Really, Senator Durbin?

The back and forth continues:

Dear Woody:

Thank you for sharing your personal struggle to modify your mortgage through your bank. Too many families across the country are having a tough time staying in their homes, and our nation's banks are not doing nearly enough to help.

I am fighting to help Americans stay in their homes, but the banks are not meeting us in the middle. Congress supported the emergency aid package for banks, in part to revive the nation's credit markets. Yet lending and mortgage modification remain at record low levels.

The United States is working its way through the worst financial crisis since the Great Depression. The mortgage crisis has placed millions of families at risk of foreclosure. Currently, 1 in 8 mortgages is in foreclosure, and more families face foreclosure as existing loans reset their interest rates.

The Obama Administration has taken some steps to encourage loan modifications, but the very banks that caused the financial crisis in the first place have been very resistant to implementing the loan modifications families need. The Home Affordable Mortgage Program (HAMP) and the Home Affordable Refinance Plan (HARP) have created incentives for banks to negotiate with individual homeowners, but many banks have dragged their feet.

I have cosponsored S. 1731, the Preserving Homes and Communities Act of 2009, introduced by Senator Reed of Rhode Island. This bill would provide targeted relief to qualified homeowners through loan modification and mortgage assistance programs. It also incentivizes states and local governments to create strong mediation programs so more families can stay in their homes. Loan modifications not only help families, they also stabilize communities protect them from greater financial losses.

Historically, home ownership has been a pillar of our economy and an integral part of the American dream. I introduced the Helping Families Save Their Homes in Bankruptcy Act (S. 61), which would have allowed bankruptcy judges to modify the terms of mortgage loans on a principal residence for homeowners who meet strict income and expense criteria. This step is already allowed for mortgages on vacation homes and family farms and could have helped 600,000 families keep their homes. Unfortunately, because of strenuous opposition from the banking lobby and its allies in the Senate, my amendment was not successful.

Your voice is a valuable part of this discussion. I will continue to keep your family's situation in mind as Congress responds to the economic challenges facing American families.

Thank you again for your message. Please feel free to keep in touch.


Talk about stating the obvious.

While it's admirable that Senator Durbin introduced legislation to help people save their homes, his response did not answer my initial questions.

Why wasn't the HAMP legislation written to consider unemployment?

I said it before and I'll say it again---HAMP legislation was poorly written. It merely serve as a smoke screen by the government to appear as if they're helping the public.

You're screwed if you're laid off AND you have equity in your home.

Just give me a coke and a smile and tell me to shut the eff up.

That would be more effective than pretending to help.

Was it wrong of me to expect more of Senator Durbin than robotic responses?

One Track Mind

Unemployment is clearly a cash cow.

Trust me, I was just as shocked as you when I found this out.

Unfortunately the big bucks that I pull in from unemployment disqualifies me from receiving any type of assistance from LIHEAP or a Link card.

What kills me is that when I explain my basic monthly outlay to keep a roof over my head and the lights on the reply I receive is "We don't take your bills into account. That's not how this program works."

Un-flipping-believeable.

For a family of one (the cat doesn't count)can only have a gross income of about $1,100 a month to qualify for the Link card. For LIHEAP the most you can only is $1,354 a month.

I completely understand why many are just pissed off.

No one will help you despite the fact you've been a good egg and paid into the system.

Most homeowners with equity in their homes will not be helped by the Obama Plan.

Most single people can't qualify for a medical card or the Link card from the state.

One would almost think that the social service system isn't designed to help the middle class. You might also be tempted to think that the once you qualify for any type of help, that the system is designed to either keep you impoverished or make you lie to keep your benefits.

I'm done. I'm totally absolutely done.

Cue The Eye Rolling

Senator Durbin got back to me via the post. This is an excerpt of his letter:

Dear Woodlawn Wonder:

Thank you for your message. I appreciate hearing from you and share your concerns about the housing crisis and its impact on our nation and communities throughout Illinois. Enclosed please find a list of HUD approved counseling agencies that may be able to help you refinance your mortgage and keep your home. Also included are phone numbers for local helplines that may be able to aid you as well.

Obviously I didn't make myself clear. So I composed another letter.

Senator Durbin,

Thank you for your October 16th response.

Unfortunately it did not address my concern that the HAMP program does not cover home owners who are ahead in their mortgages and may fall behind in their payments due to unemployment.

