Treasury official: Report shows homeowners need quicker help (Less than 1% helped)

[Bozita]

Source: Detroit Free Press

POSTED: 3:51 P.M. DEC. 10, 2009 | UPDATED: 4:52 P.M. TODAY
Treasury official: Report shows homeowners need quicker help
BY TODD SPANGLER
FREE PRESS WASHINGTON STAFF


WASHINGTON – Less than 1% of the homeowners eligible for foreclosure help under President Barack Obama’s Making Home Affordable plan have received permanent loan modifications from their lenders, raising doubts about the program’s results to date and putting more pressure on the administration to get tough with mortgage companies who promised to help struggling borrowers.

Michigan, meanwhile, continues to be a leader in terms of the number of modifications made under the president’s Making Home Affordable plan, with nearly 25,000 so far. But in its report today, the Treasury Department did not reveal how many of those are only trial modifications instead of permanent ones or what percentage of eligible homes in the state that number represents.

There have been 15,237 loan modifications of one kind or another in metro Detroit – 2.1% of the national total. Among metro areas, Detroit’s number of modifications is 10th in the nation, behind New York; Los Angeles; Miami; Riverside, Calif.; Phoenix; Washington, D.C.; Atlanta and Las Vegas.

Last week, Treasury Department officials said many lenders didn’t appear to be rewriting troubled home loans quickly enough under the program and promised public shame and sanctions if they didn’t do better. In that spirit, today’s report included the number of permanent loan modifications written by the main mortgage companies, with the figure a paltry 31,382 – compared to some 3.3 million eligible loans – nine months into the program.

Read more: http://www.freep.com/article/20091210/NEWS07/91210054/1318/Report-Foreclosure-aid-falling-flat

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Banksters: fast with the bonuses, not so much with foreclosure help.

[midnight]

1. Tax payers need change-quickly.

[Kurt_and_Hunter]

2. Latest Breaking, yes. But ,sadly, not News. Sigh.

[notadmblnd]

3. I was turned down for help 3 times even though I had a foreclosure

counselor help me write the letters and provide the documentation that was required. Each time, they told me that I didn't provide something that they needed, but they never told me what it was I needed to provide. So I kept sending everything to them again and again. I've stopped crying about it and accepted it. I've made other arrangements and will call HSBC to find out where to mail my keys in the next few of weeks.

[No Elephants]

7. By "they" do you mean the bank or the government? Sounds as though you made the right decision, tho

Sometimes, walking away from a bad situation is the smartest and bravest thing to do. Close the book on that chapter and move forward.

I am sorry that happened to you. Best wishes.

[notadmblnd]

12. it was the bank

at first it was constant calls from India asking for money and for a while I sent what I could. But after submitting the paperwork 3 times and and received the 3rd letter stating that I didn't qualify for a modification, I was told by someone that the reason they would not work with me was because they didn't think that I would have enough income to cover the rework, so I stopped paying anything at all. My mtg paymt was 1435.00 and since my husband died (6 years ago) and I lost my job (5 years ago), I was still making that payment on 3500.00 a month income. When I lost half of that, is when I got into trouble. I told them in January that I was going to have problems beginning in April, they said sorry Mrs. B but you have to be behind, but here, we'll give you a 20,000.00 line of credit and it should ease your mind. Did I also mention that they closed up every office in the State back in March and fired all their employees so that there was no human being you could speak with face to face?

I decided instead of wasting my life savings keeping up the payments and just delaying my situation by a few months; that I would just take that money and find something that will give me some breathing space. I looked at a lot of foreclosures, but my god, the condition the banks have let these home fall into is a disgrace, and recovering a mold ridden vandalized home is not something I wanted to deal with. Anyway, my sister (who is doing quite well for herself and who I helped greatly when she was younger) asked if she could help me. She decided to invest in a property. We found a house that we all liked (3 sisters) and I turned over my money to her for the down payment (1/3) of the cost then she mortgaged 50k for 15 years at 5.5 interest. I will live in the house and make the payments and later on we will do a land contract purchase and put it in my sons name so he'll have something when I'm dead and gone.

