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well the new housing bill to me seems like crap. i would like to know how many homes being foreclosed on are owned by investors and are vacant or rented out. Unless the home is owner occupied, this is garbage... so the investor who is current on his payments, doesnt qualify because his 150k house which he paid 250k for is not owner occupied.
Ka-Ching! You hit it right on the head. And what about the owner that is so far underwater that it doesn't make one iota of economic sense to stick it out and share the HPA with your Uncle Sammy? Get out now or wait 15 years to share your appreciation with the government. People are mobile now. They go where the job or promotion takes them. They can't wait around until this rights itself. Move on.
There has to be a healthy RE market so homes can be sold the traditional way "private seller to private buyer" . The market is now driven by dinosaur arthritic bankers that analyze the crap out of everything. They should have a fire sale and clear this toxic waste off the market now.
This bill is strictly election year politics and will accomplish little - for the troubled home owner anyway.
Ka-Ching! You hit it right on the head. And what about the owner that is so far underwater that it doesn't make one iota of economic sense to stick it out and share the HPA with your Uncle Sammy? Get out now or wait 15 years to share your appreciation with the government. People are mobile now. They go where the job or promotion takes them. They can't wait around until this rights itself. Move on.
There has to be a healthy RE market so homes can be sold the traditional way "private seller to private buyer" . The market is now driven by dinosaur arthritic bankers that analyze the crap out of everything. They should have a fire sale and clear this toxic waste off the market now.
This bill is strictly election year politics and will accomplish little - for the troubled home owner anyway.
They are having a fire sale in at least Las Vegas. That of course screws everyone who is not in trouble. 1800 or more homes dumped on the market at well below the comps is artificially lowering the value of all homes.
Anyone who can get into the federal program should be able to immediately dump the joint at a competitive price if they are of a mind.
The act deliberately excludes investors. You disagree?
oh and the biggy.... to get in the program - if you have an equity loan, you are screwed, it has to be paid off first.....and there is a time frame that you have to keep the house.. you cant get in the program and sell the house tomorrow.
Location: central, between Pepe's Tacos and Roberto's
2,086 posts, read 6,848,852 times
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Quote:
Originally Posted by airics
oh and the biggy.... to get in the program - if you have an equity loan, you are screwed, it has to be paid off first.....and there is a time frame that you have to keep the house.. you cant get in the program and sell the house tomorrow.
Like I said, more smoke and mirrors. Please keep in mind though that this bill was NEVER meant to actually help homeowners. This bill is a bank and Wall Street bailout, pure and simple. In fact, the original version of this bill was written and introduced by Sen. Chris Dodd with an enormous amount of help from Bank of America!! With the exception of a few provisions, the bills are nearly identical.
The effect that this bill will have may very well be catastrophic, IMO. The Alt-A loans coming due will not be helped by this bill, so more foreclosures are likely coming on line. However, they are eliminating about 40%-50% of the purchasing market with the elimination of SFDPA's. Ironically, this bill specifically addresses and makes provisions against subprime and stated loans, both of which are basically non-existant anymore. The point, the market knows better and reacts quicker than the government ever will. Unfortunately, a natural and painful market correction is what is needed but the Street and the banks apparently don't have the stomach to pony up and deal with the consequences of their actions, and would much rather leave us holding the bag.
On another note, our own Sen. John Ensign once again proves that he is an actual conservative and consistent as hell by voting against this bill, as he did with the last bailout bill and as I'm sure he will continue to do. Unfortunately it is not him but it is Sen. Harry Reid that is on the Senate Banking Committee. I can tell you without a shadow of a doubt (due to firsthand experience via email correspondence) that Sen. Reid has NO idea how capital markets work and doesn't even have a basic grasp of the mortgage industry.
Bailout, or business decision? (http://forum.brokeroutpost.com/loans/forum/2/233505.htm - broken link)
I forgot I was logged in when I pasted that link. You should be able to access the link above now without a password request.
My understanding is that the federal government and FHA will insure many of the loans set to adjust or recast soon (I guess? They never really come out and say who will get this or who it will help or how many, but I would wager that it won't help many). In return for the FHA insuring these loans, the bank must write down the principal balance of the loan to 90% of current market value. So immeidately the homeowner has 10% equity in the home except that really they don't because if they were to try and sell it any equity or profits received would go the federal government. At this point I will assume that this is after all fees and expenses.
Again, I wish I could explain it in more detail but the bill is just too vague (as every housing bill or proposal has been since this whole thing started) and unfortunately I believe that because of that, interpretations of the law will vary across the board further muddying the process.
Ok DaddyM3. Im reading and followed your link, which helps, but do I know anything more then I did an hour ago before I started reading? Nope. And Im no dope. I suspect those who are really not finance savy will just turn their head and walk away from their homes anyway because it is easier then to seek out this new FHA loan that no one except its authors can understand.
Ok so we have a new mortgage vehicle to use for troubled homeowners which I believe will be available as of October 1st. Are the banks going to advertise this? Are those troubled homeowners who finally make that dreaded call to their mortgage company to tell them they ran out of money and have made the last payment going to get some instructions from their mortgage company? Or is it up to the public to overhear something about it on the news and call their mortgage company to ask questions.
Like a couple posters already have said/admitted, it still seems more worth while to walk away. I realize laws are written to favor the banks. And to most people, the banks are more of a mortal enemy then the muslim terrorists. I hatem all including this government. I trust no one.
Oh....is it true that this new program excludes those who have an existing equity loan? I suspect the vast majority of those in trouble have an equity loan. So who the hell is this loan helping?
