Crisis (2)

A Borrower's Breakup Letter to Lender

Dear Lender,

I will never forget how it felt when we first met. I had dreams and you had the means. It was as if we were made for each other. You promised to fulfill all my dreams. You promised we would have a beautiful home, a fancy car and money to send kids to college. That we would shop and vacation at exotic locations. You said you wanted me to live my dreams. I fell for your charms. I signed the promissory note.

Then, you changed. I thought you were true to me but you lied. I told you she was trash but you wouldn't listen. That really was subprime! You said I wasn't 'adjustable' and treated me like yesterday's jam. I had to sell my jewelry and liquidate my savings to support your flashy lifestyle. It never was enough. The subprime trash took all you had. All that I had given you!

 

You now want to take my home and sell it on HUBZU. You may do as you please but I have had enough. I have learned how greed and desire cause hardships. You misled me but I have found the Way. I have discovered the Sutra on Eight Realizations.

http://www.fodian.net/world/779.htm

I will practice mindfulness and have few material desires. I have understood that if I desire for more, I will end up being a part of an economic system that exploits others. I have understood that happiness is a peaceful state of body and mind. I will practice mindfulness to cultivate a peaceful state of body and mind.

Goodbye, my love!

Borrower

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Saurabh Singh is a student of the Vietnamese monk, Thich Nhat Hanh and promotes veganism and the practice of mindfulness for creating happier and enlightened communities. Saurabh is against foreclosure and forced evictions.

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Making Sense Of The Mortgage Crisis-How The FDIC Loss Share Program Is Hurting Homeowners

In September/2009 I wrote a blog titled "Is The FDIC Killing IndyMac OneWest Bank Short Sales & Loan Modifications?". In February/2010, the folks at TBWS used this blog to create a video that ending up going "viral". If you watch the video, you will see that all of the numbers and the explanation of the FDIC loss share program were taken directly from my original blog post. For those of you that are not familiar with the video, at last count it had received over 1.3 million views on YouTube, and even caused the FDIC to issue an official press release debunking the video.

In an attempt to quash the outrage that the video created with Americans across the country, the FDIC not only came out with an official press release, but also released their own YouTube video titled "Loss Sharing Explained" in June/2010. The video attempts to paint the loss share agreements (which they now have with 167 banks) as a benefit to the FDIC. What the video fails to address is the total lack of oversight, and how lenders are abusing the program, and in turn, forcing more homeowners into foreclosure everyday. No matter how the FDIC wants to spin this, the fact remains the same... When a lender can make more money by foreclosing on a homeowner than they can by approving a loan modification or short sale, they will choose foreclosure.

Two weeks ago, I received a call from a woman in South Carolina who had just finished reading my FDIC IndyMac OneWest blog. She had just been turned down for a loan modification from OneWest Bank under the HAMP Program. According to her, they turned her down without even receiving the required documents, and told her that the reason for their denial was that the investor that owned the loan does not participate in HAMP. When she asked who the investor was, she was told that their "policy" doesn't allow them to disclose who owns the loan.

Needless to say, she was furious. I explained to her that without consequences, banks can do whatever they want. And, without transparency, they can tell borrowers whatever they want. The last thing that loan servicing entities like OneWest Bank want is homeowners calling their investors, verifying what the servicing companies are telling them.

In addition, those lenders who are benefiting from an FDIC loss share agreement DO NOT want borrowers to know if they own the loan. By telling borrowers that their "policy" does not allow them to disclose the owner of the loan, they can hide the fact that they in fact own it.

After spending over an hour on the phone with my friend from South Carolina, she came up with a great suggestion. She suggested that I produce a video that explains the FDIC loss share program, and how it affects homeowners who are trying to short sell their home or get a loan modification. Hence, the reason for this blog post today.

The video explains exactly what happened (in a "real-life" transaction) with one of my clients that I represented on a short sale in September/2009. The numbers are the actual numbers that I used to remind OneWest of the profits they stood to make from the FDIC loss share program. When faced with these numbers, they immediately gave up on their demand for a $75,000 promissory note from my client, and approved the short sale. Since writing this FDIC OneWest IndyMac blog in September/2009, I know of at least a dozen other agents across the country that have used this same argument with OneWest Bank, and were successful in closing their short sale deals.

The point of this video is not to bash OneWest Bank. What I hope and pray is that someone in Washington will see it and actually decide that "enough is enough".

I would ask you to PLEASE share this video with everyone you know. If it can get out to enough people, it might just end up on the computer of someone who will actually do something to stop this madness.

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Bob Hertzog

Summit Home Consultants

Visit The For Sale Phoenix Homes Website

Copyright © By Bob Hertzog 2010 *Making Sense of The Mortgage Crisis-How The FDIC Loss Share Program Is Hurting Homeowners*


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