subject: Mortgage servicers are having the last word and loans are not being modified pushing many into foreclosures [print this page] Mortgage servicers are having the last word and loans are not being modified pushing many into foreclosures
Foreclosures are slicing through localities and there seems to be no end in sight. Relief measures are failing. This was the view of a panel on 20th August at an event sponsored by Dayton Daily News, WYSO Public Radio and ThinkTV.
Steve Pitman a resident of Beavercreek, recounted to the panel his story of struggle with Wells Fargo Bank. Loss of job had led to his failing in meeting mortgage dues. He complained that apart from this the interest rate had spiked to 9% from 6.7%. Having lost the entire equity on his house he was in deep waters trying to find employment. He was failing to get the loan modified despite governmental steps having been taken to encourage it.
One of the panelists was Bill Faith of Coalition on Homelessness. Commenting on Pitman's ill luck he said that thousands of others like him in the state are in the same boat. Mortgage servicers are having the last word and loans are not being modified.
Dan Foley, Montgomery County Commissioner was another panelist. He observed that foreclosure numbers had jumped by 300% since the last 11 years. In 2008 there had been 5,000 foreclosure postings. It calculated to 50% of all the civil cases. He voiced his support for a federal step that would create a body to regulate the various financial products to avoid a rerun of the crisis in the future. Foley said, "I don't begrudge banks making a profit. But they have created products that have hurt people in the community."
The general feeling was that till date Washington had not lived up to expectations. None of the measures were delivering the goods. Foley felt that they would continue to go round in circles unless strong federal measures were undertaken.
According to Dayton Daily News in Montgomery County there is the blight of 36,000 vacant houses. By 2013 it is feared that the number would increase to 48,000. Banks are not tending to the house after completion of the foreclosure process. The banks get a court ruling and then they take the property off the sheriff's auction. Thus technically the house continues to remain under the ownership of the previous house owner who had defaulted. The owner walks away and in many cases so too does the bank. The local administration is now faced with problem of the vacant unit to be cared for with public funds.