Even the Congressional Oversight Panel states that "HAMP was not designed to address foreclosures caused by unemployment, which now appears to be a central cause of nonpayment, further limiting the scope of the program."

While I appreciate the supporting documentation, lists of HUD approved counselors will not address my situation.

What will address my situation is the Treasury Department expanding the HAMP program to consider unemployment. I fail to understand why I'm being punished for not being underwater with my mortgage and unemployed.

It seems had I purchased more home than I could afford or mortgaged it to the hilt, I would qualify for the program.

While the automobile and banking industries are "too big to fail" apparently the American homeowner is not.

Since you chair the subcommittee on Financial Services and General Government why can't you bring this rapidly escalating issue to the attention of the Treasury Department? Senator Durbin most unemployed Americans don't have another six months for the government to act on this issue.

Where's our bailout?

Sincerely,

The Woodlawn Wonder

Ladies and gentlemen, we are adrift and on our own. Our lawmakers are completely and utterly clueless.

By the time they "get it" we'll all be in a shelter.

Rejected

I just received this in the mail from my lender:

Dear Borrower:

Select Portfolio Servicing, Inc. (SPS), as a servicer for your loan, has reviewed your account for the Obama Administration's Home Affordable Modification Program (HAMP). We regret that we are unable to qualify you for HAMP based on the information you provided to us. The reason you do not qualify is that you did not pass the U.S. Treasury Department's Net Present Value (NPV) test. The NPV test determined that the amount realized by sale of your property following foreclosure exceeds the amount that would be obtained through a modification of your mortgage.

Words absolutely fail me at this time.

I very well could be looking at foreclosure in the next few months.

Developing...

Hold Up

Yes, I know we’re all shocked and pissed by the Honorable John Fleming’s ruling.

But leave it to those kids at the Chicago Reader to show that this type of thing isn’t so uncommon.

Perhaps it’s time to focus outrage on the process that lets violent abusers walk and get the flipping laws changed.

And yes, that would require vigilance, follow-up and perhaps a letter or two to your state elected officials.

Most of us know that it’s not okay to beat on anyone but as the Reader article illustrates, this wasn’t the first time someone got their clock cleaned and the offender got a slap on the wrist.

Judge was simply the messenger.

No need to shoot him.

Not Good

Per my Twitter post yesterday, we received this "love note" from the city.



Jesus take the wheel.

The backstory about this avoidable mess will follow in short order.

Here Comes The Judge, Part 2

I just don’t get the Honorable William Pileggi.

He seems like the real deal.

He’s cosigned on common sense initiatives and has even received an award from Neighborhood Housing Services.

From what I’ve been able to find on the web and glean from my lawyer friends, Judge Pileggi is okey doke.

He seems like a jurist who will put some bite and muscle into the maze of building codes in our fair city.

This makes his rulings concerning the property at 1512-1514 E. Marquette and Mr. Knight all the more troubling.

Court records indicate that on numerous occasions Judge Pileggi has given Mr. Knight more than enough time to comply with the City’s order.

My question is why was he granted so many chances?

If I can find the numerous actions filed against Carlton Knight in Cook County court system, surely he can as well.

One would think that those records alone would serve as a litmus test of Mr. Knight’s actions & behaviors.

Clearly I’m in the minority on this one.

As a result case number 2007-M1-402799 has been dragging out since October 4th of 2007.

But as I was recently mulling over the judges’ actions, I took a gander across the way and saw something miraculous.

A brand new porch.

Maybe it’s because I rarely look out of my back window or raise the shade. Perhaps with the sun rising earlier and setting later, it gave me an extended opportunity to gaze across the way.

Whatever the reason, that looks like new porch construction to me.

If the porch is new, I would be the first to tell you that I have no clue why Mr. Knight would all of a sudden comply with the city’s order.

I could offer up any number of theories but it would be a waste of both blog space and your time.

The bottom line is that the porch was built.

Now whether it’s up to code is the city’s call.

Woodlawn’s A Poppin’

Despite the snow outside, things are heating up in Woodlawn.

The city is seeking a developer for the vacant lot on the southwest corner of 63rd and Blackstone.

Rumor has it that since the property abuts Mt. Carmel High School they’ve been trying to purchase it for years. The Alderman at the time (Arenda Troutman) put the kibosh on the whole gig. Apparently that parcel was to slated for housing, not an extension of the Mt. Carmel real estate empire.

