This just makes my blood boil - what happened to personal responsibility and ethical conduct in this country!
Everyone wants to blame someone else down the chain for their problems. Today I was reading Richard Zaretsky's post about the mortgage industry and sellers asking 'Should I pay my mortgage or not?'
We live in extremely trying times and everyone is pressed financially and mentally to make the best decisions for their family and future. There are no stereotypical people involved with today's mortgage mess. When I read today about the special compensation that the lenders get from the O'Bama Bailout Plan I almost burst a blood vessel in my head! Here I was wondering and beating my head against the wall with lenders that wouldn't help with a voluntary loan modification BEFORE the borrower went into default - NOW I KNOW WHY!
Lenders are given added compensation to people in default first and I quote Richard:
"While this is contrary to what has been published by the government about the plan, keep (in) mind that following the plan and any of its various aspects is entirely voluntary and up to the Lender or servicer. They can pick and chose from this plan as they see fit for their own internal reasons. Here is a more interesting twist - a servicer that modifies a delinquent loan is paid more under this incentive plan than if the borrower were to modify while the loan is current! If the borrower is current, the servicer can receive up to $3,500 in incentive fees from the government. If the borrower is delinquent, the servicer can receive up to $4,000 in incentive fees from the government. Thus it seems that it pays ($500 to)the servicer to encourage a borrower to be delinquent!"
You know when it walks like a duck, quacks like a duck, it must 
be a duck right? The whole program smelled like limburger cheese to me and all for $500! What was the benefit to the lenders for lowering an interest rate for homeowners? What was their financial gain to help homeowners?
Well there it is! The curtains are now open for all to see!
This should be a crime in my opinion!
Lyn Sims (847)230-7324 at RE/MAX Suburban
I proudly serve and sell real estate in the Northwest Suburbs of Chicago. If you are thinking about purchasing or selling your home in the communities of Schaumburg, Elk Grove Village, Hoffman Estates, Roselle, Palatine, Medinah, Itasca, Bloomingdale, Carol Stream, Bartlett, Hanover Park, Streamwood, Elgin, South Elgin, St. Charles and more importantly, want to work with a local area expert, contact me immediately.
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Something Smells - Is it Limburger Cheese or your Lender? ©2009 Lyn Sims - RealEstateConsumerInfo.com and RealEstateBuyMe.com
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All in the name of $500 bucks.... that's despicable
well writen ..everyone wants something for nothing
That cheese looks totally nasty. I'd like to say I can't believe they'd to this over $500 but I've dealt with too many banks. They'd do that over $10.
Thanks for opening our eyes and putting it out. No wonder the HOPE program did not work.
Angelia: It sounded like a good program that had much to offer for people in trouble or impending trouble (foreclosure). Offered some hope but still nothing is coming of it. Just a bunch of PR nonsense for Washington. It seems like they are doing something when again we find out what the 'true' program is that isn't designed to help people on the brink so to speak.