Abc news --- 02/19/2009

[vinnyrf]

Date: 02/19/09

On ABC news something quite disturbing is taking place.

Foreclosed homes are being purchased by private investors, prettied up a little and resold.

Doesn't seem terribly abnormal on the surface as this is generally what will happen after a foreclosure sale but when the guy who bought the foreclosure for the investor tells you straight faced on national television that the house originally sold for $320,000 a few years ago to the foreclosed homeowner and that he bought it for $84,000 in the foreclosure sale, did about $18,000 in cosmetic work and will resell it for the investor for $140,000 is just absolutely a crime in the making.

Why not keep the original homeowner in the property and modify their mortgage to something reasonably affordable.

I'm sure they would have liked purchasing their house for $140,000 instead of $320,000 initially.

I'm quite discusted that in a country as great as our own that other human beings conduct themselves as they do without any regard of fellow human beings but only their own profits. Very sad.

[Yanqui]

I hate to be the bearer of bad news, but our country sold us out a long time ago when they outsourced our jobs and insourced cheap labor and continue to raise taxes for non existent benefits, or improvements to our cities and communities. Politicians lie.

And your point is well taken. Why won't the companies work with homeowners when the properties are only worth so much?

[Catherine]

I have been asking myself these questions while feeling the same way both of you do. I plain don't get the bigger picture of what is going on behind closed doors. Long before my loan adjusted I was in contact with my lender. Actually I am one of the loser's that have a mortgage servicer. From what I have been reading mine and several others are doing business the same way by lying and their bottom line is foreclosure. Why is that? They claim they don't want your house, but jack you around until either it's too late or you give up trying. They were the ones that told me to do a short refi since I was so upside down. They were the ones that had me spend months getting that set up only to deny me at the last minute. They had all my requested paperwork sitting in front of them when the loan adjusted to an amount we could not afford, but did nothing to change it. Their webpage First Franklin/Home Loan Services is full of options, but they don't give them. I have not made a payment since November. What gets to me the most? We would have and could have kept our home upside down or not had they lowered the interest payment and fixed it for the life of the loan. When the short refi offer was made my house has lost another 50k. So WHY would they doing nothing, but lie, string you along, change whatever they say to suit them but, the fact is they push people into foreclosure? How and why can that be what they REALLY want? It is not just my loan servicer. It is happening across the board. Who is gaining what here by destroying our families and dreams? I could never treat my worst enemy like this. So why are the American people having this happen when in most cases it never needed to? I get the part greed plays into this, but how? Sorry for adding all my questions that I have yet to get a clue and understand. Thank you for letting me share here, Catherine

[Yanqui]

Catherine, I could have saved my property if they would have given me the gradual interest rate that I am seeing some people get. It is beyond belief that because of my situation of the medical hardship causing a lapse in my financial situation and then turning to the only option I knew to save two properties that took me fifteen years to achieve with a stellar credit rating and fifteen year history of paying my bills without a late fee that I was forced to ruin my credit and rent out my primary home at a loss and return to California to finish my medical treatments at the VA and live rent free with family trying everyday to keep up with the mounting bills.

I am beyond angry. I will never support anything this government asks me to support. I am now insolvent, and will remain an outsider, and take care of my daughters, and those around me.

All I needed before I fell behind was time to get my surgery done and recover and get back to work. The rents would have covered the mortgage if the rates where graduated over the next five years, and then I would have been able to fully cover all expenses, and move back into my home.

[vinnyrf]

Absolutely a shame. An outrage. I'm so sorry to hear this news.

Also get this, and this is no BS, on one of the major news stations here in NY about a week ago they showed some Chinese investor or Chinese investing firm sweeping across America buying up all these American foreclosures. Talk about a blatant insult to the American people. It's almost as if our US investors are shifting money overseas.

People, let's wake up before it's all gone! Take a look at the stock market. The banks got their bailouts and the Investors run the banks. The investors are cashing out of Wall Street and now it's time to get rid of all the "bad" mortgage debt they carry. After all they already knew it was going to become bad debt in time. Well the time is here and it's checkout time for them. Can you see what's going on here.

