In the Corner for Principal Reduction

Read Mandelman Matters for a practical defense of principal reductions instead of foreclosure:
http://mandelman.ml-implode.com/2009/12/the-care-bair-%e2%80%93-fdic%e2%80%99s-sheila-bair-wants-principal-reductions-from-banks-with-loss-sharing-agreements/

Here’s a teaser quote:

“My neighbor isn’t costing me money by having their principal reduced, they’re saving me from having to lose money. They’re not taking money out of my pocket by having their principal reduced, they’re stopping the market from taking money out of my pocket. When my neighbor’s principal gets reduced, I’m the one getting the gift.

In fact, if the bank refuses to grant a principal reduction, and instead decides to foreclose and sell the home at auction, the new sales price will bring down the value of all the other homes on the block.

In fact… the ONLY way I’m not going to lose a good chunk of my home’s value in this scenario is if the bank will reduces the principal balance my neighbor owes on his or her mortgage. Remember, I own the equity… the bank owns the property.

Of course, I realize that the people who are opposed to helping those they consider irresponsible homeowners are upset and would like to see those people punished for wanting a nice house to live in.

I suppose they think that the irresponsible people should have seen that the credit ratings agencies were about to improperly rate bonds, that Wall Street investment bankers would then sell the improperly rated bonds to investor groups all over the world, and that the result would be the total decimation of the secondary mortgage market, which would make it impossible to get credit for anything essentially overnight. (But if they do, then they’re nuttier than a fruitcake.)

I suppose it should have been abundantly clear that housing prices were about to be cut in half over 18 months… after all, everyone else saw all of that coming.

And please don’t bring up some outrageous one-of-a-kind example of an unemployed 22 year-old who loaded up on beachfront investment properties financed with nothing down, stated income, spring-loaded adjustable rate loans… because that’s not what we’re talking about here and you know it.”

Also from Mandelman, read this piece:

http://mandelman.ml-implode.com/2009/12/a-time-for-good-judgement-the-jury-is-in-and-we-need-judges-to-modify-the-way-banks-behave-2/

Okay, just read his whole blog, all right?

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One thought on “In the Corner for Principal Reduction

  1. Will The Bank of New York Mellon and Bank of America Work on Behalf of Senior Couple With 2 Rescued Greyhounds to Bring About Meaningful Change To Their Existing Mortgage? S.O.S.
    By Mary Cordes on December 16, 2010 United States of America
    0Up to 3 years ago, this couple had an A-1 credit rating, they are now like millions of others, who have had to endure hardship and the unjustly delegated blame for being irresponsible by taxpayers.

    Everyone in this country knows full well that our politicians enabled banks to offer predatory loans, bankers in turn, sold those loans to consumers, packaged them, sold them, then they were sold over and over to investors, until the APR kicked in and all hell broke loose as the toxic loans were worthless and it trickled down to fixed loans also, therefore poisoning the entire mortgage industry.

    With all this said, now the economy has tanked, banks were the first to be bailed out, followed by unions, carmakers, insurance companies and others. The ones that were denied any REAL and EFFECTIVE help, were the homeowners and they are struggling to survive, pay their bills, feed their families, while watching their homes lose value each and every day.
    This particular couple, who’s home was worth $235,000 at it’s high point and most recently appraised on Zillow at: $139,500.

    The couple I make mention above are seeking a way to keep their home and will keep up that hope that Bank of America’s executives, Chairman, Charles O. Holliday, CEO, Brian T. Moynihan and President of Home Loans, Barbara Desoer will work in conjunction with the President and CEO of the Bank of New York Mellon, Robert Kelly to make this happen. It would be refreshing to hear that a once considered responsible couple are allowed to keep their home and still provide a home for the 2 rescued greyhounds that they have taken into their home and hearts.

    I also wish to express that this couple also wishes that others will receive the same type of understanding and co-operation should it happen.

    They also petition any politician that wishes to show that if they really care about the hopes, dreams and problems of the people on Main Street to call them at: (203) 934-4232 or just continue carrying on feathering their own nests, working only for their own goals and benefits, while turning away from the people that really need help and moral support. It seems that they only want our vote then the arrogance and indifference begins, all over again.

    This couple does not want a free ride, they want to be able to pay their mortgage every month, but they need a genuine offer of modification that is equal to 2% for the life of the loan with a modest, but fair, principal reduction. This way, they can recoup the pride they once had and will again, be able to hold up their heads high. They are strong individuals and have weathered the storm up till now and don’t treat it as a hardship but merely a small stumble on the life’s path that can be repaired with some help from the community, just like a sidewalk is repaired.

    Just recently, they found that NACA was managing to get 2% for the life of the loan deals for many urban homeowners, this couple would appreciate the same type of treatment or the question arises that there is a discrimination factor in the entire housing repair project started by the government’s HAMP programs and others with the bank implementing the programs according to the guidelines. Everyone is suffering and all are underwater, NOT JUST URBAN FOLKS with APR’s. It has also been disclosed to the couple by many friends and neighbors that even urban homeowners with fixed mortgages received the 2% mortgage also with principal reductions due to NACA’s influence in the mortgage market. Mr. Bruce Marks wields a heavy hand and the lenders and investors listen without a problem. Let there be no problem in this instance either, seniors need a break too.

    Regardless of what happens, God will judge them at the end of their lives and this is when the proper rewards will be given to them by the Lord, God in heaven. You reap what you sow on this earth and you will reap only what you deserve for your inadequacy to respond to people’s needs on earth.

    Come on Bank of New York Mellon and Bank of America, get together and work for these fine folks and others to redeem your past indiscretions of reckless gambling away of the families dreams for a place to live and a place to thrive comfortably. The Mandells of West Haven, Ct. are hopeful but they are still not convinced that the Bank of New York Mellon and the Bank of America are concerned about all mortgage customers, just very few, as few as they have to, in order to mainrain a good image for the press and nothing beyond that. This illustrates that these banks have operated so long without a heartfelt view of it’s customers that it has, unfortunately, become automatic and easy for them to do without really giving it any thought whatsoever, as to how many people are left with no options at all that will make any true diffeence in their situations/

    If any media representatives or journalists are interested in this article despite it’s lack of sensationalism and violence, please inquire. Recent press release received thousands of views but very few replies, shame, shame on the media and politicians, who wait until anger and loss of life rears it’s ugly head. It’s too bad that reporters can’t and won’t print a human interest story that has no massacres and mass murders inter-twined, just merely a couple fighting their damndest to fight for themselves and others like them.

    Media Contact:

    Mary Cordes
    P.R. Rep.
    (877) 557-4937
    marycordes@sbcglobal.net

    Like

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