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So.. now I'm doing what I need to do for myself and my family.. walking away smart.. and milking it for as long as possible so that I can live in my house for "free" for as long as I possibly can to save money to move on in my life.
As an aside - the program you mentioned previously? Will not work here in our area with the type of loan instruments and laws we have
As an aside - the program you mentioned previously? Will not work here in our area with the type of loan instruments and laws we have
Im not sure which program.. are you talking about what I"m working on doing for my situation ? or are you referring to the bill I mentioned being voted on next week in the Senate?
If you are refering to the first.. I can see how it would be a state by state or local by local area issue that could or couldnt work. NY has a very long and slow moving foreclosure process. I coud, if i allowed it to go that far.. live in my house for probably a year and a half before I'd be forced out.. but of course, I wn't let it get that far. Basically waht this guy is doing is negotiating hte short sale, which I believe is offered by any lender in any state. If they agree, he either buys it for the agreed upon price or he takes it and sells it.. I get out without a foreclosure on my record and I get out... and the proccess also takes time so i could , in essence, be here for a year without having to leave.
Im not sure which program.. are you talking about what I"m working on doing for my situation ?
If you are refering to the first.. I can see how it would be a state by state or local by local area issue that could or couldnt work. NY has a very long and slow moving foreclosure process. I coud, if i allowed it to go that far.. live in my house for probably a year and a half before I'd be forced out.. but of course, I wn't let it get that far. Basically waht this guy is doing is negotiating hte short sale, which I believe is offered by any lender in any state. If they agree, he either buys it for the agreed upon price or he takes it and sells it.. I get out without a foreclosure on my record and I get out... and the proccess also takes time so i could , in essence, be here for a year without having to leave.
The foreclosure website you noted
In AZ (and many other states) the foreclosure process takes 91 days. And, there is no court involved
In AZ (and many other states) the foreclosure process takes 91 days. And, there is no court involved
Ah yes.. I can see that. wow. 91 days.. eek! That is even moer horrible. Atleast I'll have time to recoup, collect my thoughts and figure out my next move as I go thruogh the due process. I certiain don't plan on getting to the stage where my house is auction and the sheriff forces me out though. I will, however, stall for as much time as possible.. I can atleast get SOMETHING out of my house for all I've put into it.
Believe me.. it's terribly sad.. But at the same time, I'm looking forward to starting a new life in a lower cost of living area. The stress is horrible living here.. I miss my husband becaue he works so much.. and we don't laugh together or do much of anyhthing together these days because of it. I'd much rather be able to have more children and a happy home life that struggle topay the bills here where I live.
In AZ (and many other states) the foreclosure process takes 91 days. And, there is no court involved
As another aside.. it counldn't hurt for nayone in trouble to chekc out NAFPP.org anyway.. there may be hope. You don't hear much about these programs in the press.. and Iwould never have found this help if I hadn't dug for it.
So.. it still may have usefull information for people..
First of all..how is what is being proposed for homeowners different than what was done for Bear Stearns.
How its different is that Bear Stearns was a loan guarantee, not taking any money from the tax payers, or investors. Bear Stearns also turned 100% ownership of the company over to the investors, the government did not keep "equity". The current homeowner bail out forces banks (and thereby harms the investors and the stock), and puts the US tax payers on the hook for not only the loan, but taxes and additional liability.
In the case you havent noticed, many here did not support the Bear Stearns "bail out/Guarantee" and we dont support a homeowners "bail out/Guarantee" either...
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Originally Posted by TristansMommy
If hte lender voluntarily writes down the mortgage to 85% of the current market value and fixes the interest rate than the federal gov't will offer an FHA guarantee.. so that if thel oan defaults the gov't will pay what the difference..thereby guaranteeing the mortgage..not giving the homeowner or the lender money and ONLY guaranteeing. AND the gov't will have a percentage of any equity instantly gained or any equity that will come about when the house is sold.
yea..I'm sure we weren't all out their shouting .. support Bear Stearns.. but you know what.. it was done anyway.... and so if it was done for big business.. then it should be done for the Joe homeowners too! After all.. all of them caught up in this mess pay just as much taxes as you do.
I for one think that if they are goign to okay guarantees for businesses and banks and help them otu of THEIR mess (and are they NOT the ones that should have known better) than I do not see any problem with them doing it for the little guy too..