2.3 million hard working American people lost their jobs last year.
620,000 hard working Americans lost jobs in January 2009 alone!

HINT - - Mr. Obama I would have put ALL that BS stimulus money in creating jobs for all of us because without jobs you won't have to worry about loan modifications at all. There won't be any loans to modify.

[Ledeen]

I also am one where it appears my Loan Servicer (Failed Downey Savings) is going to wait for my loan to reset and foreclose, verses modifying my loan, since I have a great job, decent income.

I have gone to the FDIC's web site and run through the "Mod in a Box" program they use. It shows it would save the owner of my loan more than 250K to modify my loan verses foreclose.

PLUS the kicker is Downey was taken over by the Feds, and part of that agreement was they are supposed to participate in the FDIC Loan Modification Program. YET because my loan is more than 417K, as are more than 60% of loans in CA are, so under the Obama plan, I dont qualify. And since I have done everything possible to pay , I am not late, Never been late. So I dont qualify for the old FDIC Loan Mod program.

Also, get this. Another reason lenders and Investors dont want to modify these horrible OPTION ARM loans, is they legally can declare that they recieve the full P&I payment when they are only recieving the minimum payment..... so they falsly get to inflate their books. It makes them appear more profitable to investors and shareholders.

But if they modify the loan to a 30 year fixed with payments of 38% of my income, then they loose about 1200 a month in what they would get to show they recieve!

So even though they are really NOT getting the full P&I now, it effects their books to the point that its more beneficial to keep me in a loan which I cannot afford. Its currently more than 65% of my income

And when I got the loan it was 75% of my income .... BUT because they only reflected the minimum payment on the loan papers, NOT any of the other optional payments, I had no way to know it would be 75% of my income.

If I had I would NEVER have signed it!

My story was in the LA Times Friday, yet the reporter got one thing wrong about it. I AM NOT A FAN OF OBAMA'S PLAN.

He disallows all of us with more than 417K loans, since to him I guess he feels we are "rich"

It also pays the banks who preyed on people to begin with, instead of simply forcing them to modify the loans. that wouldn't cost taxpayers anything, make the banks and investor who holds the loan modify it!

They started this recession, make them pay!

[Catherine]

Dear Yanqui,

I am so deeply sorry for what you have been through. With a 15 year history of doing what it took to make it work that should have proved to the lender that working with you foreclosure was not an option. I thought buying a house for a LOT less than we qualified for was a smart choice for my full time income and my husband a union worker. Had my lender kept the broken promise from my broker or modified my loan close to that there would have been no reason to push us into foreclosure. What I keep seeing is people that bought what they felt they could afford still can. It is the high interest rate that pushes homeowners over the edge. Like Leeden a rate change would have kept another home from this crisis. It is crazy making to me how simple the fixes could be if interest rates were cut in half. How may of us would have stayed? How many could then afford to keep making payments on time oh and what had a life outside of the mortgage? Afforded to enjoy it again? Lame ass excuses is all I see for an easy fix. Sorry I keep going off this weekend, Catherine

[MoneyPit]

As far as foreign investors coming and buying up foreclosed home I bet many of them are trying to recoup their losses from the CDO's they bought from Wall Street.
So yes, US investors knowingly and more than willingly sold overseas hoping to turn a profit.

[Irish Gal]

<<< It also pays the banks who preyed on people to begin with, instead of simply forcing them to modify the loans. that wouldn't cost taxpayers anything, make the banks and investor who holds the loan modify it! >>>

