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Old 12-09-2008, 04:50 PM
 
72 posts, read 216,779 times
Reputation: 61

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Glad my tax money is going to good use. These Homeowners need to be renters and should never had gotten any money to begin with. aaaaaargh!WASHINGTON (Reuters) - "Recent data suggests that many borrowers who received help with mortgage modifications earlier this year tended to re-default on their payments, a top U.S. banking regulator said on Monday.

"The results, I confess, were somewhat surprising, and not in a good way," said John Dugan, head of the U.S. Office of the Comptroller of the Currency, in prepared remarks for a U.S. housing forum.

"Put simply, it shows that over half of mortgage modifications seemed not to be working after six months," he said.

Dugan said based on data collected from some of the biggest U.S. institutions, like Bank of America, Citibank and JPMorgan Chase, home foreclosure starts fell 2.6 percent in the three months ended in September.

However, data which is to be issued by the OCC and the Office of Thrift Supervision (OTS) next week could throw cold water on a push by some U.S. policymakers for loan modifications as the key remedy for the ailing U.S. financial and economic crisis.

Dugan said recent data showed that after three months, nearly 36 percent of borrowers who received restructured mortgages in the first quarter re-defaulted.

The rate of re-default jumped to about 53 percent after six months and 58 percent after eight months, Dugan said, without providing an explanation for the trend.

Regulators speaking at an OTS-housing forum did not provide any explanations for the causes behind the data.

"We don't know the answers yet, but these are the types of questions that we have begun asking our servicers in detail," Dugan said.

Sheila Bair, chairman of the Federal Deposit Insurance Corp, who has been pushing for fast and systematic loan modifications, said regulators need to examine re-default data more closely.

"I think it's very important to look at this data carefully and know what it says and what it doesn't say," Bair said.

Dugan said the third-quarter report will show many of the same disturbing trends as other recent mortgage reports, as credit quality continued to decline across the board and delinquencies rose for subprime, alt-A and prime mortgages.

He said the report will also show that the greatest delinquencies were in prime mortgages."

(Reporting by John Poirier and Karey Wutkowski; Editing by Brian Moss)
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Old 12-09-2008, 05:38 PM
 
682 posts, read 2,462,887 times
Reputation: 344
I think the average Joe now knows he can get away with this behavior and still get financed in a short time frame. If there was a 10 year delay between not making house payments and when a person could apply again, things might be different.

altus2006
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Old 12-10-2008, 08:58 AM
 
551 posts, read 2,629,574 times
Reputation: 261
Call your bank or mortgage holder and ask if you can be refinanced for a lower rate/payment/balance as part of the bail-out plan. They will unofficially tell you to miss at least 6 months of payments before they can (or even want to) help you.
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Old 12-10-2008, 09:32 AM
 
5,240 posts, read 13,398,175 times
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He finds it surprising?? Is he some kind of moron or what? A large majority of the people who NEED a modification are those that have little financial sense and/or poor to very poor repayment histories with all debt (ie. bad credit). They are people who don't pay their bills. Simple as that. What good is a modification.

Get the foreclosures over with now instead of propping the whole system up with a toothpick that will snap in the near future. Homeownership is not a right, unlike many liberals would like us to beleive. As the OP states, many people are destined to be renters. Period.
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Old 12-10-2008, 10:36 AM
 
Location: Windsor, Vero Beach, FL
897 posts, read 2,726,881 times
Reputation: 474
Quote:
Originally Posted by TimtheGuy View Post
He finds it surprising?? Is he some kind of moron or what? A large majority of the people who NEED a modification are those that have little financial sense and/or poor to very poor repayment histories with all debt (ie. bad credit). They are people who don't pay their bills. Simple as that. What good is a modification.

Get the foreclosures over with now instead of propping the whole system up with a toothpick that will snap in the near future. Homeownership is not a right, unlike many liberals would like us to beleive. As the OP states, many people are destined to be renters. Period.
We have a family friend who works at a financial instituation that set up a foreclosure prevention "team" to specifically call those homeowners identified as in trouble. Most of these folks either won't answer the phone, ignore messages offering help, or don't care to be helped. A very small percentage want the help and many of those are in so far over their heads it is pointless. He told us some pretty interesting stories or what is going on out there. Very scary.
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Old 12-10-2008, 11:19 AM
 
Location: Great State of Texas
86,052 posts, read 80,786,628 times
Reputation: 27699
And those that are responsible and want to refinance at these great rates are told 5.875 or 6.00 %

That was a quote from JPMorgan Chase this morning..the "best" they could do for an existing customer who has been paying them on time for 10+ years.

Needless to say..I'm taking my business elsewhere.
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Old 12-10-2008, 11:58 AM
 
682 posts, read 2,462,887 times
Reputation: 344
Quote:
Originally Posted by HappyTexan View Post
And those that are responsible and want to refinance at these great rates are told 5.875 or 6.00 %

That was a quote from JPMorgan Chase this morning..the "best" they could do for an existing customer who has been paying them on time for 10+ years.

Needless to say..I'm taking my business elsewhere.
Check with a credit union in which you might be able to join. I have found that the one we have used for several homes has rates as low or lower than any other I can find and their loans do not have closing costs.

altus2006
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Old 12-10-2008, 12:00 PM
 
Location: Great State of Texas
86,052 posts, read 80,786,628 times
Reputation: 27699
Quote:
Originally Posted by altus2006 View Post
Check with a credit union in which you might be able to join. I have found that the one we have used for several homes has rates as low or lower than any other I can find and their loans do not have closing costs.

altus2006
Yup..my CU can do 5.125 30 year fixed or 4.875 15 year fixed with extremely low closing costs.
And these CU's didn't receive ANY bailout money and they can still loan money at good rates.
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