I was told that it just came out of underwriting and that we'll be closing sometime next week. My son (16) and my older sister (52) is going to live in it with me and we should be able to afford to work cheap labor jobs part time. My new payment including taxes and insurance should be under 700.00 a month (my current mtg does not include taxes and ins).

It's going to be sad to let this place go, it's the only home my son's has ever known. All the memories of his father are here because even though this house is far from being a mansion (it's a small 960sq ft cape cod) he loves it. For me though, I'm looking forward to it. I need to let go of all the memories so I can move forward.

I'm just happy I don't cry about it anymore.

[Myrina]

4. I went thru the dog n' pony act with Citi earlier this year ...

... as a result of losing my job in Feb and taking one that paid $6k/yr less in June.

After all the rigamarole and bs, they lowered my payments by $60 a month, only to turn around and refigure escrow UP $30 a month, so I was 'helped' to the tune of $30 a month. Big fucking deal.

And how much of my taxpayer funded TARP money did those bastards get? :mad:

[Bozita]

5. Detroit Free Press request: Share your story on mortgage modification

http://www.freep.com/article/20091210/NEWS06/91210024/Share-your-story-on-mortgage-modification

POSTED: 10:50 A.M. DEC. 10, 2009
Share your story on mortgage modification
FREE PRESS STAFF

Comments (15) Recommend Print E-mail Letter to the editor Share

The Free Press wants to hear from Michiganders who have tried to have their home mortgagesmodified — whether you were successful or not — under President Barack Obama’s Making Home Affordable program to forestall foreclosure. Specifically, we’re looking for people who have received trial mortgage modifications and are awaiting a decision on permanent changes, as well as those who already have received permanent ones.

Please e-mail us with your story today at [e-mail]. Please include your name, hometown and a phone number where a reporter could reach you today.

Some of your stories may be used in the Free Press, and a reporter may contact you about yours.

[No Elephants]

6. So sad for these owners. Bush caused this; Obama will be blamed.

[showpan]

8. The banksters want your home

they have no intentions of helping anyone keep them no matter how much government welfare THEY get. Our government is in bed with them and this is the result of years of deregulation dating back to Reagan and advocated by every president since. What a scam.

[scipan]

10. Repubs blocked cramdown (allowing judges to restructure mortgages)

In a little-noticed but potentially explosive remark last Friday, Senator Dick Durbin (D-Ill.) accused Republican leadership of signing a political pact with the banking industry: in exchange for help defeating a measure that would make it easier for homeowners to restructure failing mortgages, GOP leadership in the Senate would help banks defeat any additional efforts at regulatory reform.

The allegation of a quid pro quo was based on an email that Durbin received last spring after his amendment to allow judges to modify mortgages for homeowners who enter bankruptcy was defeated on the Senate floor. During a discussion to promote publicly-financed elections on Friday, the Illinois Democrat relayed that, shortly after the defeat of his "cram-down" amendment, a "banker friend" forwarded him the note from Tanya Wheeless, president & CEO of Arizona Bankers Association.

http://www.huffingtonpost.com/2009/12/08/durbin-banks-and-gop-made_n_383872.html

It would have helped a lot, but Kyl & the Repubs played hardball and blocked it. Read the email at the link.

[Lance_Boyle]

11. modifications do not require principal cramdown

Modifications can include reduced interest rate or extended loan payback period. Both of those can reduce monthly payments significantly. There is ZERO need for anyone to be able to force a principal cramdown on anyone's mortgage. Pay what you contracted to pay - take longer to do it if necessary - but you borrowed amount X and should have to pay back amount X, not amount X minus taxpayer-funded gift from the mortgage fairy.

[superconnected]

9. I'm surprised that there's any home owner's in trouble that still have their house.

So many have lost them now.