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$300 to $125,000 for losing your home to foreclosure because the bank did not correctly process the papers to find out who really retained the mortgage. What a joke! Banks being bailed out again.
And this money will come from those of us who borrowed within our means and continued to pay our mortgages.
U buy a house for 300k with nothing down. It's worth 200k now so u walk away. Bank looses 300k?
Sorry but these people were not victims. Never met anybody who paid on time and as agreed who had their house foreclosed on. Once again we are rewarding people for bad behavior.....
New Home: $250,000 (100% financed)
New Car: $35,000
Trip to Hawaii: $4,000
Yearly Income: $30,000
Being Rewarded for your own mistakes and being foreclosed upon: $300-$125,000 (Priceless)
We continue to punish the responsible people and reward the irresponsible ones. "The banks" will not pay a dime of this $3.6 Billion, all costs will be passed along to their customers through higher fees.
Borrowed within our means - mortgage payments were 28% of our takehome. Had home for 18 YEARS! Paid on time Then husband lost job. Then I lost job. Three kids. Contacted the bank for assistance. Told us to pay what we could on time - paid about 70% of payment due for 6 months keeping in touch with bank EACH MONTH. Applied for restructuring. Bank denied and foreclosed because we didn't pay enough. Tried selling but no reasonable bites (I'm sorry we would not accept $40k less than value of house).
According to you people we are horrible because we borrowed outside of our means. We are horrible because we tried to work with the bank. We are horrible because we are horrible.
We upgraded that house like you would not believe - new windows, siding, furnace/ac, roof, driveway, deck and kept up the interior. We looked for jobs and took anything we could get to bring in a little income to help (Target and Menards).
This fall he finally found a job - out of (meaningful) work for 21months. I'm still without full time job. Without medical insurance for adults for 2 years. Cobra was more than 1/2 of what unemployment paid. Didn't make sense to take it.
So you smart people - tell me - what did we do wrong?
Oh - we purchased a HUD - guy before us "forgot" to pay his taxes for 13 years. Stupid feds attempted to take the house a SECOND time for this guys actions. Wells Fargo had to prove to them that we were the owners, not him.
So far, the comments have missed the point. Congress appropriated money to modify mortgages. The money went mostly unused because the banks/government made it difficult to modify, hence few were able to modify. Some say the banks did better by not modifying. You can blame the borrower, but the settlement has to do with banks not following thru, and also shows the inability of the White house and congress to follow thru and see that what they pass, is competently implemented. Ditto Obamacare. Another epic fail in the making.
I truly feel for those who were responsible, and were dealt a bad hand. My experience is quite different. I know of more people than I care to admit, that simply walked on their homes because of plummeting values, thereby dragging their neighbors values even more. Irresponsible borrowing has about as much to do with this mess, as the lenders do. Gone are the days of drive-by appraisals.
What you'll never see is a program like this for those who sucked it up and stayed the course, in spite of the terrible market. They are the ones who will be paying for this, with no relief in sight. Values stay out or go down, as taxes stay put or go up.
Perhaps new levels of oversight should be used on a 'case by case' basis, before checks are just handed out. The mentality of "why stay here when I can get a nicer place for less, if I just stop paying" is maddening!
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