Cause guess what.. the banks have been getting bailed out by the gov't already while STILL taking peoples homes.. so they get it fromt eh gov't and they get whtaever they get out of the foreclosed homes and they come away with their businesses intact..
Meanwhile the families in these homes are destroyed financially..etc.
so.. no I don't agree with big business bail out.. but it's already been done adn I'll be damned that the gov't should be so hypocritical by doing it for htem and then turning down the same type of help plan for the homeowners that pay tehir salaries in taxes..etc.
Under what governing policy does the federal government have any authority into taking "equity" in houses? When are the stock holders in the banks, who will lose money when the banks are forced to take this "write down" Where does it stop?
I lost money in stock last year, where is my bail out? How about those who invested in bad business deals, where are their bail outs? How about the home owners that borrowed $1,000,000 for $500,000 homes, you think the banks should be forced to take a loan $425,000, and who's going to pay the balance owed? What happens when the property owners properties increase, are the tax payers going to get a surcharge as interest for their "equity"? If your getting a bail out, and I'm responsible, why am I picking up your bill, as both a stock holder, and a tax payer? Why are the banks getting bailed out if they loaned good money on bad loans? Whats to stop them from continuously loaning out money on bad loans, or even worse, an insider taking part in some scam to rip the banks off, knowing that the government will be there to bail them out? Under what authority is the government loaning out loans, or even guarantees in exchange for "equity"?
Where does it stop? I'm getting so sick and tired of people cryiing to the government every time they, and they alone make poor decisions..
Don't presume to know why or what drove someoen to buy a house.. don't also presume that everyone bought a house they couldn't afford because they could ONLy afford it with a low teaser rate.
What a lot of you don't know and hasn't been as publicized is that a larger percentage of loans with ARMS were made to people with GOOD or pretty good credit at NORMAL starting interest rates..but were ARMs because of one reason or another.. like in my case.. because I was stated and didn't ahve a credit history to speak of (which meant I was responsible and DIDN'T have credit cards). Becasue i work for myself AND i had no established credit (despite being an excellent tennant for many years paying on time as wellas my other bills) I was given ONLY a ARM.. and told that in 2 years with established mortgage payments and if I open some lines of credit..with an improved score I would be alls et for a stated refi into a fixed. And NO I didn't buy my house with NO MONEY down either.. as a matter of fact I also made improvements. BUT.. when the tiem came to refi I was locked out.. why.. well ..my score improved BUT they then RAISED a stated person with what would now be 100%LTV (because the value of my home shrunk in the crash) higher than mine was at currently SO despite paying a 6.95% interest rate for 2 years on my home (which for a small starter in a modest ..not high end neighborhood on LI with taxes I was paying $3300/month) I was locked out and stuck in an ARM I never planned on being in the first place.. AND that the original mortgage holders KNEW I wouldn't be able to afford (while I was stated..they did ask to see my bank statements with all my deposits, etc.).
I never asked for a write down in principal. yeah.. i bought high.. and now I am probaly upside down.. but I didn't care.. I, for 8 months 4 of which were BEFORE the reset and while I was current, begged the mortgage company to work with me on getting it modified to a FIXEd. They refused. When the new payments came due I stopped paying..because I know that unless they FIX the interest then I would juts not be able to afford it and so wasnt' going to throw anymore money at the house I would loose anyway.
NOW>.I'm going to be walking away from over $80K I've invested in my home in both down payment ANd improvements. The servicer of the mortgage is frustrated as I am because they are trying to make their client understand what I and other homeowners they hold the notes for are going through.. but their either stupid or living on a different planet. I'm still hoping that they come around and say hey.. I'd rather have this person paying me back at the 6.95% they have been for the past 2 years rather than take the home and loose a boatload.
This plan would help me immensly in keeping my home. Actually.. it's even better becaue it woudl lower my initial payments if the value gets written down as proposed.. the only problem is that it is on a voluntary basis.. AND I have NO FAITH whatsoever that the banks /note holders will really volunteer.
Project Lifeline from Wells FARGO.. HUGE joke.. PR stunt to make the public THINK they were helping homeowners so that it woudl justify the gov't bailouts that have been occurring .. but it's a bunch of BS. how do I know..because my "investor group" that holds my ALT A ARM mortgage is with Wells Fargo and they are just not budging..
