US Banks 25 Billion in Homowner Help

 Another feel good remedy that makes for great headlines for the States/Feds/Banks that may possibly help 7% that need assistance with their distressed mortgages/properties.  The head line should say:

 Federal Government’s Newest Settlement With 49 States Excludes 93% In Need Of Mortgage/Foreclosure Assistance

 What the Settlement means to those that have mortgages back by the Feds: Fannie Mae, Freddie Mac, and Ginnie Mae loans, is that those loans are excluded – They get no help, none, nada, zilch.  Those Fed backed mortgages account for 97% of all existing mortgage loans!

 But then again, it is an election year. The media will latch onto and proclaim the Great Solution for the lucky 7% and skip informing the public that 97% in need won’t be eligible. The media will not cover the true number of folks that are excluded, nor will the media name the five lenders by name.

 The five Banks most likely will assist less than 7% because many will not qualify for the Settlement. One criteria that is required to qualify for assistance is that you have to be current for the last six months on your mortgage payments.

 The five banks that signed on for the Settlement are:

 1.            Ally/GMAC

 2.            Bank of America

 3.            CITI

 4.            JP Morgan Chase

 5.            Wells Fargo

 Who will end up getting most of the $25 billion in relief for distressed borrowers?

 Follow the money. The States will.

 The States/Feds collectively have said, ‘Okay Banks, since you have negotiated in good faith with us, you can now proceed with the back log of non-performing loans, ie. distressed properties and foreclose on them without further hindrance by us. And by the way, you will help a token few, right?’

 “Like many previous plans to stem foreclosures, this agreement will help at the edges. The problem is too big for it to have a large impact, however…This agreement will help the housing market move ahead in 2012 in a small way. But it is hardly a game changer.” ish.com/

 Oh but it is a game changer!

 “Mark Vitner, a senior economist at Wells Fargo Securities, said the settlement helps the housing market in the long run because it allows banks to proceed with millions of foreclosures that have been stalled. Many lenders have refrained from foreclosing on homes as they awaited the settlement.”

 As the saying goes, “The Lord helps those that help themselves.”

 If you are one of the troubled, you have to take responsibility and seek a solution that works out best for you and your family. Don’t delay.  Contact a professional accountant, lawyer, and/or a Realtor knowledgeable in distressed properties for advice on what to do next.