Can Chapt 13 force Mortgage to modify to a fixed rate, etc?

[TristansMommy]

Originally Posted by goodbyehollywood

In other words, everybody but the person who signed the papers to take out the loan? And that is the one party to the transaction that had the right to say "no" at EVERY step of the transaction, that in fact, initiated the transaction, of their own free will! Can't afford it? Just say "no." Don't like the terms? Just say "no." Think the lender is predatory and the risk too great? "No" and "no." Think the government, Alan Greenspan+ The Fed, speculators, investors, appraisers, banks, mortgage brokers, the NAR, builders, Jimmy Hoffa, Santa Claus and the Tooth Fairy, etc., etc. are leading you down a treacherous path? Don't follow. But if you do, don't blame everybody else for your own choice.

How is it possible that people believe that homeowners have ZERO responsibility for the legal documents they sign? If a gun was held to the borrower's head, then the authorities should be called; otherwise, you should only sign contracts that you intend to honor. And if circumstances change and you can't honor them, how is it anybody else's fault? Looking for viable solutions is much more productive than finger pointing.

This is a general comment, directed toward a generic, collective "you"-- not directed personally toward the OP, so please TristansMommy, don't call me any more names or start another personal vendetta. I am commenting on a broad issue affecting our entire economy, not your personal situation, which others may or may not find sympathetic.

As for landlords not caring about foreclosures, I own multiple rental properties and I can assure you that I consider a foreclosure much more than a black mark. I consider it a reason to say "no." And I do. But that's just me... and every other landlord I know.

I did not take this post as a personal offense.. probably because you stated as such..

But then.. goodbyehollywood..where do you suggest that these families now go to live? If no one will really rent to them, do you really want to see otherwise hard working families living on the street.. even though they have the means to pay for housing. Remember.. I was paying $3300 a month to own a house. Rental would probably (on LI we have rental availability issues, though) cost me less.. so if I coudl have afforded $3300 I most certainly could afford $2000/month. But.. because of the "black mark" that came about from circumstances and poor timing etc.. do I then adn do all these people then deserve to be livign out of their cars.

This is why I think it's important for those that truly can pay a REAL mortgage (meaning at an interest rate that isn't a low teaser like a 3%) should be afforded the opportunity to hold on to their home with a loan modification of fixing the interest rate . Here's why:

1) yes.. we get a reprieve because we get to stay in our homes.. however, we purchaesd our houses probably at the height of the market.. so we'll never make the same equity on a home someoen else will. If the modification includes extending the life the loan, in the end it will cost us much more money than it did others. If you are already late on your mortgage because of the ARM.. yo already have that scar on your credit.. like I do.. so you score is already poop.

2) Banks will have to take a lower interest rate.. and if they extend the maturity it might compensate somewhat for it. That's okay.. the banks should have some pain too.. they are certainly far from innocent in all this. I think it better that someone that can pay back the loan at a fixed interest rate is certainly better than taking the huge loss with the cost of foreclosure and what they will eventually get on the market will be far less than what is owed to them.

3). NO tax money is needed for such a resolution.. because it's worked out betweent he banks / investor pools and the borrowers.

THIS is why I have been so angry with the banks.. because they want their cake and eat it too..THAT's the real problem. They could fix their own messes and stopped the hemoraghing by looking at each loan individually and re assesing the situation. A lot of people who would otherwise really be able to pay them back will be turned out. Yes..some won't even be able to at all.. maybe they dont' even want to because they are upside down (which I don't think is a good enough reason to walk away.. just becaus you owe more is not a reason.. not being able to pay the new adjustment and keep up with the payment is a different story).

There was a video on YouTube that was so right about the Alt-A situation being completely ignored and being far worse than the subprime.. and stretches into EVERY economic class of buyers. It's going to be a big mess.

[SKB]

Originally Posted by goodbyehollywood

In other words, everybody but the person who signed the papers to take out the loan? And that is the one party to the transaction that had the right to say "no" at EVERY step of the transaction, that in fact, initiated the transaction, of their own free will! Can't afford it? Just say "no." Don't like the terms? Just say "no." Think the lender is predatory and the risk too great? "No" and "no." Think the government, Alan Greenspan+ The Fed, speculators, investors, appraisers, banks, mortgage brokers, the NAR, builders, Jimmy Hoffa, Santa Claus and the Tooth Fairy, etc., etc. are leading you down a treacherous path? Don't follow. But if you do, don't blame everybody else for your own choice.

How is it possible that people believe that homeowners have ZERO responsibility for the legal documents they sign? If a gun was held to the borrower's head, then the authorities should be called; otherwise, you should only sign contracts that you intend to honor. And if circumstances change and you can't honor them, how is it anybody else's fault? Looking for viable solutions is much more productive than finger pointing.

This is a general comment, directed toward a generic, collective "you"-- not directed personally toward the OP, so please TristansMommy, don't call me any more names or start another personal vendetta. I am commenting on a broad issue affecting our entire economy, not your personal situation, which others may or may not find sympathetic.

As for landlords not caring about foreclosures, I own multiple rental properties and I can assure you that I consider a foreclosure much more than a black mark. I consider it a reason to say "no." And I do. But that's just me... and every other landlord I know.

Please do not paraphrase my words, I certainly didn't say anything of the sort.
My support is in regards to the simple fact that the median price of homes fell out of line with the median incomes by unnatural proportions. Thus starting a chain reaction.

I certainly am no bleeding heart, I do NOT support bail outs and I think people should be held accountable of course.

I also do not think that all people in this mess should be put into the same category.

I look forward to the day when my kids can afford to buy a home priced at 2.5 times their income, with a 20% down payment and a conventional loan.

[gpcarmody]

Chapter 13 is not the end of the world if it means keeping a place to live, so I am considering it an option. At the same time, I can't help but think of how blessed we Americans have been with a high standard of living, homes that even in the worst condition are far better than in some lands. I don't mind lowering my standard of living. It's a good life even without all the amenities. In my case, I'm sure my mortgage will probably outlive me, so I'm just sure to have enough life insurance to pay it off so no one gets stuck with it. Still, the change is sad and difficult, and I'm not looking forward to it, but everyone's been hit one way or another and we're all taking our lumps.