Is $21K “Cash for Keys” Proposal the Worst Idea Ever?
Is $21K “Cash for Keys” Proposal the Worst Idea Ever?
Is $21K “Cash for Keys” Proposal the Worst Idea Ever?
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March 29, 2011 (Chris Moore)
mortgage-lottery-image
Last week Federal Deposit Insurance Corporation (FDIC) Chairperson Sheila Bair proposed a “Cash for Keys” program as an option that would allow 90-day plus delinquent homeowners to be paid $21,000 to move out of their homes. With visions swirling in my head of millions of current homeowners taking such an offer and those millions of homes then being dumped on the real estate market, you could probably hear my jaw hit the ground all the way to New York. Apparently, I’m not the only one.

According to Rep. Spencer Bachus (R-Ala.), chairman of the House Financial Services Committee, “This proposal is simply outrageous and the worst bailout idea dreamed up so far.”

Apparently the proposal came up as one of many proposals being considered during a meeting between the many parties involved in the foreclosure settlement proposal by the 50 state attorneys general and federal regulators that the FDIC participated in.

Traditionally, cash for key programs involve much smaller offers, usually in the neighborhood of $1000, that are made to borrower to vacate their property within a defined time frame. The money is generally used to provide help for moving expenses.

Bair, like many officials, has been interested in different options for solving the foreclosure crisis. So far there has yet to be any meaningful negotiations between the banks and the parties who proposed the foreclosure settlement, but cracks in the ranks among some of the state attorneys general and some government regulators are starting to appear.

Last week, four state attorneys general sent a letter to Iowa Attorney General Tom Miller, who is leading the investigation, expressing their fears and reservations about the proposal. House Republicans, meanwhile, have also vocally expressed their displeasure with the proposal and the Office of the Comptroller has indicated it is not supportive of the 27 page settlement.

Acting Comptroller John Walsh reportedly wants to draft an agreement of its own because he believes the terms of the original proposal are too harsh.

The proposal was given to the mortgage servicers with the hope that any negotiations and revisions would lead to a final draft in two months. With nearly half of that time already passed and negotiations yet to take place, plus the deep divisions starting to surface between many of the parties, a quick solution is probably not in the cards.

Tags: FDIC, Sheila Bair, cash for keys, Spencer Bachus, foreclosure settlement, mortgage servicers, options, negotiations, revisions, Office of the Comptroller

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Helpful Tools
Mortgage
Calculator

Estimate your monthly mortgage payment
Auto Loan
Calculator

Determine how much car you can afford before buying
Learn About
Mortgage Loans

Learn about the different types of home loans
15 Year vs 30 Year
Loan Comparison

Compare 15 year and 30 year mortgage loans
Todays Mortgage
Rates

See today's mortgage rates. Shop, compare and save.

March 29, 2011 (Chris Moore)
mortgage-lottery-image
Last week Federal Deposit Insurance Corporation (FDIC) Chairperson Sheila Bair proposed a “Cash for Keys” program as an option that would allow 90-day plus delinquent homeowners to be paid $21,000 to move out of their homes. With visions swirling in my head of millions of current homeowners taking such an offer and those millions of homes then being dumped on the real estate market, you could probably hear my jaw hit the ground all the way to New York. Apparently, I’m not the only one.

According to Rep. Spencer Bachus (R-Ala.), chairman of the House Financial Services Committee, “This proposal is simply outrageous and the worst bailout idea dreamed up so far.”

Apparently the proposal came up as one of many proposals being considered during a meeting between the many parties involved in the foreclosure settlement proposal by the 50 state attorneys general and federal regulators that the FDIC participated in.

Traditionally, cash for key programs involve much smaller offers, usually in the neighborhood of $1000, that are made to borrower to vacate their property within a defined time frame. The money is generally used to provide help for moving expenses.

Bair, like many officials, has been interested in different options for solving the foreclosure crisis. So far there has yet to be any meaningful negotiations between the banks and the parties who proposed the foreclosure settlement, but cracks in the ranks among some of the state attorneys general and some government regulators are starting to appear.

Last week, four state attorneys general sent a letter to Iowa Attorney General Tom Miller, who is leading the investigation, expressing their fears and reservations about the proposal. House Republicans, meanwhile, have also vocally expressed their displeasure with the proposal and the Office of the Comptroller has indicated it is not supportive of the 27 page settlement.

Acting Comptroller John Walsh reportedly wants to draft an agreement of its own because he believes the terms of the original proposal are too harsh.

The proposal was given to the mortgage servicers with the hope that any negotiations and revisions would lead to a final draft in two months. With nearly half of that time already passed and negotiations yet to take place, plus the deep divisions starting to surface between many of the parties, a quick solution is probably not in the cards.

