Mortgage Meltdown: Barney Frank Proposal

Memo to all Senators, Congressmen and state legislators:

The solution proposed by Barney Frank for the Mortgage Meltdown is dead-on right. Suck it up.

 

The disaster that awaits will fall on your record unless EVERYONE gets something they can go home with. Any lender that opposes this is arguing for their own disaster. This program will save their balance sheet, increase their reserves for lending, and save their income statement as well. They could even recover prior write-downs if Frank’s plan is expanded to the full 4 million homes affected. See my blog as livinglies.wordpress.com for more details.

 

The bottom line is that we MUST keep everyone in those homes, maintaining them and paying utilities, and paying something toward the mortgage. Allowing the lenders to participate on the upside allows them to recover their losses, but also, if the disclosure rules are relaxed, they will be able to delay writing off mortgages and investments that otherwise will come cascading this year and next.

If we can, where the home is empty and still inhabitable, we should reverse the foreclosures and reinstate the loans, reinstate the CDO/CMO investment etc. Of course those homes that have stripped of appliances, wiring and plumbing are another story. Pelosi’s support of this is critically important to passage. 

 

3 Responses

  1. I was serve a WRIT of removal by the County Sheriff. I have a VA Loan GMAC sold the deed back to the VA for 10.00. VA loans are pain off if loan is default. I did a motion of WRIT not to removed because GMAC (the folks who file the WRIT) were no longer owners of the property. I called VA to verify their ownership of property. I also got a copy of the deed for the County office. Feb 17, GMAC sign the deed over to VA March the 25 the Deed was approved by the County records. April 6 GMAC sent out two letters one was WRIT of removal and the second letter was for the Sheriff to remove me. I took those documents along with the new deed with a letter stating that GMAC had know right to authorize an WRIT of removal I also mention that I have never received a wet ink note, and I ask to be compensated for 294,000 thousand dollars. I filled motion April 24 I filed it with Superior Court I at the Indianapolis County office.

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