Bank of America today announced the creation of a proactive home retention program that will systematically modify troubled mortgages with up to $8.4 billion in interest rate and principal reductions for nearly 400,000 Countrywide Financial Corporation customers nationwide.
The program was developed together with state Attorneys General and is designed to achieve affordable and sustainable mortgage payments for borrowers who financed their homes with subprime loans or pay option adjustable rate mortgages serviced by Countrywide and originated prior to December 31, 2007. Bank of America acquired Countrywide July 1, 2008.
Now that Bank of America has climbed aboard the loan modification train the other major lenders will follow in suit. When the dust settles after the economic crisis subsides, there will be only a handful of major banks remaining, namely Bank of America, Wells Fargo, and CitiGroup at the very top. If these banks sound familiar, it could be because they own an enormous percentage of the mortgages currently in effect in this country, either directly or through subsidiary companies.
If you are looking to save your home, this is very good news … providing it isn’t taken from you via foreclosure before you have a chance to modify your loan. The fact still remains: you are working against the clock. The banks would love to keep you in your house -if you qualify for loan modification- but they are too shorthanded and overworked to get all of the modifications done in the time needed. The legal system will keep moving forward and the foreclosure process will continue … unless you take it in your own hands to stall or stop the foreclosure in order to buy yourself the time needed to save your home.
For more information on how to successfully stall the foreclosure process and modify your loan, please visit www.ForeclosureDefenseSecrets.com.
Are you serious? The $700 billion bailout proposal passed in both houses of Congress with this kind of persuasive language. The fact is, one third of the House of Representatives is up for re-election in just under a month and their constituents would be very upset if they had not done anything in response to this economic crisis. The bailout isn’t the right answer but it is being billed as the only answer.
The way this bill was passed in the House was to add on a number of “pork barrel” additions such as an excise tax which saves the makers of wooden arrows for children thirty-two cents per unit. What do children’s toys have to do with the economic crisis facing our nation today? Absolutely nothing, but it was enough to convince the Representatives from Oregon (where most of the arrows are made) to vote for the bill. If it weren’t for additions like this one, the bill would have failed again.
The overall feeling, both in Washington, D.C. and at home, is that this bill will not solve the problems facing our nation right now but that something has to be done. The fact is that the market will work itself out in the long run, but you have to make sure that you are still standing when that happens. We have to protect ourselves. We have to educate ourselves. We have to fight for ourselves and not wait on the government to bail us out.
I have been very critical about the proposed economic bailout by the Federal government and nothing over the past week has changed my mind at all. Clearly, I am not the only person with strong reservations. The House failed the original bailout proposal this week but the Senate came back today with some revisions. The question remains: were the revisions great enough to actually help the homeowners of this country?
The piece of legislation that calls for a $700 billion bailout currently being reviewed by Congress is supposed to play a large part in reducing the amount of foreclosures by working with loan servicers such as Countrywide, Wilshire, and Ocwen in an attempt to aid them in modifying the terms of existing loans. However, many housing experts question whether the bill will actually do anything to help struggling homeowners refinance into more affordable mortgages or even modify the existing ones.
The truth is that the economy cant truly begin to recover until buyers are found for the millions of foreclosed homes that are currently on the market. Bailing out the banks and giving them more money to lend will only put a temporary band aid on this gaping bullet wound. Property values are continuing to drop because more and more communities are being burdened by vacant houses that are not being cared for. Association assessments are draining the current homeowners and encouraging more and more people to just walk away from currently occupied homes.
As the stock market continues to fail, and less and less banks are lending money, more and more foreign investors and current American tycoons will begin purchasing the properties facing foreclosure at pennies on the dollar. The free market always corrects itself and this economic crisis is no different. Whether or not you are one of the lucky homeowners who finds a buyer for your home before the foreclosure judgment is entered against you and your house is taken from you at public auction cannot be left just to chance. There are ways to delay the bank from foreclosing for as long as you need to find a buyer. The true solution to the problem facing the individual homeowner can be found at www.ForeclosureDefenseSecrets.com. The only people being bailed out by the current proposal are the politicians facing reelection that let this disaster occur. American homeowners have to be willing to defend themselves.