Today the House approved a bill (234-191) that would give bankruptcy judged authority to dictate, I mean change, the terms of the loan for home owners that are under water or upside down on their mortgages.

Simply stated, it means the borrower owes more on his home than what the current market value of the home is.

Bankruptcy judges will have the ability (assuming it passes the Senate) to wipe out the portion of the debt that is under water. For instance, if John Smith took out a 200,000 mortgage to by his home in 2005, but current market conditions now dictate that the homes value is now 140,000 the judge can adjust the mortgage, payments and interest, to reflect the current market value of 140,000.

First let me say to the 92% of Americans that pay their mortgages on time and bought homes they could afford, sorry suckers you should have have purchased bigger homes in more affluent areas.

This is wrong on so many levels I can hardly determine where to begin. First and foremost judges are just that…judges. They are not accountants, bankers or realtors. The banks that hold these mortgages can’t not realize these losses.

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Technorati Tags: Foreclosure, governement bailout, Mortgage

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Former Countrywide executives cash in on federal housing bailout

After overseeing a company at the very center of the still-imploding U.S. mortgage market, a dozen former executives are now poised to make millions from the housing crisis.

Stanford L. Kurland, the former president of Countrywide Financial – the bank that has become most synonymous with the bad mortgage lending practices that eventually caused the housing market to burst, setting into motion the current financial crisis – and colleagues from the defunct firm now run PennyMac.

The company, headquartered in the same Los Angeles suburb where Countrywide was managed before it was sold to Bank of America last summer, specializes in buying up bad home mortgages that the U.S. government took over from other failed banks, the New York Times reported Tuesday.

PennnyMac has been buying up some of those mortgages for just a fraction of their value, and they keep a portion of whatever money they collect from the mortgage holder.

PennyMac’s business has been “off-the-charts good,” said John Lawrence, the company’s head of loan servicing, the Times reported.

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Technorati Tags: Countrywide, Foreclosure, mortgages, PennyMAc, Private National Mortgage Acceptance Company

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Look What Has Grown from the ACORN

Lady Liberty CriesWhat a great look inside the idiotic mind of a typical ACORN (Association of Community Organizations for Reform Now) thug.

Here is Stuart Varney of FOX Business interviewing Bertha Lewis, Executive Director of the New York branch of ACORN, about the recent invasion of private property by the criminal enterprise… ACORN;

Stuart Varney: Do you think you got a right to these houses?

Bertha Lewis: I think the homeowners have a right to stay in those homes until the administrations plan can be implemented…yes I do.

Stuart Varney: They got a right to the house even though they haven’t paid their bills?

Bertha Lewis: They have been paying their bills…I think it’s a false thing to say that people haven’t been paying their bills.

Stuart Varney: No, their delinquent on their mortgages.

Bertha Lewis: Well, they maybe delinquent on their mortgages but there are people still do that.

Stuart Varney: They haven’t been paying their bills

Bertha Lewis: There are millions of millions of people who are…

Stuart Varney: Doesn’t matter, they haven’t been paying their bills.

Bertha Lewis: Being foreclosed on every day and so we have a plan in place and people need to stay there..

Stuart Varney: What right do you claim to stay in a house that you can’t afford and you cannot pay the bills and what right do you have to get my money to pay for you? I’ve read the constitution, I don’t see that right…

Bertha Lewis: Well, I don’t see the right that banks have to get 700 billion dollars to get bailed out

Stuart Varney: No, no, that’s a different thing…

Bertha Lewis: That’s all part of the same thing…

Stuart Varney: No it’s not…

Bertha Lewis: Every 13 seconds, Stuart, people are getting foreclosed on and they have the right to protect their homes and to protect their communities. It’s the most American thing you can do to protect your community.

Stuart Varney: ACORN is well known for looking at banks and saying “give us a loan,”….they don’t give you a loan so you scream racism you then invade their offices and demonstrate outside the private homes of bank executives, you embarrass the banks and you force them to give you loans on favorable terms, now…those loans cannot be repaid, you will not leave those homes and your claiming a right to stay in them and have a right to my money to make sure you stay in them, again…I come back to it Bertha, they may be be foreclosing every 13 seconds but you have absolutely no right to that house.

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Technorati Tags: acorn, Association of Community Organizations for Reform Now, Bertha Lewis, Foreclosure, housing crisis, Mortgage, Stuart Varney

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