Obama HAMP FAIL: One horror story
Gina Gates of San Jose, Calif., said that's what happened to her as she was working with Washington Mutual Bank to enter a similar program.
In October 2008, when Gates could pay only $8,000 of the $12,000 she owed in back mortgage payments, she sought help through the Bush administration's HOPE for Homeowners program, which allows troubled borrowers to refinance their mortgages through new loans insured by the Federal Housing Administration.
While she was waiting for Washington Mutual to send the program documents, Gates received a notice of loan default that listed a sale date for her home. She said bank officials assured her that it was a mistake and that her home wouldn't be sold.
However, after receiving and quickly returning the completed program documents in November 2008, Gates said she received a notice to vacate her home because it had been sold.
"Now I'm in a total panic, it was like the world just shifted for me," said. "I reached out for help, and these people sold the house when they told me they wouldn't."
(I wonder if Gates ran afoul of this little-known provision in Obama's HAMP program.*)
Gates said that bank officials agreed that if she paid $40,000, they'd put her payments back to $4,200 per month and rescind the sale. She said a family friend agreed to give her the money if the bank provided a written statement of the agreed-upon terms. Gates, 51, said bank officials refused and abruptly withdrew their offer.
"She said, 'The deal is off the table, and we're not giving you back your house,' " Gates recalled. "I was just broken. That was my house, and it turned into something so awful."
When a complaint filed with the Office of the Comptroller of Currency went nowhere, Gates moved out in April 2009 and went to live with relatives. There wasn't enough room for her husband, Felipe, who lived in his car until January of this year.
"That was really hard to see," she said. "It took until May to get his health back in order."
Washington Mutual Bank, which was seized by the Office of Thrift Supervision in September 2008, was later sold to JP Morgan Chase.
Great. Desperate people lose their homes and their health because they try to get help from a program Obama set up.
And I'd like to send this one out to all the Obama fans out there...
In the fine print of the form homeowners fill out to apply for Obama's program, which lowers monthly payments for three months while the lender decides whether to provide permanent relief, borrowers must waive important notification rights.
This clause allows banks to reject borrowers without any written notification and move straight to auctioning off their homes without any warning.
Boy, it was great to see all the career "progressives" sound the alarm on that one, wasn't it? Looking out for the little guy and all. Oh, wait...
NOTE Anybody have any questions about why signup rates for the first incarnations of ObamaCare are "modest"? You first, definitely...