Will new mortgage relief plan help?
What do you think of this latest plan for mortgage relief?
The Obama administration will announce Friday a plan to reduce the amount some troubled borrowers owe on their home loans, Associated Press is reporting.
The effort will let people who owe more on their mortgages than their properties are worth get new loans backed by the Federal Housing Administration, AP writes. It would be funded by $14 billion from the administration’s existing $75 billion foreclosure-prevention program.
The plan also will require the more than 100 mortgage companies participating in the administration’s existing foreclosure prevention program to consider slashing the amount borrowers owe. They will get incentive payments if they do so.
It also will include three to six months of temporary aid for borrowers who have lost their jobs.
Will this help you avoid foreclosure?
Should the government be doing this?
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71 comments Add your comment
KA
March 26th, 2010
12:23 pm
ZZzzzzzzzzzzzz, AMEN! It’s time we clean house in the federal government, and vote them all out!
Erica, You are actually the one judging those of us here who speak the economic truth. I can feel someone’s pain and have compassion without agreeing to a further slide into debt. Life is a balancing act, and when you lose your balance you have to make adjustments, sometimes very painful. Is it right to saddle my children and future grandchildren with even more debt to give more bail-outs which just puts a band-aid on the wound instead of healing the source of infection? I must look out for my family first. I say NO MORE SPENDING.
still working
March 26th, 2010
12:33 pm
THe fact is kids. That since the first day that KARL MARX sucked in his first breath the communist have been trying to make life equal for all. There have been people up and down the social and economic scale from when time began, and that won’t change. all this Obama mania is going to do is put the USA in a downward spiral that will not be repairable by anyone and he knows that. If we don’t stop this and soon it’s over for everyone!
ZZzzzzzzzzzzzz
March 26th, 2010
12:40 pm
There was a time that when you bought a home you had to put up 15 to 20% equity when you closed. People who couldn’t do that rented and lived just as good as those that didn’t own a home. There was a reason lenders required the large down payment. When they got away from basic financial principles is when the problem actually began. It just didn’t rear its ugly head until there was a down turn in the economy and people lost their source of income.
Mortgage Man
March 26th, 2010
12:52 pm
This is great. I am in the mortgage business and business is slow. Hopefully this will allow people to lower the amoutn they owe on their homes so they can sell them. I will then be able to give them a new loan for a new home that they cannot afford and make lots of money off of them. And I mean lots of money. Who cares what happens to them as long as I pocket my money. It is the American way that is being supported by my man “obama”. Heck, obama is going to make millions off of being the first black “prez” when he is no longer in office, so I need to make my hundreds of thousands now. Thank heavens for the stupid people of the world.
Van Jones
March 26th, 2010
1:23 pm
C’mon Erica, you’re still bashing us but you have not told us how you provide so much help to the needy. Or do you just empathize?
Yes, my parents were born in the depression era. Yes, they were poor. Yes, they were raised in the segregrated south (whatever that has to do with anything) Yes, they lived below their means and worked numerous jobs to make ends meet. Are people today too good for that?
Again, please tell us how you are providing so much help that you feel confident looking down your nose at us.
Erica
March 26th, 2010
3:11 pm
Let’s see, my cynical friends, I have given from my family’s own resources (i.e. food, clothing, and yes at times money towards a place to stay). My husband and I, much like our parents and grandparents try to live out what we believe for our kids to see. Do I not want to leave the world that much better for the next generation? Sure, but do you simply sit back and watch others drown, while you swim, in order to do that, is the magic question. I guess it all comes down to is this, “Am I my brother’s keeper?” And not just for patriotism’s sake….but are you willing to share what you have with those who have not. Call it socialism, welfare, whatever you will.. but for the poster “You Are Wrong”, she and her family are living out the daily reality of many families, who were doing fine….until…..
