Senator Harry Reid
United States Senate
528 Hart Senate Office Building
Washington, DC 20510-2803
Dear Senator Reid:
As my elected official, you should know that I strongly support the administration's initiatives to help millions of American homeowners and reduce the massive wave of home foreclosures that are fueling today's national economic crisis. I urge you to join the House of Representatives in adopting the President's plan to prevent home foreclosures that do not need to happen. A key part of President Obama's plan would permit distressed homeowners to seek home loan modifications in bankruptcy court.
The efforts of Congress,the US Treasury, FDIC, and HOPE Now are not helping the to stem the foreclosure crisis. If families are going to stay in their homes and avoid foreclosure, it is clear that court-supervised mortgage modifications are necessary. We have wasted too much time already on misguided measures and other dead-end efforts that have done nothing to slow down the runaway foreclosure crisis.
The judicial modification approach can prevent hundreds of thousands of foreclosures without spending one penny of taxpayer money. Is it too much to ask that you take this no-cost action for homeowners? After all, you have seen fit to spend billions of dollars on bailing out the banks, brokerage firms and other corporate giants. The investors that are unwilling to produce the Master Servicing Agreements nor are willing to abide by 17 USC 1122(d) et seq. are causing an anger that is swelling from deep within the bellies of Americans who are asking for a reasonable and logical modification. Where is the logic when they ask for a net present value principal reduction and are denied and the house sells for signicantly less? For instance, a gentleman executed a mortgage obtain through a mortgage broker where the underwriter (BC Bancorp) was not licensed to do business in Nevada and their California business license was suspended at the time the mortgage was signed (and still is suspended). I contacted the Secretary of State pursuant to Nevada statute and the Secretary of State referred me back to the very statute that specifically states they (SOS)are to be notified to take appropriate action and to in turn, notify the Attorney General. Helpful, isn't it? (rehetorial, by the way) The result? The current servicer will not modify the loan to the net present value of the property, the investor, 2007 MANA OAR1 as supervised by Wells Fargo Trust Accounts has not responded to a QWR, and unless and until my client files suit, he will lose his home. By the way, to file a suit and proceed through litigation will cost in the $20,000.00 range. The homeowner essentially has no recourse. The banks, through its' bailout funds, the investors, who may not have received bailout funds directly but rather indirectly through payment of credit swap insurance and the brokerage paying out on that insurance is bailed out, can litigate til the homeowner is literally buried. Some solution the Congress has effected!
Supply and demand are simple economic principals. Each home that is foreclosed upon adds to a supply of homes that is already in a state of glut. Despite the enactment of the CAP program, I am sure the effects of which will not be felt for six months or more, home buyers can't get financed for a myriad of reasons, many of which are nosensical. How about the tax credit given at the time of sale against closing costs or a down payment? The Home Affordability Modification Program IS RIDICULOUS and will help fewer people than the programs already in place. Why does the government want the American people to divest themselves of their retirement? Especially at a time when those 401K's, or like retirement programs, are decimated? Furthermore, is it the purpose of our Congress to continually put people out of work? The language on the linked page to the Financial Stability Act web page is downright irresponsible!!!
I have not even touched upon the debilitating effect the second lien holders have had on this crisis. I suppose this should not bother me as the Congress, and you, have not either.
Please keep me informed about how you vote on this important issue.
Sincerely,
Kelly Zednik Esq
