Tuesday, January 31, 2012

Freddie Mac Attack

Yves Smith's response to yesterday's story on the airwaves --

Freddie Mac Betting Against Struggling Homeowners
Stuck In 'Financial Jail'
Some homeowners believe the current re-fi game is stacked against them.

--addresses the example used in the article, of a couple who got caught with two mortgages, did a short sale, and do not qualify for refinancing:

ProPublica's Off Base Charges About Freddie Mac's Mortgage "Bets"
I hate to sound heartless, but their credit recor[e]d would clearly show that they have defaulted on their mortgages on their old home. They are NOT a candidate for a refi. They MIGHT be a candidate for a principal mod (which is what banks traditionally did for underwater but potentially salvageable borrowers). The ProPublica reporting here is completely disingenuous.

The discussion following her post is quite spirited!

0 comments: