Robinhood: STATES in Tights? Federal $1 billion bailout scares me

  ROBINHOOD:  STATES IN 

TIGHTS? 

                  

WASHINGTON (MarketWatch) -- The U.S. Housing and Urban Development Department on Wednesday allocated $1 billion in funding to U.S. states to help stabilize neighborhoods faced with many foreclosures. The sweeping bank reform bill, the Dodd-Frank Act, allocated the funds for the programs. "These grants will support local efforts to reverse the effects these foreclosed properties have on their surrounding neighborhoods," said HUD Secretary Shaun Donovan. States can use the funds to acquire land and property; demolish or rehabilitate abandoned properties. 

NOTE:   Conflict of interest is showing, where is the help to homeowners?  Are they helping homeowners Or increasing land holdings for the cities and states?  Let see with 1 million you can buy up a lot of property and increase the net worth of the city or state. 

sxc.hu #566365

Do states make laws that affect the homeowners ability to win or lose their foreclosure fight in court? With states benefiting I call these grants a  conflict of interest! 

Many Taxpayers have been denied help that ONLY extends the loan - now THEIR tax dollars are being used to help fund recovery for the aftermath of the foreclosure frenzy. Is there any end in sight? Where is help for the drowning underwater Americans? 

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SALT LAKE CITY, Utah (ABC 4 News) – “They’re foreclosing illegally here in Utah,” those were the words of St. George Attorney John Christian Barlow spoken in early June. Barlow at the time had appeared before a Federal Judge arguing that the Banking Giant, Bank of America, was foreclosing illegally in the State of Utah. The Southern Utah Attorney believed that because B.O.A was not a registered business or corporation in the state, they lacked authority to do business here.

Barlow had succeeded in getting a 5^th Circuit Court Judge to agree with him; as a result the judge imposed an injunction on all Bank of America foreclosures. Weeks later, the case went before a Federal Judge where B.O.A. argued that they were regulated by Federal Laws not State. Federal Judge Clark Waddoups heard case, and threw out the injunction therefore Bank of America’s foreclosure company: ReConTrust was allowed to foreclose once again.

After the decision, ABC4 got a tip about the case and started digging. Our tipster said that the Judge may have a conflict of interest in hearing the B.O.A. cases. Why? Because the Judge Waddoups old law firm represents Bank of America.

We checked into Waddoups background and the Federal Judge did work for Parr,Brown, Gee & Loveless for nearly 30 years. And Waddoups,>>>>>>>Read Full Article …ABC4

UPDATE HAFA, HAMP and changes to loan modifications

Please retweet this blogpost if you find it helpful in learning about government mortgage homeownership and bank loan modifications.

In a previous posting I referred to video of phone call outlining HAMP qualifications at a bank. Today I had interview with home modification specialist and she was telling me how things have updated recently. She estimates that only 30% of the loans coming through their department are modified. Which she told me she doesn't think is a lot of modification and that much more is needed. I was telling her that I had heard the figure was much lower. Either way at least there are changes.

Here are a few:

All the major lenders are now accepting HAMP applications. Freddie, Fannie and Ginnie are among them.

You are no longer required to be 60 days late on mortgage payments to qualify. makinghomeaffordable.gov

The government is pumping money into this program and has tried to make it easier to get help. 36% get permanent modifications after trial period. HAMP looks to be more promising than just a few short months ago. One of the best changes is that it is targetting the hardest hit areas. What do you think of the new improved HAMP?