Improper foreclosures, robo-signing, missing paperwork…and the feds come to the rescue with $26 billion (California will receive $12 billion) over the next three years to help homeowners:
- With mortgage write downs;
- With re-fi’s for homeowners who are underwater but current on their mortgage;
- And up to $2000 for homeowners that were victims of improper foreclosure.
Excuse my language, but I call bullshit on all of this. Let’s start with the $2000 for the folks whose homes were foreclosed improperly. Would you like a side of government cheese with that? Lenders have ruined homeowners credit, making it hard to get jobs, or even find a decent rental. Families have been torn apart, pets have been given up, and neighborhoods blighted. $2000 in compensation is an insult.
At least 65% of these dollars will go to homeowners who are underwater and behind on their payments. 750,000 homeowners who are current will be helped with re-fi’s, but not write downs. So…responsible folks who paid their mortgage will be allowed to re-fi a home that could be 50% or more underwater. Not fair!
Will this bailout work? Of course it will – for the lenders.
I’d love your comments!