Lenders, Feds Finally Paying Attention to Mortgage Crunch

re: Lenders, Feds Finally Paying Attention to Mortgage Crunch

hope now — Fri, 19 Dec 2008 14:24:36 GMT

If you want to know about ALL the hope now programs in one place the best place is www.HopeNowMortgages.com . They will even let you know which agencies are close to your house.

RE:Lenders, Feds Finally Paying Attention to Mortgage Crunch

Joe P — Sun, 11 May 2008 11:00:00 GMT

None of the comments so far have indicated any knowledge of the mortgage modification program I have read about from HUD . Any "success" near to , un-foreclosures ?

RE:Lenders, Feds Finally Paying Attention to Mortgage Crunch

Gwendolyn Worsham — Tue, 29 Apr 2008 11:00:00 GMT

I am from Arkansas and I have a mortgage nightmare. The mortgage company that financed my home has been busted by the FBI . and the appraiser who appraised the home has given up his license, after an investigation that was done by the Arkansas Appraisal and Licensing Board. GMAC who currently has my mortgage note said that none of this mattered, they are still holding me liable for a home that appraised for $84.000 but is only worth $45,000. Where is the justice for the poor homeowner. I am behind on my note, and I don't see how I will catch up. To me it seems as though the Law protects the crooks , not the victims

RE:Lenders, Feds Finally Paying Attention to Mortgage Crunch

Tim — Mon, 21 Apr 2008 11:00:00 GMT

Liars! The financial institutions are lobbying to help the lenders, but there is no help for the homeowners. The coin-operated politicians don't give a hoot about "the peop[le", that isn't where they get the buld of their contributions. Democrates or Republicans, they are not working for "the people". The Well Fargo could have had my loan paid back, but they would not waive the pre-pay. The loan was origianlly made by Centex then sold. It was a scam, they lied about the pre-pay, said it would not apply after 2 years. In print, it was three. They said the payment wouldn't change for three years, it was 2. How convienient that the mortgage salesman said it backwards. And they blame the consumers!

RE:Lenders, Feds Finally Paying Attention to Mortgage Crunch

Randy — Sun, 06 Apr 2008 11:00:00 GMT

For all the talk out there about the "Evil" banks in our case this has been untrue , We had a so called sub prime loan with wells fargo ...9.25 % arm with prepay cost and a 2 year reset but we where pro-active in our loan . we went for a refi befor the 2 year mark and with a very low score of 628 was able to get the prepay waved and was able to get a 30 year Fixed at a great 6.0 % and on top of that we was able to roll all of our closeing cost into the loan so no money out of our pocket. our dept ratio was 39% and the worth of the house went up very little in the 1 3/4 year we owned the house , I know this blog has mostly bad news from folks but there really is help out there.

