NEGATIVE EQUITY - A FORMULA FOR ECONOMIC DISASTER - BUT NO RELIEF FROM CONGRESS!

By
Real Estate Agent with Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate 303829;0225082372

Here come the judgeTHE BIG BANKS WIN AGAIN.  Through the lobbying efforts of Bank of America, J.P. Morgan Chase and Wells Fargo, the "people"'s representatives in Congress again exhibited their skill in:

Keeping home owners with negative equity safely imprisoned in their real property for the foreseeable future. 

SENDING THIS BILL FOR RELIEF FOR HOME OWNERS, MANY WHOM ARE CURRENT WITH MORTGAGE PAYMENTS, erffectively removed about 15,000,000 home owners from the retail, real estate, education, travel, consumer markets.  Again, Congress can't see beyond their last political contribution.

Rewarding the big banks for their perfidy in the mortgage mess by denying consumers the ability to remove the heel of the mortgage industry from the necks of home owners who cannot sell, move up, move away, sell their property, or do much of anything except pay about 50% or more of their monthly gross, and in many cases, net income to their mortgage company.

The more things change, the more they stay the same.  Big bank wins again.  American home owners lose again.

Mortgage Bill Fails in Senate

Legislation that would have allowed bankruptcy judges to modify mortgages died in the Senate yesterday, handing the Obama administration a significant defeat in its plans to mitigate the foreclosure crisis

 

Courtesy, Lenn Harley, Broker, Homefinders.com, 800-711-7988, E-mail.

 

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Re-Bloggged 7 times:

Re-Blogged By Re-Blogged At
  1. Linda Lipscomb 05/01/2009 04:38 PM
  2. Brian Gibbons 05/01/2009 08:59 PM
  3. Charles Fischer 05/02/2009 06:02 AM
  4. Andy Rogers 05/05/2009 10:59 AM
  5. Diana Brunner 05/13/2009 08:41 PM
  6. Jim McCormack 01/05/2010 11:45 AM
  7. Marty & Laurie Gale 06/04/2010 11:41 AM
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Topic:
Mortgage / Finance
Groups:
Club Chaos
Realtors®
The Ninety-ninth Percentile
Real Estate Trends
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Comments 149 New Comment

Rainmaker
134,415
Paul Francis
Las Vegas Real Estate - Summerlin Homes - 702.592.
Prudential Americana Group - REALTORS

Lenn,

And the historical home ownership % in the United States is?

Let's add to the problem of all the new home permits issued / new homes built between 2002 and 2006..

No doubt we certainly agree about the problems with bank lobbyists and the mess that was created.... but the mess was actually created several years ago.

So called solutions today are nothing but reactive responses to problems that were created several years ago. Do we need EVEN more problems to deal with in the future or do we get it over with now?

(Amazing how little discussion there is about the Commercial real estate problems now taking shape... I guess we'll be dealing with that AFTER the problems happen just like residential real estate.)

Let's face it.. we just came to the end of one big Ponzi scheme and the people who got in at the end are the ones suffering the most. Unfortunately... nobody is going to call it that due to the entities involved...

Trust me... I'm certainly not for big banks and their financial lobbyists... and I'm certainly against a Government that can come back and retroactively modify what were perfectly legal contracts/documents (if they were not... then get an Attorney and sue the lender) when they were created... and agreed upon by all parties.

Because once you go down that slippery slope... there will be no end to what the Government will be telling us what we can... and can't do.

Hence my reference to Napoleans Sheep from the George Orwell classic, "Animal Farm".

By the way... do Bankruptcy Trustees collect a percentage of the worked out payment modifications?

May 04, 2009 03:00 PM
Ambassador
2,277,284
Lenn Harley
Real Estate Broker - Virginia & Maryland
Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate

Paul.   You make some good points. 

You're right, the commercial defaults and problems are just starting and will probably get pretty bad.

Of course, a commercial group, corp., owner, partnership, etc. CAN go into bankruptcy court and have the loans modified. 

Residential real estate owners are the EXCEPTION to mortgage modification under the bankruptcy code.

 

May 04, 2009 03:53 PM
Rainmaker
134,415
Paul Francis
Las Vegas Real Estate - Summerlin Homes - 702.592.
Prudential Americana Group - REALTORS

Lenn,

I think we can both agree that Congress has been little help for anything...

Personally, I think the Short Sale mess is a far bigger issue that needs to be dealed with. The WSJ just did an article on it for unsuspecting homeowners and their agents that don't pay attention to contracts..

http://online.wsj.com/article_email/SB124104990739271023-lMyQjAxMDI5NDMxMDAzNDA5Wj.html

I think there are going to be a lot of former homeowners out there that are going to have some unpleasant surprises when the banks catch up with the mess they've created and start trying to collect on the deficiencies where they can.

So in one respect... BK may eventually be the final solution for homeowners caught in the mess to move forward and get back on track anyways...

 

 

May 04, 2009 06:10 PM
Rainer
178,939
Mark MacKenzie

Lenn, what is ironic about all of this cram down talk is that it appears that this precedent is already available for those that own vacation homes.

May 05, 2009 05:07 PM
Ambassador
2,277,284
Lenn Harley
Real Estate Broker - Virginia & Maryland
Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate

Spencer Darlin',

Kindly refrain from advertising your blog on my blog. 

Thanks. 

Did you think you'd catch me napping???

May 06, 2009 07:42 AM
Ambassador
2,277,284

Lenn Harley

Real Estate Broker - Virginia & Maryland
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