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Fed close to passing Mortgage Relief

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Bobby Hamilton

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http://www.usatoday.com/money/story...ge-settlement/53016420/1?loc=interstitialskip


Didn't know if this would go in current events or politics.

But anyways.

Thoughts on this?

I still hate the fact that it seems that it will not help people who are upside down but have been current and responsible with their payments.

It only seems to help those who are behind. I'm not saying that's bad, but it seems that, again, the responsible people are being punished...of sorts.
 
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targus

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If the banks followed the government regulations and did not commit fraud in lending the money why are they now being held responsible in this way?
 
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billwald

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A $2000 payment for stealing your house?

It will turn out to be another way to enrich the banks and screw the working class.
 
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Bobby Hamilton

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targus said:
If the banks followed the government regulations and did not commit fraud in lending the money why are they now being held responsible in this way?
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What I found interesting (not sure if it was this article or another I read) was that homeowners that were not able to be helped would have the right to go after a bank for improper mortgage writing (something along those lines).


My wife and I have over 800 credit. I got a 6% rate when I bought my home in 2005. I'm eligible to get a 15 year rate (get out of my 30) for close to 3, but I can't because my loan to value would be about 98%. I'm not upside down, but I'd have to bring about 8K to close.

No one made me buy my house...so I want to be clear on that, but what it appraised for to what the value is now (like most americans) is insane. It stinks I can't get into that locked rate without having to put more money down than what I did when I purchased the home.
 
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mandym

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This is just one more of two other programs since Obama got into office. The last one failed miserably in that about 75% of the people who benefited from it lost their house after entering this program anyway.
 
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Bobby Hamilton

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mandym said:
This is just one more of two other programs since Obama got into office. The last one failed miserably in that about 75% of the people who benefited from it lost their house after entering this program anyway.
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I work in an industry where I deal with a lot of homeowners. I've yet to meet one person who was able to refi under the first program.
 
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Borneol

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Hard to see how this is going to help the housing market. Thought Gerri Willis had a nice piece yesterday on this latest idea from the government.

"Where's the Moral Hazard?"

excerpt:

...Banks aren't going to start writing mortgage loans en masse until they feel like the penalty phase of the mortgage crash is over.
So far, they've been subject to multiple investigations.
Countless hearings have been held on Capitol Hill.
Looming beyond this has been the prospect of a huge expensive settlement, which is what we are seeing today.
Not only will this program likely increase costs for legitimate borrowers as banks seek to pass on costs of the settlement, but all these "free" re-fis and write-downs only means fewer bank personnel available for legitimate loans.
It's time to be realistic.
The housing market is the ultimate too-big-to-bail market.
The government and even the banks don't have pockets deep enough to turn the clock back to 2006. We should stop trying.
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Read more: http://www.foxbusiness.com/on-air/willis-report/blog/2012/02/07/wheres-moral-hazard#ixzz1lulNP0oC
 
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targus

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Bobby Hamilton said:
No one made me buy my house...so I want to be clear on that, but what it appraised for to what the value is now (like most americans) is insane. It stinks I can't get into that locked rate without having to put more money down than what I did when I purchased the home.
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Sorry about your situation, but appraisals don't predict future house values.

The market doesn't only go up.

Sometimes it goes down.

Why should banks now pay for a decline in house values?

Dodd and Franks should be the ones paying for all of this.
 
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Bobby Hamilton

New Member
targus said:
Sorry about your situation, but appraisals don't predict future house values.

The market doesn't only go up.

Sometimes it goes down.

Why should banks now pay for a decline in house values?

Dodd and Franks should be the ones paying for all of this.
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I'm not saying the banks should, per say.

What I am saying is this: Again, at the end of the day, no one put a guy to any one person's head and forced them to buy a house.

But when a person was approved for 100% financing for a home that cost 200K and they only made 30K a year...then we've got an issue.

On top of that, the 100% financing wasn't a true indication of market value, but an inflated cost to get a person into a home with no money down. Fudging current house values to close a loan absolutely creates a false market for everyone.


The banks aren't completely innocent by any stretch.

At the end of the day, I'll live. Would I like to have a mortgage payment that is about the same as what I'm paying now but slash from 24 years left to 15? Sure. All in God's will.
 
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mont974x4

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Mexdeaf said:
My wife and I are refinancing now. We are fortunate. We will save over $200 a month.
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I turned in our paperwork this morning. We should end up saving a fair amount ourselves.

I never borrowed what they said our house was worth before, but it was still a mistake, a bad loan. I take full responsibility for not researching it better. We always paid extra, so add in not borrowing the full amount, when the value dropped we did not end up near as bad as some people did. We were also blessed to not have hyper-over-inflated values like other areas did.
 
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Bobby Hamilton

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mont974x4 said:
I turned in our paperwork this morning. We should end up saving a fair amount ourselves.

I never borrowed what they said our house was worth before, but it was still a mistake, a bad loan. I take full responsibility for not researching it better. We always paid extra, so add in not borrowing the full amount, when the value dropped we did not end up near as bad as some people did. We were also blessed to not have hyper-over-inflated values like other areas did.
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A lot of people are in this situation. I borrowed about 22K less than my house was appraised for.

So I'm not in a bad situation, when I still owe less than my house just recently appraised. The problem is, I borrwed somewhere around 87% back when I bought the house. Now I need to borrow about 97% (give or take) and a bank won't loan that to me. I have to bring a bunch of cash to the table.

While I completely understand, it the process that they were doing before that tanked the system.

Hopefully something will work and I can refi, or the market will improve enough I can sell.
 
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Mexdeaf

New Member
Bobby Hamilton said:
A lot of people are in this situation. I borrowed about 22K less than my house was appraised for.

So I'm not in a bad situation, when I still owe less than my house just recently appraised. The problem is, I borrwed somewhere around 87% back when I bought the house. Now I need to borrow about 97% (give or take) and a bank won't loan that to me. I have to bring a bunch of cash to the table.

While I completely understand, it the process that they were doing before that tanked the system.

Hopefully something will work and I can refi, or the market will improve enough I can sell.
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We will be at just under 85% with this refinance. Hopefully our government won't screw things up too badly and in about 10 years when we are ready to sell we can walk away with a little cash.
 
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Bobby Hamilton

New Member
Mexdeaf said:
We will be at just under 85% with this refinance. Hopefully our government won't screw things up too badly and in about 10 years when we are ready to sell we can walk away with a little cash.
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Amen to that. I just hope if I do sell it, I can come close to what I owe on it. I don't even care about a profit at this point, I'm just ready to move.

Want to be out by fall, as I don't want my son going to the schools in the area.
 
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