| I just read every posting and I am really disappointed and confused. It is really obvious that most of the people have not been in a situation beyond their control I'm not talking about bad decisions or making an investment I am talking about conditions in the economy that have changes peoples lives and made it hard to earn the money they were making when the purchased the home. My feels are in you make and investment and it goes south that's risk you take in any type of investment NO BAIL OUT. But the poor slob you wanted to own a home and either lost his job or business needs help to get back. I believe the the servicer's of mortgages who make 2.25 premium should make an honest effort to help out the mases. They should do this to protect the other mortgages that they have on the books and the values of other properties. If they allow this to continue the amount of loses will far greater the the national debt. With the trillions of dollars being spent on chasing terrorist I think the money would be better spent at home taking care of our house, our seniors who are getting screwed to the wall everyday. As part of the mortgage and real estate industry I know for a fact that the programs that many people got into were pushed from the inside out have many AE's who were jumping through hoops to get the deal and mortgage companies coming into our office with programs that were to hard to believe. You can't keep blaming the consumer who just wanted to better themselves by being a home owner. I think every person in the financial industry i.e mortgage, real estate, appraisers alike, needs to be accountable from the bottom to the top. The hole problem comes down to greed and anyone who made one dollar in the boom years was part of the problem Now let's all take responsibility and work to fix it then we will begin to get out of the problem and start seeing and increase in the market. It does not matter whether it comes from the government or the mortgage industry they need to work together and fix it they all made money from the boom. It was a risk that they all took and made billions in profits now they have to give some of it back for the better of all. So let's all dig in and pull it together then will will get another chance at the greatest value in the world and the best money maker ever REAL ESTATE |
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| Above Posted By:
Bigtim
| Tue, 27 May 2008 09:42:19 EST |
| so call smart borrowers have you thought about the families that are behind these forclosures. just because they had "algebra and geometry" in high school does not make them any less worthy of the dream of ownership of their own home. |
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| Above Posted By:
anonymous
| Tue, 20 May 2008 22:47:03 EST |
| Bring out all the government programs you want. The FHA will just end up going under ( need a bailout) when all the subprime welfare cases go delinquent on their loans. Yeah, there is fraud, but not as much on the lender side as there is on the consumer. No one has savings, everyone took an 80/20, they incurred more debt, no one understood the arm, but they knew enough to inflate their income on their loan applications. And now we want to make sure they keep their homes. Households who earn less than 40,000 a year can't afford a 350,000 house! And greater good: how about people who can't afford houses due to the fact that property values have gotten so jacked up you need everyone in the house to pay rent to make the mortgage payments. We need a correction and we need to let the banks, investors, and consumers suffer the consequences of the risks that agreed to take on. |
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| Above Posted By:
Jane
| Fri, 9 May 2008 19:16:32 EST |
| The "big time" investors, governments, and everyone else in the housing market to make a dollar....here is the solution and you are not going to like it. More than 70% of the subprime loans have some sort of fraud in them. These people are just walking away from there homes due to foreclosures not knowing that they may be defrauded on their documents. If a consumer has any type of fraudulent activity shown on their documents, then the lenders should just give them their homes, period! They are the ones trying to make a million here at the expense of the American consumer's lack of knowledge concerning fraudulent documents, predatory lending, etc. This will definately put a stop to predatory lending and allow the consumer to get back on their feet and pay the rest of their bills and have a home to live in from here on out. I am not saying this would fit everyone, but for the consumer that wants to keep their home for say, over 10 years or more, what a great boost for the economy! |
