SCREW YOU INTERNET! you will accept my long ass post! I will click you POST button until you POST my lengthy post! This article in particular hit home. Its lengthy, but bear with me, please. I am borderline on seeing HUD in the big picture. HUD has a lot more to do with homelessness than most people know. If HUD was strict on regulating lenders and seriously cracked down on BAD and PREDATORY home loan servicers,the number of homeless children in America would fall to HALF. In the next week or so Myself, my husband, and my two children will be homeless or in `SRO` housing - as well as MANY others like us- because HUD has, is, and does all too often allow mortgage servicers with bad loans from the whole 2008 housing collapse to foreclose on honest people trying to keep up with rising living costs, or ARE keeping up and still foreclosed on. HUD comes into play, because HUD regulates the companies that foreclose and evict homeowners - which is hands down one of the biggest reasons we are seeing homelessness in the last few years - HUD Not only oversees the regulation of good/bad banking practices, but they PAY BACK, or REIMBURSE the loan amount to companies that foreclose. Hence you see HUD/ REO (real estate owned) foreclosures. The lenders foreclose and kick families out, and then give the homes to HUD. HUD pays the lender for their loss and resells the home. The GIGANTIC HUMUNGOUS ISSUE HERE, is that it has and is in a voracious amount, popping up ALL OVER, the infamous wrongful foreclosure, or fraudclosure, PROVING, TRIED, and GUILTY, that a massive amount of families lost and are losing their homes when they did nothing wrong, NEVER missed ONE payment in years, or their lender frankly, screwed them. For lack of wanting to confuse people or going there I will say this as for WHY;< important part > HUD pays the lender what the homeowner still owed on the loan, PLUS the lenders foreclosure expenses, court costs, and many other associated miscellaneous fees which usually adds up to a GREAT deal more than what was originally owed for the home. Right aside modifications, and re-fis common to aid (more like sabotage) homeowners with a better/lower payment, those modified loans usually tacked on an additional amount of a few to several thousand more owed on the loan. Much of this is thought to be and has been and admitted by several bank employees in settlements for wronging that intentionally hiked up the price of the loan and toyed with financial applications so the homeowner would be approved on false pretenses or a calculated risk they would slide back into default, or not being able to pay. -Take a $100,000 loan. Struggling or not, making mortgage payments say for several years paid off $40,000. (you owed $60,000) Economy became worse, your over time is cut at work, lost your job, food/fuel etc went up, BAM! Payments were just unaffordable. You risk foreclosure. The Lender modifies the loan after a tedious process which you incurred many late fees for -BUT, you keep your home! Your payments are now $50.00 cheaper a month! But your new interest rate went up, and between the modification fees, fees fees,normal fees,fax fees,documentation copy fees, extra fees, extra super fees, just because fees, and late fees, your new modified balance is $130,000.00. You care little, you are not getting kicked out of your home! .....Then, as it goes shortly after, You get a letter stating your new modified loan payment has been recently adjusted to reflect your ESCROW ACCOUNT, typical. But, You Mortgage insurance premium went up a few bucks, your homeowners, or annual city taxes increased, like they do, and sorry for the inconvenience, but your barely home saving reduction of $50 a month has now been readjusted to a new monthly savings of your screwed. ........Did you see that > honestly. And that was the fairly LEGAL way OF HOW MILLIONS OF PEOPLE ENDED UP HOMELESS. Your out of your home, your just say POOF to the roughly $53,000 you paid to the lender and put into home improvements, the yard and landscaping, etc etc.....all your memories.... and HOPEFULLY, the lender does not sue you for the rest of what you owe. ...............NOW, lender wins foreclosure - The lender- pockets your $40,whatever thousand you paid them AND THEN MAKES A CLAIM TO ***** HUD *****
Posted on: Tue, 02 Sep 2014 04:03:10 +0000