in that ballot box, remember they lost their homes under your tenure and vote out the corresponding politicians they felt did nothing to correct the problems.
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