Confusion Runs Rampant No Thanks to the Feds

Why do so many buyers think they are getting such a great deal when they go to the courthouse steps to purchase a home?

We wonder why our country is in such a disaster. This is just a few of many issues we have to deal with. Don’t even start me on Health Care, Welfare and unemployment. This video  pretty much explains it all.

Read the FDIC rebuttal :
http://www.fdic.gov/news/news/press/2010/onewest_lossshare.html
The FDIC explanation of Loss sharing
http://www.fdic.gov/bank/individual/failed/lossshare/

From the NY  Times:

The F.D.I.C. said that of the many offers for IndyMac, IMB’s was “the least costly” to its deposit insurance fund (meaning, “taxpayers”). But the agency — and you and I — still stand to absorb a boatload of losses in the deal.

The Wall Street Journal

From this blog an explanation of the sharing program:

2.1 Shared-Loss Arrangement.

(a) Loss Mitigation and Consideration of Alternatives. For each Shared-Loss Loan in default or for which a default is reasonably foreseeable, the Purchaser shall undertake, or shall use reasonable best efforts to cause third-party servicers to undertake, reasonable and customary loss mitigation efforts in compliance with the Guidelines and Customary Servicing Procedures. The Purchaser shall document its consideration of foreclosure, loan restructuring (if available), charge-off and short-sale (if a short-sale is a viable option and is proposed to the Purchaser) alternatives and shall select the alternative that is reasonably estimated by the Purchaser to result in the least Loss. The Purchaser shall retain all analyses of the considered alternatives and servicing records and allow the Receiver to inspect them upon reasonable notice.

The author goes onto say that, “over 50 different lenders and servicers who have Shared-Loss Agreements executed with the FDIC. Each Agreement offers essentially the same terms. Though other Lenders do not appear to be acting as flagrantly as OneWest, they are all still engaging in the same actions.
They give their solution to this problem:

• For homeowners individually, the most successes are being achieved by borrowers who are getting knowledgeable attorneys who will not just threaten litigation, but are also willing to act and file the necessary lawsuits. That tends to bring OneWest Bank to the table.
• For the country as a whole, and homeowners in mass, the problem must be brought to the attention of your local Congress Critters. You must hold their feet to the fire. They must know that if they do not respond to what OneWest and other lenders are doing, then they are subject to being voted out of their nice and cushy Congressional Offices.