Liars Poker for Real Estate in Everett

Or

How to spend $159,574.47 per Loan Modification

And still fail to save homes from foreclosure

Catchy title that isn’t it? What do I mean by liars poker for real estate in Everett? Have you ever played liars poker? It’s just like liars dice in the movie Pirates of the Caribbean. It is a game of lying and bluffing.

Well the federally funded Home Affordable Modification Program isn’t working like it’s supposed to (what a surprise) and the government is letting homeowners who lie about their incomes off the hook. Just like during the housing boom lying is rewarded. Until recently if you grossly understated your income to get a mortgage modification you were disqualified and had to start the lengthy process over. Now the Obama administration allows you to understate your income by up to 25% to get a loan mod. That is not a rounding error that is lying plain and simple. So the same people who lied to get their mortgage now get to lie to get a loan mod.

And who do you think is paying for that loan mod? You are, you and I and every one who pays taxes. Now how does that impact real estate in Everett, you ask? Well is this the kind of person you want your tax dollars to help? Fraud and deceit will distort values of all homes for sale Everett. They drive up costs and eventually end up back on the market on a short sale that will drive your homes value downward. It is far better to just get it over with. If they lied to get the home why reward them when they lie to get you to subsidize it so they get to keep it?

But we get back to the real problem, JOBS. I have been shouting this for months now – without jobs these problems will only get worse.

Let’s go back to loan modifications and why they will not work. Loan mods are patently unfair. Why does my neighbor get to cut a better deal and then I have to pay for?

The federal government has printed another $75,000,000,000 to pay for loan modifications. So far 4.7% of the approximately 10,000,000 mortgages eligible for a loan mod actually have a permanent new loan. Let’s do the math.

4.7% of 10,000,000 equals 470,000 new loans. If that cost $75,000,000,000 then we have spent $159,574.47 for each loan. That is a typical result from Washington DC. Why aren’t you outraged?

Hey how that is hope and change working out for you now?

I have a suggestion for you. Vote them out next election, I mean every single tax and spend incumbent. If the politician voted for spending vote them out. Vote them out. If you want real estate in Everett or anywhere else to recover its value get rid of these fools in Washington.

Jim Johnson and comments are always welcome