Attorney General Martha Coakley on Monday called for the removal of the federal chief regulator of mortgage giants Fannie Mae and Freddie Mac, saying he is blocking efforts that would help struggling homeowners avoid foreclosure.
Edward J. DeMarco, acting director of the Federal Housing Finance Agency, has drawn widespread criticism from housing advocates and members of Congress for refusing to support a program that would lower the debts of delinquent mortgage holders. Coakley will add her voice to the chorus on Tuesday, in a speech before a meeting of housing industry workers in Boston.
Comments
She's right on this one. There should be no "arms length" provision. Although I understand why it was proposed, the homes in foreclosure would be reconciled much faster if the distressed owner were first in line to be able to resolve the issue with the bank (read that as cost reduction among a host of other benefits to the lender, the occupant, as well as the taxpayers).
That's right, let them rebuy their houses cheaper and lower your home values...keep paying your mortgage that is more than your home is worth so that these people who are likely behind 24 payments can get a break...the fair thing would be to extend the loan term to 40 years so that the payment would be lower, but they would still have to pay the principle they agreed to. Part of being an adult is personal responsibility...
Sorry, perhaps I didn't convey my point the right way. I completely agree with you on the fact that these folks need to be responsible for what they signed just as I am for what I have committed to. I'm also not in the mood to subsidize any aspect of them refinancing their own home at the same or lower values. What I meant was that Mr. Demarco is wrong to explicitly exclude these folks from the subsequent transaction meaning they have zero opportunity and as such, little stake in keeping up the property or in cooperating with the bank once they think it's a futile effort. So, in my opinion, they should be allowed to at least be one of the potential parties who can have access to the process. DeMarco wants to make sure they aren't so the next loan won't be as prone to failure or be subject to fraud. Trust me...... If you've ever read more than one of my posts you'd know I'm a big-time advocate of personal responsibility. If they can't pay, they need to go away.
Then we should all be able to buy our homes back at a reduced rate...why just delinquints? If my mortgage was reduced or refinanced, then I would stimulate the economy, because I would have more money...since I pay my bills, why not reward me?
Where was Martha before the housing crisis began? She was right up with Barney Frank when he said "Lets Roll the Dice" for subsidized housing. Martha is the one who should be ousted.
Martha is always rewarding the wrong people. So, I guess everyone should become delinquint to get a reduced mortgage.
Of course none of this is free.
they should be booted out. let renters saving their money in a responsible way buy these homes. why reward these deadbeats?.