For the prudent and responsnible .. my advice is to STOP PAYING YOUR MORTGAGE NOW ... the only hope for survial in the usa is to "game the system" just like all these overextended and irresponsible "homeowners" did and will now get YOUR tax dollars to live in their mcmansion. If you can't beat them then join them!!
After you have been foreclosed upon, your house (and lots like it if your friends and neighbors do likewise) will drop dramatically in price. Presto! In a year or two you will be able to buy it back at half what you paid for it in 2004 or 2005. Now that's a bargain.
So give the government and the banks back what they're trying to give to you - a royal screw job.
After all, they intend to give your neighbor who behaved imprudently a bailout, and if you were prudent, unless you suddenly become imprudent, you're going to get screwed in the form of being taxed to buy his home for him:
"The program, which might help several million homeowners refinance into affordable loans, would require lenders to restructure mortgages based on a borrower's ability to repay. Under one option, the industry would keep lower monthly payments for five years before raising interest rates, the people said. "
Got that?
If your next door neighbor lied about their income to get their house, or took out an exotic "Option ARM" mortgage and can't afford their payments, they will get a big fat bailout.
You will, in fact, get his mortgage bill.
Unless you intentionally default, in which case you will still get to pay taxes, but you won't pay your mortgage, and thus, you won't pay twice.
lrobb
· 4 months ago
Not everyone who is currently in foreclosure lives in a mcmansion, nor did they over extend, some of us just happened to lose jobs that were supposed to be "stable". In order for a mom like me to look for a job to pay my mortgage I have to pay for daycare, in order to pay for daycare I need a job, and so it goes round and round. I worked in the mortgage industry for 13 years, didn't look like the end was near until BLAM there goes 98% of my office unemployed. I live in a very modest home in a very modest community, which I am leaving because I am losing my home, where both of my children were born, I have no choice. But I am one of the lucky ones, I have a mom who has a house that can accomodate us at least temporarily. We won't be homeless, but my credit is GONE so it'll be a while before we can have our own home again and live in a neighborhood where my kids will grow up safe, and in order to do that we'll have to save up BIGTIME. So please don't generalize.....
Kevin
· 1 year ago
This mortgage bailout is going to come with a corresponding tax credit for renters, right?
matt
· 10 months ago
I don't know much about how economics or anything like that works, but I do know that I am 4 mos. behind in my house pmt.( I bought the house when things were going good for me, now everythings been going really bad for the past 2 yrs.), I would think that instead of the government giving away money to huge corporations, just to make it not hurt so much WHEN they foreclose, wouldn't it be better to pay someones mortgage payments to get them up to date, then the homeowner keeps their house, and the lender gets their money? Maybe the government could pay half due and give lender the other half in tax credits?
I understand that alot of people have fallen on hard times, but if everyone looses their homes, then what? Isn't rent usually more than a mortgage? how many are going to be homeless?(then who pays?). I know im getting sick of no heat in my house(couldn't pay gas bill), and sick of electric shut-off notices every few weeks.
BR
· 10 months ago
"Christopher Whalen, an investment banker and research analyst ...it’s time to get the foreclosure over with and get that property back on the market, as a first step toward stemming falling home values."
How, exactly, is this the best course of action? The house will then be on the market appraised for the same reduced value as could have been offered to the homeowner if a modification had been pursued.
I.e. say my circumstances are such that I can't afford a loan for $300K but the current appraised value is $200K which I can afford. If the Mr. Potter's of the world skip to the chase and foreclose, the lender would then be trying to sell the house in an already flooded market for the same $200K.
There are a whole lot more stories in the housing debachle other than the subprimes. Between health issues and a new baby my wife hasn't worked in 3 years. We tried to sell just before this whole thing started and we watched our asking price follow the market down...trailing just behind. We went from hoping to come away with a modest down on something much smaller, to hoping we could break even, to being deeply indebted to family for the past year which will shortly run out.
I have similar urges like 'mad and angry' below but intentionally defaulting is a bad decision...like the ones that led people into the subprime web in the first place. I have to believe the system will open to those like me who have tried desperatly to be responsible. I just hope it happens in time.
NONE YA BUZINEZZ TEEHEE
· 9 months ago
BR aka Chriatopher Whalen, do u have a life? dude... who cares if ur a investment banker. ur lame ;D u think all cuz u make a lot of money u can talk down 2 us liltle people... DUDE>.>
u need a life cuz u are probably a middle age dude sitting at the computer playin World of Warcraft of some stupid, immature, pointless game to chat to your nerdy buddies. So there :P . And u know what, u shouldn't even be on this site cuz u prob. some rich, snobby person and your home or house may not even be up for sale, foreclosure SO THERE... AGAIN *_*
Loan Modification
· 9 months ago
Loan modifications have never been particularly popular with the lending industry. Some believe even government guarantees won’t change that. - Yes you are right about that.
