Will new mortgage relief plan help?

I agree, Shaggy. What about those of us who have been paying the entire time? Where’s our break? Now, I’m not talking about those who have lost their jobs due to this awful economy. I’m referring to those who bought a house beyond their means and now can’t pay.
This is now becoming what we can expect from the Robin Hood administration. Blah!

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Obo spreading the wealth around. Are any speculaters going to get helped with their gamble ?

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Wow.. really!! Are you guys really that disillusioned that you think its a hand out?? Its temporary help for the unemployed.They will still have to pay.. its just back loaded onto the loan.

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I am not for more government by any means but… there are people like myself who have homes that are not worth 60% of what we paid for them. That would be ok if I weren’t possibly trying to sell and relocate for a job. This plan may be able to help someone like me. My only problem with these plans is that you really have to have the help of a lawyer to get anything done. No one can dicifer all of the mumbo jumbo that you have to go through to get this plan. The banks and mortgage companies sure won’t help.

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Suspending payments with the TARP funds used to pay the interest would be a better plan than forgiving loan amounts. That would give people who are trying to overcome the hardship an opportunity to get on their feet. But even that must have an end. Forgiving loan amounts is wrong by any measure just as putting Unions ahead of bond holders was wrong in the GM mess.

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What ever happened to the American ethos of the rugged individual that built this country. I don’t know which is worse, the corrupt politicians who come up with these programs that take money from the producers to buy votes or the pathetic non producers that have lost their priniciples and take it. Either way America is in a steep decline.

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This plan is a big steaming pile … real estate is gambling and there is no guarantee the value will increase in the short term. My house is nowhere near the value I had hoped but I shopped and bought at a good price, made my affordable payments,

WTF should my taxes help those who made poor choices. I really don’t care that the banks offered “get rich quick” mortgages to put you in a house that you had no business buying. Ultimately it was your decision to sign.

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BOB how can you say something that you can’t afford is a good deal? Did you have a straight face when typing that?

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When we bought our home, we were approved for a 580K home. I ran the numbers and figured the most we could safely handle (and eat) was a 330K mortgage payment. So thats what we did. Guess what? No issues here. The problem here is that bad choices were made and now the taxes paid by the good decision makers are being used to bail out the bad decsion makers. I have no problem with restructuring a loan but ” 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.” That’s a hand out. That’s like giving the girl scout that sells the most cookies nothing while giving the one that ate her cookies the $$$$$ generated from the girl that sold the most! ALL OF OUR HOMES ARE WORTH LESS!

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Obviously, all of these self righteous posters are either still employed or have very large savings accounts (i.e. enough to pay all of their obliagtions to infintity and beyond). Fiscal responsibility is all well and good, as long as you have a source of income that is available to meet your financial obligations. Here’s the clincher…what happens when that income source stops (i.e. due to unemployment)? Even the most fiscally responsible person will undoubtedly be affected in this cirumstance. I am weary of hearing all of the propoganda and lack of empathy for those whom this economy has adversely affected. Everyone is not on the take, or on “welfare”. A lot of hardworking, earnest, honest folks have lost jobs, which has forced them out of their homes, which they were probably able to pay for as long as they worked. Before you sit on these lofty seats of fiscal judgement, ask yourself, “How would I survive if I were to lose my job or exhaust my savings?”

These are the people who will most benefit from some assistance with their mortgages. And guess what, if these folks are able to get back on their feet and stay in their homes, our collective property values will eventually come back up.

Have some compassion, people!

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We need something like this for the auto loans…. I am 10K underwater on my car loan… where is my help??

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autonumb – I’m assuming this is a sarcastic post, but if it’s not here’s a clue, the vast majority of auto loans are underwater all the time. Good economy or bad economy. It’s never been a good idea to sell your car before you pay it off.

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The Government has as much business getting involved in this as they did forcing banks to give loans to people who couldn’t afford them in the first place.

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Jim Cramer said a year ago that cramming down the principle on underwater loans would fix the mortgage crisis fast and he was right. As for handouts, the banks took billions from the government put it in their pockets, paid fat bonuses to execs and did nothing to increase lending. At least this gets money back in the economy and get some spending going. Here in SoCal many areas home values have fallen 50%. For many people who are that far underwater, walking away makes financial sense rather than continue to make payments on an asset that may never recover it’s value. More foreclosures aren’t good for anybody. This makes sense.

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This is great news. My house is underwater due to multiple cash-out refi during the past 8 years. I have great cars, and numerous vacation memories from the money spent. Where do I signup for the principal reduction? Wow, the responsible just keep giving & giving! What happens the well is finally sucked dry? Given the massive support for the banking industry during the past two years,,,,where is my return as a taxpayer!

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Erica, I am a bankruptcy attorney and have a lot of compassion for anyone who has fallen on hard times. However, this is largely a nation of greedy sheep with social status anxiety who want to have it all, and have it now, and think borrowing and living on credit is just fine. You are doomed to fail if you have believed what the government, banks, real estate agents, and neighbors and family have told you that is acceptable to live beyond your means on credit, to speculate and borrow too much to “buy” more house than you can really afford, and to buy cars, furniture, clothes, college education ALL on CREDIT. If you don’t have six months of salary in savings, and don’t pay as you go, and then you lose your job and can’t keep up with all of those credit payments, well guess what you are the only one responsible at that point. Failure to plan is to plan to fail. My husband and I only mortgaged half of our smaller home we built 26 years ago; paid off the mortgage in 15 years; paid cash for used cars and drove them until the wheels fell off, paid cash for furniture and clothes, and SAVED money and put our three kids through college. In other words we did not live on credit and we have savings. And when we started out our income was around $40K a year. The government has no money itself, as it relies on taxes paid by the citizens and businesses, and what it borrows when it sells bonds. And most of the money that the bloated federal government is spending now is money borrowed from China, who holds most of our debt. It’s time for a change, time to stop the borrowing, time to live within our means and when faced with a mistake in spending, STOP SPENDING.