So.. now I'm doing what I need to do for myself and my family.. walking away smart.. and milking it for as long as possible so that I can live in my house for "free" for as long as I possibly can to save money to move on in my life. And.. I know and so do the mortgage servicer i deal with, that I have done EVERYTHING I possibly can NOT To walk away. As a matter of fact they said I'm the most PRO Active homeowner they have had in this situation. I'm hoping somehow that helps me somewhere down the line.. but I'm okay with it. After being depressed for weeks, I realized my life willb e better when I can move from this financial diasaster.. and in a year or two I will be able to buy a house .. fortunately only I am on this mortgage and NOT my husband.. AND i will not have a foreclosure on my record. So it will be okay.
Listen.. something is going to happen somewhere and someone is giong to get help.. wether its the big banks or the little homeowner. I'd much rather see hardworking people be able to stay in their homes than the big corporations get the "helping hand". I'm tired of the corporate welfare in this country at our expense.
As far as not being "hard working" simply becasue someone made a mistake or a bad decision doesn't suddenly make them lazy, or not hard working. I've worked my tail off to buy and keep my house up to this point.. we work NON STOP as we work for ourselves.. AND we pay double the SS tax and our own health insurance to boot becasue we are self employed. At being capable of paying a $3300 / month mortgae I'm more than deserving of owning a home.
And just to add.. I'm NOT in a mcmansion. .they don't really exist too much on LI. I live in a very modest starter Levitt house.. 1100 sq feet with no basement. So I didn't buy big.. I bought at the entry level here!
Then my question is why didn't you wait ? You could have continued to build up your credit and after 2 or 3 or 5 years, you could have tried again. When I was offered a loan, I researched endlessly about possible negatives and positives. I decided that there were too many negatives to take the risk, you made the opposite decision, why shouldn't you have to deal with that consequence? I don't want you on the street, but I also don't want my tax dollars to guarantee the unwise investment that you made.
Then my question is why didn't you wait ? You could have continued to build up your credit and after 2 or 3 or 5 years, you could have tried again. When I was offered a loan, I researched endlessly about possible negatives and positives. I decided that there were too many negatives to take the risk, you made the opposite decision, why shouldn't you have to deal with that consequence? I don't want you on the street, but I also don't want my tax dollars to guarantee the unwise investment that you made.
Thank you for the common sense.
Now, if we could just get rid of the mortgage interest deduction for homeowners, then we would be making real progress.
Location: Sitting on a bar stool. Guinness in hand.
4,428 posts, read 6,510,291 times
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Originally Posted by TristansMommy
Okay.. so you're upset that Bush is gong to veto a bill htat will help many hard working middle income families stay in their home and pay their mortgages.. and help the economy.. but it's okay that the federal governments bail out Bear stearns, Corporate America & other banks.. PLEASE..
Funny.. when something is actually being done to help the little guy.. ie: the homeowners that are just your typical average American's in this country. you all get up and arms . Hello everyone.. we live in a corporate welfare country that we the little guys fund..
And who said I was a fan of any handouts? Best check my past posts about the Bear Sterns issue.
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So while the oil companies CEO 's are makign millions and wall street is raking in on the oil stocks as prices climb to insane levels the rest of us are cutting down to PB& J sandwhiches and rice to get by so we can pay our bills.. they get richer.. we get poorer.. oh.. and we fund their wealth! Just one example.
As with oil. Look we as a society have had since the last gas shock in 1973 to push for other energy sources. We didn't now we have to pay the piper on this one. The only thing that may come from this is that maybe....Just maybe...we may serious work toward some other sources of energy.
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But here comes something that will actually HELP average American's.. yeah.. some made stupid mistakes and got themselves into ARMS.. but they WANT to pay their mortgage and just can't. IT's volunatry anyway by the lenders..
Some? Dude alot of people made stupid decision. Not only in buying homes with questionable financial instruments but also refinancing at for more than there homes were worth at records rates. Sorry but big middle finger to all of those who did. But I do understand that there are some that get caught in bad situation and need help but I personally believe these people are in the minority.
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Meanwhile.. all those introuble are tax paying citizens like the rest ofyou. . isn't about time that the little guys get something back! I think so
How about all US taxpaying citizens that didn't get hooked in and saved our money and did the right thing. Why should we pay for it. Heck I already know that I'm pretty screwed when the bill comes due for the WAR and when china comes looking for there pay off for all the money we borrowed from them. So why would I want to add more debt on to this? We are going to have to make some real hard decision in the next couple of year so we can clear our balance sheet. And one of those decisions is not give money away for failed loans.
