16 CFR Parts 317 and 318: Mortgage Acts and Practices Rulemaking #542308-00020

Submission Number:
Patricia Franciulli
Initiative Name:
16 CFR Parts 317 and 318: Mortgage Acts and Practices Rulemaking
To whom it may concern, Las Vegas has became the capital of foreclose in the United States. Most of the homeowners are living their homes because of job loss, financial problems and underwater homes. It is really sad that many mortgage companies are not helping those homeowner to seek for help. They will lose faxes, give wrong information and make everything possible to the homeowner to foreclose the home. Those banks usually got some kind of insurance in the loan and making a homeowner homeless is ok because in the end the bank will collect insurance plus write off the lost. What kind of write of a homeowner can have. We all paid taxes and the government bail out the banks, but they are not using the money wisely. Our president decided to implement the Making Home Affordable plan to help homeowner. I noticed that my bank would not qualify me to this loan because I was underwater first then later because of some strange reason that I could not understand. I have a job to keep the loan, but my home got some kind of mortgage insurance so the bank do not have any incentive to work with me. I believe that it supposed to be illegal to a bank take my home and sell it for cheaper and also receive insurance money and write out. What is the incentive to people like me to keep my underwater home? Why they do not bring the principal amount of the loan down? Having a temporarily loan modification will not help me in the future and I will eventually default again in my mortgage. This is the changes that need to be done in the MHA plan: 1- give the homeowner the opportunity to bring down their principal amount in the loan. 2-Use the incentive money to settle the second mortgage so homeowner could pay lower loan. 3- Make sure that the banks will not be able to sell the home for a lower amount of money before they offer that price to the homeowner so he can bring principal down. 4- No more balloon payment, every loan will be fixed (31%of the "after taxes" income ) for 30 years . 5- Give incentives to current homeowner to keep up with the payment with lower interest rate. 6- Try to make sure banks give first priority to first time buys to buy foreclose homes and they need to leave in the community for at least 1 year. It will keep the neighborhood clean and save. 7-Nevada needs to be a friendly borrower loan state where the mortgage companies cannot sue homeowner who short sale , foreclose their homes. 8-Motivate homeowner to be allowed to short sale their homes before it going to foreclose. We need a lot more changes, but It is just some of my concern. Patricia Franciulli