I get it. A lot of people are angry over the big “bail out for homes” thinking that the problem is  of the homeowner’s own making. I get it that people are angry about bailing out the banks, and I don’t blame them. They too are responsible for this awful debockle we’re going through. Mortgage brokers, Realtors,… it was all one big conspiracy. Not to have our whole financial collapse, but to make money. I’ll give you that. But now…

I’m curious to know

1. How did the banks spend that money
2. And why aren’t any bailout home loans going through?

Whether you’re purchasing or refinancing, I don’t see the money coming down the pipeline like it was supposed to. While many programs have been put into place by the big bank bailout of 2009 to help the homeowner, there are just a few that have actually received the help these programs were put into place for. (When I say a “few” you have to remember as an individual number it would be a lot. As a number against the number of homeowners in trouble it’s a few).

I read this today in an email from Agora Financial. This is a chart as to bailout money to home loans by the banks, based on the top 5.

Banks vs. Us

Notice how Citigroup is MINUS 21? So if you’re looking for any kind of home loan, don’t go there! LOL.

So let me ask you, what good did it do? If we loaned the banks all this money to save their butts, but they won’t lend it back to the people in trouble even with good credit, what good did it do us at all? And new purchasers? Good luck. You’re living up to a higher standard now than we have ever had to live up to in the whole credit history of this country.  Even when I first got into real estate and interest rates were 19 and 20% (God forbid) the requirements to obtain credit were not as stringent as they are now. You not only have to be golden, you have to manipulate your scores to be perfectly golden to qualify.

What did the banks do with the first round of bank bailout money? Who knows. From what I’ve read they never had to account for it. Any time the public got wind of some bank boondogle or there was a bank scandel, the bank usually relented and called it off (although I don’t remember seeing Wells Fargo call off theirs when they got caught. Oh yeah, it came from “other” funds).