I Can See Clearly Now

Did you see this bit of news this week?

The Obama administration on Tuesday will launch its most ambitious effort at reducing mortgage balances for homeowners who owe more than their homes are worth.

Officials say between 500,000 and 1.5 million so-called underwater loans could be modified through the program, the first initiative to target homeowners who are current on their mortgage payments but are at risk of default because they have no equity in their homes. Some experts are warning, however, that the same knots that tied up prior initiatives could do so again.

Yes, you read that correctly. More and more Americans who did not require (nor ask for) help from the federal government to lower their house payments are getting kicked to the curb, President Obama proposes yet another measure to help keep people who cannot afford their homes, in them.

So let’s see if I understand this correctly.

A family (like mine) who works hard, pays all their bills, applies for a refinance without government assistance, and does everything “right”, is served notice that the bank is calling the note and foreclosing on their home.

Yet, a broker helped some moron buy a house he couldn’t afford so the government takes steps (earlier this year) to “modify” that loan into a lower interest rate, and now, since the value of all homes are still falling, they are going to work with him to write off the amount he is underwater?

Now I know what I did wrong. I never begged the government to pay all my bills and to take care of me. That’s why we’re losing our house. It’s all so clear now.

Revealing The Plan

A lot of people sent me a link to an article they found online.

Could a Legal Technicality Prevent Banks from Having the Right to Foreclose on 62 Million Homes?

Unfortunately, our mortgage was not one of those “risky” ones, nor one that was modified with government dollars in one of those now infamous bailout packages.

Mortgages bundled into securities were a favorite investment of speculators at the height of the financial bubble leading up to the crash of 2008. The securities changed hands frequently, and the companies profiting from mortgage payments were often not the same parties that negotiated the loans. At the heart of this disconnect was the Mortgage Electronic Registration System, or MERS, a company that serves as the mortgagee of record for lenders, allowing properties to change hands without the necessity of recording each transfer.

How ironic would it be if our mortgage was tied into this mess as well? Like I said, our mortgage wasn’t one of those that were “bundled, sold, and re-sold”. We’ve always had the same mortgage company, and as far as I know, this doesn’t apply to us.

We’re still in a holding pattern, but we’re hoping things settle out by the end of the week. There is nothing more stressful than not knowing the plan. I’ve never been good with patience, but I sure am learning through this entire ordeal. We’re remaining strong in our faith, and once He reveals the plan to us, we gladly walk down that path.

The Right To Collect More

Things are a bit hectic around here.

We finally heard from the mortgage company about re-instatement of our “non-existent” loan. We’ve contacted an attorney to aid us in this process, but it doesn’t look like anything is going to happen quick enough to keep us in the house. Evaluating and choosing an attorney for your needs and learning about your legal issues can be overwhelming, but Attorneys.com from LexisNexis has great resources to help you.

The letter from the attorney for the mortgage company states the amount required to re-instate the loan, but with a big disclaimer at the bottom that reads, “The above figures were provided by our client and are subject to final verification. Our client reserves the right to collect additional amounts necessary to complete the reinstatement.

The right to collect additional amounts necessary to complete the reinstatement? Excuse me? What do we do if we bust our butts to get the amount they say we need, only to find they want even more? No thanks.

We hear on the news everyday about people walking away from their homes. What about those who are being kicked to the curb because of paperwork glitches like this?

We’re taking a few days to weigh our options. The only thing we know for sure, is that we probably won’t be living here much longer.

— Posted with Stuffr! —