That's what I've been disgusted with through this whole mess. I qualify under the CA AG suit (CW/B of A settlement re predatory loans) which basically just makes B of A offer the usual lowered interest rate for 5 yrs. and whatever the market rate will be in 5 yrs. for the life of the loan. No principal reductions. No punitive consequences for B of A. It settled without "admitting any wrongdoing." This was such an oppty for the AG's to set legal precedent on the issue for future pred lenders so this type of fraud can never be perpetrated again on consumers but they let CW/B of A off w/ a slap on the hand. I think anyone stuck w/ one of these junk, pred mortgages should in the LEAST been given automatic principal reductions to current market values, plus the lowered interest rate OR worst case scenario, the loan victims be given their mortgages free and clear, period. That would have sent the correct message to these pred lenders. The (CA) AG settlement is another bandaid solution for distressed homeowners. Just more political theatre to make it look like something was being done about pred lenders, when nothing has been or will be done to hold them accountable. And, then to top it off, B of A (formerly Countrywide) employees (last year) SOLD consumer (personal) loan data so now after being victimized by the pred lender, they are re-victimized by its employees through ID theft! That was my 2nd time (w/in a year) of being a victim of ID theft in So CA - 1) two employees at my health insurance provider went on a $10K spending spree in my name (when my credit was good ); and once that was cleared up (both arrested and jailed and my name cleared) then 2) I got a letter from CW informing my file was one of many whose personal loan data was being sold by CW employees ). The jerks were arrested but once your data is sold, it can come back to bite you again and again as personal data is sold over and over again in the underground ID theft markets . So, having crappy credit DOES have its payoffs ! Enjoy the crappy credit while you can ! Because when I DID have good credit, I was constantly looking over my shoulder to see who might steal my good name and credit next !

[Catherine]

Oh Irish Gal on top of dealing with your home they put you through that too? Now that my credit it shot to hell I wouldn't want to be me. CW should be held accountable for who they hired. Did they do back ground checks on employees prior to being given access to customer's personal private information? I work for a utility company, They drug test, FBI, DOJ a mental three hour test (how I passed that one on some days I don't know plus check every job you ever had. Anyway I just wanted to say how sorry I am for what this has put you through, Catherine

[Irish Gal]

Catherine,

<<< CW should be held accountable for who they hired. Did they do back ground checks on employees prior to being given access to customer's personal private information? >>>

I don't know. Even if they did, an employee could have passed a check if they had a clean record at the time of hire.

<<<< I work for a utility company, They drug test, FBI, DOJ a mental three hour test (how I passed that one on some days I don't know plus check every job you ever had. >>>

I know. It's ridiculous. I've had to go through the same thing for certain jobs. The CW employees were arrested but it doesn't really help the victims because they perpetrated the files for TWO years. Once your data is sold, you don't know when you'll be hit again. I don't have to worry about my credit for now, but when it improves, I watch it like a hawk!

<<< Anyway I just wanted to say how sorry I am for what this has put you through, Catherine >>>

You are a very sweet and funny lady Catherine. Thanks for taking the time to care and post. I appreciate it. I hope your situation brings you some peace soon.

Irish Gal

P.S. My favorite movie just won the Oscar: Slumdog Millionaire
If you want to see a great, (sad and happy) movie - check it out. Not to give it away but ... the "little (good) guy" wins !!!!

[Catherine]

Thank you Irish Gal for such kind words. Until facing losing my home I've never posted on sites before or wrote people in power. It amazes me how much we have all come together reaching out to one another through this crisis. The caring and sharing has helped in ways to keep each of us from staying at what feels like rock bottom. I think the knowing we are not alone and other people truly care gets us to the next step whatever that may be. I want to keep my home! I want my life back! However, if that does not happen peace is what I am seeking to survive this outcome. Wish you could win the lottery then hire the best attorney's to make CW pay for the hell they put you through by letting anyone work for them during the housing boom. Looking back now my smooth talking Broker should be in jail for setting my family up with my loan. Very NICE chatting with you, Catherine

[chefette]

I too heard about these buses making tours of foreclosed homes. Its disgusting. Makes you really wonder WHO IS DOING WHAT to our economy. I don't know about you but it gives me a real bad feeling. Texas.

[Catherine]

I have that same feeling chefette. Out sourcing our jobs, screwing people out of their homes, keeping most of us flat broke in this economy hmmmmm being that fact is across the board for most of us these days then who or what is showing up to buy America out? Do we even own our own country anymore? When this becomes our history was will it be called? The Great American Scam? I am straight up scared to death of those answers, Catherine
God help us, I hope I am way off and wrong!!

[chefette]

Obama today; "the white house belongs to the American people" Well, alrighty then, I say we all show up and ask Uncle Obama for a room. Just a temp thing, you know, to tie us over...............

