Half Truth Is More Palatable

Now that so many families have been shaken to their very core regarding foreclosure of their primary domicile, perhaps it is time to divulge the truth concerning this very issue. A great number of people have indicated to this writer how families have written or called their Congressman/woman or Senator with the growing concern over imminent or potential foreclosure. The general responses from these persons indicated that contact of the families' mortgage company or bank should be their initial act. During my research of this problem, I discovered what the government is not telling the public. Firstly, the government cannot or will not overstep the mortgage company or bank with respect to the terms of the mortgage and its modification. Secondly according to my research, if the owner or investor of the loan does not wish to modify the terms of the mortgage there is nothing to be done by the government regarding that mortgage modification request. Often mortgages are "serviced" by a company other than the mortgage company or bank as a result of the mortgage servicing being "sold". This "service company" does not actually own the loan, they are merely collecting fees and funds of the mortgage and forwarding the loan amount minus fees to the bank, owner or investor. Mortgage service contracts are frequently sold to "servicing companies" for a plethora of reasons. These "servicing companies" can realize enormous profits as a result of attached fees and charges. Therefore, it is not in the interest of each mortgage servicing company to eagerly want a modification of the loan. Additionally, mortgages are frequently sold and may be purchased by investors whose names can remain anonymous. That being said, it could be extremely difficult, if not impossible, to obtain specific information in order to contact the new mortgage owner for a possibility of loan modification. Again, the government is not obliged to step in to mandate the release of this invaluable information to the mortgagee. Of course, our government is touting quite the opposite in its "new approach to solving the home buying and foreclosure crisis". Just what are we, the taxpayer, receiving for our Four Hundred Billion Dollars infusion to the mortgage industry? It does give one pause!

What conclusions are we to draw from these little known facts? Firstly, this new administration truly does not have an interest in resolving the "housing crisis". A simple Executive Order requiring those mortgage companies receiving "bailout funds" to modify requested mortgage loans to between 4% and 5% interest might easily resolve that problem. This could potentially save hundreds of thousands of existing or pending foreclosures and those families effected by this process. After all, misery of losing employment compounded by a foreclosure is almost more than a family can bear. Secondly, mortgage companies selling loans to investors or loan servicing to other companies should be required to reveal information regarding that sale. Once again, our government has thoughtfully seen to it this small procedural oversight has been permitted to remain secreted away from public scrutiny.

What is the answer to this mounting question of foreclosure and/or mortgage modification? Perhaps, the answer lies in the hands of your "legislative representative". Do we need another "Boston Tea Party" in order for representation of the people to once again become a reality? Does the cry of "Throw the bums out" reverberate through the halls of our homes and workplaces? This may be closer than each of us knows. The saga continues....