I am not judging, but I am actually more sad than anything to see the cynicsm and the absolute lack of any ability to empathisize with anyone else’s plight, but one’s own. Have we grown this bitter and unfeeling? That reality frightens me more for my kids that ANY amount of monetary debt. Money can be replaced, but the ability to give a flip about your fellow man’s plight, is priceless…..
Erica
March 26th, 2010
3:13 pm
Oh and yes, I have watched dear friends and family members, who had saved and worked hard over the years go from doing okay to barely surviving, even with the requisite rainy day $$$. All it took was maybe one or two job layoffs or a catastrophic illness (i.e. cancer) to wipe out $$$$.
KA
March 26th, 2010
3:55 pm
Erica, You totally miss my point and others’. What you call cynicism is really our awareness of the big economic picture. We do have compassion, and give a flip, and for myself and family we have worked, paid taxes, saved and given to others. Your only reason for supporting this mortgage bail out is because you think it is the compassionate thing to do. The fact is it is NOT the government’s job or right to take over our economy, especially when their idea of a FIX is the never-ending spending of borrowed money. Let me put it this way. If you let your teenager use your credit card and he goes on spending sprees repeatedly… Do you let him continue to use your card, despite the fact that you cannot pay it off each month like you want to, but now are paying the minimum amount, and the interest is pushing the debt out of control? Or do you take the card away, which stops his spending spree, tell him to get a job, and pay you back? The government’s current handling of the economic crisis is the same as your teenager’s misuse of your card. The Government says “Spend Spend Spend” because it’s borrowed money, they can borrow more, tax us more, and someone else can pay it back. The question is, who will be able to pay it back when the economy has collapsed, businesses are failing, and the pool of taxpayers is dwindling? We need to tell the government to stop the spending, cut taxes, cut back on programs, get their noses out of private businesses, and let our economy recover. You said “Money can be replaced.” How does that work for you? Do you print it at home?
ugaaccountant
March 26th, 2010
4:19 pm
Erica – I am shocked that someone is passing along this level of Economic ignorance to the next generation. You are setting your children up for poverty.
Jeff
March 26th, 2010
4:31 pm
I, by no means want a free ride on Obama’s welfare train but I’d sleep better at night if I could just refinance to a fixed-rate mortgage plan. I’m upside down, but I signed the papers and I’ve never missed making a mortgage payment – not even one day late in over six years! I do however take exception to those that want us, the taxpayers to absorb half the price of their McMansions (with the media room and three-car garage).
Erica
March 26th, 2010
8:58 pm
To all my fiscally conservative pals:
Did Pres. Obama and the Dems create this sizeable deficit in the 15 months they’ve been in power? Or…..are we now stacking on top of the Iraq War debt, and the War in Afghanistan, and all of the great tax credits heaped upon the corporations who now are trimming their payrolls to ensure their profit margins?
If the current administration created our massive debt is under 15 months of power, then they are superhuman. Do the math folks. And to UGA acccountant, I am a UGA lawyer with a tax specialty, who graduated from with a college and law degree with NO DEBT! My husband and I are raising young people who can balance fiscal responsibility with common sense and having a conscious. And like their parents, they are voracious readers and observant to boot.
So… was anyone concerned about the USA ’s massive debt as we warred in two different countries for……..????
Food for thought. You have a wonderful weekend!
Sherilyn
March 27th, 2010
1:24 am
I don’t agree that just because a homeowner is upside down on their mortgage, they should get help. And either there’s a lot of renters on this forum or y’all don’t understand how all these foreclosures negatively affect your properties, too. My house I bought at the end of 2006 for $123K is now worth (according to Zillow) just $105K. I’m not freaked because I don’t plan on moving at least until my kid graduates high school in 10 years and plus, I got to pay somebody to keep a roof over our heads. But I do beleive aid should be given on a case-by-case basis. For example, when loan mods were first offered, there were two-income households with $400K – $500K mortgages that could easily afford to make the mortgage payments but let their payments lapse in order to get aid. But on the other hand, there are people who legitimately need help because they lost their job, had their income reduced, they got sick/injured, they have a special needs child, etc. The economy is effed up right now and something needs to be done to help these people who could afford their mortgage payments in better times but can’t now. I mean, isn’t this why the banks were bailed out in the first place?
oc77
March 27th, 2010
2:24 am
I am disappointed at all the negative comments about helping others less fortunate than themselves, I thought I had a lot to say but in the the end not being a big religion person I will just let faith and believe in God takes over, love is still the key and ask for forgiveness. If you still have a problem with that pray for yourself and your love ones. Amen!
