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Apr 18

Another “Foreclosure Prevention Bill;” Does It Have What It Takes?

“This foreclosure crisis affects all of us – homeowners, families, neighbors, and state and local governments. It is clear that the current system isn’t working and unfortunately federal regulators have filed to bring meaningful reform to the mortgaging servicing….Ending the foreclosure mill requires stronger oversight, streamlined modification procedures, and meaningful penalties when servicers break the law. We should be finding ways to keep people in their homes, not gouging homeowners and forcing more houses onto an already depressed housing market.”

-Senator Sherrod Brown

Last week Senator Brown (D-OH) and Representative Brad Miller (D-NC) proposed the “Foreclosure Fraud & Homeowner Abuse Prevention Act of 2011.” While far from perfect, the bill shows an understanding of the foreclosure crisis that the combined minds of the Treasury Department, the Federal Reserve, FBI, and countless other “financial regulators” can’t seem to figure out.

The bill would eliminate the barriers that keep investors from holding the trustees of their mortgage-backed securities accountable. More importantly, it would force second lien write-downs in the case of a primary loan modification and completely change the way mortgage servicers do business.

It would stop the dual-track foreclosure and create a path for principal reductions for underwater homeowners. It would also try to curb force-placed insurance abuse.

It would force mortgage servicers to clearly communicate requests and bills to borrowers to end misapplied fees, lost paperwork, and kill the servicing profiteering that incentizes drawn-out, unnecessary foreclosures.

Not all of the proposals are sound, or would necessarily work.

Homeowners have certainly waited long enough for a good foreclosure protection bill, so the foreclosure experts at Amerihope Alliance have a few recommendations to end the abuse of homeowners once and for all.

 

  1. Make Fannie Mae and Freddie Mac cut their ties with tainted foreclosure mills. The FHFA is still giving untold millions of taxpayer money to foreclosure mills that are under government investigation for countless acts of fraud and perjury.
  2. Redirect and reform prior “foreclosure prevention funds.” Billion dollar programs such as Making Homes Affordable and the Hardest Hit Fund have been decried as giant cash give aways to the banks that are committing the improper foreclosures. These funds are also blocked from being used in ways that would actually prevent foreclosures, such as legal aid and court expenses, which are bankrupting courthouses nationwide.
  3. Stop the revolving door. An ambitious idea, but the interchanging of bank executives and high-ranking government officials remains one of the largest culprits of the financial crisis. The Oscar-winning documentary Inside Job explains the necessity of ending this corrupt practice.
  4. Prosecute financial crime.

In the meantime, homeowners and foreclosure defense attorneys are still on their own. Amerihope Alliance will always stand-up for victimized homeowners and fight for justice. Get a free consultation from us today to see how you can stay in your home!

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