I am going to try covering a couple of real estate challenges, as I see them, that is happening with the Administration and also what the BIG 5 Banks are trying to achieve.
Let’s start off with the Administration: So what they are trying to push is for everyone to refinance at “Today’s Lower Interest Rate” but what does it really mean for the homeowner.
Firstly, I don’t hear anything about lowering the ‘Principal Balance’, the new lender ordering an appraisal and refinancing on that ‘New’ value… That’s what will help the people, not what you are suggesting.
So what does that mean?
It means, yes your payment will be lower (if you qualify… but I will come back to this in a minute) but you will still owe $600,000 on a home that is valued at $300,000…. Which means you will never be able to sell it without bringing a check to closing.
One of the main reasons for the “refinance” idea will be to ‘Re-Contract’ you into a mortgage that will hopefully be free of fraudulent assignments and transfers.
Which lets everyone off the hook for all their fraud and deceiving the homeowner with false forecloses etc.
As with the Administration Foreclosure Rescue packages which fell flat on their face, this will be much the same.
You will be able to apply to get a refinance; however we could probably count on your two hands how many people will actually qualify for the refinance… read the small print.
For the people in CA, Boxer has claimed that the Administration has Stolen her plan…. Watch out Californians this whole clock and dagger approach will affect you more than anyone.
So the next thing, Bank of America, Wells and JP Morgan are trying to pay off the government with $8.5 Billion dollars as a settlement to the fraud involvement in their foreclosure process.
This will also exonerate them from all NEW claims… I don’t know how much clearer that could be…. DEAR ADMINISTRATION, WE HAVE COMMITTED FRAUD AND WE ARE WILLING TO PAY OUR WAY OUT…. AND PLEASE EXCEPT THIS AS WE HAVE A SHIT LOAD MORE COMING BUT WE WANT YOU TO OVERLOOK IT SINCE WE HAVE MADE THIS TOKEN PAYMENT.
I believe that banking institutions are more dangerous to our liberties than standing armies. If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around [the banks] will deprive the people of all property until their children wake-up homeless on the continent their fathers conquered. The issuing power should be taken from the banks and restored to the people, to whom it properly belongs.
Thomas Jefferson, (Attributed)
3rd president of US (1743 - 1826)