Foreclosures… who is taking the worst beating?
Posted by admin | Posted in Fighting back | Posted on 21-12-2009
Tags: bailouts, bank of america, depression, equity, foreclosure, HAMP, homeowner, housong crisis, Indymac, Indymav Bank, loan modifications, Making Home Affordable Plan, market value, mortgage crisis, mortgage meltdown, One West, one west bank, principal reductions, real estate, recession, short sales, TARP, wells fargo bank
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As America’s foreclosure crisis continues to rise with over 6,000 foreclosure filings per day homeowners are still not getting the urgency of the situation. As I recruit homeowners across the Nation to become a part of A Hundred Thousand Homeowners- voices of hope & change I am concerned about the response that I am getting from homeowners. Not from homeowners that are facing foreclosure but those that are not. I get replies like “I am sorry to hear about your situation”. That concerns me!
The fact is that Home Owner Revolution was created to not only unite homeowners that are facing foreclosure as a result of the bank’s unethical practices but also to unite homeowners that are losing equity in their homes as a result of the bank’s unethical practices. What people are not getting is the fact that those not in foreclosure are in worse shape than those that are.
Your probably scratching your head right now saying “how?”. Let me explain… homeowners that are currently in foreclosure are not paying a mortgage payment every month. Paying a mortgage payment will not help the homeowner unless the homeowner pays all of the arrears on the loan that they owe. Therefore homeowners are able to save the money they would normally be paying the bank. Sometimes a foreclosure can be drug out for 2 to 3 years, if the payment is $2,000 a month the homeowner saves over $60,000. Wow!!! Talk about pulling equity out of your home.
Now let’s look at the homeowner who is not in foreclosure but is faithfully paying their mortgage payment every month. Now let’s look at the fact that every time a foreclosure hits their neighborhood their house value goes down. Some homes have fallen to %50 of value depending on the amount of foreclosures that have hit an area. So a homeowner that has a mortgage balance of lets say $200,000 now has a house worth $100,000. They have just lost $100,000 in equity. If foreclosures do not stop hitting their neighborhood they will continue to lose more money. These homeowners will not be getting any equity out of their home for a long time. These homeowners can not sell their homes right now because they owe more than it is worth, they may never see that equity again for years to come. some are actually walking out of their homes allowing it to foreclose because they have lost so much equity. This is the future of the foreclosure crisis. It will no longer become homeowners who cannot afford their mortgage payments that drives up foreclosures but those that are walking out of of their homes before they lose even more money. This is the future of America unless something is done!
If you ask me homeowners in foreclosure should be the ones that are giving replies like “sorry to hear about your situation”. Since they are obviously in a better position. Yes they may lose their homes eventually to the ruthless banks but they are taking equity with them. Are You???
This is why it is so important for all homeowners to unite for change. This is why every homeowner in America should be banging on the doors of congress and rattling the cages of the Government demanding that something is done. Demanding that unnecessary foreclosures be stopped! Demanding that the Government put a STOP to foreclosures by making the banks accountable for what they are doing with trillions of tax payer dollars that they received in the bailout to help homeowners!
It is time for America to speak up and demand change!
Read more about this topic…
The Wall Street Journal, The New American Dream American Dream 2: Default then Rent
The Wall Street Journal, The Debtor’s Dilemma Pay The Mortgage or Walk Away?
Огромное спасибо за помощь в этом вопросе, теперь я не допущу такой ошибки….
If you ask me homeowners in foreclosure should be the ones that are giving replies like “sorry to hear about your situation”…..
Полюбэ…….
If you ask me homeowners in foreclosure should be the ones that are giving replies like “sorry to hear about your situation”…..
What is happening to our once great nation is appalling. Those who have created this mess do not accept responsibility and those who are stuck with it are turning on one another. The truth is, this effects us all. The loss of equity and jobs will cause a loss of income in tax revenues and a loss of tax revenue will cause government to raise our taxes to make up for the deficit. The increase in taxes will cause more business to close, causing more loss of revenue, etc. All of this causes people to lose more homes and more jobs.
Corporations do not have to accept responsibility, they pass the buck from employee to employee, manager to manager and when there is an error, no one is able to find the person responsible and the corporation throws up their hands and denies their culpability in the matter. Look at Enron, Countrywide, BP, and Exxon to name a few, when the money is pouring in the corporate execs all raise their hands to take the credit, but when the corporation takes a dive, they all begin pointing fingers at one another and denying all knowledge.
Corporations have too much power and need regulation. Strong regulations.