Up In ARMs - The Mortgage Bailout

re: Up In ARMs - The Mortgage Bailout

Lisa P — Fri, 21 Nov 2008 05:40:55 GMT

It is believed that the mortgage bailout plan is designed to bring stability to the shaken economy, it will affect only a narrow slice of homeowners in the U.S.

It appears that a TARP was not enough to cover up the mortgage crisis. Endangered mortgage homeowners could not benefit from the kind of credit repair scores presented by Treasury Secretary Paulson’s Troubled Asset Relief Program. On the contrary, 1.5 million homeowners can obtain a sense of security when they’re facing foreclosure through the Federal Insurance Corp Chairman Sheila Bair’s new mortgage modification program. This straightforward system, a $24.4 billion program drawn from the $700 billion pool that TARP set up, will allow lenders a stipend of $1,000 per loan they renegotiate with financially stuck homeowners. In the event of default on a loan, the FDIC has pledged to take on up to 50 percent of the loss. While Paulson proclaims this as a mere spending that will only bankrupt the FDIC, many view Bair’s movement as a needed investment to maintain the liquidity in the mortgage industry. While this won’t solve all the problems immediately, it’s certainly a bold effort to help repair credit.

Click to read more on <a title="What is Credit Repair?" href=" http://personalmoneystore.com/moneyblog/what-is-credit-repair/">Credit Repair</a>

RE:Up In ARMs - The Mortgage Bailout

Serena — Sun, 25 May 2008 11:00:00 GMT

To Harry Balzak posting March 19, 2008- I wish everyone could be as "fixed" in their life as you. Some of us did not choose a 30 year fixed on our homes because the rule of thumb (per our lender) is that if you don't plan to live there longer than 5 years, the 30 year fixed is not the best plan. So, along the way some things change- like in year 2 the market falls out from underneath us. Now we are stuck. Our home is 150K below the value we paid. We tried to work with our lender (Countrywide) but were told that our credit history is too good. We pay for everything on time. We are scared of the impact 2 years from now when our ARM adjusts and we won't be able to sell or pay. Do you have any great words of wisdom now? Does anyone?

RE:Up In ARMs - The Mortgage Bailout

Richard — Wed, 21 May 2008 11:00:00 GMT

All we want to do is refinance exactly WHAT WE OWE. We're with Countrywide and basically they said (since we're 40k upside down, in spite of making an 84k downpayment) that unless we're at least 3 months in arrears, their "customer retention" department won't even talk to us. We've never been late and this is our second house with Countrywide (and do they ever have some stupid people there). We're cancelling our bank's automatic payment today and putting our $2,700 away every month now. In 3 months they can either freeze our old house payment or they can have it back...then they can eat the 40k that we were WILLING to pay them when they have to resell at a loss. No wonder they're in such trouble...they're just morons. And actually...we're better off NOT freezing the rate (8.05%), let 'em have it back and going out next year and buying another home at 5.5%. Even renting for a year, we should be ahead about 12-15k and who needs the "tax write-off?" We paid 30k and got back 1k from the IRS.

RE:Up In ARMs - The Mortgage Bailout

Mike — Wed, 21 May 2008 11:00:00 GMT

I called HopeNow with regards to my Mortgage and they were helpful giving me advise on who to contact. So I called my lender, Countrywide and as usual, they were less than helpful. I income has dropped by over 40% from this time 2 years ago and I am having to rob Peter to pay Paul which was never my circumstance prior. Counrtywide tells me that I do not meet the qualifications for mortgage modification because my net to debt ratio is negative but if it was positive they could help me. Well, if my net to debt was positive then I wouldnâ€™t need help now would I. I would have extra money going into savings or extra to pay on my mortgage or just extra money laying around. Why would the mortgage company want to help those that donâ€™t need help? Isnâ€™t this the situation that caused the problem to begin with? Its like giving a tax hike to those that can less afford to pay higher taxes instead of giving them relief. I am llooking for answers to this situation that many of us are in.

RE:Up In ARMs - The Mortgage Bailout

Tammy — Thu, 01 May 2008 11:00:00 GMT

We were due to have our mortgage reset in July. For the last month, I have been trying to either refinance into a rescue package or get a rate freeze. Negative equity etc. We contacted our mortgage company and sent off paperwork to them - hardship letter explaining rate was due to reset - finance worksheet - 2006 taxes etc. This morning I got notification that they are freezing the rate for 5 years. WHEW! Don't give up!

RE:Up In ARMs - The Mortgage Bailout

JANE — Tue, 08 Apr 2008 11:00:00 GMT

Well after reading all of your comments. I decided to get a jump on my arm situation. My arm won't be up untill January of 2009. I don't qulify for a refy. So I called my lender (Countrywide) to ask about a arm freeze. I meet all the guidelines. I was told I would have to wait untill three months before my arm was up to be reviewed for the rate freeze. Now if I do this and they decide to turn me down. I will have only three months to sell my house. If I cannot sell my house in three months my arm will be up and I won't be able to pay my monthly payments. Then they will foreclose on me. So I am choosing to get out early. I am puting my home on the market ASAP. None of these lenders have any intentions of helping any of us they have hidden agendas. My family will have to start over again but, we will never put our dreams in a ARM again.

