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Regarding the April 29 Economy & Business article "Foreclosure Prevention Plan Expanded to 2nd Mortgages":
News flash: All of this new housing legislation and all the noise that our lawmakers are generating about helping consumers are not reaching the people most in need.
I am in the trenches of this mess in the Washington area. I work with homeowners every day who have been told to contact their mortgage companies "before there is a problem with paying your mortgage," only to learn that they must be behind in their payments before the mortgage company can help them. In essence, homeowners are being advised by their mortgage companies to ruin their credit by missing payments (which causes other credit problems). The minute consumers damage their credit, their buying power is decreased, sometimes for years.
I am working with a single mother who has two autistic children. Her loan rate was adjusted, so she called the mortgage company and asked for help. She was told that she was not delinquent and that the company could not help her. She fell behind and again called for help; she was instructed that she had to make a "good faith" payment for the company to assist her. She was finally told that the company would give her a better rate for six months only.
My client saw no hope in sight and gave up her home. She was going to let it go to foreclosure, but that would have stayed on her credit report for five to seven years and made it impossible for her to buy another home for a while. She opted for a short sale.
This is a story I have heard over and over. It seems as though the government is allowing the banks to encourage an endless cycle of short sales. Homeowners have no choice but to walk away. This can't be good for the housing market -- or the economy.
Banks are short on staff, the loss mitigation dept is not viewed as a profit center, and priority is placed on non-performing loans. This is in my opinion a major problem. Short Sales should be the priority not the step-child of the banks. Short sellers will keep the property in better shape (i know there are exceptions). A seller that works to help the situation by finding a buyer for the property is helping the bank and saving the costs of foreclosure.
That was the letter I submitted to the Post... The banks should even go one step further, a homeowner who calls, before trouble hits....give them the help they need. most of them just want their payments to stop adjusting...it's that simple.....no short sale, no foreclosure... my client... would have stayed in her house, if they had helped, her. She would have kept her good credit..and would live to buy another day... Konnie McKee
Regarding the April 29 Economy & Business article "Foreclosure Prevention Plan Expanded to 2nd Mortgages":
News flash: All of this new housing legislation and all the noise that our lawmakers are generating about helping consumers are not reaching the people most in need.
I am in the trenches of this mess in the Washington area. I work with homeowners every day who have been told to contact their mortgage companies "before there is a problem with paying your mortgage," only to learn that they must be behind in their payments before the mortgage company can help them. In essence, homeowners are being advised by their mortgage companies to ruin their credit by missing payments (which causes other credit problems). The minute consumers damage their credit, their buying power is decreased, sometimes for years.
I am working with a single mother who has two autistic children. Her loan rate was adjusted, so she called the mortgage company and asked for help. She was told that she was not delinquent and that the company could not help her. She fell behind and again called for help; she was instructed that she had to make a "good faith" payment for the company to assist her. She was finally told that the company would give her a better rate for six months only.
My client saw no hope in sight and gave up her home. She was going to let it go to foreclosure, but that would have stayed on her credit report for five to seven years and made it impossible for her to buy another home for a while. She opted for a short sale.
This is a story I have heard over and over. It seems as though the government is allowing the banks to encourage an endless cycle of short sales. Homeowners have no choice but to walk away. This can't be good for the housing market -- or the economy.
KONNIE McKEE
Haymarket
Actually a short sale hurts your credit as well and you can get a 1099 from the IRS Meaning you will have to pay taxes on the amount of the loan the bank forgave.
And if you live in Nevada and some other states the bank can go after you on a foreclosure for the deficite up to 6 years and they can reapply again to extend the time to go after you. There is talk on the hill that they might change the rules regarding how long to keep the short sale or foreclosure on your credit rating due to the millions of folks who have their credit ruined by doing such a thing.
By credit being damaged for millions of folks to the extent that a person cannot purchase a home for years takes allot of folks off the market.
There is talk on the hill that they might change the rules regarding how long to keep the short sale or foreclosure on your credit rating due to the millions of folks who have their credit ruined by doing such a thing.
