The banks are holding on very tightly to their money. I agree they should. When you earn money you don't let others take it back or stop paying you if they owe you. This is one thing where I felt bad and others will respond by saying, "stop whining about how the banks won't do this or that." The problem is that the banks agreed make some consessions so people can get some relief. The banks have in turn made it almost impossible for people to take advantage of these processes that very few people are helped. If they followed through honestly with me they would have $60,000 more from me and I would be up to date with my mortgage.
Instead they put so many obstacles in my way I could never access their "offers." The next thing that happened was that the Government realized this was not working. All of this was optional for the banks to do. They got some money for offering loan modifications but they kept those people in the process while the government gave them incentives. All the Attorney's General got together, except one state (I forgot who) and the 5 major banks agreed to streamline the process and set aside $25 billion to fix the system.
$25 Billion is nothing to 5 banks. It barely addresses any measure of this crisis. One example of what it addresses, poorly, is homes that were already foreclosed on. If your home was foreclosed on in the specified timeframe 2008-2010 and it was not done with due diligence or was done flat out illegally, that fund provides up to $2000 compensation. So if I lost my $300k house I will get $2000 compensation. Those banks are then off the hook legally because that is in the agreement with the Attorney's General. The bank can't undo a foreclosure so this is it. $2000.
I will explain the rest of this agreement in later postings.
Filed under: Uncategorized