RE:Lenders, Feds Finally Paying Attention to Mortgage Crunch

Louis — Fri, 21 Mar 2008 11:00:00 GMT

Its bad enough when one discovers, after the fact, that s/he has made a mistake in trusting their real estate broker and mortgage officer(s). However, its even worse when one has essentially been swindled and the law is not there to protect them from the predators. When we purchased our home in 2002, we were told it was a 30 year fixed mortgage, otherwise, we were not interested. During closing, we started signing the mirade of papers. Half-way through, someone came to collect the papers we had already signed and left the office while we continued through what was left to sign (they headed to the courhouse to file the papers dealing with deed, etc.). Miraculously, our mortgage officer appeared with a big smile on her face. The seller left with his check as the mortgager handed us our updated presigning papers. Guess what changed. Instead of a 30 year fixed, we had an ARM. On top of that, there were now two mortgages to cover a $179K loan, and the ARM was on the larger loan. Tried to back out, but our lawyer told us it would take more than two years and thousands we did not have. Two years later, 2004, we refinanced, again looking only at lenders who would give us a 30 year fixed. By then, the house "appreciated" and the loan increased from the 30 year fixed we wanted for $169K to $210K. Two years later, 2006, the house was reappraised, and it was only valued at $200K, even though both smaller an larger houses around us built in 2003 and 2004 were valued from $220K to $240K. Turns out, the appraiser worked with the mortgage company to inflate housing values to up the loan value and commission fees. Oh, yes, also found out that we were once again in an ARM with a first and second. Our recourse, none, because the feds caught on to the scam, and the appraiser was already in jail on multiple counts and the lender had sold the loan to another company and closed shop. All of this occurred on the hush-hush. It was the 2006 appraiser and inspector who told us about what had occurred. So for those who think it is solely the buyers fault, think again. We thought we were on top of everything. Turns out we were not. The lenders have a stake in it also. For two years now, I have tried to refinance with reputable banks, including the one that bought the first loan, to no avail. Our interest rate has gone from 7.25 in 2002 on the 169K to 11.5 and still going. The second mortgage is fixed at 10.25%. The ARM is due to cap at 14.5%. Now, rather than have someone who pays on-time and never late, the mortgage company will wind up with the keys to this puppy in 30 days, and we will reenter the renters market and moving every 2-4 years after annual increases for something we will never own. We are not in arrears, and the notes have been paid on-time since we first moved in. However, we cannot afford the next increase. My wife and I are disabled and did not buy beyond our means. The last two years have been a struggle, and inflation is causing havoc with our finances. Oh yeah. I have banked with Wells Fargo since 1981. They turned me down for any kind of loan twice. No hope for the honest homeowner whose credit has otherwise been ruined by the ARM. I thought Hope Now would be a viable alternative. However, the comments on this blog lead me to believe otherwise. Anyone know of a lender willing to finance for 30 years fixed for someone who pays and is never late or in arrears?

RE:Lenders, Feds Finally Paying Attention to Mortgage Crunch

Anonymous — Tue, 18 Mar 2008 11:00:00 GMT

The reality is that the average borrow did not foresee the cost of living going up exponentially with their mortgage rates when they signed the ARM. When I went to purchase a home 2 years ago I backed out because EVERY lender I spoke with was trying to push me into an ARM. I even got closing docs with ARM terms after I specifically told the lender no. Good, honest, hard working people who exepected to be able to refi in 2 years have been hit with lost jobs, high fuel and energy prices, and increased costs of living that their paychecks couldn't keep up with. 2 years later (when my rate would start adjusting up) my office has relocated 45 miles away (more driving) fuel is $3.25 a gallon vs. the $2.30 it was then and my salary has increased $100/month. Not exactly enough to cover those new high bills much less a mortgage increase. Yes borrowers should be educated and aware, but they shouldn't be bullied by their lender or held responsible for situations they can't control. I didn't vote for high gas prices, did you?

RE:Lenders, Feds Finally Paying Attention to Mortgage Crunch

Dave — Fri, 14 Mar 2008 11:00:00 GMT

Hope Now is a joke. I have an ARM and called my mortgage company Chase to inquire about Hope Now. Sure, if you qualify they will keep your payments constant but what you owe is only deferred to a later date and they will charge penalty fees and flag you as a late payer on your credit report. Anyone would be insane to sign up for Hope Now.

RE:Lenders, Feds Finally Paying Attention to Mortgage Crunch

Raymond Rodriguez — Fri, 14 Mar 2008 11:00:00 GMT

Why not make changes during a crisis such as the one we are in now, so that borrowers can "pull" from the equity in the property for the sole purpose of paying off credit cards debts, etc. The Government should make a law that allows this and for the Loans to be modified to fixed rate, and expanded to 45-50 years at a low rate vs the poor peoples special high rate! This is what gets you poorer, the low rates go to the rich! The economy is being affected by this system of providing good rates to the rich, when in fact the majority of the people are poor and they get the worst rates. The government must step in and make lending really non-discriminatory. Not based on color or race, but on rates. The credit system must be done away with, and a new one based on realistic credit vs what people want to arbitarily report on you. There should be an arbitrator before anything goes on your credit report vs having to waste time cleaning up something that was incorrectly or un justly sent in. USA Society is credit based but the credit system is outdated. You can't judge a person by numbers. Companies are at fault by laying off and firing people, unscrupulous banks and their rates, etc. A person does not choose to get in debt and foreclose on purpose, it's the rates. Are we brought into this world to work forever? We need to spend some of that money we work for on ourselves.

