The housing recovery plan we were all waiting to hear about from Treasury Secretary, Tim Geithner, in his first big address to the American people this week was kicked down the road by Mr. Geithner barely mentioning the foreclosure assistance measures.

Housing Recovery Stalled

The responsibility to inform us of some of the details on a housing recovery plan was kicked over to Housing Secretary Shaun Donovan who said the Obama administration will accelerate loan modifications for foreclosure victims and will reform the bankruptcy system for foreclosures.

(Yea…right. I’ll believe it when I see it.)

Bloomberg reports Donovan saying in speech today, the administration wants to create a “comprehensive foreclosure response”.

Banks Over Borrowers - Round 2

I don’t get it. They knew about the pent up demand from the American people, both houses of Congress, and all those facing foreclosure waiting for a plan we were lead to believe was already worked out. We were told Mr. Geithner was toiling night and day to put together this housing recovery plan, since we were all tired of “banking bailout plans”.

Yet…in typical “help the banks, forget the borrowers” fashion, Geithner spends the majority of his speech detailing how the Treasury will continue to help those who got us in this mess.

Talk about a slap in the face.

I can’t tell you how many folks post the most horrifying stories about the callous treatment they get when trying to save their home through a loan modification. Read some of them yourself in the Mortgage Servicing Category…choose any mortgage servicer review and read the comments.

I dare you…if you don’t want to, I can hardly blame you. It’s painful to read. It’s saddening…and maddening.

Housing Recovery Not a Priority

Obama and his Democrat Congressional leaders like Mr. Frank and Mr. Dodd promised foreclosure relief, but are waiting on the administration to put forth a plan. Everyday that goes by without a viable housing recovery plan that incorporates foreclosure relief, I see there is really no difference between the Obama and Bush administrations.

Housing recovery plans are clearly NOT a priority for the Obama administration as evidenced by Geithner’s focus on banks not borrowers and nothing is more telling than leaking “complications” or difficulties in crafting a program by blaming borrowers for “re-defaulting” on loan modifications already executed.

Anti Loan Modification Smear Campaign

This propaganda campaign of “blaming the victim” is despicable and disingenuous. The loan modifications servicers have made were NOT real modifications, but “repayment plans” for the most part which didn’t give the borrow any true relief. No wonder they fell back into default.

Using an industry “dirty trick” to make the case for the banks that loan modifications are NOT the way to go should be adopted by the Obama administration. Making the borrowers out to be “the bad guy” is really a banking industry tactic to keep public opinion in their camp.

What a joke. The Obama administration “wants” principal forbearance, rate reductions, etc…or so they say.

Trust me they won’t get it…but it’s because they don’t really want it and for no other reason.

You can’t depend on Obama, Geithner, or Donovan if you are in foreclosure. They will always help the banks at your expense.

Sad, but true.

Good Luck!

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