Loan Modification | Foreclosure Prevention

DayinthePark asked:


Here are my ideas. What are yours?

1) Small scale lending must be nationalized. The “free market” has little interest in lending to individuals and small businesses. The “free market” will always avoid the risk of small loans. It isn’t something that will get better with affluence or wealth. Thus, all of the historic government programs designed to facilitate lending to small borrowers must be nationalized or firmly regulated like a monopoly. The historic separation of risk and reward, the co-signing or guaranteeing of loans that has been done by Freddy mac, ***** May, FHA and others, needs to be scrapped for a government department dedicated to small capitalization lending, or heavily regulate it. Most mortgages and small business loans will fall into this category, say anything under a million dollars. Here is an easy way to think of it: We all understand that utilities have monopoly power and must be regulated. Think of residential lending in the same way. The free market will not willingly fulfill this function. The current system of private funding and government guarantee is a separation of function that simply does not work. Do you find this idea somewhat socialist? Then is the regulation of your utility company also socialist?

2) the aspects of derivative trading legalized by the “Financial reform act of 2001″ needs to be repealed, permanently, or revised to have the same underwriting and capitalization requirements as the insurance industry. If an insurance business insures beyond their means, then they are consequently held criminally liable. Derivative trades must be held to the same standard. Is this too harsh? Too conservative? Then why do we hold the insurance industry to this standard, and not the investment houses?

3) Outsourcing needs to be taxed to attempt to slow or stop the capital that the the United States bleeds to India, Mexico and China. The amount those countries have grown from our outsourcing, the economic power they’ve used to bid up the global price of oil, is an accurate measure of the economic power the United States has lost, to outsourcing. Those revenues should be used to help fund higher education (state university systems). Let’s build an affluent populous. Are you thinking Smoot Halley? India really likes it that you think that way.

4) the federal government must make provisions to develop energy sources other than foreign oil, primarily wind and nuclear energy. The raping of our coast lines and oceans for oil should be legislated permanently illegal. Notice how the call for drilling has stopped? The destruction of our oceans and coast lines shouldn’t be subject to the daily price of oil.

5) disclosure of the terms of adjustable rate mortgages must be required to be in a large font size, in plain English, like effective interest rates are required to be displayed currently on all conventional mortgages. The length and nature of the “teaser” period of ARMs must be legislated to be clear and comprehensive to someone with a sixth grade education.

Just Do It asked:


who freeze the interest rates on adjustable-rate mortgages?

So the fraudulant crooks and companies can be immune from criminal prosecutions?
Is she trying to re-open the Pardongate of the 90’s?
Bush and his minions want to give immunity to the Telecom companies.
What’s the difference?
“Clinton wants to go further and freeze the rates on all ARMs for five years. Mortgage servicers would probably go along with this, because they get paid the same amount whether the interest rate on a loan is 1 percent or 5 percent. But the people who own the mortgages — in many cases investors in mortgage-backed securities — have threatened to sue to protect the value of their investments.

To prevent that, Clinton has proposed providing legal immunity for mortgage servicers who cooperate. Servicers enter into contracts with investors that specify the circumstances under which they can work out deals with borrowers. Clinton’s plan would render these contracts null and void, contributing to the uncertainty that is paralyzing the financial markets. The reputation of American securities would be dealt a serious blow. ”
I thought McCain had issues of not understanding the economics.
On some issues it seems Hillary is the one. Uncertainty is a dangerous proposal in times of financial crisis- I believe.

Linda J asked:


Is there anyone out there currently working with Chase to assist homeowners with mortgage payments.. I have looked at the on-line form on the WaMU site, to give info to Chase to see if I qualify. I have 2 immediate questions. These options are offered to borrowers who live in the property . I leased my house 2 months ago and moved I to a less expensive property , I continued to fall behind on payments and this seemed to be my only option, not wanting to lose my home. I have about $85,000 equity currently. I don’t make a profit, I collect rent for the same amount as my loan. I still need help, instead of walking away from my loan I thought leasing was the responsible thing to do. My tenants signed a 1 yr. lease and I can’t and won’t ask them to vacate so that I can qualify for loan modification..Is Chase making exceptions or being flexible on the rules Why is it important to them that you reside there. …….