http://www.thepetitionsite.com/983/896/071/american-people-lets-all-stop-the-wrongful-foreclosure-fraud/

This also means that homeowners with equity will continue to be excluded, since foreclosure is very profitable for the bank and MBS investor, when they tack on penalties, fees, etc, and recoup all their money from the homeowners equity. So, once again the homeowners least likely to re-default (as proven by stats from the HOLC of the 1930’s) are excluded. These are often senior homeowners who bought their homes years ago and have paid into their mortgage for years, building up equity.

I am very suspicious of any program that contains an aspect that is meant to protect investors in Mortgage Backed Securities, that implies that it’s intent is to help homeowners.

How would the statement have been perceived if it was written more clearly:

“Creditors now must determine which is more profitable for the MBS investor; modifying the loan, or foreclosing, and is obligated to modify if it is proven to be more profitable. This provision ensures that MBS investors will be given every reasonable opportunity to maximize profits, including the profitable option of foreclosing on homeowners with equity.”

Note that the FDIC’s HAMP guidelines mandated (on page 3) that these homeowners be excluded, and Tom Miller, head of the 50 state AG’s investigation also stated, in somewhat cryptic language about comparitive cash flow, his intent to exclude homeowners with equity.

Further information recently exposed by Neil Barofsky, in his new book, shows that our Federal Government had ( and has) little interest in helping homeowners.