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| Above Posted By:
Cindy
| Thu, 8 May 2008 17:57:04 EST |
| G. VALENZUELA - If you see this comment - who was the lender that allowed for the short pay even when the borrower was making payments on time. WOW. |
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| Above Posted By:
Karen
| Thu, 8 May 2008 12:21:37 EST |
| I think a reverse pmi (premiums paid for anything over 100 ltv) back by the feds would be a better use of the money. This will help homeowners who really want to keep their homes but are underwater to refi into a fixed rate and if the housing market rebounds, they can cancel their pmi payments. However, this will not stop the bleeding in CA, AZ and FL where speculators were the majority of the buyers. |
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| Above Posted By:
noslen
| Thu, 8 May 2008 08:02:38 EST |
| Well for what I've seen lately, the lenders are taking up to six months to approve a "short sale" and by the time it is approved, you see dozens of foreclosed properties and the value is even lower than what the short sale was for. When they say "90%" of the market value, where is the other 10%+ CC coming from?. What I think the government should do is to garanty a silent 2nd to the lenders for 5 or 10 years term at low interest just like equity partners and payable when the borrower sells his property in 5 or 10 year after the property values are stable and everything goes back to normal. |
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| Above Posted By:
G.Valenzuela
| Mon, 5 May 2008 22:25:31 EST |
| I funded a short payoff last month. It was interesting to say the least. The lender accepting short funds seemed more than eager to get this loan off their books, even though the borrower had not missed any payments. The borrower was facing a payment increase on his first adjustment from $2900/month to $3700/ month. He now has a 30 year fixed rate with payment of around $2400/month. He got to keep his home. Again, the lender was happy to do it (I imagine they bought the note cheap and made a nice profit), and no foreclosure nor short sale to contribute to declining market. Recapping, lender made profit, borrower kept home, market saved from further adding to it's decline. I think this is going to be a key part of the much needed recovery. |
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| Above Posted By:
Karl
| Mon, 5 May 2008 13:46:09 EST |
| First of all I commend the government on trying something new but is this what most homeowners who are in upside mortages need. This bill is only part of the solution. Also, they need the money to put this 10% plus fees down is they are already having problems paying their mortgage payment. Where on God's green earth are they going to get this 10% plus fees from. They need help now not tomorrow is not their fault they property values have declined. Let's all just pray the resolution come now!! |
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| Above Posted By:
Renee
| Mon, 5 May 2008 08:02:13 EST |
| The VALUE is based on current market value. Not what you owe. There seems to be many comments on "what if my value is less than my mortgage"...what this article says is the home would be appraised on CURRENT value. Your loan would be for LESS than you currently owe, thus making it a short payoff when closing escrow, thus needing lender approval, etc... Hope this helps some of you understand. |
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| Above Posted By:
Dani
| Mon, 5 May 2008 01:07:11 EST |
| Philip, please. so what do you want, you want the country to continue to slump into further financial trouble? You probably want gas prices to rise to $5 a gallon dont you? There are times when everyone needs help regardless of the decision they made. We all pay the gov't trillions in taxes and they go off hunting terrorist they cant find and spend 500 trillion dlls. and its not ok to help out those in need in the U.S. please. |
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| Above Posted By:
Mike
| Sun, 4 May 2008 15:08:43 EST |
| In my opinion, Senator Chris Dodd and Representative Barney Frank are two very corrupt politicians. Both of them keep sponsoring bailout plans for their banking masters. Before the ink has even dried on one proposal, they’ve lined up another proposal. They will not stop until their banking masters are made whole, with taxpayers’ money.
For their loyalty and obedience, you can bet that they will be richly rewarded with campaign contributions and a nice high paying job when they retire from politics.
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| Above Posted By:
William
| Sun, 4 May 2008 10:32:27 EST |
| Some of you amaze me. Has anyone considered that unless somethingis done to curtail foreclosures and public sentiment that we are all at risk? While I am not completely comfortable with irresponsible borrowers being awarded equity for their lack of education or misdeeds it seems to be a part of a potential "greater good". You see, every time a bank takes a property back and sells it far below market value an affidavit of value is recorded that affects all of our homes. The question is would you rather see your homes value deterirate at a rate that you may never recover from in your lifetime or keep the poor schmo in his home and keep us all from further market deterioration. The psychology of a homeowner is being strained by the media. "Just walk away" is "Just Stupid." An inability to stabalize the housing market and let this self serving reationale continue to proliferate may cause a catostrophic slide in values and homeownership that could last for a decade. The reality is that there is no perfect solution but everyone must focus on "the greater good", and in my opinion that is to bail out the uninformed to save the responible. Sure prices need to come down, but if a bank or servicer agrees to write down the current mortgage to 85-90% of the homes current value we should be at or near a bottom taking into consideration the vast number of REO properties that will need to be liquidated that may already be sufficient enough to equalize mortgage-to-rent ratios. Combine that with affordable mortgage rates insured by FHA and you have a potential solution that will stem foreclosures, reinvigorate more responsible "full documentation lending as required by FHA guidelines" and stem the declining value of all of our homes! The gift responsible borrowers will be receiving is a gift of equity just like the gift the irresponsible people are getting by stopping the slide of values before they cannot be recovered in anyones lifetime. Is everyone too blinded by what the Jones's get to realize that this plan may help you too? |
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| Above Posted By:
Anonymus
| Sat, 3 May 2008 09:19:51 EST |
| This is an unwise proposition that simply benefits those who have made poor financial decisions. As we move toward resolution of the mortgage crisis we need to understand the basic problem which is that in many parts of the country house prices have been unsustainably high. What we are doing in this case is giving borrowers in these areas a gift. Here is how it works: the lender is paid to take a hit on the loan and the government never recoups the payment. If values increase in the short term only a fool would sell the property so in an up market the original borrower who MADE the initial POOR choice will wait until year five and then sale the property for what they may have paid for the property and get a WINDFALL. This law is the worst policy we could have.
What we need is the following: underwrite loans based on the borrower's ability to srevice the debt. If this is the norm, then we will not create BUBBLES and we will not OVERinvest in CONSUMPTION of housing. Borrowers and buyers at the 2005-2006 peak are out of luck. We need to educate people in this country that you can not consume your way (with housing) to wealth. |
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| Above Posted By:
Bill
| Sat, 3 May 2008 08:22:41 EST |
| The formalization of the short pay is HUGE. Many borrowers in interest only loans would like to refinance but with no equity in the property there are no loans available. This formal approval of short pays, which we have been doing for about three months, are now being approved. We qualify the borrower 'full doc" and then have the property appraised. We qualify the borrower based on the new value and their actual income. These short pays allow the borrower to retain the ownership of their home and in many cases reduces their principal balance and convert to a 30 year fixed mortgage. Having the formal backing is huge. I do agre with the earlier post where the comment or question was made "what do we do about the people who have multiple properties that the lender allowed them to purchase all as owner occupied? |
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| Above Posted By:
connie ingle
| Fri, 2 May 2008 22:52:52 EST |
| All I would like to say is,why does the federal goverment and some state goverments wait until the CITIZENS of the United States are screwed out of their property before they do any thing to stop it?
Also why do they let the morgage companies do the crap they they have been doing?
All this polititions are interested in today is the money and fre benefits they get,they couldcare less about the AMERICAN people. |
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| Above Posted By:
Jody
| Fri, 2 May 2008 16:37:46 EST |
| Here's the part I don't quite get yet....The new loan would be limited to no more than 90 percent of the property's value and must have terms that the borrower can reasonably be expected to pay... If we're all upside down anyways and cant make payments, what is a 90 LTV going to do to help me? All that means is I would have to come to the table with 10% plus fee's. If I had that kind of coin I would make my payments. Secondly, would you like this problem solved once and for all? Very simple.... Clean up my credit report going back one year. Remove the lates and my credit will be good enough to refinance |
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| Above Posted By:
Mikelsdad
| Fri, 2 May 2008 12:33:18 EST |
| I believe this is a GREAT solution, especially for those who have an ARM ,because they can't refinance and get a lower rate because of the value. People are letting their house go if their rates resets and their mortgage payment is higher than the going rent in the area and their house isn't worth the money they owe. They are just renting anyway, with extra problems like repairs.They are thinking I might as well stay here for a year without payments and then go rent a house. If they can refinance with FHA and get a fixed rate and a lower payment and reduce mortgage balance, that would help MANY people and stop numerous foreclosures. |
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| Above Posted By:
Anonymous
| Fri, 2 May 2008 12:19:07 EST |
| THIS WILL WORK IF, I MEAN IF THE FHA WILL ALLOW THE APPRAISER TO GIVE A REASONABLE VALUE TO THE HOUSE, RATHER THAN RELY ON A REQUIREMENT OF 2 SALES COMPS THAT DO NOT EXIST. A COMPARABLE SALE IS NOT LIKELY IN A DECLINING MARKET. SO STOP MAKING THIS A REQUIREMENT, THEN EVERYONE WILL HAVE AN OPPORTUNITY TO REFINANCE THIER HOME BASED ON INDIVIDUAL CIRCUMSTANCES. ALLOW THE INSTITUTION OF REALISTIC VALUATION FOR THE BORROWERS! |
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| Above Posted By:
Anonymous
| Fri, 2 May 2008 12:17:30 EST |
| I agree with Philip, with one slight correction...it would actually be greater than a 10% gift as the outstanding principal balances for most borrowers would be forgiven in the short sale and for most of these properties the value is less now than when the $$ were lent back in time.
I would also like to add that Barney Frank's stick waiving is out of pure grandstanding mixed with stupidity. Sure, force a servicer to lose money tough guy, but you cannot force them to lend above what they need to, to meet their CRA requirement. Keep threatening and watch lending contract further and thus "you hurt the ones you love."
People who made stupid decisions do not and should not be rewarded. A great many of these defaulting home owners had H.S. Algebra and Geometry. Also many have college educations...but they couldn't understand their loan terms or didn't take the time to understand them prior to closing? Yep, they are entitled to a 10% gift of equity. Yep, it is not their fault. Yep, someone else is to blame.
But I digress, the overriding goal here by politicians such a Mr. Frank is to position his party in the upcoming election. Both parties are guilty of this.
For example, Mr. Bush's plan is flawed as it is based on Tax exempt bonds. Seriously, who's investing in these bonds currently until the market settles down and bonds can be priced correctly? Very few. So this is nothing more than sizzle without the steak like the FHA secure or the conforming Jumbo loan initiatives.
Since I am writing here, please let me pose a few questions to all of you who may be able to provide some answers which I currently can't.
Here I go: Banks and servicers are pulling out of the stated income "liar" loans on residential lending. Fair enough.
Now the rub: How many people refinanced their homes to pay off their higher interest rate credit card debt, which banks are able to lend to them without verifying that the consumer, (borrower), was or is credit worthy, let alone that they could possible even hope to pay this amount back?
Isn't this a retail form of stated income loan then as the consumer's ability to pay this back is not verified?
Isn't the root cause of most of this current housing crisis the consumer's willingness to keep spending what they couldn't afford to and then since their home's value kept going up, (isn't this always going to happen?), simply roll this credit card acquired debt, which they couldn't afford, into longer term payment plans supported by the supposed equity in their home and repeat?
One more question, hasn’t our economy, in large part, been propped up by the ability of the American consumer to keep spending so we can float more debt overseas to China so we can keep purchasing their or other country's foreign goods? Isn't this what our government wanted to be done to keep the economy moving?
Am I missing something here? Seriously.
As with any good story people, there has to be a good guy and a bad guy and the political parties are all crawling over each other to take the pole position of the white night while the big bad mortgage lenders and servicers are the bad guys. If it were only that simple...
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| Above Posted By:
Joe
| Fri, 2 May 2008 12:05:41 EST |
| I want to try this loan. Should I apply to a new loan? I already get bad credit, because of few months late payment. What is other requirements for this kind of loan. |
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| Above Posted By:
hiennguyen
| Fri, 2 May 2008 11:53:06 EST |
| But does this bill help the owners already in foreclosure? Thats who really needs the help right now. The amount of homes being taken from the homeowner (regardless of whos fault it is) is unbelievable!! |
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| Above Posted By:
D
| Fri, 2 May 2008 11:36:59 EST |
| I think it's about time the Fed's did something that will I believe stimulate and help stabalize real estate. As we all know the R/E market was growing way to fast for it's own good. At least these people will be able to keept their homes and by doing so will also help the economy.
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| Above Posted By:
Anonymous
| Fri, 2 May 2008 11:11:10 EST |
| Why is it that everytime Barney Frank opens his mouth I see dollars leaving the industry? Why does he or any politician feel that more regulation will help the problem? Do any of the politicians know why the 'FHA Secure' program has not work?
