House Committee Aproves FHA "Short Pay" Loans

RE:House Committee Aproves FHA "Short Pay" Loans

Bigtim — Tue, 27 May 2008 11:00:00 GMT

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

RE:House Committee Aproves FHA "Short Pay" Loans

anonymous — Tue, 20 May 2008 11:00:00 GMT

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.

RE:House Committee Aproves FHA "Short Pay" Loans

Jane — Fri, 09 May 2008 11:00:00 GMT

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.

RE:House Committee Aproves FHA "Short Pay" Loans

Cindy — Thu, 08 May 2008 11:00:00 GMT

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!

RE:House Committee Aproves FHA "Short Pay" Loans

noslen — Thu, 08 May 2008 11:00:00 GMT

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.

RE:House Committee Aproves FHA "Short Pay" Loans

Karen — Thu, 08 May 2008 11:00:00 GMT

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.

RE:House Committee Aproves FHA "Short Pay" Loans

G.Valenzuela — Mon, 05 May 2008 11:00:00 GMT

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.

RE:House Committee Aproves FHA "Short Pay" Loans

Karl — Mon, 05 May 2008 11:00:00 GMT

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.

RE:House Committee Aproves FHA "Short Pay" Loans

Renee — Mon, 05 May 2008 11:00:00 GMT

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!!

RE:House Committee Aproves FHA "Short Pay" Loans

Dani — Mon, 05 May 2008 11:00:00 GMT

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.

RE:House Committee Aproves FHA "Short Pay" Loans

Mike — Sun, 04 May 2008 11:00:00 GMT

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.

RE:House Committee Aproves FHA "Short Pay" Loans

William — Sun, 04 May 2008 11:00:00 GMT

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, theyâ€™ve lined up another proposal. They will not stop until their banking masters are made whole, with taxpayersâ€™ 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.

RE:House Committee Aproves FHA "Short Pay" Loans

Anonymus — Sat, 03 May 2008 11:00:00 GMT

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?

RE:House Committee Aproves FHA "Short Pay" Loans

Bill — Sat, 03 May 2008 11:00:00 GMT

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.

RE:House Committee Aproves FHA "Short Pay" Loans

Mikelsdad — Fri, 02 May 2008 11:00:00 GMT

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