My Mort lender theory and experience

[secondtimer]

Applied for HAMP... blah blah blah

Made 6 payments... blah blah blah

Called the lender frequently... blah blah blah

Lender said every time that all is "in order"... blah blah blah

Called yesterday, "we have no record of receiving your documents"...blah blah blah blah blah

We use an outside contractor ... blah blah blah

We'll send you another package... blah blah blah


The banks are only using HAMP as another collection practice to squeeze money out of the borrower. I don't think the banks are willing to take responsibility for a white house sponsered screw-up. Only after congress passes some type of legislation to either modify the BK laws or maybe force lenders to capitulate will we start to see any movement. If I'm going to subsidize other "social" programs with my tax dollars its time I get subsidized into a sustainable home loan. It's time they spent some tax dollars on us. The people who actually pay the taxes in the first place.

As long as the lenders can keep some money coming in and showing that they have HAMP mods in the pipeline the whitehouse can tell the press that all is well. I think this whole thing is just some giant collections/political/economics game engineered to manipulate the weekly numbers.

[DeadManCrawling]

I agree with you, in many ways.

I am seeing increasing numbers of posts on forums that also agree.

The banks always find a way to win, or, at least, to turn any system to their own benefit. It must be a good thing, for lenders, to have all these loans in limbo. Really, I'm serious. The lender does not have to claim the bad asset on the books, so they can control the foreclosure pipeline a little bit. The borrower is walking around with a false sense of hope, cine they "may" get a mod. And government is able to claim "progress" on the foreclosure front.

Whistling past the graveyard.

Or, as they say on the economic forums-Extend and pretend.

[325Falcon]

Good theory.

[ryan]

IN the last few months dealing with my mortgage lender I would agree with your theory.... the feeling I get is that the bank is covered and is merely "going thru the motions"...

[Mensa1]

My theory is that ALL these programs exist merely for political cover and to give the appearance that lenders are working with you. IMO, they were designed to slow down the rate at which defaulted homes were hitting the mkt. Without that prices of homes would have been driven down further. Simply all the RE cannot be on the mkt for sale at one time, especially if 15% of it is distressed/REO.

Wish I didn't have a reason to be so pessimistic. I have seen ALL too many lenders rip ppls hearts out for no reason, when they had an option that truly made a hell of a lot more sense. grrrr

Lenders are dogs in the worst way.

[Coldplay]

I totally believe in all the things that were said previous to my post.

It's all a magic show. There are no REAL modifications happening. The banks are just slowing the pace on foreclosures so they don't flood an already flooded market. The people IN this mess are the only ones that see the puppet strings. I keep saying UNLESS you are living this nightmare you have no idea just how bad the state of this country is actually IN.