Bank America and GMAC Will Resume Foreclosures

The title of this blog says it all.  Hasn’t Americans had enough? Resuming foreclosures.  Give us a break.   This is a typical example of the banks and mortgage industry being too big to fail.  What has happened though is a failure in the American way of life. Many households “banked” their children’s future in their homes. Now for many that’s gone.  Has the individuals and his American rights been swallowed whole by the new corporate monster? Why did we allow it to happen?

Citi Bank Wants to Aid in Stopping Foreclosures

Citi’s mortgage branch is facing a massive amount of foreclosures. They’re so desperate they’ve launched a new initiative. The will allow defaulters to remain in their homes for 6 months. This is on the condition that they sign over their deeds to the lender.

At the end of the program, when borrowers are ejected from their homes, Citi will provide them with relocation assistance. I wonder if they’ll offer them loans too.

Citi views this as a step in the right direction to save themselves from the wave of foreclosures looming over them. In a quote from the CEO, their goal is to help homeowners “make a smooth transition into the next chapter of their lives.” He neglected to add the words “and out of our hair.”

I’m not sure that this move is really going in the right direction. Where will all these people go? How will the acquisition of these properties affect future loans from Citi? These questions need to be addressed before this program can be implemented.

Citi’s mortgage branch is facing a massive amount of foreclosures. They’re so desperate they’ve launched a new initiative. The will allow defaulters to remain in their homes for 6 months. This is on the condition that they sign over their deeds to the lender.
At the end of the program, when borrowers are ejected from their homes, Citi will provide them with relocation assistance. I wonder if they’ll offer them loans too.
Citi views this as a step in the right direction to save themselves from the wave of foreclosures looming over them. In a quote from the CEO, their goal is to help homeowners “make a smooth transition into the next chapter of their lives.” He neglected to add the words “and out of our hair.”
I’m not sure that this move is really going in the right direction. Where will all these people go? How will the acquisition of these properties affect future loans from Citi? These questions need to be addressed before this program can be implemented.

Why Community Banks Should Lend to Small Businesses

Why Community Banks Should Lend to Small Businesses

By Herman L. Jimerson

Due to the scare brought on by the near collapse of the banking industry from the real estate sub-prime lending scams, many small businesses are gasping for air to survive.   Despite President Obama’s pleas to the major banks to open up the lending to small businesses, his call to action on this economic crisis has been virtually been unheard by the major institutions. This is particularly alarming because the very same banks that the American public bailed out are refusing to invest in the biggest sources of jobs for America.  Small businesses make up the majority of the American workforce.  These businesses because of the economic crisis are going through every imaginable obstacle to survive.  Many have stop providing health insurance for their employees,  issued the lowest pay increase in over twenty years, and been force to let some of their employees go.  Strangely enough the major banks (who took the bailout money) are reporting record profits, and giving mind boggling bonus commissions to the very people that allowed the near bank failure to happen.  Are we facing what Charles Dickens wrote in his “Tale of Two Cities”? Is it Wall Street that is having a great party, while Main Street sounds of deafening quiet becoming reality for America? Has the Babylonian beast called the Mega Corporation slouched its way toward our country to be born?  Perhaps, but there are still things we can and must do.

The community banks or local bank must take back their interest in the American communities.   These banks have always profited and thrived by making worthwhile investments in small businesses.  There can be nothing greater in creating a win-win-win situation. The bank wins, the small businesses grow, and the community thrives.  The federal government should do its part as well.  Economic incentives should be given to these community banks for making loans to small businesses.  It could be a tax incentive, a buy back incentive if the business fails, or a myriad of combinations to make the lending and growth economically feasible.  What hasn’t work, at least to the common man’s benefit, is the bailout of Wall Street.  Now let’s try a change of strategy and lend (Not give like you did to Wall Street) to Main Street.  It’s in the Country’s best interest, and a strong shot for economic recovery.  The Community banks fear is that the larger banks won’t lend to them because of potentially riskier loans to individuals. Again Congress can cure this with incentives, and make the process a good one.  I applaud the President’s plea to the banks to lend to the small businesses.  I pray the slumbering beast will be halted. It must!

Using Guerrilla Tactics to Avoid Foreclosure

Guerrilla tactics are used in warfare when the person employing them is normally outnumbered and in large out-financed.  Doesn’t that sound like the average American homeowner when it comes to a foreclosure on their home.  Let’s face it, many wars have been fought over the homestead, why should you think your situation is any different.   I’m not advocating violence, rather fully arming yourself with the knowledge and information that can be useful in getting you what you need most in a foreclosure situation….time! In real estate you often hear the phrase “time is of the essence” That normally means get it moving or legally the deal is off .  No different here, except the homeowner needs more time to sort out, plan, and try to catch her breath.  I often say that a home foreclosure ranks pretty high on a person’s  worst nightmare list.  Most of you would agree.

In guerrilla warfare anything can be a weapon. Be resourceful and think out your options, then use them.  In my book “Foreclosure” I mentioned fifty ways to avoid foreclosure. It’s a worthwhile read on that topic alone.  Here are a few: (Guerrilla Style!)

1.  Beat ‘em to the punch:  Recognize your life changing events, i.e. loss of employment, death or divorce of a spouse, major illness, and even a loss of a part time job.  The sooner you let them know, action can be taken to factor in  your hardship and work out a plan to avoid foreclosure.

2.  Set a trap:  Peace of mind is what we all want and we particular want it when we go to our homes.  The last thing we want are creditors hounding us over the phone about the very thing that caused you to worry in the first place.  The Fair Debt Collection Practice Act, is an excellent way to stop the creditors from calling you.  The FDCPA is very detailed, but the weapon you want is called a “Cease and Desist” letter.  It sets a trap for the creditor. If they call without authorization, they can be liable for damages,  in addition attorneys fees.  Remember our focus is just to get more time and peace of mind.  Creditors love collecting money, but they hate it with a passion when they have to pay it to a debtor! (emphasis added).  Put the tension on the Creditor, not on you and your family.

3.   Drop A Bomb…Not literally but financially:  File Bankruptcy.  Wait a minute, didn’t you say I wanted to avoid foreclosure? Yes, you heard me correctly.  Filing bankruptcy unleashes one of the most potent weapon Congress has given to consumers.  It’s called the “Automatic Stay”.   Let me tell you what Congress said about the Automatic Stay:

“The automatic stay is one of the fundamental debtor protection provided by the bankruptcy laws.  It gives the debtor a breathing spell from creditors.  It stops all collection efforts, all harassment, and all foreclosure actions. It permits the debtor to attempt a repayment or reorganization plan, or simply be relieved of the financial pressures that drove the debtor into bankruptcy” [emphasis added] H.R. Rep. No 95-959, 95th Congress, 1st Session (1977). Remember you’re buying time and trying to equalize the opponent.

Many will feel there’s some moral or ethical obligations being violated in employing some of these methods.  That’s exactly what the banking and financial behemoths want you to feel.  Take charge and be proactive in  not being a victim.  You can give me a call at 314-862-0069 or email me at herman@jimersonlawfirm.com if you have any questions.  Until then, here’s to the guerrilla in you!