How its different is that Bear Stearns was a loan guarantee, not taking any money from the tax payers, or investors. Bear Stearns also turned 100% ownership of the company over to the investors, the government did not keep "equity". The current homeowner bail out forces banks (and thereby harms the investors and the stock), and puts the US tax payers on the hook for not only the loan, but taxes and additional liability.
In the case you havent noticed, many here did not support the Bear Stearns "bail out/Guarantee" and we dont support a homeowners "bail out/Guarantee" either...
Under what governing policy does the federal government have any authority into taking "equity" in houses? When are the stock holders in the banks, who will lose money when the banks are forced to take this "write down" Where does it stop?
I lost money in stock last year, where is my bail out? How about those who invested in bad business deals, where are their bail outs? How about the home owners that borrowed $1,000,000 for $500,000 homes, you think the banks should be forced to take a loan $425,000, and who's going to pay the balance owed? What happens when the property owners properties increase, are the tax payers going to get a surcharge as interest for their "equity"? If your getting a bail out, and I'm responsible, why am I picking up your bill, as both a stock holder, and a tax payer? Why are the banks getting bailed out if they loaned good money on bad loans? Whats to stop them from continuously loaning out money on bad loans, or even worse, an insider taking part in some scam to rip the banks off, knowing that the government will be there to bail them out? Under what authority is the government loaning out loans, or even guarantees in exchange for "equity"?
Where does it stop? I'm getting so sick and tired of people cryiing to the government every time they, and they alone make poor decisions..
First the bill being proposed does NOT use governement money for ANYTHIGN.. it is a GUARANTEE.. YES.. if the mortgage defaults.. then governement money is used to pay the balance of the loan to the lender!! (in otherword.s. the $200000 home is written down to $150000 home and if it forecloses and sells for %$10000 the gov't would pay the remainging $50K.. it's a GUARANTEE made by the government TO the lender that VOLUNTEERS to write down the mortgage to 85% of the current market value. The BANKS take the write down on principal (as oppsoed to an even BIGGER hit should the home be foreclosed on when the current existing mortgage forecloses) AND the homeowner gets to stay in the home.. BUT.. there is something int he bill that states that the government would recover 10% of the equity at closing for guaranteeing the loan.. So in other words if the homeowner gets the mortgage written down to $150,000 but then sells the hosue within 5 years for $200K and has 50K and equity 10% of that 50K would go to the government at closing.. the rest to the homeowner. (okay.. these numbers are silly...but I kept it simple for illustration purposes).
So.. how is guaranteeing mortgage any different than guaranteeing the loan on Bear Stearns?? Oh.. and does not 100% of the home revert to the investors when the primary homeowner defaults on the loan.. it most absolutey does.. so again. no realy difference.
Oh.. accept that a family won't be thrown out on the street as opposed to a business being ..well shut down!
Secondly. this is being proposed for a current criss.. and stps are being taken so that this crisis never occurs again!
Yeah.. I agree.. banks are getting a bail out for making bad loans with good money.. that's why you should be angry!! Because.. guess what.. even if this bill doesn't get past President dimwit.. the banks are STILL going to get their "bailouts" and be rescued.. while families will find themselves in financial ruins and possibly homeless!!
Again.. goverment money is NOT being given here to either the homeonwer or the lender.. their are still reprocussions for BOTH parties. The governement is guaranteeing a loan as incentive for the write down to prevent a foreclosure situation . IF the homeowner DOES default.. the homeownere walks away with nothing.. bank take posession of the home and gets their full principal back.. from a combination of the sale of the home in foreclosure with the remainder from the FHA backing. BUT.. if the homeowner is serious about staying in the home and can prove they can afford to pay the new payment at the write down and fixed rate..then teh chances of defaulting are nill. If someone is likely to default the criteria will disqualify them from this program.
As an investor.. do you not think it's smarter to allow someone to stay in their home and write down teh principal adn fix the rate.. and yes, lose some money.. but it certainly is less than what you would loose if the hosue went to foreclosure. If that wasn't the case, this wouldn't even be on the table at all!
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