[Woodland Hills Worrier]

One part of the CW/BofA settlement that I qualify for seems to indicate that I could become part of the FHA/Hope4Homeowners program. Don't know how CW will wiggle out of that. The settlement does offer a principal reduction for those who are 5% or less underwater. Not many will qualify for that. The part of the program offering bankruptcy judges the right to do principal reduction haircuts has to pass through the Congress. This will be a real fight. What is really sad now is the PR move to blame the housing crisis on the "deadbeat" Americans who bought homes they couldn't afford. I purchased my home in 1995 for 240,000 and did the usual home improvements- copper piping , rain gutters, hardwood floors, and yes, I upgraded by worn-down swimming pool. When we took out a home improvement loan in 2006 to upgrade out master bathroom, my wife's greatest dream, we still had a house valued at $200,000 more than we owed with many upgrades and home improvements. The plan was to sell in 2010 when my son graduated from high school, use the profit for a down payment to build out dream house. There may be a lot of dreaming here, but that's part of America- the dream. I thought I was doing the right thing. If I had sold two years ago I could have had a $250,000 profit. Now my house is underwater like the rest of the homes in our affluent area. Our jumbo loans don't qualify for much of Obama's plan and we will have to ride out this storm until we can escape from this nightmare. Am I a deadbeat? Or am I just being made a scapegoat for the greed of a few bankers and hedge fund operators with private jets and multi-million dollar penthouses paid for by coporate bonuses.

[vinnyrf]

Screw that FHA/H4H scam bologna. What a bunch of crock bull that program is. It's such garbage that FHA themselves are considering doing away with it because since it's inception only about 500 homeowners signed up for it - NY Newsday about 1-1/2 months ago. I don't know all the exact particulars but the one thing that stares in your face is about sharing the equity on a descending scale over the life of the properties ownership until such time you sell it takes the cake. The interest rate you receive is nothing special either. I for one would never give any one organization that much control over my home.

However, I suppose if you had no other way out then so be it but I would be strongly cautious on the H4H deal.

[vinnyrf]

Stock market takes another big plunge again today - Down 251 points. There go the investors cashing in and getting out of Dodge City before they lose everything.

Who's left?

I'll tell you. Over 3 million unemployed Americans who can't pay their mortgages. Nice setup!

Barrack Obama where are you?

When you were elected you wanted to enact policies while Bush was still in office and was refused. Now 33 days later you have done nothing but spend almost 1 trillion US dollars and have not done one damn thing to get us Americans employed again.

Jobs Mr. Obama. That's what keeps America moving and always has.

Take a look back to the things Roosevelt did during the Depression and you might get a clue on how to handle this Economic Crisis and for God sakes stop giving out OUR tax dollars in the form of "bailouts" that contribute nothing towards the working class who are the driving force of OUR nation. Remember, without us this nation cannot and will not exist.

My children, grandchildren or great grandchildren will not be able to pay for it at the current rate you are spending it.

[addibaby]

Originally Posted by vinnyrf

Date: 02/19/09

On ABC news something quite disturbing is taking place.

Foreclosed homes are being purchased by private investors, prettied up a little and resold.

Doesn't seem terribly abnormal on the surface as this is generally what will happen after a foreclosure sale but when the guy who bought the foreclosure for the investor tells you straight faced on national television that the house originally sold for $320,000 a few years ago to the foreclosed homeowner and that he bought it for $84,000 in the foreclosure sale, did about $18,000 in cosmetic work and will resell it for the investor for $140,000 is just absolutely a crime in the making.

Why not keep the original homeowner in the property and modify their mortgage to something reasonably affordable.

I'm sure they would have liked purchasing their house for $140,000 instead of $320,000 initially.

I'm quite discusted that in a country as great as our own that other human beings conduct themselves as they do without any regard of fellow human beings but only their own profits. Very sad.

