Banks initially did lots of trial loan modifications, and every one expected that soon they would become permanent loan modification. Even the trial loan modification promised that after three trial payments sent on time, a permanent loan modifications shall be done. This, of course, is not happening as the banks are still cheating and not doing permanent loan modification. In our law office (law office of Malik Ahmad) we have done substantial number of trial loan modifications and are still talking to lenders to change them to permanent loan modifications. They keep on promising to make them permanent. Now, we hear from other sources that banks are started cheating on this promise, and playing a double game. Our fears are substantial especially after the major banks had paid back their bailout money, and Obama Plan has no teeth othr than putting “shame” to the bank. What an enforcement? We had said time and again, that the saving of homeownership is the key to resotore the American economy. We had submitted the offer, and this law office is again stressing the need for a permanent loan modificatioan with only two steps. We are not suggesting Utopian measures, we are suggesting only two measures which can fix the economy for a very long term. Here are the two steps.
1. Reduce everyone’s mortgage to 4% regardless of their ownership (whether primary or investment)
2. This 4% rate should be fixed for 5 years.
3. After that it would be fixed to 5% for the balance of the loan.
4. Under Obama Plan, the Fed is going to pay $1,000.00 to bank. Our proposal includes one additional step. Every homeowner whose home shall be modified under our proposal shall pay to their lender $2,000.00 from their pockets. That mean bank would get $3,000.00 and would not lose money. In fact, this is a win-win proposal for all of us.
Here is the link of bank’s continuous cheating: