Even at its most impotent, the HAMP program is expected to help around 300,000 more homeowners in the time of its life – if it doesn’t meet a premature end. This week the house of representatives voted to cut funding to HAMP.
Spencer Bacchus (R-AL) commented “We should not waste taxpayer dollars on failed government programs that do not work and actually make things worse for struggling homeowners.”However, the bill is not expected to pass the Senate as the Obama administration is pushing to reform the program instead of leaving homeowners with nothing.
The Attorneys General foreclosure probe is supposed to reach a settlement by June that would likely include HAMP reforms that will stop dual track foreclosures and force payments of $20 billion from the banks. However even this settlement is in doubt as the GOP has said that the virtually penalty-free terms are too tough on the banks. Containing no mention of prosecutions or changes in regulation in any way, shape, or form, Senator Richard Shelby (R-GA) framed the situation as an evil government trying to “shakedown” innocent billion-dollar financial firms, saying “The precedent these strong-arm tactics could set … should be of concern to all citizens.”
Incredibly, the Federal Reserve’s investigation into wrongful foreclosures corroborates this viewpoint. While the report hasn’t been released it is said to make a rather stunning assertion: that not a single person has been foreclosed on that should not have. Of course, the Fed only reviewed 500 loans with an incredibly narrow definition of what was wrongful.
According to economic blogger Yves Smith, “…lawyers fighting foreclosure estimate that 50% to 70% of the cases they represent are ones where the borrower is in foreclosure as a result of bank fee pyramiding and other improper fees.”
Our firm, Amerihope Alliance, see improper attempts at foreclosure every single day, and are actually a little insulted by the government’s willingness to whitewash these criminal acts. We offer a variety of strategies for our clients to do what it takes to help save homes. Contact us today for a free consultation to see how we can help!