More Thoughts On The Hope For Homeowners Act of 2008, Economy & Unemployment in Florida

The other day I wrote a blog containing my thoughts on the recently enacted “Hope for Homeowners Act of 2008″.  After giving the new law more thought and listening to some recent news clips, I decided to detail more problems with the legislation.  This law has no teeth because of the voluntary participation aspect.  That’s right, the banks, servicers and other note holders have no obligation to help people. As a Bankruptcy Lawyer, I see people at their worst.  I receive calls each and everyday about the new legislation.  I see clients each and every day praying for a mortgage modification.  Quite simply, it’s just not working.  I cannot tell you how frustrating it is to be living in foreclosure alley and seeing nothing being done to help the honest, but unfortunate homeowners.

Interestingly, it seems that the banks and mortgage companies have created some really nice packages to send out to homeowners seeking a modification.  Just yesterday I received one such package for a client.  It was sent via Fed Ex.  It was bright, shiny and very colorful, but it just didn’t contain as many details as I would like.  For example, it did not list all the eligibility requirements, and it did not list what other factors would be used to determine whether a modification would be granted.

Next, after the initial 3 month trial period, a homeowner would have to re-apply for a permanent modification.  Of course, there was no explanation why this was necessary or what criteria would be used for the application and approval processes, leaving the homeowner with a higher anxiety level than before.

So, if you are a homeowner in Southwest Florida, and you are on pins and needles about losing your job, as we are facing a 14% unemployment rate down here, you may also be worried to death about whether your bank or mortgage company will approve your modification.

Likewise, you would have to be concerned about the economy as a whole.  While Wall Street is continuously advancing on Government (Taxpayer) Money, the actual taxpayer is getting the shaft.  It is disgusting.

Related posts:

1. Thoughts on the “Hope for Homeowners Act of 2008″
2. Does the Hope for Homeowners Act Offer Hope for You?
3. Hope for Homeowners–and a Great Big Trap