Homeowners frustrated by mortgage assistance program

[Better Believe It]

Homeowners frustrated by mortgage assistance program
By Jessica Yellin
CNN National Political Correspondent
September 1, 2009

Housing counselors, homeowners and consumer advocates tell endless stories of banks giving homeowners the runaround: declining apparently eligible applicants; pressuring them into loans they can't afford; placing homes in foreclosure while the owners are being considered for a modified loan; lenders telling homeowners to waive their legal rights, even though the program prohibits it; or banks telling homeowners that they have to be in default to qualify, which isn't true.

According to the Treasury Department's most recent report, only 230,000 of the up to 4 million eligible homeowners have new mortgages under the program.

In return for billions of dollars from the government to help banks recover from bad loans, the banks are supposed to help homeowners make their mortgage payments more affordable. As President Obama said unveiling the program in March, helping "responsible folks who have been making their payments" because it will "leave money in their pockets and leave them more secure in their homes."

Under the Making Home Affordable formula, the Kollars' payment should have been reduced to 31 percent of their $3,000-a-month income. The bank's offer? A payment of $2,892 a month, or 96 percent of their income.

Michael Barr, the Treasury Department's assistant secretary for financial institutions, says the program is "off to a strong start." He admits that "servicer performance has been uneven" but believes that the lenders are on track to make improvements. And he vows that the administration "will hold these institutions accountable for their progress."

Frustrated with the bank, Angela Baca-Kollar called the Obama administration's helpline, 1-888-995-HOPE, but the representative told her that the hot line "can't strong-arm the bank" and urged her to call a government-approved housing counselor.

The Kollars had been working with such a counselor for months.

Please read the complete article at:

http://www.cnn.com/2009/POLITICS/08/31/homeowners.mortgage/index.html

[Name removed]

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[atreides1]

3. Not this DUer

Unlike some here I don't think of President Obama as the all knowing, all seeing, Carnak the Great. And, neither do I regard him as responsible for every single thing that has gone wrong with the programs that his administration has put into place.

This is "his" program and maybe someone in his administration should be getting personally involved so that it works according to the plan. As for not being able to "bully" the banks, that's total BS.

I prefer to hear all sides of a situation, because that's the only way that an intelligent person can make an informed decision.

[Autumn]

11. I just want to ask, what is anti-Obama

in this article?

[Zenlitened]

19. Good question.

This is an incredibly important issue, yet the usual band of cheerleaders will hear none of it. It's "Yay for my team!" or enforced silence, nothing else will be considered acceptable.

Dumb. :crazy:

[Zenlitened]

24. A question without an answer, apparently.

[Zenlitened]

4. K&R.

Millions of homeowners are in need of urgent, help and it's not getting to them.

This mortgage assistance program is NOT working. :(

[FrenchieCat]

5. Piling on is the easy part....

which is why you do it.

No sweat, hey?

[DevonRex]

6. I have to wonder about people who spend every day digging up anti-Obama articles.

:shrug:

[Teaser]

7. you don't have to wonder

we all know exactly what they're trying to do.

[Better Believe It]

13. Don't you have any sympathy for the millions of people who have lost or will lose their homes?

[DevonRex]

16. Unlike you, I can and do think about 2 or 3 different things at one time.

You dig up anti-Obama articles all day long. I wonder about people who do that. AND I have great concern for the people suffering in this Bush-created economic mess we're in.

AND I'm wondering what to fix for dinner. AND I hope the cat doesn't have to go on a special diet. AND my neck hurts like hell. AND I'm going to walk 8 miles today.

See how easy that is? You CAN think about several different things at once. Believe it or not, you don't even have to do the same thing day in and day out. Why don't YOU go for a walk, get some exercise and sunshine? It'll improve your mood and you won't be at the computer digging up anti-Obama articles.

[scheming daemons]

15. OP put me on ignore because I pointed out what he is

...and on cue, he ignored what you're saying.

[dionysus]

18. does it rhyme with bowl?

:rofl:

[Autumn]

8. My neighbors are trying to get

assistance on their mortgage through this program and the bank is giving them such a run a round on paper work. They are both so frustrated.

[Diamonique]

14. My daughter is going through the same crap. nt

[SpartanDem]

9. The program has been a dud so far thanks to the Senate

that wouldn't back the cram down provision. Nice work one again

[Autumn]

10. Some times they make me so

fucking proud.:sarcasm:

[Xithras]

12. BofA is horrible

After five months, BofA finally approved the shortsale on my former rental last week, just days before it was supposed to go to auction. Guess what? They didn't cancel the auction. I checked with ReconTrust (the branch of BofA that handles their trustees sales) and discovered that no postponement requests had been submitted. Only a crapload of angry phone calls got them to move the date.

But it didn't stop there. The papers BofA sent me require that the sale close on or before October 10. The new "rescheduled" auction date? October 2. Luckily, my buyer is willing to do a short escrow.

Of course, even that assumes that they'll actually give us the papers we need. BofA sent over the short sale approval letters on the first, but failed to provide anything for the second (which they also hold). The title company needs papers for both loans. So far, we have NO response from them on the additional papers, and we can't proceed with the title search and escrow until that's done.

I've avoided posting much here about what I've been going through on this house, but I'm thinking about writing out a long post on my BofA adventure when it's all over with. These people are absolutely insane.

[Liberal_in_LA]

23. That's scary for us former Countrywide mortgage holders that were absorbed by BofA

[dionysus]

17. another day, another attempt to smear. as certain as the sunrise.

[Better BeLIEve Bull]

20. Jessica Yellin is an utter stooge. Like a certain someone else

[Zenlitened]

21. Sock, meet puppet.

:rofl:

[jenmito]

22. Yup. She said that Obama is "not the man they voted for" regarding Obama increasing troops in

Afghanistan. But that's false-he ALWAYS ran on concentrating on Afghanistan which he called "the good war."