Institute real change. Permanent change. Change the FHA limits permanently. Give the market an opportunity to correct itself! If the politicians want truely help, give the industry professional the tools need to help the public. More regulation does nothing but add more hurdles to clear in the road to recover. |
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| Above Posted By:
Harry
| Fri, 2 May 2008 11:08:17 EST |
| Real estate is a long term investment. If someone bought their home 2 or 3 years ago thinking they were going to sell and make a windfall profit they should not be able to use this as a way out of a bad short term investment and leave the bank hangin out to dry because their property value sank. They need to hang on to their home and wait for the market to recover and then they will be able to sell for a profit. On the other hand this could be good for someone who lost a family member or has had health related issues. I think this needs to be evaluated on a case by case basis. |
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| Above Posted By:
anonymous
| Fri, 2 May 2008 10:43:58 EST |
| This actually seems like a good plan. It even has a reasonable timeline. Wow. Something good has come out of Washington that has a real solution! |
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| Above Posted By:
Anonymous
| Fri, 2 May 2008 10:18:40 EST |
| Where are solutions to help the small investor that has a couple houses and find themselves in the same situation? I lost one property to a Trustee Sale, when the short sale approved buyer backed out. I am now offering another property with hopes of a short sale as well. I just cannot get the rent to support the payments, especially the 3pt increase, and GMAC would not recast the loan. I had put significant money down on the properties, and still could not keep it going, so I lost 80K of my cash, not equity...CASH!. That was my retirement. Anyone consider people like me need help? I don't have an owner occupied because I could not afford to buy in the Bay area...so because non of my properties are owner occupied (I was honest), I have been told there is nothing anyone can do...and I've asked alot of resources. |
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| Above Posted By:
Anonymous
| Fri, 2 May 2008 10:15:31 EST |
| Good bill, a little too late, the unemployment numbers released for April are a joke unfortunately it is not funny. The country is falling into a depression and the Government is tweaking all the numbers to ease the panic from growth, unemployment, earnings you name it, anything to deceive the public unfortunately it is not working. |
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| Above Posted By:
David
| Fri, 2 May 2008 09:43:16 EST |
| What good will this do for people in areas where the values
plunged below the mortgage value? |
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| Above Posted By:
Dennis
| Fri, 2 May 2008 09:37:40 EST |
| Government bailout?
What color is the horse?... |
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| Above Posted By:
Matt
| Fri, 2 May 2008 09:20:24 EST |
| Well I think it is a good step in the right direction it just seems a little to late for a hole lot of folks who have already lost there homes. I think there shuld have been a provision in the bill to maybe help those people who have already lost and had no help in anyway but to go to foreclosure. |
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| Above Posted By:
Tim
| Fri, 2 May 2008 09:18:28 EST |
| I cannot even say unbelievable any more because it just keeps coming in so fast and so furiously that the term 'ubelievable' is inappropriate.
So let me get this straight, if I make bad decisions to pay too much for my home and borrow too much on it to the point that I cannot afford it, this poor decision making is to be rewarded with a "gift" at the point of a gun from my loan servicer?
Ok, will everyone be rewarded 10% equity in their home as a free "gift" from our mortgage servicer?
So, let me see, I allegedly have a "right" to health care one idiot tells me yet I cannot find any definition of a right that requires financial compensation from other people in order to pay for that right. Now, if I decide to stop paying my mortgage company I am entitled to received a gift of equity from them of 10% of my home value?
Can I have a free car now too? I mean while they are creating rights that result in a financial and monetary benefit to losers paid for by winners I might as well ask. I should also have a right to life insurance shouldn't I and disability insurance without cost as well. Hey, can they fund my retirment account while they are at it?
I guess this equity theft to which defaulters are to be entitled is just the begining of the great plan to provide everything for free paid by the fairy godmother or the fairy godfather.
Come on people when did everyone done diapers and rattler? |
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| Above Posted By:
Philip
| Fri, 2 May 2008 09:14:09 EST |
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