Inquiring minds are reading the WashPo article about how banks and loan service companies are double-dealing their customers and seizing their customer’s homes:
After Valarie Stovall fell behind on the mortgage on her home near Hagerstown, her lender agreed in April to slash her monthly payment by $300, and she immediately started paying the reduced amount.
That’s why, Stovall said, she thought nothing of the yellow flier she ripped off her screen door as she returned from the grocery store one afternoon last July.
“Then I read it and went ‘Oh my God,'” she said. “It was a notice of eviction.”
Across the country, struggling homeowners are increasingly tripped up by mortgage lenders that press ahead with foreclosures regardless of any effort they make to provide borrowers with relief on unaffordable mortgages.
This has been happening for about the last four years.
There is more:
Amid the worst housing crisis since the Great Depression, mortgage companies have established a dual-track approach toward troubled homeowners, negotiating with them over loan modifications while trying to seize their homes.
Top government officials have been urging lenders to redouble their efforts at modifying burdensome loans and have barred lenders from foreclosing on homeowners who are seeking to rework their mortgages under a federal program. Mortgage companies, however, have continued to pursue this two-track strategy, with a widening toll especially on those homeowners who have been trying to resolve their mortgage difficulties before they snowball, according to federal and state officials and consumer advocates.
The new Republican majority would do well to make the banks and loan servicer companies pay dearly for their mistreatment of the American people. A pro-business plan always includes punishment for crooked business people because markets only work correctly with ethics and values. The free market works when the people feel the marketplace is fair and honest.
Not only Harry Ried should hear Sharon Angle’s quip. So with a tip-of-the-hat to Ms. Angle…
“Hey, Republican Leadership! Man up…go get ’em, cowboys!”
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