SLO County residents aided by settlement

September 24, 2013

foreclosureNearly 700 San Luis Obispo County homeowners have benefited since Jan. 2012 from an $18 billion boost, part of a national mortgage settlement with major lenders, according to the state’s appointed monitor of the settlement program.

That settlement totaled $25 billion.

California Monitor Katherine Porter, a professor at UC Irvine School of Law, released her county-by-county findings in a report issued this week. (See the report, p. 54)

Bank of America, JP Morgan Chase and Wells Fargo either forgave second mortgages or delivered some form of mortgage relief to 84,102 California residents.

This state’s share of the settlement addressed both principal reductions and short sales.

Mortgage holders in San Luis Obispo County received $83,027,866 in relief, said Porter.

Most of that went to short sales ($46,025,211) and the remainder to first- and second-mortgage principal reductions.
“Robo-signing” — the practice of having fraudulent signatures attached to foreclosure documents — was a primary target of the settlement.

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This sounds so cheery and nice! YAY! We sure STUCK it to those big banks, yeah!?

Well, maybe not. What was that settlement for, anyway? Oh, the out-and-out theft of private property? So *that’s* how much the California judicial system can be bought for. Good to know.

Yay! We got some crumbs from the master thieves’ tables! Hooray!

When everyone is finished helping homeowners maybe we can turn our attention to the poor souls that didn’t buy a house they couldn’t afford and are still stuck renting. Hmmmmm?

No soup for you!

How about helping those of us who bought a home with a substantial down payment, never refinanced to buy toys we did not need, made all of our payments on time, and paid extra principal so that we owed less?

No soup for us.

No soup for me…one year!

With just under four years left until I can claim ownership (with whatever forgery of a title they’ve made up by then), I understand where you are coming from.

It’s like illegal aliens: punish those that do respect the law by rewarding the law-breakers.

Sarah and I agree on this one: Responsible home owner? No soup for you!

All I asked was…. When everyone is finished helping homeowners. Maybe the gut that is just shy of getting his American dream can get a little help for a change. And that help can be in the form of available home loans and reasonable interest rates. so no soup for all of you! lol

While that certainly sounds heart-warming and all that, it was the “helping those who cannot obtain a home” mandate by the government that was one of the biggest causes of the housing crisis. Have we forgotten the government agencies of Fanny Mae and Freddie Mac? They forced banks to make home loans, and the banks just acted like banks do and screwed everyone over.

I would agree with you on the “reasonable interest rates” portion; however, if you are going to give some of your money to your neighbor because they need some and you have extra, are you OK with someone else telling you what you can and cannot charge for interest? It’s a tough dilemma.

The way it is now, it’s all fiat anyway, so the Fed makes up the prime rate and then everything flows from there. Heck, Japan had ZERO for over a decade and it didn’t help. Turns out that printing money really doesn’t actually help at all.

Our financial system is broken BY DESIGN. Thank you centralized banking and fractional-reserve lending. Been this way for 300+ years. But no, we have to “fix” health care and/or education… anything but finance.

I don’t disagree with anything you said r0y. The government forced loan program gave people a chance to get into the housing market. The trouble was it also required banks to give loans to people that couldn’t pay the money back. The government as usual wanted to spread the wealth around via home ownership and when they do that everyone gets screwed. Now… because of those failed relaxed loan requirements banks have gone too far in the other direction. Regardless of interest rates people with good credit are having a very difficult time in getting approved. That is not their fault…they did not take on a loan they couldn’t repay and now they are out in the cold. I don’t think it’s very fair that many of today’s renters are most likely stuck renting the rest of their lives because others made bad deals.

While it’s technically true that the Housing and Community Development Act of 1992, signed into law by George H.W. Bush, established an affordable housing loan purchase mandate for Fannie Mae and Freddie Mac, the Commodity Futures Modernization Act of 2000, signed into law by Bill Clinton, made subprime lending profitable for the banks by specifically exempting the resulting derivative securities from regulation. The whole idea was to formulate a market based response to the problem of affordable housing. Only a minority of the minority put the blame for the financial crisis exclusively on socialist housing policy. Personally I’m most persuaded by the argument that the housing bubble in the U.S. was part of a worldwide credit bubble unaffected by our domestic policy.

Well…you sound a lot more knowledgeable on this issue than I so let me ask you this…A bubble normally takes a sharp poke to burst. Whom or what in your opinion did the poking?

Don’t forget, it was the the repeal of Glass-Steagall (Clinton signed that) that REALLY did the damage.

Bush may have piled the wood, but Clinton coated it in dynamite and lit the fuse. Needless to say, I do not think there is a difference in parties or presidents (since post-Reagan, anyway).

FYI: there is STILL no wall like Glass-Steagall provided… AND big banks have paid off the judicial systems in most states.