Understanding the bailout is not going to be an easy task, for anyone. What exactly is being bailed out, who is going to get mortgage relief, and, and, and the list goes on. In the next week I’ll post some links to the experts ideas on the above questions. What effect the bailout is going to have specifically on the Lake Powell real estate market and credit lines to our local business remains to be seen.
Today, tho, an event that has been now mentioned in congress, nightly news and on CNN. At CNN there is currently and article deserving of a few minutes of attention. Addie Polk, 90, of Akron, Ohio, became a symbol of the nation’s home mortgage crisis when she was hospitalized after shooting herself at least twice in the upper body Wednesday afternoon. See the full article here “Fannie Mae forgives loan for woman who shot herself”
Addie’s neighbor crawled through her upper story bedroom window and performed cpr and rescued her. She is currenlty still in the hospital but expected to recover. Frannie Mae has forgiven the rest of the loan she owed. Addie was in the process of being evicted from her home.
Countrywide is the one who provided the 30 year mortgage in 2004 to a then 86 year old Addie. I fear this story is typical and being repeated all over our country.
I remember the first time I saw a Countrywide add. It was not good. Over time the adds got more and more easygoing and seductive. Terms like RE-FI were tossed around like a football in a park on a Saturday afternoon. Re-Fi – what a cute, short, friendly, and trustworthy word. Sign your name, pay off your credit card debt, your car, buy a new kitchen ~ just sign your house over to us with a Re-Fi.
Today, MBIA insurance co filed a fraud suit against Countrywide stating in part ” the lender fraudulently misrepresented its loan underwriting standards.” See full article MIA cries fraud: sues Countrywide”
The suit comes at a time when the California mortgage lender is already facing litigation filed by borrowers and states’ attorneys general that also claim Countrywide engaged in unfair lending practices.
Countrywide is not the only lender under investigation now, and there will be more in the future as the smoke beings to clear on the bailout package. My heart goes out to the Mrs. Polks of our country.