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What are you guys huffing and puffing about? Evidently, most of you didn't even read the article. The first two guys weren't even behind on their loans, and the second guy couldn't refinance from a 6.5% fixed loan because their home is under water.
The Home modifcation plan like any other plan has picked winners and losers and likewise have pitted citizens against citizens. The cost is only a pultry $75 billion dollars compared to the trillions that have been pumped into lowering interest rates and the new home buyer credits.
Those who bought during the peak are actually being shafted! Compared to how much they are paying to subsidize new home purchases and existing home refinances.
The $8k new home buyer credit has cost 10 billion to date and an additional 10 billion estimated until the new April '10 date. The $10k California new home credit has costed a bankrupt State $100 million. And the grand daddy of them all, the Fed's $1.25 trillion mortgage backed securities purchase plan has lowered rates bellow 5% when it should be over 6+%.
All of these amounts to an inflation tax or real tax on everybody, or what Gwynedd1 was talking about whether you own a home or not.
Who benefits? All of us in some form or another whether through jobs or by being able to refinance to a lower rate (all programs have winners and losers as it creates an artificial demand/supply), but mostly, all these plans are aimed to help the banks.
The banks need new loans to generate revenues and to buoy defaults (so spuring new loans, reducing defaults, and creating new home purchases early helps the banks). Who pays? All of us through an inflation tax.
So, no, those home owners trying to get a home mod aren't being any more greedy or "entitled" than any other person refinancing their home with the "new" rates or buying a home now with the New Home buyer credits.
At the end... we all pay for it... and in some form or another, we all benefit or get hurt from it. Some more than others.
Those underwater home owners that can't refinance and don't qualify for any mod plans, those who own fully paid for homes, and renters are the real losers.
The winners are the banks in either case, the homeowners that are able to refinance and/or get a home mod, and the new home buyers that are able to get the credits and the lowered rates.
And the grand daddy of them all, the Fed's $1.25 trillion mortgage backed securities purchase plan has lowered rates bellow 5% when it should be over 6+%.
This is not accurate, using historic spreads between MBS and treasuries the rates should not be "over 6%". Most estimates have the Fed's program reducing rates by around 50~70bs.
This program really does not cost tax payers anything though...
Quote:
Originally Posted by chuck22b
Who benefits? All of us in some form or another whether through jobs or by being able to refinance to a lower rate (all programs have winners and losers as it creates an artificial demand/supply), but mostly, all these plans are aimed to help the banks.
Umm...huh? You say that everyone benefits yet admit that all programs have winners and losers.
Quote:
Originally Posted by chuck22b
So, no, those home owners trying to get a home mod aren't being any more greedy or "entitled" than any other person refinancing their home with the "new" rates or buying a home now with the New Home buyer credits.
Sure they are, its about their attitudes. People that gambled in the housing market and purchased homes at inflated prices now feel entitled to that home and are whining endlessly about what is in reality their fault. On the other hand many people on the market for a new home are annoyed by the buyers credit, etc.
Quote:
Originally Posted by chuck22b
Those underwater home owners that can't refinance and don't qualify for any mod plans, those who own fully paid for homes, and renters are the real losers.
How are renters the real losers? They completely avoided the mess altogether. The mod plans are far from generous, they are bettered titled "debt slavery plans".
What are you guys huffing and puffing about? Evidently, most of you didn't even read the article. The first two guys weren't even behind on their loans, and the second guy couldn't refinance from a 6.5% fixed loan because their home is under water.
The Home modifcation plan like any other plan has picked winners and losers and likewise have pitted citizens against citizens. The cost is only a pultry $75 billion dollars compared to the trillions that have been pumped into lowering interest rates and the new home buyer credits.
Those who bought during the peak are actually being shafted! Compared to how much they are paying to subsidize new home purchases and existing home refinances.
The $8k new home buyer credit has cost 10 billion to date and an additional 10 billion estimated until the new April '10 date. The $10k California new home credit has costed a bankrupt State $100 million. And the grand daddy of them all, the Fed's $1.25 trillion mortgage backed securities purchase plan has lowered rates bellow 5% when it should be over 6+%.
All of these amounts to an inflation tax or real tax on everybody, or what Gwynedd1 was talking about whether you own a home or not.
Who benefits? All of us in some form or another whether through jobs or by being able to refinance to a lower rate (all programs have winners and losers as it creates an artificial demand/supply), but mostly, all these plans are aimed to help the banks.
The banks need new loans to generate revenues and to buoy defaults (so spuring new loans, reducing defaults, and creating new home purchases early helps the banks). Who pays? All of us through an inflation tax.
