Bailout Banks Shun Efforts To Stem Foreclosures

LOS ANGELES (CBS) — State officials say they are having trouble getting some of the nation’s biggest banks to participate in a program to help nearly 100,000 homeowners who are on the brink of foreclosure.

KNX 1070’s John Brooks reports
Wells Fargo, Chase and Citibank have been slow to comply with the $2 billlion program “Keep Your Home California”.

The principal reduction plan is aimed at helping thousands of borrowers who owe more than their properties are worth, but without cooperation from the banks, the program will likely have limited benefits.

California still plans to move forward with help for unemployed homeowners, offering up to $3,000 a month to make their mortgage payments.

An additional $32 million is available to provide moving assistance for people who have lost their homes to foreclosure.

Wells Fargo, Chase, and Citibank received an estimated $115 billion in taxpayer funds as part of the TARP bailout after the 2008 financial crisis.

(©2010 CBS Local Media, a division of CBS Radio Inc. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. Wire services contributed to this report.)

  • payforward

    “California still plans to move forward with help for unemployed homeowners, offering up to $3,000 a month to make their mortgage payments.”
    The rest of us who were unable to afford houses but are unemployed none-the-less, who will subsidized our monthly rent payments? This is wrong.

    • No Way1

      I totally agree. This is so wrong.
      Many of us didn’t take advantage of refinancing our homes to live beyond our means.

  • do.whats.right

    You better believe this is WRONG! We are about $250,000 upside-down and ready to foreclose. But I wouldn’t take this money from a broke state if they gave it to me on a silver platter. I would rather throw the keys to Chase.

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  • Mike Jones

    The Banks are the enemy. Bank of America is one of the worst! We bailed them out and now they shun us…where is Jessy James when we need him!. The constitution states that the Government is to defend us against all enemies Foreign and Domestic. Our enemies are Domestic! The Banks. Where is the Government?

    • homeowner

      Spot on! AMEN!

  • Iron Lion

    Where is the government?… Governments are controlled by banksters.



    • Been there

      You’re lucky to have two jobs when millions of hard working people lost their jobs and had no choice but to walk away from their homes. A large number of these “losers” have multiple college degrees and have never been out of work for twenty years or more until now!! Shame on you for adding insult to injury. It is not pleasant to be working on day and jobless the next.

      • Hard Workin dude

        Some people dont get it.Ive worked harder than most people my whole life, I never asked for a dime. I fulfilled all of my obligations and my credit score was probably 100pts better than yours. I worked for the same company for 20 years , I leave for back surgery, 3 months later, I m better than ever but my employer tells me were slow and were laying you off. But they have an illegal alien taking my place .”Fool and losers” . ??? But you like most employed people wont get it until their standing in our shoes…then theyll finally get it. And in this economy its just a matter of time for you .I would advise you keep your opinion to yourself, at least not in public Otherwise I suspect you will have serious problems .

  • Rebecca

    Obama’s stimulus package of 15 billion dollars was to be used to help the people of four states – one ours California. Now who is able to tell me, why we the people did not get this help, the banks got this money.? Obama said, this money was to be used for the people who lived in their homes for years stay in their homes. By cutting their home loans in half, making a fixed rate, and lowering their mortgage monthly payments. Myself I did every program that was out there. for 17 months, leading me to believe that I would qualify , but instead, did not qualify. Because,I did not make enough money, I knew this! What has become of the United States of America…. Our word is a bond, with out this we are nothing. Just like a handshake use to be.

  • U.S Freedom Lost

    It is disgraceful that people make irresponsible purchases then expect someone to intervene to make it all right again…..No one complained when houses were making many rich, ya can’t have it both ways folks, weak whining cowards, that’s what we have become in this country….a country of dependent fools, who now beg the government to save them, but first, they must give over all control of their lives to this power crazy government…..PLEASE PEOPLE, WAKE UP.

  • Lorraine Castro

    Can anyone help me with the website for the Obama’s homeowner program that is for loan modifications. I have went through lawyers and they have been no help. I really need someone who is honest and not out there to prey on people like myself.

    I would truly appreciate some assistance.

    • homeowner

      Contact NACA first.

      HAMP is no help unless your lender is truly going to abide by it’s guidance, and I don’t know if any banks/servicers are using HAMP guidelines.

      99% of the lawyers in CA are not going to help you.

  • homeowner

    Some people in default and foreclosure put down 20% and have paid on-time for years. It’s not our fault the financial industry clapsed our economy making it near impossilble to get a job!

    Not only that, but banks are foreclosing with fraudulent paperwork.
    All tax payers (including homeowners in default and foreclosure) are paying for the banks’ mistakes.

    Our consumer-side economy will not recover until the housing market is on the mend. We are nowhere near being on the mend in CA.

    According to realtytrac, in CA we have 1 in every 200 homes in foreclosure as of Jan 2011.

    Be scared – you people who are paying on time and still working, remember most of you rely on your income to pay your mortgage.

    Homeowners, it’s time to fight back.

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