Much was made in recent years about the millions of dollars dedicated to helping homeowners work their way out of Miami foreclosures because of underwater mortgages that caused many to consider a strategic default.
In order to keep people in their homes, the Obama administration set up funds and breaks to banks to encourage them to modify loans to Miami homeowners, though they missed the mark. While there was a goal of helping many people with these programs, they did little to help.
A recent article by USA Today examines what went wrong and how come the programs touted by the government fell short. Our Miami foreclosure defense lawyers have seen how government-backed Fannie Mae and Freddie Mack knew about robo-signing problems and did little to address it. It has been documented that the government has done nothing to prosecute bank officials who ordered Miami foreclosure to be processed through fraudulent means.
So why would anyone believe that government-backed programs would really be designed to help homeowners? The Fed loaned out trillions of taxpayer dollars to banks to save them from their own greed and ineptness. And banks turned around and made a multi-million dollar profit from the loans!
The only way to keep your home is to fight for it, not rely on the government to help. Our Miami foreclosure defense lawyers are prepared to take on any bank that is attempting to infringe upon your rights as a homeowner.
According to the USA Today article, a couple from Mississippi lost their house to foreclosure at a time when they were being reviewed for a loan modification through a government-backed program. A Realtor knocked on their door one day and told them to leave.
The Obama administration’s foreclosure prevention programs were supposed to help between 7 and 9 million Americans, but so far only helped about 2 million and many of those aren’t out of danger yet. The couple is among a rising number of Americans who have felt the government has failed them and their banks are doing nothing to help.
As of Nov. 30, according to the article, only $2.8 billion of the $46 billion that was designed to help foreclosures has been spent. More has been dedicated, but the Congressional Budget Office estimates only $13 billion ultimately will be paid out.
Since 2009, 2.5 million homes have been lost to foreclosure and another 4 million are in the foreclosure process or on the brink. Home prices are falling everywhere. Experts say the programs had severe design flaws and didn’t provide enough incentive for banks and mortgage servicers to stop a foreclosure. In many cases, lenders and their contractors make more money off a foreclosure than modifying a loan, even if government programs are utilized.
Even lawmakers admit that more was done by the government to help the banks than to help homeowners. Trillions in loans were doled out to save them, even to foreign banks with interests in the United States, but little has helped homeowners.
Seeking a loan modification is fine, but it’s rare that the banks will agree. They simply don’t make money from it. They would rather foreclose in Miami than attempt to work with a homeowner.
That’s why fighting back and looking for problems with the bank’s paperwork, evidence of robo-signing or other fraudulent practices and problems may be the best option. Don’t rely on the government to help. Hire an experienced law firm and negotiate from strength!
If you’re battling foreclosure in Miami or the surrounding areas, contact Jacobs Legal for a confidential appointment to discuss your rights. Call (305) 358-7991.
More Blog Entries:
Banks Fool Miami Homeowners Who Participate in Loan Modification Program: September 3, 2011
What went wrong with foreclosure aid programs? by Julie Schmit, USA Today