Barney Frank Get's It…Support Him in His Efforts to Help Our Homeowners!

Congressman Barney Frank (Mass.) gets our kudos for taking the time to understand the misdeeds of the banks…2nd lien holders in this case.

Congressman Frank is sending out an ultimatum to Bank of America, Citigroup, Wells Fargo and JP Morgan Chase.

Mr. Frank is a very “powerful” congressman in charge of the governmental commission that oversees the banks…so, either the banks CEO’s listen or pay the price of not listening.

What it gets down to is:

1. These banks servicing 2nd loans/liens for their investors are not pushing their investors hard enough to accept reality.
2. What do we mean by this?
   1. 2nd lien holders in today’s market can make or break Loan Modification or Short Sale by choosing to participate …or take a stance and make unreasonable demands on the homeowner.
   2. Many 2nd lien holders hold notes that are worthless…as many of the homes are underwater or in a “negative equity” standing.
   3. This means that these 2nd notes are worth nothing, because there is no equity to support there value.
3. What Mr. Frank is simply doing is sending a message to the CEO’s of these banks to remind their clients that own these liens, that they are in essence holding worthless paper and to take what ever is given them to resolve this debt and move on…remember…these notes are essentially worthless!
4. Why does Mr. Frank care?
   1. Well it appears that he understands the economics of the banks and that the banks are simply manipulating the wall street into believing they earn more money than they actually do…That’s a whole other blog post…due to some changes  a few years back…banks report their “negative assets” to show as actual stability and strength…kind of a “funny” economics!

Support Mr. Frank as he’s in the corner of the Homeowner…fighting the fight!

Kris