THEY GOT BAILED OUT WE GOT SOLD OUT- the cry of the Occupy Movement
is one of those slogans.
There is a "Bankster" fiasco hitting even closer to home.
Interestingly, we received notice in the mail, that our Mortgage lender GMAC has filed for Chapter 11 Bankruptcy. (Ally owns ResCap, of which GMAC mortgage is a subsidiary).
For the record in 18 years, we have never once been late or short on the mortgage payments.
Ally has paid back $5.5 billion to the U.S. Treasury since being rescued as part of the auto bailout, back when it was still known as General Motors Acceptance Corp., or GMAC. But the company still owes nearly $12 billion -- or two-thirds of the total loan.
THEY WERE LOANED A $17.5 BILLION BAILOUT- STILL OWE $12 BILLION TO THE US GOVERNMENT (THAT'S "WE THE PEOPLE'S MONEY")
Ally will be putting up $150 million to help finance the bankruptcy and will also contribute $750 million in cash once the restructuring plan is approved, which ResCap hopes will happen by the fourth quarter.
Ally, which is 74% owned by the government, also said it will also make a stalking horse bid for up to $1.6 billion of ResCap-owned mortgages.
ResCap, which will continue operating through its Chapter 11 proceedings, said it will sell its mortgage origination and servicing businesses to Nationstar Mortgage.
Anyway another case of they got bailed out & we will get sold out. It is not uncommon for mortgage companies to sell their mortgages to another company.... but this will be done under (their own) financial distress.
How can a financial institution get loaned $17.5 billion & still screw up??
The letter we received was to the effect of "Yes your mortgage company is filing for Chapter 11 Bankruptcy, but don't worry everything is just fine, and then in bold font it says:
"As such you must continue to make your scheduled mortgage payments on time and in full to the address listed on your monthly statement".
So apparently they can screw up & be irresponsible by choice, but a person struggling to pay a mortgage WILL be punished.
They got a $17 Billion dollar bailout & are filing for bankruptcy.
I don't know about you, but the fact that the government owns 74% of this failing company brings no comfort. In the end that is just a huge liability that simply dumps the debt on the government which trickles down to "We the people take the loss".
Chapter 11 bankruptcy is "restructuring", but let's face it, when is bankruptcy ever a good thing?? They are deep in debt & the article states " The filing will help Ally distance itself from litigation-laden ResCap". It does not state what kind of litigation it is "ladened" with, but I'm guessing funky foreclosures. In any case, they are in deep trouble & can dump it in the lap of the government who owns 74% of it.
Perhaps they should consider a name change... I suggest this:
to all lies