Saturday, September 11, 2010
DUAL TRACK: THE BIG FAT AMERICAN LIE OF MAKING HOME AFFORDABLE
OK so my brilliant little theory is actually not a theory, but an actual FINANCIAL PLAN.
So this is how it works. There are actually 2 parts to it.
1. There are people who have already fallen behind (the borrowers who have stopped paying.)
2. There are the people who are on the verge of falling behind (these are are still current.)
Now the banks know about the ones who have fallen behind, but their harassing phone calls and letters cannot seem to get these people to pay. So what will get these people to pay? The MAKING HOME AFFORDABLE BIG FAT AMERICAN LIE!
They don't know about the ones who are about to stop paying, but lucky for the banks, the MAKING HOME AFFORDABLE BIG FAT AMERICAN LIE will solicit the homeowners who are in danger of falling behind.
All they have to do to make this work is actually modify about 1-5% of these loans.The other 99% will end up going to foreclosure when we are done with them! Woooooo Hoooooo. THAT'S IT. ITS THAT SIMPLE! And Fannie Mae and Freddie Mac give us insurance money, they don't even question us. It's so awesome! Again Lucky for the big banks, when people are so distracted by silly things like how to come up with money for food and utilities, its hard for them to focus. So they can easily be tricked! They are so desperate to feed their families,(its funny to the bankers really,) they will actually fall for a ruse this obvious.
So once we get them to START PAYING OR KEEP PAYING. ( we don't know how they are coming up with the money now, if they couldn't before... oh maybe they are borrowing from family or friends by telling them that they are saving their homes! Maybe they are cutting down on food, the are probably too fat anyway... who cares where they get it, that's not our problem,) we start foreclosure, simultaneously. Its called the DUAL TRACK. Most of the time they don't even know what's going on because we keep sending out this silly little notices saying you are in a HAMP trial modification. We even have service representatives telling them to ignore those silly little foreclosure letters. Most of the time it works, they ignore them...
When they finally realize what has happened, we are very close to foreclosure. WOW look how much money we saved doing it this way! Its GENIUS!
Thanks MAKING HOME AFFORDABLE! WE DON'T OWE YOU!
So why is the real estate market crashing? Its so simple. Foreclosures that could have been modified loans are bringing down the value of everyone's house. How could this be changed? Really simply. Just force the banks to modify the loans that qualify for the Making Home Affordable program.
HOW? Simple. Hire outside underwriting agencies. They verify income and tell the banks this loan gets modified and this is by how much. Banks have don't decide, the underwiting agencies do. These agencies could be non profit, run by people who have been through the modification process and are unemployed. Thats it. Training could be really quick and simple. I could do it, and so could anyone else. Its really easy.
End of Real Estate Market Crash.
OH the banks wouldn't like this? Really, OK, pay back the tarp money, but pay it back with all the profit you made from it this year, then we can give this profit to all the people applying for modifications and they can pay off or pay down their loans.
End of Real Estate Market Crash.