Amber G.
· 9 months ago
If lenders and mortgage companies were smart instead of foreclosing on someones house, they should discuss with the homeowner and see what reasonable payment they can make every month. If it's $900.00 or $1,000.00 a month for the next 5 years or 30 years. This is common sense it would be a steady income for the lender. Also, the people that are suppose to be running our states need to make sure that if a big company needs to be bailed out it needs to be researched closely. Companies should not get bailed out for giving their employees a company paid vacation.
MMC chiptuning
· 6 months ago
I am glad that finally there is something that all Counselors, agencies and lenders are all getting better at doing and that loan amount is getting reduced. - There is still a way to go!
fedup
· 4 months ago
With all that said apparently it is up to your mortgage company to assist you in this process. Recently I lost my job and went the route of restructuring out loan but after 4 months of waiting on the mortgage company (GMAC) and Freddie Mac to make a decision finally they came back and said that the financial paperwork on there site was revised and we had to fill out another financial report again “so we did”. After not hearing from GMAC & Freddie Mac we called them back and they told us that they need for us to do this for a third time “so what's up with that”? At this point I am starting to believe that this is a stall tactic so they can foreclose on our home and pocket the equity that we built up over the years. I also believe that THE "not our" GOVERNMENT is offering a helping hand but every time we reach for it someone pulls it back. So if you are getting the same old run around and are at the point were foreclosure is at your front door do this, call up a wrecking company and have them level the part of your house that you have your equity in. This work's best if you start at the foundation.
mortgage loan modification
· 4 months ago
Modifications are becoming a little easier now for homeowners since Obama's Home Affordability and Stability Plan (HASP). Whether or not it will achieve the goal of helping 8-9 million homeowners remains to be seen...
All Comments
After you have been foreclosed upon, your house (and lots like it if your friends and neighbors do likewise) will drop dramatically in price. Presto! In a year or two you will be able to buy it back at half what you paid for it in 2004 or 2005. Now that's a bargain.
So give the government and the banks back what they're trying to give to you - a royal screw job.
After all, they intend to give your neighbor who behaved imprudently a bailout, and if you were prudent, unless you suddenly become imprudent, you're going to get screwed in the form of being taxed to buy his home for him:
"The program, which might help several million homeowners refinance into affordable loans, would require lenders to restructure mortgages based on a borrower's ability to repay. Under one option, the industry would keep lower monthly payments for five years before raising interest rates, the people said. "
Got that?
If your next door neighbor lied about their income to get their house, or took out an exotic "Option ARM" mortgage and can't afford their payments, they will get a big fat bailout.
You will, in fact, get his mortgage bill.
Unless you intentionally default, in which case you will still get to pay taxes, but you won't pay your mortgage, and thus, you won't pay twice.
I understand that alot of people have fallen on hard times, but if everyone looses their homes, then what? Isn't rent usually more than a mortgage? how many are going to be homeless?(then who pays?).
I know im getting sick of no heat in my house(couldn't pay gas bill), and sick of electric shut-off notices every few weeks.
How, exactly, is this the best course of action? The house will then be on the market appraised for the same reduced value as could have been offered to the homeowner if a modification had been pursued.
I.e. say my circumstances are such that I can't afford a loan for $300K but the current appraised value is $200K which I can afford. If the Mr. Potter's of the world skip to the chase and foreclose, the lender would then be trying to sell the house in an already flooded market for the same $200K.
There are a whole lot more stories in the housing debachle other than the subprimes. Between health issues and a new baby my wife hasn't worked in 3 years. We tried to sell just before this whole thing started and we watched our asking price follow the market down...trailing just behind. We went from hoping to come away with a modest down on something much smaller, to hoping we could break even, to being deeply indebted to family for the past year which will shortly run out.
I have similar urges like 'mad and angry' below but intentionally defaulting is a bad decision...like the ones that led people into the subprime web in the first place. I have to believe the system will open to those like me who have tried desperatly to be responsible. I just hope it happens in time.
ur lame ;D u think all cuz u make a lot of money u can talk down 2 us liltle people... DUDE>.>
u need a life cuz u are probably a middle age dude sitting at the computer playin World of Warcraft of some stupid, immature, pointless game to chat to your nerdy buddies. So there :P . And u know what, u shouldn't even be on this site cuz u prob. some rich, snobby person and your home or house may not even be up for sale, foreclosure SO THERE... AGAIN *_*
So if you are getting the same old run around and are at the point were foreclosure is at your front door do this, call up a wrecking company and have them level the part of your house that you have your equity in. This work's best if you start at the foundation.