TnGelding
March 27th, 2010
8:29 am
Something similar should have been done nearly two years ago. I was calling for a voluntary moratorium on foreclosures then.
JS223
March 27th, 2010
10:07 pm
I have mixed feelings about old plan and new one being discussed here. I lost my job and was unemployed for 1 year before taking 50% paycut and recently starting new job. I applied in July for the home mod. program and am still waiting for review of my current loan. I do not wish to get any $dollars reduced on my mortage just allow me to put $ payments owed back into new loan. I am happy to pay just extend by loan. This seems to be a better answer than forgive $ I agreed to pay.
When market goes back up in a few years will all of the ones who were helped give the equity gained back ? I doubt it.
I have 75K equity now. Use to be 125K, Should gov’t add 75K to my tax refund this year. No…All who are underwater and not able to stay in home should have lein on home for amount forgiven and pay back the money to tax payers in the future or sell and go rent.
Let free market work and $ will flow in right direction.
KA
March 28th, 2010
9:10 am
Erica, You asked, “Did Pres. Obama and the Dems create this sizeable deficit in the 15 months they’ve been in power? Yes, Erica, they have tripled the deficit. You are a tax lawyer? Hmmmm.
Why don’t you explain to us how any bail out funds will come back to bite the poor homeowners after they gain the benefit, and have to pay taxes on it.
TnGelding
March 28th, 2010
2:37 pm
KA
March 28th, 2010
9:10 am
Not true. The deficit would have been $1.3 trillion if Bush had remained in office in 2009. Obama has taken responsibility for the trillion he has added since taking office; approximately $500 billion in 2009 and the same amount for this year, most of it caused by the nearly $800 billion stimulus package.
Think A U S T E R I T Y !
KA
March 28th, 2010
6:02 pm
TnGelding, Sorry, I was including the Health Law Costs. Austerity is good, spread the word.
TnGelding
March 29th, 2010
5:43 am
TnGelding
March 28th, 2010
2:37 pm
Yeah, no telling what that bugger will cost. It certainly isn’t going to save any money, but at least coverage should be better for most.
tls
March 29th, 2010
9:33 am
The rule of thumb was that one should have 3-6 months of savings in the bank, not a year’s worth. No one expected this very long economic downturn. Telling people to sell in a market where no one is buying isn’t a solution. Just walking away is much more irresponsible than at least trying to make a payment or trying to modify the loan. Banks have been modifying loans for years for people and no one gripped when it was just called refinancing. The wealthiest folks were getting refinanced to lower and lower interest rates and no one was calling it a handout. In addition to the lower interest rates that were getting cash out on the so called increased equity so while the getting was good the rich just kept getting richer. When others attempted to tap into the same strategies for financial growth, the rules changed. People need to see this for what it really is. The elitists of this country did not like that a new demographic group was finally beginning to realize the American dream. We won’t even talk about all the wealth that has been passed down but was originally stolen from Native Americans and sustained by the sweat of African American slaves. The indignant posters need to look back a little further than just the passed 5-10 years. These problems stem from generations of abuses in our capitalist society.
Nelson
March 29th, 2010
7:52 pm
My house is paid for because when the economy was good I didn’t spend money on things I didn’t need or take out a home equity loan, I paid off my mortgage. What bugs me are people that took out home equity loans to buy toy haulers or SUV’s then defaulted on the loan and kept the toys. The value of my house has been cut in half so who is going to give me $100,000 to buy a toy hauler? The answer in nobody.