By credit being damaged for millions of folks to the extent that a person cannot purchase a home for years takes allot of folks off the market.
So what? Big boy rules apply here.
This would be an incentive for those on the fence to just walk away....further depressing already depressed homes in many areas.
And if they do it, then a good credit report for the majority who have good credit will mean absolutely nothing and will lose credibility.
Why not just leave it as is and those who take the hit have 7 years to recover.
There has to be accountability for those who choose to use credit.
Some people tend to forget that NOT ALL people facing foreclosure or short sales cant afford the house they bought, nor did they go over their head..People are falling on hard times when there is NO income because of the economy, and when one has negative equity, and the home is worth severly less than the mortgage amount that shouldnt fall in the same catagory as someone who was or is on the funky mortgages, or went in with 100% financing.and really couldnt afford the home in the 1st place, so ..Im sorry but I dont think that good people, with good credit who fell on hard times and need to put food on the table and clothes on their children backs, should be penilized when they cant pay the mortgage, So please dont say EVERYONE should be treated the same way, because it shouldnt be that way...especially if one isnt in debt with credit cards or other financial issues, the gov't should do something to help them and the credit shouldnt be trashed for so many years...
as far as accountability most people dont choose to just walk away, because without a job unless you have alot of savings put away, then one cant afford to pay the mortgage...again Im not refering to those who bought more than they could afford or those who choose the mortgages that allowed them to buy the house in the 1st place...
Some people tend to forget that NOT ALL people facing foreclosure or short sales cant afford the house they bought, nor did they go over their head..People are falling on hard times when there is NO income because of the economy, and when one has negative equity, and the home is worth severly less than the mortgage amount that shouldnt fall in the same catagory as someone who was or is on the funky mortgages, or went in with 100% financing.and really couldnt afford the home in the 1st place, so ..Im sorry but I dont think that good people, with good credit who fell on hard times and need to put food on the table and clothes on their children backs, should be penilized when they cant pay the mortgage, So please dont say EVERYONE should be treated the same way, because it shouldnt be that way...especially if one isnt in debt with credit cards or other financial issues, the gov't should do something to help them and the credit shouldnt be trashed for so many years...
as far as accountability most people dont choose to just walk away, because without a job unless you have alot of savings put away, then one cant afford to pay the mortgage...again Im not refering to those who bought more than they could afford or those who choose the mortgages that allowed them to buy the house in the 1st place...
Yes, I will say it again. Everyone is treated the same - that's the American way and that's the way it should be. There should be no asterisks to 'explain' why someone should be treated different.
If you are facing a short sale or foreclosure then you can't afford your house PERIOD!
Because if you could, you wouldn't be in this situation now would you?
So it looks like EVERYONE was living beyond their means if they don't have enough savings to get them through hard times?
So how do you differentiate between 'speculators' and everyone else?
Obama can't so where does one draw the line in order to make it 'fair' to all?
If you are facing a short sale or foreclosure then you can't afford your house PERIOD!
I do not think this is entirely accurate. There are many people who need to move for job relocation or what have you and have to do a short sale because they can't sell the house at what they bought it for. There are MANY MANY people in the military who have been transferred and have to do a short sale because they cannot sell the house for what they paid for it, etc.
If you go back and read berry's posts from the past, then you can see she is exactly the problem. She was bragging about buying a fancy house, close to Charlotte, rather than a cheaper home, further out. She mentioned doing renovations in one post. Plus, since prices are only down 9% in Charlotte, she must have put very little down, despite moving from up north. No more bail outs for these people!
I work with homeowners every day who have been told to contact their mortgage companies "before there is a problem with paying your mortgage," only to learn that they must be behind in their payments before the mortgage company can help them.
That's what they told my fiance. He was in a car accident and off of work for awhile. He was borrowing A LOT of money to make the monthly payments. When he called the bank to see if they could help him, they said they could not because there wasn't a problem, he had never missed a payment. So he quit paying. Needless to say the bank is now freaking out...
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read her posts lol
