Foreclosure mess shameful: Housing Secretary

[cal04]

http://www.reuters.com/article/idUSTRE69G10J20101017?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+Reuters%2FPoliticsNews+%28News+%2F+US+%2F+Politics+News%29

President Barack Obama's housing secretary said on Sunday "it's shameful" that financial institutions may have made the housing crisis worse by improperly processing foreclosures.

Shaun Donovan, secretary of the U.S. Department of Housing and Urban Development, said in a column on the Huffington Post website that a comprehensive review of the foreclosure crisis was under way and that the administration would respond with "the full force of law where problems are found."

(snip)
Donovan, in his column, wrote: "The recent revelations about foreclosure processing -- that some banks may be repossessing the homes of families improperly -- has rightly outraged the American people."

"The notion that many of the very same institutions that helped cause this housing crisis may well be making it worse is not only frustrating -- it's shameful," Donovan added.


How We Can Really Help Families
http://www.huffingtonpost.com/shaun-donovan/how-we-can-really-help-fa_b_765528.html

[DJ13]

1. Its shameful, but a nationwide moratorium is still out

It must not be that shameful as far as they're concerned.

[sandnsea]

9. What about the banks that aren't guilty?

Why should small local banks have to carry unpaid mortgages because of what national banks have done?

[tridim]

13. IMO they should be protected and rewarded.

And the criminal banks should be shut down immediately and forever.

[sandnsea]

17. A foreclosure moratorium isn't protecting them

And most certainly not rewarding them. It would probably put the best banks out of business. Calling for a national moratorium on foreclosures is completely irresponsible.

[Tandalayo_Scheisskopf]

2. No surprise here.

There is plenty of information out there that there has been a lot of games in the mortgage modification programs. I don't know why everyone is surprised there is gambling in Rick's Bar.

[FirstLight]

3. how many families were booted before this came to light?

will they get their homes BACK? ya, right...

My sister is still couch surfing with her entire family after they lost their home last year. they had lived there over 10 years and made it cozy and awesome...lots of hard work and doing their own projects to make it pretty...
when the shit hit the fan they had the same issues with not being able to locate WHO had the note
the bank mishandled their payment and then they got penalized for it
they applied for obama's relief plan and were not able to get help, just like thousands/millions of others who tried to save their homes

remember how we were told that Obamas foreclosure program was a flop? ya, that was because the banks were already fucking it up by no knowing where the notes were and transferring ownership like the fucking shell-game they have going..

and will ANY of these people get their homes back?
nobody has bought my sister's house, she should just move back in and claim squatter's rights...

[lunatica]

4. Maybe she should move back in

First of all what's the worst that can happen if she does? I may be wrong but I think she could have been there all along since you don't need to leave until the day the house is sold in auction. If no one can prove they own the property then who kicks her out? And if they do kick her out then she can just go back to doing the same thing she's doing now.

No one in their right mind is going to purchase a house now. Especially not one that's a foreclosure. And that may go on for a while.

[AmericanMan1958]

8. Sold in Auction?

Most homes that are sold in auction is nothing more then a Quit Claim Deed sign over to another bank...
What does a homeowner do with that???

I say if they can't produce your original note,,, don't leave the home...
Get a lawyer and make these crooks produce the note..
You can't trust working with them yourselves,,, too much run-around

[tridim]

12. My auction is next month, and I've decided that I'm not signing shit.

They can take me to jail, but I'm not signing my home over to a criminal bank.

[AmericanMan1958]

15. I am demanding my Note..

I may lose but at least I have fought..
This has been a 18 month nightmare of total run around by the Banks..
all because I was laid-off for 2 months at the end of O8.
I have since recovered... had 3 trial payments periods.
and was given a 7 day notice that my house was to be put on auction.
By the way it just so happens you have 7 days to appeal a auction...
because I missed 2 payments..approx $3200... including taxes..
Now after 18 months of their bureaucratic bull crap I am a whooping..
$28,000 down including some unbelievable Bank lawyer fees.
That is not including the fact my house is $30,000 upside down...

Now this is The American Dream, brought to you by the banking system..

[tridim]

16. Me too, just the request stopped Chase's collection calls.

I'm basically in the same spot you are, but still jobless and broke.

My house has no interest at 60% of market value. So it's now even further underwater, because of what the banks did. It's their fault. It'll never sell now that people aren't buying foreclosures.

At least that fact gives me some leverage, even without an attorney.

[renate]

18. good luck

Thank goodness this story has come out now so you really have good support for your position. :hug:

Can you imagine how frustrating it'd be for people who lost their homes a few months ago to now find out that they might have been able to dig their heels in and stay? I sure can't.

[xchrom]

5. color me skeptical that you think it's shameful, mr donovan.

you'd have the moratorium if you thought it were.

[WinkyDink]

6. Um, no. The word would be "criminal." But "shameful" tells me where this is going: nowhere.

[Buns_of_Fire]

7. Maybe they'll compose a Strongly-Worded Letter. That'll teach 'em! nt

[tridim]

11. You know what? Could you take that bullshit elsewhere please.

How does your comment help? What do you think it will achieve?

This problem is much bigger than a preliminary White House response. In fact it is bigger than our whole Government and bigger that our entire economy.

This scam is going to affect EVERY homeowner in the country. It is no longer just about foreclosures. Think you own your home free-and-clear? Think again, you likely don't.

This is not a joke, please stop treating it like one.

[leftstreet]

10. For Shame, For Shame > For Bailout n/t

[Liberal_Stalwart71]

14. I don't know why this administration won't just put a moratorium

on foreclosures if they know that mistakes were made. Mistakes were made, right? If mistakes are made, stop foreclosures at least until those mistakes can be corrected.

What's so hard about that?

[Imagevision]

19. "it's shameful" is the best this idiot has?!