Well now it appears that the city is moving forward on developing the land.

This ought to be interesting. I’ll keep an eye on this and keep you kids in the mix.

And speaking of development…

Some lovely foundations “are creating a multimillion-dollar fund to protect South and West Side neighborhoods from being overlooked or overwhelmed in the city's pursuit of an Olympic Game.”

I don’t even know what that means.

According to the Chicago Tribune article, “They may be used to canvass residents and fund research on jobs, business development and tourism opportunities. Later grants may support community planning, affordable housing, education and job training.”

Jobs? Business Opportunities? Shouldn’t the alderman already be searching for those opportunities?

As a matter of fact, don’t we also have groups and foundations that have already done community planning, affordable housing studies as well as job training?

Personally it sounds like the beginning of business as usual around these parts.

Grants will go to “community groups” who beat a big can but can’t take out the trash.

Money will be funneled, good intentions will be promised, studies will be “issued” and job training programs will be “funded.”

And a dime of money won’t reach the people that need it most.

Or I could be wrong.

But the last little Woodlawn caveat is the best.

Guess what kids, it’s Displacement Week at the University of Chicago.

As in Woody’s ass will be displaced from her home if she doesn’t get a job.

No seriously folks, the University is searching its soul concerning displacement and to created a dialogue “about the University’s responsibility to global and local communities.”

The minute I got this e-mail from a loyal reader I started to giggle.

You know I’m all over Understanding Your Role In Gentrification tonight at 8:00 PM. Hell, I might turn the Forum on the University of Chicago Hyde Park/Kenwood/Woodlawn into a friggin cocktail hour.

But don’t expect me to furnish all of the vodka, you boozers.

You’ll know it’s me by the peels of laughter in the back of the room.

This one ought to be interesting.

Good Vibrations

I still haven’t got this sidewalk thing figured out yet.

Our new sidewalk across the street was poured over a month ago but another crew came out and put in the corners.

While I know the corners have to be ADA compliant, why couldn’t the same crew do the corners at the same time?

Considering the south side usually gets the shaft, I guess I should be overjoyed that we got a new sidewalk to begin with.

I guess the old adage is right, never look a gift sidewalk in the mouth.

Nonetheless there is a crew outside right now breaking up concrete and setting up the molds to pour yet another set of corners.

Personally speaking, that jackhammer vibration---if applied in the proper situations---could be a good thing.

Speaking of a separation of duties, yesterday while I was setting up my Christmas tree on the balcony I saw a crew spreading grass seed just on the corner across the street from my place.

Yes, I have a lit Christmas tree on my outside balcony. That’s how I roll.

I don’t think my neighbors like the pine needles I’ve left in the hallway but I’ll deal with that tonight before Charlie Brown Christmas comes on at 7:00.

Anyhoo, I ran downstairs to check the view of the tree from the street and asked the nice seed spreaders if the seed needed to be watered.

They told me that the seed was the winter variety and it should be fine throughout the cold months.

Okey dokey.

What struck me as strange was that they told me that another crew would be out seeding the rest of the parkway with for all intensive purposes is “spray on grass.”

Now why would the city send two different crews to apply two different types of seed to the same parkway?

As I said earlier---we’re getting our due, perhaps I should shut my yap and say “Thank You.”

Disappeared

It was like the Lord High Executioner had fallen off of the face of the earth.

Ever so often I would call and e-mail about some slowly moving business that we had discussed but this time my messages went unanswered.

So I called and wrote numerous times.

No response.

Then I started calling Buford Pusser.

At least I got a voice mail back. The subsequent game of phone tag yielded the same results.

So then I started calling the Lord High Executioner’s cell phone number.

In retrospect he may be kicking himself for giving me that information.

I also asked a friend who works in the law department for the city what the deal was---why was the LHE so hard to get a hold of?

My friend gave me the skinny---the LHE got transferred over to the Building Department to help those kids out while they’re ironing out their problems.

Within 24 hours of hearing that news, The Lord High Executioner himself called & left me a message.

I was being handed off to another person within the law department.

While it’s nice to know the love is still there ( I think?) I now have to start from scratch with the new guy.

When he called me yesterday, I suggested that he start reading this blog.

You loyal readers know that everything that’s been going on simply defies a two or three sentence description. I mean who would believe it?

I pray that the new guy will be as helpful as the LHE.