Jeanean Gendron, Your Shasta County Real Estate Specialist: Offending Banks ~ Bank of America and Countrywide ~ Promised Help from Obama May Not Get The Job Done!

With the Foreclosure Alternatives Program (FAP) and the Making Home Affordable Loan Modification Program there was renewed hope that homeowners could qualify and get help to keep their homes. With the newest incentive from the government on Short Sale Guidelines "Financial and Uniform Process for Short Sales", we have another program that should provide incentives to the banks to cooperate with the sale of the homeowners home if they cannot qualify for a loan modification.

One would wonder why we would need to provide incentives to the banks to do anything considering the Bailouts that have occurred. However, we continue to see some banks that do not cooperatively work with the homeowner to stay in their homes or to do a short sale upon failure to qualify for a loan modification.

The loan modification process seems to provide little if any hope for the homeowner. An agent in my office submitted 40 loan modification applications for clients, family and friends and only one was approved. I also qualified for one of these loan modifications. We seem to be among the few. I've talked with many people trying to establish the criteria to why these loan modification are approved. It remains a mystery. My bank is Wacovia which is owned by Wells Fargo. I have to applaud Wells Fargo for complying with the guidelines from these program They did forgive 20% of the loan balance and provide an interest rate that will allow us to keep our home. Who will I do business with in the future...Wells Fargo. I still would like to know what percentage of people have been helped by each of the banks. There should be accountability within these programs and a mandate to comply.

While these programs provide the guidelines to help the homeowner, it requires the banks to implement the programs to be effective.

I would hope that we would have stronger mandates for the banks. They don't seem to be able to find the business rationale to comply with these incentives themselves. One would think that they would see the good and practical business applications for the future and a need to stabilize our economy. We should be requiring the banks to account for what programs they use and their guidelines for approving loan modifications and short sales.

Bank of America and Countrywide (now owned by BofA) lead the movement in maintaining a harsh stance and refusal to comply with these programs or it seems any effort to help the homeowner. Their stance is harsh indeed. They state in their approval letters that they maintain the right to seek a deficiency judgment against the homeowner for the short sale deficit. It leaves me speechless. Is it not enough that there will in most cases be a large tax consequence for the homeowner, but to have a policy to annihilate any future hope of the homeowner's recovery is predatory.

It certainly should leave a lasting distaste in the homeowner and consumer's awareness going forward. If I had been slammed by BofA or Countrywide, I would certainly decide not to do business with them in the future and I would make sure my family and friends knew they predatory business practice. You have a choice and it is a powerful choice. We will get over this rather large bump in our Economy and the Real Estate Industry and recovery will bring new opportunity. Just make sure that your memory stays in tack and that you do not do business with those banks that have refused to comply with the guidelines from these programs. Even if incentive money is no longer available these banks should be building their business for the future with consumer and not stripping the consumer of all hope for recovery.

Our choices are a powerful tool. I for one closed my accounts with Bank of America and I refuse to use their loans. Just knowing what they are doing to their clients that face hardship will not let me in good conscience send clients to BofA or Countrywide. It would not be good business on my side.

I am Jeanean Gendron, your Redding and Shasta County Specialist. You can reach me at 530 276-7417. I answer my phone. Visit our website and blogsite to learn more about Redding and Shasta County Real Estate.