Process matters — if results matter.
Our government designed HAMP (Home Affordable Modification Program) with three fatal flaws (features?) for homeowners:
- Bank were not required to participate.
- Banks were paid fees for homeowners entering into the modification process, without ever having to actually achieve permanent modifications.
- Bankruptcy judges were not empowered to modify the mortgage principal, so banks didn’t feel compelled to reduce principal as part of the modification process either.
Whether through incompetency or intent, the result is the same. Our government provided the banks with extra bullets with which to hold homeowners hostage and demand ransoms.
“Foreclosure Mom” explains, in a rap, how it all goes down with the Bankstas:
I’d say the Bankstas got a pretty good racket going. What do you think?