RE:Lenders, Feds Finally Paying Attention to Mortgage Crunch

Don — Wed, 12 Mar 2008 11:00:00 GMT

I guess I was a little nieve when the mortgage broker told me that the adjustable rate could go based upon the market and my credit rating. But, how was I suppose to know the apprasial was inflaited way over the actual value. No one wants to refinace 136 % of home value.

RE:Lenders, Feds Finally Paying Attention to Mortgage Crunch

Mary — Mon, 10 Mar 2008 11:00:00 GMT

I am adding my deep concern with our "Teaser" loan. I was definitely "mislead". I am not a lawyer, or a CPA to be able to understand the documents at time of signing a loan. I was neve explained the "Real Meaning" of what was to happen once the loan mature. Now, my loan will be going up from $2,263.00 to $6,300.00. Is that a shocker or what!!!! The financial institutions who put us into these, "teaser" loans, should be prosecuted. They made billions of dollars on folks such as myself. Now, we are the victims, and they're all off the hook? How fair is that? We expect the federal government will be there for us during this TIME OF CRISIS ! Thank you, Mary in So California

RE:Lenders, Feds Finally Paying Attention to Mortgage Crunch

Mary — Wed, 05 Mar 2008 13:00:00 GMT

While it is very convenient to blame big business for all of this, everyone seems to be forgetting that this is AMERICA-meaning, as Americans, we all must be responsibile for our own actions. We cannot claim ignorance when we make bad decisions. If you want the government to support you all of the time or blame business for every bad decision you make-move elsewhere and give up your personal freedom. Granted, there are lots of scary and manipulative people out there who will steal the shoes off of your feet, but how many of us do not know this already? Rip off stories are shown every night on the news, in magazines and newspapers. Therefore, it is common sense that we should go into every contract/major purchase with open eyes. So many Americans are caught up in materiality nowadays. In some cases, that's where the money for their mortgages is going. Give up the expensive cars and drive a Hyundai. Give up the cell phones that everyone has. Sell your big flat screen TVs. Sell your iPods and Playstations. Stop shopping at the mall, eating out and using shopping as a hobby. I would like to know how many of these people who cannot afford their homes spend $100 a month on cable TV.... Sorry, but I am unable to feel sorry for people with huge homes that are precisely decorated and thousands and thousands of dollars of "toys" and other luxuries who are suddently screaming. Please do not jump all over me talking about the single mother who has three kids who has a modest home and no luxuries-it is obvious that I AM NOT SPEAKING ABOUT SUCH SITUATIONS. Somehow I just can't help but feel that the person who lives modestly and within their means will end up paying for this fiasco-whether it be more taxes or increased cost of goods and services, while the "psuedo rich" will be given huge breaks to remain in their homes surrounded by their toys.

RE:Lenders, Feds Finally Paying Attention to Mortgage Crunch

big — Tue, 19 Feb 2008 13:00:00 GMT

we need to get rid of the central bank and return the money power back to the people in congress and the us tresuary.

RE:Lenders, Feds Finally Paying Attention to Mortgage Crunch

Deb — Thu, 14 Feb 2008 13:00:00 GMT

I have a 2/28 loan with wells fargo. I lost my job for 3 month and wiped out everything we had, we even notified wells fargo and they wouldn' help. my monthly mortgage payment went up 800.00 I couldn't affford what i had,never mind more. I find it hysterical that Wells Fargo is part of this Hope Now group. Any ideas out there. I'm in financial hell.

RE:Lenders, Feds Finally Paying Attention to Mortgage Crunch

anonymous — Wed, 13 Feb 2008 13:00:00 GMT

i am not a financial person and know next to nothing, but what about a longer mortgage time. say 40 or 50 years.