RE:Up In ARMs - The Mortgage Bailout

Harry Balzak — Wed, 19 Mar 2008 11:00:00 GMT

This is all a joke. The fact of the matter is, people bought more than than they knew they could afford, and now they are complaining that the government is not "helping" them.(boo hoo). I qualified for a 225K fixed mortgage in 2000, but realized I could only comfortably afford 140K. Could have bought the bigger house, but didn't. I bought a smaller house, but had the piece of mind. These people need to stop pointing the finger at the mortgage companies, realtors, and the government and place the blame squarely where it belongs- right in their mirror. Home ownership is a privilege, not a right. Everyone feels they deserve to own their dream home- even with their crappy credit scores. I'm all for helping people who truly deserve it. Everyone has bad things happen- sickness, deaths in families, job loss. These people should be given a break. Greedy, irresponsible people who have to have it all now should not. Go back to renting.

RE:Up In ARMs - The Mortgage Bailout

Smart Enough — Thu, 06 Mar 2008 13:00:00 GMT

Wow, what a selfish and frankly dishonest person the author of this article is (and from the looks of it, may of those who posted comments about it). Rather than buying a slightly less expensive house using a fixed mortgage that you could afford, you decided you just had to have the more expensive house. You figured "I'll just get an adjustable mortgage, then I can afford it." Did it ever cross your mind that the rate will go up in 5 years? I'm sure it did. You are in either one of two groups- either you were wrong to buy the house you did, or you are trying to take advantage of the housing "crisis" by locking in your rate even though you really don't need to. Either way, the BORROWER is the despicable person here. I can't stand these arguments "Oh, the lender shouldn't have given me credit because I can't afford it". Are you serious?!?! If you can't afford it, then don't buy the house! Its not the lenders fault for trusting you, and its certainly not the governments fault for creating a marketplace in which lenders can trust borrows to take only what they need AND can afford. This housing crisis makes America look despicable. Apparently we are all foolish like children in a candy store- we'll eat and eat and eat, and when we get sick, we'll blame the store owner for allowing us to eat. Its your mess, don't make me pay for it.

RE:Up In ARMs - The Mortgage Bailout

Cesar — Tue, 05 Feb 2008 13:00:00 GMT

So what is the best advice to Freeze your rate then? I'm helping a client go through this proccess within the loss and mitigation dpt of the loan co. Can they say no to the request. This client has always paid on time, has no equity, and pre pay penalty. Lastly it is a fact, he will not be able to pay the new reset monthly charge. Any thoughts, thx

RE:Up In ARMs - The Mortgage Bailout

Mon, 28 Jan 2008 13:00:00 GMT

I work at one of the calls centers that does Mortgage counseling. When you call in ask for the Housing counseling department . That is the special department that was created to help people with mortgage problems. The reason you were told they do credit counseling is because the company regularly does credit counseling and because of that was chosen to hire and create a department to also do housing counseling. When you call in what they will do is get some information from you that they need to forward to the people who service your loan. Like your name ,address, ss, dob. After that they are going to create a budget. What that will do is tell the service company your expenses and income to make a better decisision. After that they will give you the retentions tools that are available. Retention tools are programs available to you to save the house. After that they may make recommendations on what may be best for you in there opnion. After you hang up the phone they will forward your file to the mortgage service people who will call you in 7-14 days they will go over the retention tools once again and with you make the FINAL DECISION . The councilors have no authority to give loans or make final decisions . They are pretty much getting your file ready and you ready for when mortgage company call. To find a local agency go http://www.hud.gov/offices/hsg/sfh/hcc/hcs.cfm?filtersvc=hec&filtermultistate=yes

RE:Up In ARMs - The Mortgage Bailout

Moriah M. — Thu, 24 Jan 2008 13:00:00 GMT

So what are we supposed to do? Why would the President make it mandatory but there is no way to get it done? My mortgage is going to go up in June and we are going to be out shortly there after because there is no way we can afford the new interest rate. Refiancing is not an option for us! HELP!

RE:Up In ARMs - The Mortgage Bailout

kerry mcconnell — Sat, 12 Jan 2008 13:00:00 GMT

i feel so cheated.. trust someone who is a smooth talker.. "oh dont worrie you have plenty of equity left" "this loan is perfect for what you need".. 686 rating at the time of refinance a few years ago. now at a 710 rating. never late. i have two young children and a wonderful wife. now 60k upside down.. how in gods name are we able to refinance.. i just dont understand why one of these banks cant step up in these matters.. we owe the money, we are making payments on time.. we can still pay a fixed rate for the next 30 years.. why cant these companies re-write these loans into fixed.. the ones who lied to us in the first place should be forced to re-write these the correct way.. why in the hell was i put in a subprime loan at a 686 credit rating in the first place..?? live and learn i guess you could say.. i hear these people say its our fault but what about the people who lied to us to get us in these loans..

RE:Up In ARMs - The Mortgage Bailout

Anonymous — Tue, 08 Jan 2008 13:00:00 GMT

Yeah, and what about those whose mtg reset before Jan '08, who are already struggling to make the new payment (which is $1200 more than the old payment)!?!?!?!

RE:Up In ARMs - The Mortgage Bailout

A M — Thu, 03 Jan 2008 13:00:00 GMT

POLLY??? What ever happened? You said you "called the servicer myself and explained and said frreeze or come get it" and that you would update in two weeks. Just interested as to how it turned out. We are in a similar sit set to adjust April 1. our lender (GMAC) was nice enough to send us a note reminding us that our rate was set to adjust soon and to call them about getting fixed rate. I guess they forgot I tried that last summer and couldn't qualify. Wish us luck.

RE:Up In ARMs - The Mortgage Bailout

same old story — Mon, 31 Dec 2007 13:00:00 GMT

I just went on line to find some info on the so called freeze loans Thanks I guess now I dont have to waste my time