Take a few moments to read an outstanding post by Lenn Harley. Will the mortgage write down in California help the real estate market or become a big waste of our tax dollars.
Stop by Lenn's blog and let her know your thoughts.
Good luck and success.
I SUPPOSE IT IS A MATTER OF FOCUS.
FOUND IN MY NEWS BRIEFS THIS MORNING - From the VARBuzz, a publication of the Virginia Association of Realtors.
"Bank of America set to write down principal on California mortgages", by Jon Prior. . . read more. . .
Bank of America * * * * will begin a new pilot program in the next few weeks, allowing some California homeowners to receive a principal writedown on their mortgage.
The program will be funded from the $699.6 million the California Housing Finance Agency received from Treasury Department's Hardest Hit Fund last year.
The link above, last year, describes the program announcement of June 2010 wherein the federal government allocated $1.5 Billion for mortgage relief for the hardest hit states.
Q. How many California residents have lost their home since June 2010???
SO WHAT'S THE PROBLEM, LENN??
That announcement by President Obama was made in June 2010. As nearly as I can see, housing, on a national level, has NOT IMPROVED since June 2010 and, in fact, we see a continued decline. It appears that February 2011 was just about the worst ever for new construction and existing home sales.
THE ANNOUNCEMENT THIS WEEKof the funding of $699.6 million for the California Housing Financing Agenty, sounds promising. However. . . .
LET'S PUT THAT $1.5 Billion in focus. $1,500,000,000 compared to $1,200,000,000,000??? Count the "0"s, the Zeros. A $Trillion Dollars is a thousand $Billion Dollars which is a thousand $Million Dollars which is a thousand $Thousand Dollars. That's a lot of money.
ENTER TARP! $1.5 Billion for states to assist mortgage companies to assist borrowers at risk must be compared to the almost instant relief provided to COMMERICAL AND INVESTMENT BANKERSwhen it was declared by Secretary of the Treasury Paulson and Fed Chairman Bernanke that the financial system was at risk and we needed an emergency $780,000,000,000- that is $780 BILLION (which, enter Obama and Geithner, eventually exceeded a $1.3 Trillion, that is $1,300,000,000,000 to help those commercial and investment banks. The banks didn't even have to qualify. They just had to be. They didn't even have to promise to make mortgage loans from the money received. They could simply "put it in the bank".
The miniscule amount offered to home owners for relief should be identified by the government as "public relations". The numbers are insufficient to qualify as serious homeowner relief.
WHO QUALIFIES FOR RELIEF?? Anyone who has read the requirements for home owners in distress knows that
1. Few will qualify.
2. The guidelines are convoluted.
3. The guidelines exclude far more home owners than they help.
WHAT WERE THE "GUIDELINES" FOR FINANCIAL INSTITUTIONS TO RECEIVE $BILLIONS IN "RELIEF"???
My recollection is that there were no guidelines. Banks were awarded $Billions simply by asking and some didn't even have to ask. Treasury/Fed spread TARP goodies around like like they were Christmas stocking fillers. The truly distressed banks were closed by FDIC and the viable banks were given HAND-OUTS of Billions WHETHER OR NOT THEY NEEDED THE MONEY.
COMPARE THAT PROCESS TO THE PROCESS BY WHICH A HOMEOWNER IN DISTRESS may or may NOT qualify for mortgage relief.
IT BOGGLES THE MIND!
Courtesy, Lenn Harley, Broker, Homefinders.com, 800-711-7988.
One small voice for American home owners.
"Honey, are we going to lose our home?? Now that you have a job, is there any hope?"
"I don't know Dear, I completed the 32 page application form for forebearance or refinance and was advised that we would be notified."
"The adviser said that they have $699.6 Million in the fund, but already have $650.9 Million committed."
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