Homing in on foreclosure help

[Terry]

Another side effect from the wrongheaded-regulation of the mortgage industry. The gov't forcing banks to make loans to people that do not qualify.

Then ther there is Brothel Barney Frank - Nothing's wrong with Fannie and Freddie - let's roll the dice a little longer.

Nice job flatliners

[CAM]

Fed Up wrote:

I'd say at least 3 of every 5 foreclosures are from people who lied on their loan apps to get the "dream house." Its a joke. Meanwhile, hard working people who bought within their means and were laid off from jobs can't get help because of so many people defrauding the system.
I heard from a friend who works at a bank about a man who hasn't made a payment since last August crying that he needs a loan modification. Upon reviewing the man's bank statements, he found $85 in "expenses" (3 mos in a row)to a nail salon. When asked, he replied (in Spanish) "My wife has fake nails, and gets her toes done in the summer."
Hmm...he can't pay on the house, because wifey needs a mani-pedi. Its people like this who need to be living in cardboard boxes. They don't deserve anything better.

Fed up, they can't lie on their app. Well, they can but they won't get a loan. You cannot fudge on a loan, at all. Unless you have found some very rare fly by night, not reputable lender (like 1 out of 10,000) you have to follow very strict rules. But I'll go along with an idiot that pays out $85.00 for some nails gets what he deserves.
I like a good pedicure like the rest but it's not that hard in tough times to paint your toes yourself.

[CAM]

Another Taxpayer wrote:

Yeah, cell phone's and gold jewelry, that's usually the straw that breaks the camel's back. Not a job loss, hospital bill, or deceased spouse. Yup... definitely a necklace. BTW Karl Marx- the article talks about pre-purchase counseling too, which most of these agencies want to spend their time doing, it just so happens that the country is experiencing the most foreclosures since the great depression.
In terms of the government not having "cash", local governments don't benefit in any way from foreclosures. They lose out on the tax revenues, surrounding home values drop, and vacant homes are dangerous, resulting in more police demand. Foreclosures make no sense; why would you not want to do anything it takes to prevent them?
And what does this have to do with Obama? These services have been around for 20+ years- it's the demand that has gone up as a result of years of low interest rates and shady unregulated lending, thanks to your boy, President Bush.

I'll go along with all of this with exception to Bush.... So not his fault. Totally the dems deal on this one, do your research.

[Hater]

CAM wrote:

<quoted text>
Fed up, they can't lie on their app. Well, they can but they won't get a loan. You cannot fudge on a loan, at all. Unless you have found some very rare fly by night, not reputable lender (like 1 out of 10,000) you have to follow very strict rules. But I'll go along with an idiot that pays out $85.00 for some nails gets what he deserves.
I like a good pedicure like the rest but it's not that hard in tough times to paint your toes yourself.

Hey Cam...what rock have you been living under?

You're correct that you can NO LONGER lie on your loan application.

I suggest you watch the CNBC show

"House Of Cards"

BTW...I HATE CNBC.

Every step of the way:

A homeowner:
Clears about $900 / week.
The application shows he clears $3600.

Throughout the entire program...
Homeowners
Realtors
Appraisers
Mortgage Brokers
Bankers
Politicians

Chant the same BS:

"It's not my responsibility."
"I knew nothing about this."
"Everybody was doing it."
"Someone else filled out the form."

America

Land of the Fee.
Home of the Slave.

[Terry]

Another Taxpayer wrote:

Yeah, cell phone's and gold jewelry, that's usually the straw that breaks the camel's back. Not a job loss, hospital bill, or deceased spouse. Yup... definitely a necklace. BTW Karl Marx- the article talks about pre-purchase counseling too, which most of these agencies want to spend their time doing, it just so happens that the country is experiencing the most foreclosures since the great depression.
In terms of the government not having "cash", local governments don't benefit in any way from foreclosures. They lose out on the tax revenues, surrounding home values drop, and vacant homes are dangerous, resulting in more police demand. Foreclosures make no sense; why would you not want to do anything it takes to prevent them?
And what does this have to do with Obama? These services have been around for 20+ years- it's the demand that has gone up as a result of years of low interest rates and shady unregulated lending, thanks to your boy, President Bush.

NAme the Bush policy that led to this. Time to put up or shut up

[Karl Marx- I oughtta know]

CAM wrote:

<quoted text>
Fed up, they can't lie on their app. Well, they can but they won't get a loan. You cannot fudge on a loan, at all. Unless you have found some very rare fly by night, not reputable lender (like 1 out of 10,000) you have to follow very strict rules. But I'll go along with an idiot that pays out $85.00 for some nails gets what he deserves.
I like a good pedicure like the rest but it's not that hard in tough times to paint your toes yourself.

You sure can lie on your app. At the encouragement of the broker, some important items on my application were false. But, I was gratefull for the loan and I took the PROMISE TO PAY seriously and was always current on the loan. And, it took first priority.

I remember buying used stuff on Craigslist- Some people in brand new houses got rid of new appliances for better and had new cars and furniture.

I'll bet they are renters now and I hope they live like the bums they are.

Thank you Clinton and Obama.

[NoToBigGovt]

Ann wrote:

<quoted text>
___
Your political ideology (obsessive fixation) makes you sound ignorant.(COmmon problem for those who twist everything to suit their own agenda - its makes them stupid because they ignore facts that don't fit their theory.)
(1) HUD does not pay for the counselors. They are just approved by HUD who makes certain that they are not a scam.
(2) Most counseling/housing groups are funded by local and state government.
(3) Counseling by a HUD approved counselor is REQUIRED to get an FHA loan.
(4) No, borrowers CAN NOT just "talk to their orignial lender." The loans have been sold off and sliced into hundreds of peices and sold many times over. There will be a loan servicer who may or may not be able to take action.
FUrther, the loan servicers are reluctant to deal with the borrower directly since they rightly assume that the borrower is clueless, has no idea about DTIs, rates or anything else and may be peddling a line to try to get the mortgage changed. The servicers much prefer to deal with a housing counselor since they can be assured that the counselor will have checked income, assets etc and knows what is or is not affordable and won't waste the time if the loan is not salvageable.