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A lot of people are like drug addicts when it comes to bailouts and such, thats why a lot of drug dealers give you your first few hits for free. Once you are hooked its not free anymore and they have control over you and your life. Goverment=Dealers and Addicts=Bailout Seekers.

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Will it work as well as this plan already available? :”March 25 (Bloomberg) — More than half of U.S. borrowers who received loan modifications on delinquent mortgages defaulted again after nine months, according to a federal report.

The re-default rate of loans modified in the first quarter of 2009 was 51.5 percent by the end of the year, the Office of the Comptroller of the Currency and the Office of Thrift Supervision said in a joint report today. The figure, which measures payments at least 30 days late, climbed to 57.9 percent for changes made in the prior 12 months.

U.S. homeowners are struggling to make payments as depressed housing prices leave them owing more than their properties are worth. About 24 percent of properties with a mortgage were underwater in the fourth quarter, First American CoreLogic said last month. The median price of a U.S. home was $165,100 in February, down 28 percent from its peak in July 2006, according to the National Association of Realtors.

Modifications are “clearly not working well and it’s not a surprise,” said Sam Khater, a senior economist at First American CoreLogic in Tysons Corner, Virginia. “It’s pointless to rewrite these loans because they’re underwater.”

The number of homes with mortgage payments at least 60 days late climbed 2.39 million in the fourth quarter, up 13.1 percent from the prior three months and 49.6 percent from the year earlier period, the quarterly Mortgage Metrics report said.”

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KA: You pretty much hit the nail on the head. Not sure what people learn in the government run schools these days, but basic personal economics doesn’t appear to be in the curriculum. People bought homes that were far more than twice their annual income or bought homes without the necessary savings to endure a period of unemployment or had too much other debt to enter into a mortgage. Either way, “excessive debt” (be it personal debt or government debt) is wrecking this country. People over extend themselves out of either ignorance or instant gratification….it gets old for those that handled finances conservatively to keep supporting those who did and do otherwise.

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Erica, Tough Love is needed to wake up individuals and the government that out of control borrowing and spending has to STOP. Hard times is not unique to this time. My parents grew up in the Depression, times much worse than now. And when my husband and I were getting started the country was in a recession in the 70’s and we struggled to finds jobs, too. My husband has been with three major companies that went through major lay-offs through the 90’s and now. He’s likely to be laid off again, and he turns 60 this year. Our 401K lost half when the market blew, and our retirement plans have been put off. But we will be OK because we have a plan. That is the point. The government’s plan to spend more is just WRONG! Throwing borrowed government money at the housing problem is not the answer, it just makes the problem worse. So, Erica, quit whining about our lack of compassion. Tough Love, stop the spending, that’s the answer.

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Oh great, the nobel peace prize winng leader of the free world is on the news right now talking about something else he has to save to world. Wonder what this is going to cost us the taxpayers.

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Boy O’boy, here’s a little diddy for yah. If you receive a loan mod or a 30% reduction on your mortgage, you will all receive a 1099 from the IRS. LMAO, sorry nothin for free. If you lived above your means, happy trails. But dont even think about credit,buying a house,buying or leasing a car,credit cards, or getting a job. Cuz ur CREDIT is trashed, and everyone will see that, NO LOAN FOR YOU!

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Not everyone borrowed more than they could pay. We were living just fine with both of salaries, paying our mortgage ang other bills just fine. Then the economy took a downward spiral and the bottom fell out of the home building business. My husbands was a home builder. Now he does good if can find handman work. His pay bnow is below poverty level. We are having a very hard time now paying our mortgage. So NO not everyone is at fault of having a home that they cannot afford now. We NEVER lived above our means. You nay sayers DO NOT know of what you speak. One day I hope you will eat your words and then you will now how it feels!!

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So people who have done things the right way (lived within or below their means), paid their taxes, given to charities their entire lives, gotten knocked down and got back up again on their own, etc. don’t have empathy? Where does personal responsibility enter in the equation or does it? Continually helping others who make make poor decisions is akin to giving a crack addict more money and then turning your head on them hoping they won’t buy more crack. It’s not an “either/or” situation. One can help their fellow man by their own choice (which is what I prefer to do) and without the government becoming the middleman.

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Yea, we’ve got free healthcare lets have free housing now. This is great. I hope I can get this deal to. Oh wait I’m the wrong color. I’m white! I’m the one who needs to pay for all this not sign up for it. Sorry I forgot where my place was in society for a momment. I’m back now. I’ll get back work because I have lot more to pay for, that has nothing to do with my actual bills.

WOW I’m stunned by all this.

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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!

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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.

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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…..

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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?

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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).

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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?

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Something similar should have been done nearly two years ago. I was calling for a voluntary moratorium on foreclosures then.

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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.

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TnGelding, Sorry, I was including the Health Law Costs. Austerity is good, spread the word.

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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.

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