Sun Editorial:

Helping homeowners?

Lenders are not moving quickly enough to do their part and refinance mortgages

Monday, Sept. 14, 2009 | 2:05 a.m.

In March, Phoenix homeowner Bobbi Giguere started asking her mortgage company, Wells Fargo, to modify her loan. She since has gone rounds with the company, trying to provide information and get an answer.

As The New York Times recently reported, it took bankruptcy Judge Randolph Haines to help her get the answer. Giguere, who has filed for bankruptcy court protection, told the judge of her plight. Haines wanted an explanation and called Joseph Ohayon, senior vice president of Wells Fargo Home Mortgage Servicing, to the stand last month.

It was a rare moment — a senior banking executive facing a homeowner to explain what was happening. Ohayon first blamed Giguere, saying she failed to provide a crucial financial worksheet to the company.

Under questioning by Giguere and the judge, Ohayon admitted the bank never asked for the financial worksheet. He also said the bank had denied her application right after she submitted it but never told her. She didn’t learn about the denial until Ohayon testified about it.

The hearing put a face on a serious problem in the foreclosure crisis — lenders’ indifference to borrowers who want to avoid foreclosures.

Since the Treasury Department’s loan modification program was unveiled in March, lenders have offered help to just 19 percent of eligible borrowers.

Most of the major lenders have been slow to aid borrowers, and that needs to change. According to USA Today, the number of foreclosures nationwide was up 18 percent in August over a year earlier. In Nevada, the number was up 53 percent. One in 62 homes in the state is in foreclosure — the highest rate in the nation.

There is no excuse for the foot-dragging of lenders, many of whom have taken federal bailout money. The Treasury Department and Congress should make sure lenders are moving more quickly to modify loans wherever possible and end the mortgage crisis.

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By judgesmales

Sept. 14, 2009

5:35 a.m.

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Yet another bogus editorial lifted from information the Sun got from the Daily Worker ... er, I mean the New York Times. This is becoming almost a daily occurrence.

http://www.nytimes.com/2009/09/04/busine...

That's the link to the NYT story, and here is the part the Sun conveniently left out. Of course, probably because they didn't read down to the VERY END OF THE STORY, which is where the NYT inserted this salient info:

"When her home shot up in value, she (Giguere) refinanced it several times, pulling out equity to pay off credit card debt and other expenses. She and her husband are divorcing, and he is no longer willing to help pay the mortgage. With little in savings, she has not made a full mortgage payment since November.

"I'm not perfect, I'll be the first to admit that," Mrs. Giguere said. "I've fallen behind."

ALL RIGHTY THEN. Refinanced "SEVERAL" times (how many times is that, NYT?)

Also "TO PAY OFF CREDIT CARD DEBT AND OTHER EXPENSES." Wait, she refi'd (took out more debt) to pay off debt that she couldn't pay off otherwise or to finance a lifestyle that was over her earning power. Hmmm. So what we appear to have here is a whole pattern of overspending.

This woman didn't even have the brains to use the standard falsehood we usually see in these types of sob stories: "I had to pay for UNFORESEEN MEDICAL EXPENSES." They know most reporters won't ask a snoopy follow-up question about that.

Once again, the Sun has given you part of the facts.

NO PRINCIPAL WRITE-DOWNS FOR ANYONE. PERIOD.
By gunowners4obama

Sept. 14, 2009

5:52 a.m.

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That's what happens when you hand the banks billions with no strings attached. This is why, while we need health care reform, we don't need rushed reform.
By neiman1

Sept. 14, 2009

7:24 a.m.

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If you can't make the payment get out of the house, you cannot afford it.
By KillerB

Sept. 14, 2009

3:22 p.m.

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This has been discussed here. Have a look at http://www.lasvegassun.com/news/2009/jun...