Don't Count On My Vote

President Obama & his administration have misrepresented the truth specifically in regards to Public law 111-22 as it relates to preventing mortgage foreclosures.

·        The government has provided $549 Billion to hundreds of banks and a handful of insurers and automakers as part of the $700 billion Troubled Asset Relief Program as of June 2009

·        Before signing PL 111-22 the President said “Let me talk a little bit about the housing bill.  The Helping Families Save Their Homes Act advances the goals of our existing housing plan by providing assistance to responsible homeowners and preventing avoidable foreclosures.”

·         Pursuant to the wording of the bill SEC. 129 (a) (1). DUTY OF SERVICERS OF RESIDENTIAL MORTGAGES. to the extent that the servicer owes a duty to investors or other parties to maximize the net present value of such mortgages, the duty shall be construed to apply to all such investors and parties, and not to any individual party or group of parties; and

·        The Net Present Value tests to see if an investor (lender) will come out ahead if the borrower modifies the loan, forecloses on the home, or does nothing. The investor (lender) is only required to choose the option that gets the bank the best return on their investment.

·        If a borrower has equity in their home, the investor (lender) will get the best return by foreclosing on the home.

As is clear above, President Obama had no intentions of helping responsible homeowners save their homes. The intention from the beginning was clearly to protect the banks from taking larger losses.

As a result, the responsible homeowners, who have built up equity in their home & are having trouble meeting their mortgage payment due to the recession we are in, that has paid into the tax base that has bailed out the banks, will now have one of these banks foreclose on their home. Ironic isn’t it?