Bank bailout does nothing for the ones who need it

How does that old saying go? "No good deed goes unpunished." Perhaps more fitting for today's mortgage crisis it should say, "No good mortgage payment history will get aid."

It appears many banks that received the money from the government by way of John Q. Public " that would be you and me and, heck, who knows how many future generations " won't even talk to debtors until they fall inescapably behind on their mortgage payments.

I'm not surprised by the number of people telling me their balloon payment hasn't hit or their adjustable rate hasn't gone up yet, but will be coming in the next year. Most are unable to refinance because they are too far under water to do so. In other words, the debt on their home is greater than its value.

One couple I know can't refinance or get a loan, because one has been laid off and the other is expecting to be laid off soon. They are representative of our state's double-digit unemployment rate " victims of a bad economy with very little hope in the future.

More needs to be done to help protect homeowners in bad mortgages who make their payments on time but are struggling to do so. There may be hope on the horizon for some through changes in the federal Making Home Affordable program. The idea is to give lenders incentives to modify loans to homeowners who are upside-down or under water. It's estimated that 21 percent of homes in the United States were upside-down, loan to value, at the end of March this year.

While on the subject, I suggest reading these helpful tips from Making Home Affordable on avoiding foreclosure rescue scams .

- Beware of any person or organization that asks you to pay a fee in exchange for housing counseling services or modification of a delinquent loan. Do not pay " walk away!

- Beware of anyone who says he can "save" your home if you sign or transfer over the deed to your house. Do not sign over the deed to your property to any organization or individual unless you are working directly with your mortgage company to forgive your debt.

- Never submit your mortgage payments to anyone other than your mortgage company without their approval.

For more information, go to

makinghomeaffordable.gov.

- Tim O'Callaghan is co-publisher of the Henderson Home News.