An Interview with Attorney and
Consumer Advocate, James M. Parsa from the Parsa Law
Group
What was the original intention of the first $350 Billion of
the $700 Billion Wall Street Bailout? What is now known as TARP
(Troubled Assets Relief Program).
Attorney James Parsa from the Parsa Law
Group:
Well, that is a complex question that doesnÕt really
have a 100% clear answer. If youÕre asking how the bailout was sold to
the American people, then we can definitely say that it was intended
to help struggling homeowners prevent foreclosure and save their
homes. This was supposed to be done through Fannie Mae and Freddie
Mac. If youÕre asking how the Bush Administration sold the bailout to
Congress, then we can say they framed it as the critical tool they
needed to prevent total Armageddon in the financial markets and the
imminent collapse of the American economy.
If youÕre asking how
the banks receiving the money intended to use it, then there are many
disparate answersÉ some good, some very troubling, some downright
shameful. Some lenders such as Freddie Mac and Fannie Mae did use some
of the money they received to help homeowners in difficult mortgage
loans to modify their mortgages. They did, however, place many
restrictions and conditions on those that could receive help, and the
result was that fewer than 100,000 families received mortgage
assistance, and all the while millions upon millions of folks are
still waiting or help. Some banks used the money pay off debts, to
make investments and to buy other banks, which is clearly not helping
anyone at the homeowner level. Still others are simply clinging to
their money, because of ongoing uncertainty in the financial markets.
And even worse, some banks are just not disclosing or tracking how
they used the money and have even been quoted as saying that they
would prefer reporters keep this under wraps for them.
DidnÕt some financial
executives go on a lavish retreat in California?
Attorney James Parsa from the Parsa Law
Group:
ThatÕs right! Some executives from AIG spent $400,000
on the luxurious and exclusive St. Regis resort in Monarch Beach, CA.
They say that it wasnÕt TARP money, but how do you go about accounting
their money and the TARP money when they are being so secretive about
how it is being spent?
So where does this leave regular Americans that
are struggling with their mortgage payment?
Attorney James Parsa from the Parsa Law
Group:
Well if people can just realize that the bailout as
it currently stands was not for them, then they are off to a good
start. What President Obama will do with the remaining $350 billion
remains to be seen, but it may be months until those decisions
directly affect people that are in trouble right now.
People
need to carefully weigh all of their options and decide what is the
best path for them with the limited time they have left in their
particular situation. The first decision they need to make is whether
or not they want to keep their home. This will help get them started
in the right direction. Because if they donÕt really want to keep it
then they can do a Short Sale, a Cash for Keys Program, or a Chapter 7
Bankruptcy, of course all depending on their unique
situation.
If they do want to save their home, then Loan
Modification is the smartest alternative at the moment, and as I
mentioned in another interview, they can do the Loan Modification
themselves, work with a non-profit foreclosure prevention advocate, or
hire a Law Firm that specializes in Loan Modifications. Another option
is a Chapter 13 Bankruptcy, which typically results in restructured
debt payments that last 5 years, but allow you to keep your home and
other personal property.
So do
you think that banks and lenders will come around and give people the
mortgage relief they need?
Attorney James Parsa from the Parsa Law Group:
Maybe.
As their home retention divisions finally ramp up and get the proper
staffing, they may become more efficient at dealing with the millions
of homeowners that are having trouble making their mortgage payments.
But if past actions are an indicator of future behavior, then we are
in troubleÉ to date they have consistently proven that they are out to
save themselves and have an army of lawyers on their side to protect
their interests and those of their shareholders. The Obama
Administration may have to force a set of rules and regulations for
Loan Modifications, because what IÕve seen currently is a joke. The
lender initiated Loan Modification offer letters that are going out to
some people have some pretty bad terms, they are really only a token
offer to comply with new laws that have been passed in states like
California. And again, people need real help now, not three months
from now.
What does California require?
Attorney James Parsa from the Parsa Law
Group:
In California, lenders are required to try work out a
Loan Modification with a borrower before foreclosing. But the devil is
in the details, as they say, because there arenÕt any guidelines for
forgiveness of missed payments, their attorney fees, costs of
collection, good faith payments, adjustment of principal balance,
fixed interest rates, etc. So most of the time, the Loan Modifications
they offer people require huge good faith payments and the monthly
mortgage payment isnÕt as low as it should be.
How is the Parsa Law
Group positioned in all of this?
Attorney James Parsa from the
Parsa Law Group:
Well, we realize that a line in the sand
has been drawn, and we have chosen to be on the side of struggling
homeowners. Throughout my 17 year career, I have always advocated and
fought for the little guy in insurance cases, work injuries, personal
injuries, labor disputes, and now in helping people fight to keep
their home and get a fair monthly mortgage payment. We are fortunate
to have been able to help thousands of families save their homes, and
will continue to do so while no one else is stepping up to the
plate.
Any
final thoughts?
Attorney James Parsa from the Parsa Law
Group:
I always remember a quote from President Theodore
Roosevelt, ÓIn any moment of decision the best thing you can do is the
right thing, the next best thing is the wrong thing, and the worst
thing you can do is nothing.Ó People that are on the verge of losing
their home canÕt just sit around and wait for the auction date. They
need to take immediate action, take control of their destiny and the
future of their home, which is such a big part of any familyÕs life.
Can
people contact your organization if they have any
questions?
Attorney
James Parsa from the Parsa Law Group:
Absolutely, and as
usual, my staff and I are available to answer any questions people
have about the options in their particular situation. They can call my
office at 1-800-585-1179 or go to my website www.parsalawgroup.com
James
M. Parsa
Attorney at Law
Parsa Law Group
1-800-585-1179
http://www.parsalawgroup.com
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Business Bureau
Rating:
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