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Thread: USDA Is a Tough Collector When Mortgages Go Bad

  1. #1
    SiriuslyLong is offline
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    USDA Is a Tough Collector When Mortgages Go Bad

    By Ruth Simon | The Wall Street Journal – Fri, May 25, 2012 9:31 AM EDT

    Charles Ward fell behind on his mortgage in September, just as his late wife began a losing battle with lung cancer and her medical costs soared.

    His lender seized his $2,958 federal tax refund and has taken a $131 bite from each of his last four monthly Social Security checks.

    "What little money I had saved up has just disappeared," says Mr. Ward, a 71-year-old former truck driver who bought his $128,000 home in Nelsonville, Ohio, in 2008. He receives about $200 a month in food stamps and takes on odd jobs to make ends meet.

    Mr. Ward's lender isn't a bank. It is the U.S. Department of Agriculture's Rural Housing Service, which provides mortgage loans to rural homeowners and guarantees loans made by banks. It accounted for at least a third of all mortgages issued in 2010 in sparsely populated areas such as Morton County, Kan., and Sioux County, Neb., according to data reported under the Home Mortgage Disclosure Act.

    Unlike private firms, the USDA doesn't need permission from a court to start collecting on unpaid debts. It can in some cases seize government benefits and tax refunds before a foreclosure is completed. After foreclosure, the USDA can go after unpaid balances, even in states that limit such actions by private lenders.

    A USDA spokesman says the agency follows all federal and state laws.

    http://finance.yahoo.com/news/usda-i...es-go-bad.html

    Krugman wants more of this......................... More absolute government power...............

    Why doesn't anyone listen to Thomas Jefferson?

    "The natural progress of things is for liberty to yield and government to gain ground."

  2. #2
    SiriuslyLong is offline
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    "The USDA is wielding its special powers even as the Obama administration is forcing private banks to give strapped homeowners a break"

    Unbelievable........... truly........... sadly.......... This is the "vision" of the left.

  3. #3
    SiriuslyLong is offline
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    "Some borrowers now say they didn't know what they agreed to when they signed the USDA form. "It was a shock when I got the note that they were going to garnish my Social Security check," says Jeanne Marie Andersen, a 74-year-old widow who lives in Lake Crystal, Minn., and took out a USDA loan in 2007."

    Hmmmmm, I thought only greedy banks pulled $hit like this.

  4. #4
    SiriuslyLong is offline
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    Where is the outrage!!!!

  5. #5
    SiriuslyLong is offline
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    Quote Originally Posted by SiriuslyLong View Post
    Where is the outrage!!!!
    No outrage............ wow.

    Hey, it's the all powerful federal government that liberals love so they can mandate what you do. Remember what Krugman wants... CONTROL.

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