The market is flooded with foreclosed homes why don't banks start to help?

Because banks don't care about people. They never will.

Most banks I've known do work with people. But the problem is that people are not honest about what's happening...until they are behind 2 moths and by then the wheels are turning on foreclosure. My ex and I were in foreclosure because of bank error years ago, and even though we had the proof, once the court papers were processed, we had no choice but to go to court. Once we delivered the proof that the bank had put our 1st mortgage payments on our second mortgage - and they had our money all along - the thing was dismissed.

Had my ex talked to the bank when the first late notice came in, this might have been avoided. Or when the second one came. He could have provided proof and it would not have gone to court.

What stunk about that whole thing was that our bank had this program where if you made your payments early or on time for 12 months in a row, they would let you have one month without a payment. It was the same year after year. If you paid for 12 months, you could select one month where there would be no payment. You could pick a month where you wanted to go on vacation. But you could not get behind in payments and then ask if you could use your free month. That had to be arranged in advance.

My current hubby and I have a gliche now and then and I've taught him how important is is to call the mortgage company immediately if we're going to have problem. They're willing to help if you talk to them early on. With us, they reduced our payments for 3 months while we struggled. It helped.

The problems come in when a bank has numerous possible foreclosures. You would think that they'd be more helpful, but they are in business. It's the homeowner who has to make the contact, and early contact is smart.

Ahhh.. the short answer is ... spend a little time watching CSPAN.. watching the Congress and Senate in action.. listening also to what banks are saying. Listen to what is coming out of the White House.. in other words spend a little bit of time learning what is going on right now to answer your question. I'm no fan of the banks.. but, getting in the loop of what is going on.. priceless. For example... have you even heard of the $700 billion (misnamed by the media BAIL OUT) bank support plan?

Homes have been and are still OVER VALUED.. everyone with a house thinks he or she is sitting on a goldmine to rob the next person with. The mindset has been for a long time now that prices just keep going up. LOL.. when will we learn the lessons of our fathers?

Personally, I file this entire epsode of American and World History (and yes it is world-wide) under, "DUH".

Because the "deregulation" folks, who are dominant in big business, think people should do for themselves rather than giving help. Most people don't need a handout .... they just need something that is possible.

President Bush's "go out and spend" response to 9/11 was wrong. I am not convinced he meant it that way, but what it did was endorse greed.

It is time to understand that we are in this together.

Banking is a business not a social service agency.

There are also organizations that are not for profit that homeowners can get in touch with when they are facing foreclosure. They can be very helpful depending upon the situation. I have to agree with Marilyn in that the homeowners have to be proactive in their communication regarding their situtation.

My husband was very upfront when he lost his job and couldn't get employment, he was denied a security clearance, we lost our home and everything, banks didn't want to help us, and they sure as heck didn't want to share in the profit and over sale....the bank, I'm positive vandalized our house, by cutting the outside cable to the heater, and may have very well gotten inside to shut off the pump, the bank had no desire to work with us, but now with the housing market and the economy as it is you would think they would try to work with people.

Mooch

I'm sorry, but I don't have a single intelligent thought to add to this discussion. I hope you reach 10 comments, though!

Good question. I don't know the answer.

now that the bailout money is available they seem to be buying up bad mortgages cheaply, to do the same to others?

The banks can put the homes or businesses they foreclose on in their inventory and use it to get loans from the government, and use it as a write off.

I heard the banks get money from the government and between that and what they sell the homes for, it's more than the house is worth... even when the house value is upside down. How banks are posting "profits" in these bad times... kinda backs that up.

In our foreclosure the bank sold the home and "lost" Over $100,000. They did not want to work with us at all. In fact the county had to institute a program where home owners could force the banks to send a representative to a mediation with a mediator chosen by the courts...and had to pay for it. Does this sound like the banks were working with people? The foreclosure courts were so overwhelmed they felt they need to give the home owners this option. (Put in force after our foreclosure)

So when people "blame" the home owner, they ought to take a good hard look at the banks. One lady at the bank yelled at me to pay up, and I asked, didn't you get the forms I filled out which included my husbands unemployment award letter, and she said yes. I said then why are you yelling at me to pay up? I was willing to leave and hand the keys over to the bank, called a volunteer foreclosure, but they chose to go to court. Um My husband didn't even get enough in a months unemployment check to pay the mortgage.. gee why are you yelling at me and why wouldn't you let us hand you the keys and leave?

Because my husband was laid off in 2007, we used our savings for two years to stay there hoping he would get a new job with benefits... When the job without benefits ended, it was game over..