Location: central, between Pepe's Tacos and Roberto's
2,086 posts, read 6,848,852 times
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Quote:
Originally Posted by desertsun41
Ok DaddyM3. Im reading and followed your link, which helps, but do I know anything more then I did an hour ago before I started reading? Nope. And Im no dope. I suspect those who are really not finance savy will just turn their head and walk away from their homes anyway because it is easier then to seek out this new FHA loan that no one except its authors can understand.
Ok so we have a new mortgage vehicle to use for troubled homeowners which I believe will be available as of October 1st. Are the banks going to advertise this? Are those troubled homeowners who finally make that dreaded call to their mortgage company to tell them they ran out of money and have made the last payment going to get some instructions from their mortgage company? Or is it up to the public to overhear something about it on the news and call their mortgage company to ask questions.
Like a couple posters already have said/admitted, it still seems more worth while to walk away. I realize laws are written to favor the banks. And to most people, the banks are more of a mortal enemy then the muslim terrorists. I hatem all including this government. I trust no one.
Oh....is it true that this new program excludes those who have an existing equity loan? I suspect the vast majority of those in trouble have an equity loan. So who the hell is this loan helping?
I think that you misunderstand my point. Although this bill was written to resemble something that will help troubled homeowners, it is nothing more than a very thinly veiled bank bailout. As I've said before, this bill closely resembles the Senator Dodd bill which was written by Bank of America execs. Who do you think that they wrote it for? Couple the illusion of saving homes with the raising of the FHA minimum down payment and the elimination of the seller funded DPA programs and you have a recipe for disaster. There is no doubt in my mind that more foreclosure inventory will come on line in the next couple of years or so, mainly due to the Alt-A loans beginning to recast (Pay Option ARM's and stated income 5/1 interest only loans to be more specific) and with less buyers in the market it spells trouble. Not to mention the provisions in the bill for state and local governments to buy up and renovate foreclosed properties en masse. Yes, this bill encourages government to start investing in real estate.
Please keep in mind the original intent of my post was mainly to rant. Even if it did educate there is really not much that can be done at this point. Our all knowing government has made up it's mind that even though the market has reacted swiftly and decisively, they in reality know what is best and will show us by bailing out banks and Wall Street via out hard earned tax dollars.
Yep, all signs point to the "housing bill" being a massive bailout for buddies of congressmen. It's these private banks that have gotten de facto government backing because of years of greasing congress with lobbying dollars. Fannie and Freddie are the single biggest lobbyists in Washinton DC. Do you think congress wants to lose all the kickbacks (I mean, lobbying dollars) they've been getting all these years? This legislation is being touted by congress and the press as relief for struggling homeowners, but it seems to just contain provisions to socialize the Fannie, Feddie, and Countrywide debts and give money directly to city governments to encourage them to socialize real estate in their area.
Angelo Mozillo is a scumbag and seems to have his hands all over the creation of the Countrywide as well as Fannie and Freddie fiascos. He ran all of those companies at one time or another and has good friends in congress to protect him from any losses (other than his shame, because he has none left).
As far as I can tell, this bill makes it harder for folks to qualify to buy homes in the future. It doesn't help the little guys, unless there is something I missed.
I think that you misunderstand my point. Although this bill was written to resemble something that will help troubled homeowners, it is nothing more than a very thinly veiled bank bailout. As I've said before, this bill closely resembles the Senator Dodd bill which was written by Bank of America execs. Who do you think that they wrote it for? Couple the illusion of saving homes with the raising of the FHA minimum down payment and the elimination of the seller funded DPA programs and you have a recipe for disaster. There is no doubt in my mind that more foreclosure inventory will come on line in the next couple of years or so, mainly due to the Alt-A loans beginning to recast (Pay Option ARM's and stated income 5/1 interest only loans to be more specific) and with less buyers in the market it spells trouble. Not to mention the provisions in the bill for state and local governments to buy up and renovate foreclosed properties en masse. Yes, this bill encourages government to start investing in real estate.
Please keep in mind the original intent of my post was mainly to rant. Even if it did educate there is really not much that can be done at this point. Our all knowing government has made up it's mind that even though the market has reacted swiftly and decisively, they in reality know what is best and will show us by bailing out banks and Wall Street via out hard earned tax dollars.
This govt does not know best. I know you were being sarcastic there. Govt is there to help themselves and whoever donates to them such as the Bill written by BOA execs as you said.
Sounds like you dont have much confidence in this new FHA loan. What I know so far it seems that it could help some by saving their credit but if.......IF prices ever go up, we would give any gained equity back to the big bad govt. I guess that's better then walking away and ruining ones credit for 5 years. Most of us dont expect to ever walk away with a profit on our homes if we purchased post 2005 anyway so maybe it will work for some but as you said earlier, not many.
Yep, all signs point to the "housing bill" being a massive bailout for buddies of congressmen. It's these private banks that have gotten de facto government backing because of years of greasing congress with lobbying dollars. Fannie and Freddie are the single biggest lobbyists in Washinton DC. Do you think congress wants to lose all the kickbacks (I mean, lobbying dollars) they've been getting all these years? This legislation is being touted by congress and the press as relief for struggling homeowners, but it seems to just contain provisions to socialize the Fannie, Feddie, and Countrywide debts and give money directly to city governments to encourage them to socialize real estate in their area.
Angelo Mozillo is a scumbag and seems to have his hands all over the creation of the Countrywide as well as Fannie and Freddie fiascos. He ran all of those companies at one time or another and has good friends in congress to protect him from any losses (other than his shame, because he has none left).
As far as I can tell, this bill makes it harder for folks to qualify to buy homes in the future. It doesn't help the little guys, unless there is something I missed.
Oh yea....you didnt answer my question about if one has an equity loan does that disqualify you for this new FHA loan. It was not you but I think it was airlics said this was the case.
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