Lisa Simpson
Jul 20,2010
In: Foreclosure

Victims are Being Tricked to Surrender their Properties

Victims are being tricked to surrender their properties.

Over 100 people gathered in the auditorium of Inglewood High School in the middle of May 2009 nursing homes that at the end of the meeting Maxine Waters (Congresswoman) would have solid plans to help these people manage to save their properties. At the least these confused people were hoping to leave the meeting with a better understanding of the foreclosure dilemma.

Rep Waters said, “I’m extremely concerned about foreclosures and their impact on my district and the nation as a whole. A lot of people are suffering alone, not telling anybody what’s happening, and they’re just walking away from their homes. We’re trying to get them not to do that and to call us because when the community starts to recognize that there’s a scheme going on, mortgage brokers in the neighborhood trying to get people to refinance and sign, the whole community can come together behind that and put some of these people in jail.”

Her 35th Congressional District is inclusive of South Los Angeles and Inglewood. Here a plethora of properties are in some stage of foreclosure. The meeting was attended by non-profit counseling groups, jumbo banks like Bank of America, Washington Mutual, Countrywide, Wells Fargo etc. Waters (Democrat) discussed sub-prime and ARM loans, modification of loans and the differences underlying predatory and legal lending.

The meeting talked about three legal steps chalked out by Waters and few other federal legislators to assist the people in saving their houses and thus bring about stability to the neighbourhoods. It would automatically lead to a fall in crime rates and blight.

The Foreclosure Prevention and Sound Mortgage Servicing Act (H.R. 5679) is expected to stop more foreclosures by putting pressure on the servicers to make things easy for borrowers who are seeking help in mortgage matters.

Neighborhood Stabilization Act (H.R.5818) would be providing $15 billion to HUD to enable it to buy foreclosed houses and repair the same. The money will be given to those areas that have been worst hit by foreclosures. The refurbished houses would be offered to families having low income.

FHA Stabilization and Homeownership Retention Act (H.R. 5830) would make it possible for FHA to give guarantees up to $300 billion for allowing refinancing. 1.5 million borrowers facing risk will be able to refinance at lowered price.

Waters was outspoken when she said, “These bills are forcing the Congress to have to deal with this problem … we’re trying to teach them that many people who got into these loans didn’t simply make bad decisions. They were tricked into these loans!”

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