So, no, those home owners trying to get a home mod aren't being any more greedy or "entitled" than any other person refinancing their home with the "new" rates or buying a home now with the New Home buyer credits.
At the end... we all pay for it... and in some form or another, we all benefit or get hurt from it. Some more than others.
Those underwater home owners that can't refinance and don't qualify for any mod plans, those who own fully paid for homes, and renters are the real losers.
The winners are the banks in either case, the homeowners that are able to refinance and/or get a home mod, and the new home buyers that are able to get the credits and the lowered rates.
-chuck22b
P.S. I'm in the real losers category... grrr!
it's funny that this post is from march. i would certainly like to see a follow up on what happened to those various people and their loans.
i think the problem is that people are tired of government deciding who the winners are and who the losers are. that is the exact opposite of free market enterprise.
i agree that working renters and outright homeowners are getting shafted the most, since their taxes pay for all the home subsidy programs out there (both stimulus and refinance). i am not sure that new homebuyers aren't getting shafted, but i guess it depends on what kind of deal they are getting. i think home prices will drop further before this is over, especially with all the foreclosures that haven't even hit the market yet, and the possibility that the future commercial defaults will impact the foreclosure market further.
i went to the original post to see what else the author wrote and found this for december 4: (WSJ)
So far, most criticism on the Home Affordable Mortgage Program, i.e., HAMP, has centered on why so few borrowers with trial modifications are converting into permanent modifications. The common refrain from loan servicers is that they haven’t been able to get paperwork from borrowers to help finalize the loan modification — important because servicers get paid for each mod, and need to prove that borrowers actually face hardship.
But at ForeclosureRadar’s blog, Sean O’Toole raises a different, potentially more problematic issue: “Permanent” loan modifications last for only five years. He posits that reason for the low uptake of the loan modification program:
Maybe borrowers have figured out that this program is really only another exotic mortgage like one they fell prey to when they bought or refinanced the house that resulted in their current predicament. HAMP and the administration’s newly announced campaign isn’t digging borrowers out of a hole. It’s only digging them a new one, and delaying the inevitable.
i went to the original post to see what else the author wrote and found this for december 4: (WSJ)
So far, most criticism on the Home Affordable Mortgage Program, i.e., HAMP, has centered on why so few borrowers with trial modifications are converting into permanent modifications. The common refrain from loan servicers is that they haven’t been able to get paperwork from borrowers to help finalize the loan modification — important because servicers get paid for each mod, and need to prove that borrowers actually face hardship.
But at ForeclosureRadar’s blog, Sean O’Toole raises a different, potentially more problematic issue: “Permanent” loan modifications last for only five years. He posits that reason for the low uptake of the loan modification program:
Maybe borrowers have figured out that this program is really only another exotic mortgage like one they fell prey to when they bought or refinanced the house that resulted in their current predicament. HAMP and the administration’s newly announced campaign isn’t digging borrowers out of a hole. It’s only digging them a new one, and delaying the inevitable.
Actually the banks are commiting misrepresentations and the goverment as well.Millions of homeowners are saying that they simply get rejected for one reason or another.So this is just a ploy to make excuses.
Another point is that, in some states due to the economy being in the toilet there is none that would buy houses at their current prices.Investors are welcome to drown.Hmmm maybe i should create a website or a blog to sensibilize the masses.
This is outrageous. All these people knowingly made bad decisions and bought more house than they could afford and now want to keep their homes begging for a bailout?
That first guy is such an idiot, he says he will promise to buy a new car and do landscaping if he gets a bailout. Should he be spending more money on a new car if he is in such dire straits? Un-friggin-believable! And have you seen his house? This dude lives in a palace! Who the heck told him to bite more than he can chew? Basically he thinks he is entitled to it even if he cannot pay and the rest of us have to foot his bill. And the comment that MOST angered me is his phrase "I am willing to help people if.."...WOW, Basically he is begging for help and then has the incredible arrogance to say HE is willing to help?
The second guy says his mortgage payment is 60% of his take home? Now is it our fault that this guy took on an expensive mortgage? He made the decision, why is he bitching about it??
And the third moron is the lady, she wants a loan even without income and says there is no difference Gosh, I do not even know what to say about this one!
They think we should reimburse them for lost equity, apparently. WHat difference does it make unless they are going to sell it right now. Even if they were, tough luck! They wouldn't be the first people to sell a home for less than they paid.
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Gosh, I do not even know what to say about this one!
