August 6, 2009
It's beginning to look like the Homeowner's Stability Initiative program and the $75 billion that was to fund it, is being used to further line the pockets of everyone but homeowners. Months have passed with no action to even formally implement the program, instead Congress allows lenders to continue to foreclose on homes that could have been saved under the program.
We're calling on the House Banking Committee and Chairman Barney Frank and the Senate Finance Committee and Chairman Max Baucus to immediately investigate why this program is apparently being blocked and why the money to fund the program is being used for other purposes.
Why is Congress refusing to help homeowners? It's estimated that nearly 50% of all homes with mortgages will be "underwater" in the next 2 years. Does Congress and lenders really think Americans are so stupid that they will continue to pay on these loans? And, just because "existing" home sales have risen recently, does Washington think we don't realize it's because foreclosed houses are being sold at greatly reduced prices? This is the real estate recovery they're predicting? I guess the economy will really spring to life when greedy lenders have foreclosed on half of all homes with a loan!
Mr. Frank, Mr. Baucus, you must immediately require ALL lenders to contact homeowners and offer them a new, low interest, fixed-rate mortgage AND a reduction of principal inline with current market values. The new mortgage must include paying all outstanding State property taxes and insurance payments and adding that amount to the new principal. The new fixed-rate mortgage must also require the mortgage company to escrow money from monthly payments to cover paying annual property tax and insurance payments in the future.
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