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I went through loan modification and I state:
This program was created by the current president Mr.Change and is presentet as help to homeowners, but in reality it is purposed to evicting weak mortgage payers from their homes by fraud replacing them with strong ones in attempt of fixing of economy. It did not fail as it has accomplished what it was created for.
Hey Yankees, your government has turned into your enemy, but you are not aware of it !!! Vow! What a nation of morons!
Math. According to the article. "11 million mortgage borrowers are in potential danger of default"... So - what do they say, about 1/2 the homes are owned outright?
So using your number and the info in this article
[(80mil - 40mil) / 11mil] = 27.5
That says about 27% of all mortgages are in danger? That'll curl your toes if you're heavy into the MBS - and seriously, what pension fund isn't?
I have to wonder how they define "in potential danger of default" though. Does that mean that they have actually had a notice of defualt filed, or missed payments, or does it simply mean that their home has lost value?
... or does it simply mean that their home has lost value?
It's got to be that. -- That plus under water.
The thing is, just because a home is under water, doesn't mean it's in "danger of default."
For a normal, fixed-rate loan, if the borrower still has their job(s) then they continue to "rent," but not default.
For a normal, fixed-rate loan, if the borrower lost their job(s), but have savings then they continue to "rent," but not default.
Of course, once the "magic number" of $100k under water is reached, then it's anyone's guess.
( $100k under water is really $120-150k or so due to selling/repair costs. )
Strategic Default, for most people, is a sound financial choice at that point.
( It's not like being $110k under is really any different than being $90k under. )
As more inventory and more houses hit the market, more defaults, strategic or not will happen
as a result of dropping prices begetting more defaults. It's the ( new ) circle of ( housing ) life.
The only way to stop that from happening is hundreds of billions of dollars of direct federal aid.
... "aid?" Did I say "aid?" I meant subsidy. More subsidy. ...
I have to wonder how they define "in potential danger of default" though. Does that mean that they have actually had a notice of defualt filed, or missed payments, or does it simply mean that their home has lost value?
Quote:
Originally Posted by mortimer
It's got to be that.
That plus under water.
I take as having missed a payment...
What's interesting (having gone back and re-read the article) is how high the default stats are for HAMP folks. Even after getting modified they're falling behind again.
My house is under water and I don't make enough to pay the mortgage.
It's been that way for three years. I haven't missed a payment.
Every payment requires less ounces of gold than the previous one.
Quote:
Originally Posted by MikeyKid
HAMP folks. Even after getting modified they're falling behind again.
That's because in order to qualify for HAMP, you have to already be in default. People with no job, no hope
of a job, paying 8-9%, selling their possessions are deemed to be "not in distress" and not eligible.
HAMP was designed to fail from the get-go. It was another form of bail-out for the banks. The
government gave the banks $75B to "process" ( and deny ) most of the people applying for the program.
Had HAMP been aimed at people who are current, but just paying above-market rates,
trying to do the right thing, maybe the housing market would have stabilized a little bit.
Rates went to 4%, but pretty much, no one who is paying over 6% ever got refinanced or modified.
My house is under water and I don't make enough to pay the mortgage.
It's been that way for three years. I haven't missed a payment.
Every payment requires less ounces of gold than the previous one.
So yeah - I wouldn't put you in the "danger" category personally.
Quote:
That's because in order to qualify for HAMP, you have to already be in default. People with no job, no hope
of a job, paying 8-9%, selling their possessions are deemed to be "not in distress" and not eligible.
HAMP was designed to fail from the get-go. It was another form of bail-out for the banks. The
government gave the banks $75B to "process" ( and deny ) most of the people applying for the program.
Had HAMP been aimed at people who are current, but just paying above-market rates,
trying to do the right thing, maybe the housing market would have stabilized a little bit.
Rates went to 4%, but pretty much, no one who is paying over 6% ever got refinanced or modified.
Preaching to the choir - paying the banks to trial people instead of keeping people modified was an awesome deal.
I went through a home mod 3 times, failed the first two, approved for the third one but I turned it down. What a joke. The third deal had me paying more than my original 30 fixed rate. All of this over two late payments because of an ill family member and medical costs. All is well now but I swear I'll never will do business with a large wall street bank again.
I went through a home mod 3 times, ...
... large wall street bank again.
Was it the same bank that issued you your original 30-year?
Let me guess; they won't just give you a simple refinance because
you are "too big of a risk." You already owe them the money, can
pay for a conventional refinance that would lower your rate and
make you less likely to default, but you're not allowed to.
These are the geniuses that we "had to" give the big bonuses
to so that they wouldn't jump ship to some other company.
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