Art Fried advises homeowners to stop bowing down to banks and instead demand loan principal reductions. He argues that banks intentionally made risky loans with no intention of keeping them, hoping to profit by selling them to investors. While morally questionable, homeowners stopping mortgage payments may be justified given banks' refusal to adequately help homeowners through loan modifications and their prioritization of bailing out banks over homeowners. Fried suggests homeowners research banks' legal violations and demand principal reductions and fair interest rates directly from banks' legal departments instead of dealing with unhelpful loss mitigation departments.
2. The facts have become crystal clear that in the last 8 years banks made tons of loans that were in clear violation of many laws! This fact raises a bunch of questions. The first being the most obvious – why? Apparently, they were planning to sell the loans to Wall Street. They planned to do the deal and eventually to get rid of it. “If the banks had to hang on to these loans in their own portfolios, would they have made the same mistakes?” exclaims Art Fried. Of course not. They would have had to face their clients and actually talk to them. No way would they want that to happen. This way they could shift the blame and not have to deal with investors.
3. After this mess created by the banks, still another question is raised – Should the homeowners quit paying their mortgage? The obvious answer would be no because even though banks have not shown any morals themselves, it would be morally wrong.
4. Art Fried brings out the facts of how banks deal with homeowners. *The banks have had enough time to help people with Loan Mods! *Those Loan Mods are a joke. They never address the real issue, which is principle reduction. Therefore, *anyone who is under water with his or her loan remains underwater regardless.
5. *Moreover, the banks are stingy with Loan Mods. If they do grant one, it is typically for a trial period that only lasts a few months and the homeowner remains in limbo. *This is an intentional policy, not just something that the banks made up hit and misses. *Their real policy is to bail out the banks and let the homeowner be damned!
6. Unfortunately for the homeowner that is what the real policy of the bank is….all for one and one for them! Did you ever walk into any bank and was greeted by anyone asking you if they can help you with your existing mortgage? I don’t think so!
7. Unfortunately for the homeowner that is what the real policy of the bank is….all for one and one for them! Did you ever walk into any bank and was greeted by anyone asking you if they can help you with your existing mortgage? I don’t think so! SO would it be wrong to stop paying mortgage and instead play by the “moral” rules of the bank? Art Fried suggests if everyone just stopped paying their mortgage and insist on a principle reduction this whole mess would go away.
8. But if the homeowner plays by the rules, bows down to the powers that be and try to work with the bank’s “loss mitigation” department there will be no end in sight to this mess and it will continue for years to come!
9. Art Fried has an answer but you will have to stand up for what “morally” right and start is fighting back. It is the best thing for you and for the country! *Quit kowtowing to the banks and instead find out just what laws they broke when they rammed your mortgage through. *Bypass those loss mitigators and go directly to the bank’s legal department. They can and DO grant principle reductions. *After you work your butt off to discover their wrong doings…keep working it off and demand they give you a principle reduction to 90% of the appraised value AND a fair and equitable interest rate to go with it.
10. They made up the rules…It is time we all played by them! [Art Fried]