We hear on and on, as the mess in the sub prime mortgage market continues, about relief for the people who are in a world of hurt.  I have reviewed plans and proposals here, and not one offered any real hope to those that are one paycheck away from living in the streets.  I have to think at the grass roots level, many people are as aware of this as am I, and are doing what the banks are fearful of - walking away from mortgages.  I read daily about appeals from banker who are giving sound advice to homeowners in trouble, and yet when you check out their guidelines, you see nothing there that you don’t already know - they will help if you are current on your mortgage, but if you are behind, forget it.

I understand that the banks are not willing to take a risk right now.  I am curious to see how things turn out for Bear Stearns, for example, who was highly leveraged in the sub prime market.  They of course will not be allowed to fail, even if it means a take over from a larger company, such as JP Morgan.  I have to ask myself, however, why it is that there is relief for banks such as Bear Stearns, who also made the big mistake of getting in deep with the sub prime market, yet no relief is in site for them many homeowners who are on the verge of losing their homes.  Let’s face it folks, a misguided position is just that - whether you are a blue collar worker or one of the Wall Street darlings.

Today I read about a banker in the Boston area - Eric Rosengren, president and CEO of the Federal Reserve Bank of Boston.  His message was loud and clear to homeowners.  Call and make arrangements to insure you don’t lose all in a foreclosure.  In his article he gave the web address and phone numbers for www.MortgageReliefFund.com.  Out of curiosity, I checked out the site.  The link is here, so see it for yourself.  Their guidelines for relief?  I quote from the site: “This Fund is aimed at helping homeowners who are in good standing with their current mortgage loan(s), but who may be experiencing difficulty making payments now and who expect to have greater difficulty making payments when their rates reset.”  I have to ask myself - how many of the thousands of homeowners facing foreclosure will these apply to?  And I come up with a grim outlook - not many.

I get the distinct feeling that it is let the chips fall where they may, that is, unless you are a big Wall Street bank that is tied to a lot of fortunes.  I see no relief for the average Joe who would rather just walk away…