Persisting Foreclosures? Give Thanks to the Bailed out Banks!
Foreclosures are still persisting? The banks that got bailed out from taxpayer’s funds should be thanked. One of the ogres was CITI whose avarice and impotency ultimately boomeranged on it. Finally hard earned dollars from ordinary Americans had to bail it out from the mine shaft it had fallen into. The normal thing is for the rescued party to show gratitude by helping those struggling with their mortgages. But from resuscitated banks it is – no thanks!
Sixty years old William Whiting of Philadelphia was one of the taxpayers among thousands who saved it from death throes. Like others he will participate in a conference named Mortgage Foreclosure Diversion Program. The plan was kicked off in 2008 with Judge Annette Rizzo giving the lead. It arranges for lenders and borrowers to meet face to face. The aim is to see that all come out winners and there are no losers.
This meeting is compulsory for those who are owners of properties facing foreclosures involved in court procedures. The goal was “to preserve home-ownership and stabilize communities” said Rizzo. Over 13,000 such conferences have been able to save 2,500 to 3,000 houses. Another 3,500 or 4,000 are standing in line. Approximately in two sessions (morning and afternoon) 210 cases are handled. Participating in it are the lenders, borrowers and attorneys under the supervision of ‘judges’ who have been deputed for this job.
Whiting and CITI will thrash out the problem using the services of this programme. He bought the house in 1996 where he had been living as a tenant since 1983, for $75,000. He refinanced his mortgage in 2004 for $199,000 and used the money to clear business and other debts. Whiting at that time was comfortable employed and never thought that his income would suddenly be interrupted. In 2009, like many others, he found himself without a job. He started going downhill.
It was the same old story – CITI made many promises – kept none. Whiting’s lawyer Natalie Klyashtomy representing Nochumson P.C. focuses on taking on financial entities. She put the blame on “a lot of missed communication and misunderstanding” as well as the fact that the staff is untrained and irresponsible.
Last February CITI granted temporary modification bringing down the monthly payment form $1,300 to $815. CITI had given a written pledge that the matter of permanency would be settled within a stipulated a minimum 30 to 45 days; but that ran into 8 months. Meanwhile Whiting in a state of limbo continues to be meticulously current on his mortgage payments.