1) Personal attacks does not an argument make. Why hurl personal insults? Do you really believe that you appear smarter than me by hurling insults? Stick to the topic.

2) Strawman does not an argument make.
Where did I make ANY distinction between fed, state or local govt? You simply made an ASSumption and proved you were the one with a blind ideology ready to ignorantly attack.

3) Red herring. Not talking about HUD...so why even introduce this? Nobody is arguing over FHA loans or HUD. We are discussing loan counseling that is paid for by the taxpayers.

4) Patently FALSE. They can. I'm an attorney and have worked with many lenders to help my clients avoid bankruptcy. What the uninformed like you do not understand is that lenders would much rather avoid foreclosure than go through the expense of it (and more than likely have to worry about maintaining the home until it is sold).

Now that you have embarrased yourself...anything else you'd like to add to that?

[NoToBigGovt]

Steve B wrote:

You stated "years of low interest rates". If it's been years, it has been going on long before Bush got into office.

FALSE. It started during the post dot.com bust under Bushs first term. The Feds wanted to 'spurn' the economy so they began lowering interest rates. That is when the big housing bubble began to form.

http://www.moneycafe.com/library/primerate.ht...

[Mich]

NoToBigGovt wrote:

4) Patently FALSE. They can. I'm an attorney and have worked with many lenders to help my clients avoid bankruptcy. What the uninformed like you do not understand is that lenders would much rather avoid foreclosure than go through the expense of it (and more than likely have to worry about maintaining the home until it is sold).

Assuming you have the money to pay for a lawyer like your clients. I know MANY people who've tried to modify their loans with their lenders and were flatly refused until they acutally started bankruptcy proceedings with a lawyer at their side. That is not what I call being able to go to the lenders. The housing counselors are trying to work with people before they reach the bankruptcy stage. Before they have to spend their last dime in legal fees.

[Terry]

NoToBigGovt wrote:

<quoted text>
FALSE. It started during the post dot.com bust under Bushs first term. The Feds wanted to 'spurn' the economy so they began lowering interest rates. That is when the big housing bubble began to form.
http://www.moneycafe.com/library/primerate.ht...

The dot.com bust started in 2000.

[bohunk]

Most of the foreclosures are due to Americans wanting to live well above their means. Three people in my small subdivision(22 lots)have BUILT their homes, been foreclosed on, filed bankruptcy and were evicted. The current one is especially devious because she refuses to work and is pulling every trick in the book to keep a home she can in no way afford (a divorced non-working mother of 6). In some way or another, we will all pay for this nonsense and I'm sick of it! I'm the fool who gets up to go to work every day and lives well within my means. These people don't want counseling, they suffer through it because they have to. Their ultimate goal is to keep a home they shouldn't have, on as little or no money as possible.

[Another Taxpayer]

Terry wrote:

<quoted text>
NAme the Bush policy that led to this. Time to put up or shut up

"Lawrence B. Lindsey, Mr. Bush’s first chief economics adviser, said there was little impetus to raise alarms about the proliferation of easy credit that was helping Mr. Bush meet housing goals.

'No one wanted to stop that bubble,' Mr. Lindsey said.'It would have conflicted with the president’s own policies.'

"But for much of Mr. Bush’s tenure, government statistics show, incomes for most families remained relatively stagnant while housing prices skyrocketed. That put homeownership increasingly out of reach for first-time buyers..."

So Mr. Bush had to, in his words,“use the mighty muscle of the federal government” to meet his goal. He proposed affordable housing tax incentives. He insisted that Fannie Mae and Freddie Mac meet ambitious new goals for low-income lending."

"And he [Mr. Bush] pushed to allow first-time buyers to qualify for federally insured mortgages with no money down. Republican Congressional leaders and some housing advocates balked, arguing that homeowners with no stake in their investments would be more prone to walk away. Many economic experts, including some in the White House, now share that view."

The president also leaned on mortgage brokers and lenders to devise their own innovations.“Corporate America,” he said,“has a responsibility to work to make America a compassionate place.”

"And corporate America, eyeing a lucrative market, delivered in ways Mr. Bush might not have expected, with a proliferation of too-good-to-be-true teaser rates and interest-only loans that were sold to investors in a loosely regulated environment."

"In the 2004 election cycle, mortgage bankers and brokers poured nearly $847,000 into Mr. Bush’s re-election campaign, more than triple their contributions in 2000, according to the nonpartisan Center for Responsive Politics.

Among the Republican Party’s top 10 donors in 2004 was Roland Arnall. He founded Ameriquest, then the nation’s largest lender in the subprime market, which focuses on less creditworthy borrowers. In July 2005, the company agreed to set aside $325 million to settle allegations in 30 states that it had preyed on borrowers with hidden fees and ballooning payments. It was an early signal that deceptive lending practices, which would later set off a wave of foreclosures, were widespread.

Andrew H. Card Jr., Mr. Bush’s former chief of staff, said White House aides discussed Ameriquest’s troubles, though not what they might portend for the economy. Mr. Bush had just nominated Mr. Arnall as his ambassador to the Netherlands, and the White House was primarily concerned with making sure he would be confirmed."

http://www.nytimes.com/2008/12/21/business/21...

Run along now, Terry

[All Right Then]

Another Taxpayer wrote:

http://www.nytimes.com/2008/12/21/business/21...
Run along now, Terry

Two snaps and wiggle for you Another Taxpayer.