Did Stimulus Package of $75 Billion Help Homeowners?
More than 7 months ago (on February 20th, 2009, Larry King show)), real estate expert Michael Corbitt, Barbara Corcoran of the Corcoran Group and Don Peebles, CEO of the Peebles Group talked about President Barack Obama’s stimulus package of $75 billion to help homeowners with their debts, refinance and/or modify their mortgages, and keep their houses they live in. Tons of taxpayers money are given by the government to the banks to bail them out from financial misery they got in by giving the mortgages carelessly to thousands of people who did not qualify.
Starting day of giving the banks money was March 4th, 2009. What was done by the banks during last seven months to help homeowners? ? Did the banks started working with taxpayers money in March to help homeowners in need? Yes, they tried, but were not prepared at all to handle such a huge demand. Millions of people applied for refinance or modification of existing mortgages, but it looks like the banks started playing ’soccer” games with customers. In these ‘games’ only one side always is a winner, the bank. When these financial institutions got such a “moneyfall,” they don’t want to give it away anymore. Is it not the banks’ job to sell the money? Now they even don’t want to do that.
And what is interesting, the government did not provide them with regulations and/or instructions and/or how they have to sell these money and to whom. Banks got an easily achieved rights to decide what they are going to do with these money. Are they going to refinance mortages or modify them? Good question! Hundreds of thousands of homeowners have been waiting all thse months to get an answer from Loan and Home Assistance Departments of the banks. Do you know anybody who got help or positive answer? Please send him/her to us for an interview to share their positive experience, if they have any.
Will the banks try to improve your situation? As a matter of fact, the banks are not in a hurry to help you. It is totally optional for them. The banks are not forced, regulated or ordered by the government to help people in need. Today these failed ’Wall Street Kings’ came back from the ashes as Phoenix. Thanks to the American taxpayers, they are sitting on huge amounts of taxpayers money, are happy with that, and don’t want to give these easy recieved assets away. Obviously, for the banks is more important to keep good business books than to help homeowners, suffering from overpriced mortgage payments vs the money sold them at a very high price just 2-3 years ago when interest rates were much higher in a hot real estate market and demand for properties was high.
Today responsible homeowners, save on food, cloth, entertainment and other goodies, and pay their obligations to the banks every month on time, but these institutions don’t appreciate it at all. How they will, if they got so easy money?! Now it’s bankers’ time to play games with mortgage holders and make promises to help, but not delivering them, and keeping the money in the banks’ reserves to claim their strong standing on a solid ground.
What all banks are concerned about now? Customers deposits, and more deposits are better. Hey, customers, bring more money and jump on the board!
Can you get a bank to talk to you if you still pay your mortgage? No you cannot! If you call, you get into a call center somewhere in India or in Philippines. These $5 per hour operators from another continent ask your SSN, mother’s maiden name, address, date of birth and other private information, but you even are not able to verify who they are.
It happens with such a giant bank, Chase, for example, which plays a role of a good, big company, but you will not get this bank to help you, especially when they took over Wasingtom Mutual bank. We hear these stories from many mortgage holders. At first, it was a transition period when many applications got lost with no explanation of how it happened and no one responsible for this abuse.
Now this bank requests its mortage holders to send a new package with required documents. It’ll make another volume of 100 pages. What a waste of paper and trees! Is there a guarantee that a package with important documents will not be lost again? One mortage holders in South Florida told us that after they sent the packages with required documents, it took the bank 8 months to answer that the packages got lost or that the bank was not going to help with bringing interest rates down on their existing mortages.
The situation of “The Banks Helping Consumers” is getting worse then it was before March, 2009. Then people had a hope: the government will help and were waiting for the government to step in. Is this government not afor a change? Yes, it is. Remember this slogan, “Yes I (WE) Can?!” If we are for a change, we have to think and act mindfully, so the problem can be solved.
Copyright 2009.
If you enjoyed this post, please consider to leave a comment or subscribe to the feed and get future articles delivered to your feed reader.
Click to subscribe to the Argo Developers Blog via RSS.
Comments
No comments yet.
Leave a comment