JOE BACA's Co-Sponsoring (New?) HAMP BILL SHOWS HE DOES NOT HAVE A CLUE YET

"Rep. Baca Sponsors [in a press release earlier today] Bill to Aid Homeowners in Loan Modification Process"--ah, not really Joe

The Press Release further states:

"Bill Would Create New Office to Resolve Problems with Loan Modification Programs

Washington, DC – Today, Congressman Joe Baca (D-Rialto) introduced legislation to assist struggling homeowners seeking loan modifications through the often complex Home Affordable Modification Program (HAMP). The Office of the Homeowner Advocate Act of 2010 creates an independent office to assist homeowners, housing counselors, and attorneys in resolving problems with HAMP, and give homeowners a greater level of control over the loan modification application process.

While the housing markets in the Inland Empire are showing signs of recovery, too many homeowners still find themselves needing assistance in order to keep their homes and while the government run loan modification program is well-intentioned, I have heard from numerous constituents whose applications either get lost in a flood of paperwork or do not receive the proper attention from officials before it is too late to prevent the foreclosure process. This responsible bill would create an outside office, the Office of the Homeowner Advocate, to improve the HAMP process and ensure all eligible homeowners get a fair shot at keeping their homes.”

Blogger Bob's comments:

Joe, too bad you are clueless as usual.

First, the HAMP program is one in which a homeowners "enters" into a temporary “workout” with a servicer or lender which agrees to accept partial payments for the next 3+ months. These payments are not refundable. The foreclosure “clock” also continues to run while a homeowner is in the “workout.” There are no assurances that the homeowner will receive a long term or permanent change in loan terms. There are a significant number of homeowners who entered into HAMP workouts only to receive a letter at the end of the workout period stating they do not qualify for a modification.

Second, in a legal decision written in 2009 by US District Court Judge Barry Moskowitz [Antonio Escobedo v Countrywide Homes Loan, Inc, Case 09CV1557 BTM (BLM)--available at the United States District Court for California, Southern District's website] the court ruled that the homeowner had no enforceable right under HAMP should the lender or servicer blow off the refinance, take the payments made under false pretenses and foreclose anyway. Creating the Office of the Homeowner Advocate (OHA) [proposed by Senator Al Franken (D-MN) which appeared in S. 3793, the Job Creation and Tax Cuts Act introduced by Sen. Max Baucus (D-MT)], does not change the fact this is a plan with no teeth. The banks can do what they want, can fraud the homeowner, act in bad faith and get away with it, Joe.

Joe, I know you are trying to generate positive media before an election like your bud Mike Ramos, but you are only showing you are still flailing at non-solutions.