The Republican-controlled House of Representatives has voted to kill the Home Assistance Modification Program, which has been resoundingly panned as an ineffective tool to prevent foreclosure in Miami and elsewhere, according to a report in the New York Times.
As our South Florida foreclosure attorneys have reported on our Miami Foreclosure Lawyer Blog, the banks have made a mockery of the assistance program. Their reward is now a move by big-business Republicans to kill it altogether. Recently we wrote about HAMP problems in Miami and elsewhere, including banks that refused to modify mortgages, banks that offered temporary modifications and then used the arrears to foreclose, and banks that reached an agreement with a homeowner, only to sell the loan to a new processor that would not honor the agreement.
Tens of billions of dollars of program funds remain unspent; we previously reported that the federal government determined it had the authority to punish banks only if they dished out too much assistance — which has hardly been a problem. Banks, meanwhile, have determined there is more money to be made by foreclosing on homes.
While the Democrat-controlled Senate may try to rescue the program, even most of them admit it has been an abysmal failure — largely because of the unwillingness of banks to work with homeowners. Still banks have been left off the hook — despite investigations in all 50 states that accuse lenders and/or their attorneys of forging court documents to prove ownership of properties.
Meanwhile, home prices have declined for six straight months — dangerously close to the official definition of a double dip after rising slightly as the overall economy began to improve.
RealtyTrac reports there were 225,000 foreclosure filings in February alone — which could put 2011 ahead of 2010 when it comes to the total number of foreclosures nationwide. Only about 145,000 homeowners were helped through HAMP.
-Only about $1 billion of the $50 billion set aside for the program has been used to help homeowners.
-The treasury has not fined a single servicer, despite the continued loss of paperwork and other shenanigans banks are pulling to take homes from struggling families.
-Banks continue to deny many who should qualify for mortgage relief.
Don’t put up with it. If you are struggling with mortgage problems in South Florida, contact and experienced attorney today. Negotiate from Strength!
If you need help with foreclosure issues in Miami or the surrounding areas, including short sales, deficiency judgments, strategic defaults or other help for Miami homeowners, contact Jacobs Keeley for a confidential appointment to discuss your rights. Call (305) 358-7991.