Frank Louis
New Mortgage Relief Program set to again assist those with no money down, cash back at closing mortgages
Those who made down payments need not apply
By Frank Louis
February 11, 2012

The program, we are told, will help those "hardest hit "in the mortgage crisis. Tell me, just who is that and how was the "hardest hit list" developed? Someone who took out a $500,000 mortgage with $50,000 cash back at closing whose property is now worth only $350,000 or someone who had saved $150,000 for a down payment on that $500,000 property that is now only worth $350,000? The person who paid the down payment is not upside down in loan to debt ration so they are not included among those "hardest hit" by our administration? This is messed up!

No let's just give the people who brought down a system of buying property with money down... that is as old as our nation some cash for their heartaches. Yeah, that's what we should do. Being underwater or not on the mortgage should not be the measure used in these "relief" programs. Who lost money should be the issue.

Again, this housing crisis is a crisis that is going to destroy this nation by robbing many Americans of their life savings and good credit. As I often write, there are Americans who made down payments on real estate they purchased in and around 2005. Real estate, as it turns out, that was being fraudulently represented in its value due to money games the banks, the government, the Fed, and others who were in the know perpetrated upon the American people and our economy. We were lied to about the value of real estate! We all know this is a well-documented fact. By many accounts, American's net worth has dropped by over $9 trillion in just the past few years. Some articles I have read state that as of September 30, 2011, the net worth of American households had plunged to $57.4 trillion for a loss of $9.4 trillion. This is just since 2007.

We have lost this wealth primarily from the losses we have suffered in our primary investments, our homes and other real estate in which we have invested our money. Face it, there was a trap door set, and we fell through it along with our life savings and our good credit. Just think what this has done to adversely affect our national debt and the future of our families and our nation. Wealth redistribution.

Some estimate that our homes alone are upside in value some $750 billion in negative equity. There are 1 million foreclosures scheduled for 2012. Talk about an Occupy Movement! This is an "unoccupy" movement. Can we who actually took tangible financial losses in this crisis not unite? Ask the candidates!

I personally think that this new "mortgage relief program" is just another insult thrown at the Americans who actually lost real cash money in this robbery. Americans made down payments or otherwise actually lost money in this debacle by taking their homes and putting them in debt so they could buy a retirement home or place for their kids are the real hardest hit. This does not include people who did not invest any money in their no down payment, cash back at closing real estate transactions. And, as it turns out, these will be the people most targeted for benefits in this payout.

But, yet gain, I do not seem to hear one word of mention regarding these hundreds of thousands or perhaps millions of people who had good credit and a few hundred thousand dollars saved up in 2005 only to be set up for bankruptcy in 2012. Wouldn't these folks qualify as the "hardest hit?" I guess not by our fearless leader's way of thinking. How about the Republican hopefuls? Any word from them on housing?

Nope, this program, as I understand it does nothing but trickle between $1,000 and $2,000 to people with underwater mortgages. No consideration to people made a $100,000 or $200,000 down payment on the property and lost it all. Nope, too bad for you if you actually invested your money you need not apply. You loose! When will the conversation ever shift from people who are underwater in their mortgages to those who were robbed of trillions of dollars in down payments?

The solution: These mortgages were all based on fraudulently devised property values. They should be given the option to be voided at the purchaser's option. They are faulty products, derived from wholesale price gouging and fraud. I suggest that people who made down payments bring their closing documents to the modification office and the bank gives them their invested money back. It was stolen from them! Void the loan and the bank owns the property. If you did not make a down payment, the bank gets the property and you get back what you lost: Nothing!

Terms like Squatters are often used to define people who have decided to strategically default on their mortgages. If they made and lost cash down payment they are not squatting. In many instances, the down payment they made was more than the property is currently valued. What is up with that? People who invested life savings in real estate were not buying more than they could afford. They were set up and robbed, get this fact straight. Why is it that not one media person or politician mentions this group of people? Believe me, it is a can of worms they do not want opened. Yes, job creation is one part of the solution, but leaving perhaps millions of Americans in the cold with bad credit and their life savings gone plus stuck with property that is worth less than they owe on it will not solve the nations woes. However, they are partially correct. "Let it fall." Stop bailing out these people but give the Americans who invested hard earned money their refunds. The system is broken!

© Frank Louis


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Frank Louis

Frank Louis is a print and on-air commentator who offers opinions and solutions on and for the economy, social issues, and the future of this nation. In the Old Testament, Nehemiah 4: 14 instructs us to fight for our houses; something we need to be doing now. Our future generations depend on it!... (more)


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