In today’s scheme of financing loan modifications are more for these homeowners who are upside down on their home and owe more than its current value. Most have adjustable loans that are either negative 10 to 25% at the time they recast the loan or have been paying a fixed lower interest only payment for a number of years. In either case, their payment has now increased so substantially they can’t make the payment and now because of the downward trend in housing values can’t sell either.
I hear many stories from clients who call their lender and ask for a modification and they are told they can’t be helped unless they’re behind in their payments usually 3 months. So at the direction of the lender, they forego their payments and then apply for a modification. With hardly anyone ever being approved the homeowner ends up in a worse situation than before. The sorry conclusion to a lot of this is the homeowner walks from his home to only eventually lose it at foreclosure.
To make it even worse, some modification specialists are no specialists and are in violation of the law. Enforcement of the laws in regard to modification have been stepped up especially against those who ask for and collect fees up front.
These usually unlicensed loan originators, now working as loan modification specialists for unlicensed companies, prey on the financially stressed. In conclusion, beware of fake promises that common sense tells you are not likely to happen. Homeowners should be advised to check out anyone suspect at the DRE’s Website: http://www.dre.ca.gov or a lawyer at Http://www.calbar.ca.gov as well as your local Better Business Bureau.
Tuesday, July 27, 2010
Friday, July 2, 2010
Freedom and Independence
In honor of Independence Day, I would like to revisit some of the ideals at the core of this country’s experiment in self-governance.
“We hold these truths to be self-evident, that all men are created equal, that they are endowed by their Creator with certain unalienable Rights, that among these are Life, Liberty and the pursuit of Happiness.”
The Declaration of Independence severed the colonies’ dependence upon England but the idea of individual independence was at the center of the Founders’ thinking. Being independent means you are free to fend for yourself, are trusted to exercise your freedoms and allowed to succeed or fail as a result of your own decisions without interference. Yet today, many politicians seem to want to take this independence away and make people more dependent on the government. This is the opposite of what the Founders intended. The government should be dependent upon and subject to “the consent of the governed”. When the opposite is being done when politicians make it so the people must be dependent upon and beholden to them, our freedoms suffer.
George Washington wrote, “The power under the Constitution will always be in the people”. Our Constitution does start with the words “We the People”, after all.
Thomas Jefferson wrote, “Every government degenerates when trusted to the rulers of the people alone. The people themselves are its only safe depositories”.
When politicians say one thing during their campaigns but do the opposite after they’re elected, this says that they don’t care about what the people think or want. When politicians take away peoples’ ability to make choices for themselves, it says that they don’t trust you with the ability to make decisions. They think they know better than you how to run your own life so they try to dictate everything. Politicians demonstrate elitist arrogance, distrust of freedom, and disdain for the people.
“We hold these truths to be self-evident, that all men are created equal, that they are endowed by their Creator with certain unalienable Rights, that among these are Life, Liberty and the pursuit of Happiness.”
The Declaration of Independence severed the colonies’ dependence upon England but the idea of individual independence was at the center of the Founders’ thinking. Being independent means you are free to fend for yourself, are trusted to exercise your freedoms and allowed to succeed or fail as a result of your own decisions without interference. Yet today, many politicians seem to want to take this independence away and make people more dependent on the government. This is the opposite of what the Founders intended. The government should be dependent upon and subject to “the consent of the governed”. When the opposite is being done when politicians make it so the people must be dependent upon and beholden to them, our freedoms suffer.
George Washington wrote, “The power under the Constitution will always be in the people”. Our Constitution does start with the words “We the People”, after all.
Thomas Jefferson wrote, “Every government degenerates when trusted to the rulers of the people alone. The people themselves are its only safe depositories”.
When politicians say one thing during their campaigns but do the opposite after they’re elected, this says that they don’t care about what the people think or want. When politicians take away peoples’ ability to make choices for themselves, it says that they don’t trust you with the ability to make decisions. They think they know better than you how to run your own life so they try to dictate everything. Politicians demonstrate elitist arrogance, distrust of freedom, and disdain for the people.
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