Tags: FDIC, Sheila Bair, cash for keys, Spencer Bachus, foreclosure settlement, mortgage servicers, options, negotiations, revisions, Office of the Comptroller

FILL OUT THE FORM
It all starts here. Select the loan product you want to apply for and complete the subsequent questionnaire.
WE VERIFY & TRANSMIT TO LENDERS
Once we receive your completed questionnaire we verify a couple vital pieces of information and direct your information to our network of lenders, all within minutes.
REVIEW YOUR OFFERS
With offers in hand you can now compare rates and costs and get the best possible deal. Comparison shopping made easy. You fill out one form and lenders compete for your business.
CHOOSE YOUR LENDER
Congratulations! With the great learning tools we provide for you at LoanRateNetwork and the offers you have received, you've found the right product and the best rate.
HOW LOANRATENETWORK
LOAN CENTER WORKS
ADVANTAGES OF USING
LOANRATENETWORK
FAST & EASY. DATA ENCRYPTED
Applying to multiple lenders is fast and easy with our one simple questionnaire. Choose the product you’re looking for, take a few moments to answer a few questions and you’re on your way to saving.
NO OBLIGATION. NO HIDDEN FEES
Any of the services on our website are 100% free, there is no obligation to use our services or any hidden fees. We’re not loan brokers so we don’t charge broker fees like other websites.
NO SSN OR CREDIT CHECK
No SSN or credit check is necessary to use our services. We bring lenders to you so they can compete for your business and you save. That information only becomes necessary after you choose a lender.
Helpful Tools

March 29, 2011 (Chris Moore)
mortgage-lottery-image
Last week Federal Deposit Insurance Corporation (FDIC) Chairperson Sheila Bair proposed a “Cash for Keys” program as an option that would allow 90-day plus delinquent homeowners to be paid $21,000 to move out of their homes. With visions swirling in my head of millions of current homeowners taking such an offer and those millions of homes then being dumped on the real estate market, you could probably hear my jaw hit the ground all the way to New York. Apparently, I’m not the only one.

According to Rep. Spencer Bachus (R-Ala.), chairman of the House Financial Services Committee, “This proposal is simply outrageous and the worst bailout idea dreamed up so far.”

Apparently the proposal came up as one of many proposals being considered during a meeting between the many parties involved in the foreclosure settlement proposal by the 50 state attorneys general and federal regulators that the FDIC participated in.

Traditionally, cash for key programs involve much smaller offers, usually in the neighborhood of $1000, that are made to borrower to vacate their property within a defined time frame. The money is generally used to provide help for moving expenses.

Bair, like many officials, has been interested in different options for solving the foreclosure crisis. So far there has yet to be any meaningful negotiations between the banks and the parties who proposed the foreclosure settlement, but cracks in the ranks among some of the state attorneys general and some government regulators are starting to appear.

Last week, four state attorneys general sent a letter to Iowa Attorney General Tom Miller, who is leading the investigation, expressing their fears and reservations about the proposal. House Republicans, meanwhile, have also vocally expressed their displeasure with the proposal and the Office of the Comptroller has indicated it is not supportive of the 27 page settlement.

Acting Comptroller John Walsh reportedly wants to draft an agreement of its own because he believes the terms of the original proposal are too harsh.

The proposal was given to the mortgage servicers with the hope that any negotiations and revisions would lead to a final draft in two months. With nearly half of that time already passed and negotiations yet to take place, plus the deep divisions starting to surface between many of the parties, a quick solution is probably not in the cards.

Tags: FDIC, Sheila Bair, cash for keys, Spencer Bachus, foreclosure settlement, mortgage servicers, options, negotiations, revisions, Office of the Comptroller

HOW LOANRATENETWORK
LOAN CENTER WORKS
FILL OUT THE FORM
It all starts here. Select the loan product you want to apply for and complete the subsequent questionnaire.
WE VERIFY & TRANSMIT TO LENDERS
Once we receive your completed questionnaire we verify a couple vital pieces of information and direct your information to our network of lenders, all within minutes.
REVIEW YOUR OFFERS
With offers in hand you can now compare rates and costs and get the best possible deal. Comparison shopping made easy. You fill out one form and lenders compete for your business.
CHOOSE YOUR LENDER
Congratulations! With the great learning tools we provide for you at LoanRateNetwork and the offers you have received, you've found the right product and the best rate.
ADVANTAGES OF USING
LOANRATENETWORK
FAST & EASY. DATA ENCRYPTED
Applying to multiple lenders is fast and easy with our one simple questionnaire. Choose the product you’re looking for, take a few moments to answer a few questions and you’re on your way to saving.
NO OBLIGATION. NO HIDDEN FEES
Any of the services on our website are 100% free, there is no obligation to use our services or any hidden fees. We’re not loan brokers so we don’t charge broker fees like other websites.
NO SSN OR CREDIT
CHECK
No SSN or credit check is necessary to use our services. We bring lenders to you so they can compete for your business and you save. That information only becomes necessary after you choose a lender.