Go Sheila!

The Associated Press is reporting that Sheila Bair, head of the Federal Deposit Insurance Corp., has recommended that the companies that have pre-foreclosure clients consider an across-the-board conversion of adjustable-rate loans to fixed-rate loans if the borrowers were current on their payments and living in the homes.

Yes! Someone with a solution to directly help those in need.

Now I have to carry that a step further-----how about just a few months behind? If people are already current on their payments and still living in their homes, why would they need the help?

How about helping those whose payments have already increased $500 to $1000 dollars a month and can't afford the payments?

Check out my website at www.audreybutlerhomes.com

Hope Now----really?

OK, so I know I've had a few ranting sessions on a couple of things on this blog, but I really have to wonder about the Hope Now initiative that was advertised on WESH TV last night.....I know it is not the TV station's fault, but why not investigate what Hope Now is really about....INFORMATION ONLY.

I look at the foreclosure problem, and I see a big crisis. Yes, people made some bad choices, maybe didn't read the fine print, thought the interest rate would change, or relied on a factor that did not happen. But the bottom line is that we are seeing a significant number of people losing their homes and their dignity.

The problem in Orlando is compounded by the fact that home values have dropped significantly since all the investors pulled out of the area, and we now have over 26,000 homes on the market.

After hearing the news story yesterday, I went to the website and found the link to Hope Now....(www.hopenow.com) ...All it does is instruct people to contact their mortgage lender and talk to them.....really? The people that I know are in trouble HAVE ALREADY DONE THAT. What happened? Numerous answers: No one can give them an answer.....they can't get to the person that makes the decision....the situation has to get worse before the lender can do something.

Then we direct people that are struggling and stressed out, who have not gotten any help from their lender, and we send them to a non-profit organization. Nice, but does that organization have any say? Do they have a direct phone to the bank, with approval to override the bank? Can they force a lender to modify the loan?

The counselors can recommend some options, but they are just window dressing.

Here is the problem that is not being addressed: Mortgage companies have a lot of foreclosures and clients are not getting answers. The homes cannot be refinanced with a different mortgage broker/banker in Orlando because the homes will not appraise for the amount when they were mortgaged in 2005.

No other bank can help, and NO LENDER has come out with a policy on how to address the problem with their client and help the owner (another question: why would they be motivated to do anything to help? They have to listen to their investors, correct?). Foreclosures seem to be the only option...

...now exactly how does "Hope Now" address this?........