I know it may seem wrong for homes to be foreclosed and investor's are buying them up but that is the way it has always worked. Let's face it folks.... many people did get sucked in by mortgage brokers and easy to get mortgage loans that they could never afford. The bottom line is that just short of giving those people their homes there is not much that can or could have been done to prevent foreclosure. The investor's that are purchasing property during this time of high foreclosures and bottom prices are not enemy....the mortgage brokers and mortgage companies are the ones that caused this mess. (and people who bought more than they should have to begin with)

[ManicMangaManiac]

Speaking of investors, is there any way possible to find out just WHO the investor(s) is/are on my mortgage?? Or is the whole thing too twisted and convoluted to even hack through to find those investors? My mortgage is with Option One/AHMSI.....
Sally

[addibaby]

Originally Posted by ManicMangaManiac

Speaking of investors, is there any way possible to find out just WHO the investor(s) is/are on my mortgage?? Or is the whole thing too twisted and convoluted to even hack through to find those investors? My mortgage is with Option One/AHMSI.....
Sally

Great question!!! I as well have been wondering how to know who the investor is. I as well have concerns about the current long term modifications that some people are being offered. I wonder just how long term they will really be. Afterall, many peoples loan to include mine were first with one company and then bought by another company shorty after closing. So with that said if you get a long term mod. with your current mortgage holder then what is to say they will not sell it to someone else who then does not adhere to the loan mod. that you were given. Or maybe the question is do they have to comply with the terms of the mod.???????

[Believe]

Originally Posted by Woodland Hills Worrier

. . . What is really sad now is the PR move to blame the housing crisis on the "deadbeat" Americans who bought homes they couldn't afford . . .

Woodland Hills, I'm sick to death of hearing that, also. I like to read the news (cnn, msnbc, foxnews), but the readers' comments that accompany the mortgage mess articles are filled with nothing but hate for people who are unable to keep up with their mortgage payments. I can't hardly stand to read them any more.

[ManicMangaManiac]

<>

I totally agree with that statement there! It's absolutely gut-wrenching to read those comments just boiling over with hostility towards us. I would just love to scream in their faces and tell them they're blaming the wrong people! Here's my perspective on this:

The collapse of the economy started with the subprime mortgage meltdown, which in turn led to the financial institutions' bleeding red ink and on down to hundreds of companies either going out of business entirely or laying off scores of employees, and so on and so forth.

Those folks with prime mortgages who lost their jobs or had their pay cut are looking back at what started this whole mess in the first place, and pointing their fingers at US, when they should be blaming the Bush administration and its lax regulation of these subprime lenders and other financial institutions instead--and people like Bernie Madoff and company, who are the real crooks in this mess. Sure, there has to be a scapegoat or scapegoats, but hey the rest of America, don't lay it on US!! We're just as much victims as you are.

As a side note, I've been following the story on TV about the U.S. Attorney General's subpoena of BoA's CEO with regard to the ridiculous bonuses paid out to Merrill Lynch executives just before the company was bought out by BoA. Mr. Lewis' defense of these bonuses just makes me want to PUKE!!! Every single one of those people needs to give that money back. The sad thing is that there will probably never be an end to this kind of corruption in business and yes, our federal government too. The statement "Money is the root of all evil" is so true in these times!
Sally

[Believe]

I agree, Manga. I wonder what BoA's track record is for modifying mortgages. I think the Attorney General should just give BoA mortgage customers their houses free and clear - notes voided. End of story.

[ManicMangaManiac]

Originally Posted by Believe

I agree, Manga. I wonder what BoA's track record is for modifying mortgages. I think the Attorney General should just give BoA mortgage customers their houses free and clear - notes voided. End of story.

Wouldn't that be nice?? I think that Countrywide, Option One/AHMSI (I'm their unlucky customer), Wachovia, HomeEq, Ocwen, Chase, FF, WaMu and all the other evil subprime lenders should do the same thing for their customers.... but I know what the investors would have to say about that: "NO, NO, NO, NO, NOOOOOOOOOOOOOO! No way! Fuhgeddaboutit!"

Which makes me wonder about President O's soon-to-be-revealed housing initiative.... he said that he was NOT going to give any business to the irresponsible lenders. Well, what about us victims of those irresponsible lenders?? Does that mean he's not going to extend a helping hand to us and just let us get booted out of our homes? I'm hoping and praying that isn't going to be the case......
Sally