Bush Foreclosure Moratorium Not Nearly Enough

[Omaha Steve]

http://blog.aflcio.org/2008/02/12/bush-foreclosure-moratorium-not-nearly-enough/

by James Parks, Feb 12, 2008

Two months after the AFL-CIO called for a one-year moratorium on subprime mortgage foreclosures, the Bush administration has finally seen the light–but just a little bit. The White House plan for only a monthlong moratorium on foreclosures is “like slapping on a Band-Aid and calling it surgery,” AFL-CIO President John Sweeney says.

To truly make a difference, we need a moratorium on subprime mortgage foreclosures for at least six to 12 months.

Click here to read President Sweeney’s statement: http://www.aflcio.org/mediacenter/prsptm/pr02122008.cfm



In December, the AFL-CIO called for a bold plan to address the housing loan crisis, beginning with an immediate moratorium on foreclosures on subprime mortgages. Our plan includes restructuring subprime loans for 30 years at the original low teaser rates. It demands mortgage servicers publicly report how many subprime loans they are servicing; how many have reset; how many have been restructured; and how many foreclosures are occurring and where.

[KatyaR]

1. And did you notice it was just for five or six lenders/banks?

There's no guarantee that people will be able to find financing in 30 days, so basically it just gives residents 30 more days to pack up and leave.

I have a feeling that this is of more benefit to the lenders than the public--the public always gets the shaft.

[MadMaddie]

2. Even if it was...too little...too late.

[beezlebum]

3. wow

i just got certified mail and a phone call from my mortgage company telling me my house is being foreclosed on, even though we've paid it every month (it was late in january and february and they won't accept our payments unless we send certified funds including several hundred in late fees, although they had no problem cashing our check, they just won't credit it to the saving of our house). i came here to maybe forget about it- how stupid am i??? hello beezlebum, there's a mortgage crisis going on?!?!

of course my woes aren't so much b/c of sub-primers as much as the outrageous insurance rates here in post-katrina LA (of course the nasty credit cards used in desperation are no help). our housenote has doubled in 2 years, and is expected to be tripled by the summer- who can afford that? when we moved in, it was fairly comfortable and we expected it to get easier, but now that's it has skyrocketed!! :(

it is infuriating what is going on. record foreclosure rates nationwide. subprimers. insane insurance and property tax rates...rah!! i have never felt so desperate, and it gives me no comfort that i am far from being without company. can't even think straight!!!

:mad:

[rumpel]

4. not accepting payments does not sound right

is it spelled out in the original loan docs that you must send certified checks when late? If not, beware...there is also something called mortgage servicing fraud, piling on unnecessary fees, not crediting funds when received etc.
check out the term in google, you may be able to fight it - act sooner than later.

luck to you

[beezlebum]

5. i had never heard of that- edited!!

thank you- i googled it, it's scarey! i will definitely be looking further into it.

edit: oh. my. GOD! my mortgage co is a subprime lender- i had no idea!! when i bought my house 6 years ago, i went through a local bank, the loan was then sold twice, and this bank that we're now with is a subprimer, AND they are also one of the top foreclos-ers right now (number one in cleveland)! AND i'm in the process of reading several sites with info on MSF regarding MY BANK! i can not thank you enough for that information and will keep digging!!!

[rumpel]

6. welcome

the problem starts when the original lender bundles their accounts and sells it. ugh.

Regulators should have looked into this loooong time ago - well they have - but nothing was done.