Loan Modification Forum - LoanSafe.org - View Single Post - Don't want to look a gift horse in the mouth

faith · 07-02-2009, 10:50 PM

Jlynsmom,
Obama announced on March 4, 2009 the $75 billion Making Home Affordable plan designed to help 9 million people stay in their homes. Critics say the program lacks accountability and does not offer principal reductions on homes that are severely upside down which is one of the major problems in housing today.

Under the program, lenders get $1,000 from the Department of Treasury for processing a modification or refinance application and an additional $1,000 if the applicant is approved. The lender would agree to a fixed interest rate let's say at 5 percent for five years, and increase at 8% thereafter.

The reality is you can changed someone’s payment to $1200 or $1400 by cutting their interest rate in the short term, but are these homeowners really going to stay in a home that they owe $50,000, $100,000 or $200,000 more than what the home is worth, in the long term?” They will never see that money back and probably won’t even break even until they’re in a nursing home, so, Obama’s program overpromised and under-delivered >>
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If you agree to add $4805 to your principal balance, your payment will be based on the new principal which includes the $4805 @ 3.75% for 5 years, that’s a lot of money. At the same token if you save $150 in payments a month for 5 years is $9,000. Maybe you should your lender if they know about the Obama program where the Dept of Treasury gives the lender $1000 for processing a modification or refinance application and an additional $1000 if the applicant is approved, ask them if they are aware of it, they will get $2,000 under that plan, so they can deduct $2,000 from the amt $4805 or maybe ask to waive that amount.

Are you planning to stay in the house for 30 years, maybe 10 and see if the economy changed, if not, consider bargaining with the bank adn ask for no closing costs and no fees but keep the same interest. Tell them the reason why you are asking for a loan modification due to financial hardship and it will be a burden for you to add that $4805 to the principal balance, the lender is supposed to help you and relieve you of your burden. Ask to speak to a supervisor or manager and see if they can waive that $4805.

Thanks,

07-02-2009, 10:50 PM	#2 (permalink)
faith Homeowner & Forum Guide Join Date: Feb 2008 Location: San Diego Posts: 885 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: Don't want to look a gift horse in the mouth Jlynsmom, Obama announced on March 4, 2009 the $75 billion Making Home Affordable plan designed to help 9 million people stay in their homes. Critics say the program lacks accountability and does not offer principal reductions on homes that are severely upside down which is one of the major problems in housing today. Under the program, lenders get $1,000 from the Department of Treasury for processing a modification or refinance application and an additional $1,000 if the applicant is approved. The lender would agree to a fixed interest rate let's say at 5 percent for five years, and increase at 8% thereafter. The reality is you can changed someone’s payment to $1200 or $1400 by cutting their interest rate in the short term, but are these homeowners really going to stay in a home that they owe $50,000, $100,000 or $200,000 more than what the home is worth, in the long term?” They will never see that money back and probably won’t even break even until they’re in a nursing home, so, Obama’s program overpromised and under-delivered >> >> If you agree to add $4805 to your principal balance, your payment will be based on the new principal which includes the $4805 @ 3.75% for 5 years, that’s a lot of money. At the same token if you save $150 in payments a month for 5 years is $9,000. Maybe you should your lender if they know about the Obama program where the Dept of Treasury gives the lender $1000 for processing a modification or refinance application and an additional $1000 if the applicant is approved, ask them if they are aware of it, they will get $2,000 under that plan, so they can deduct $2,000 from the amt $4805 or maybe ask to waive that amount. Are you planning to stay in the house for 30 years, maybe 10 and see if the economy changed, if not, consider bargaining with the bank adn ask for no closing costs and no fees but keep the same interest. Tell them the reason why you are asking for a loan modification due to financial hardship and it will be a burden for you to add that $4805 to the principal balance, the lender is supposed to help you and relieve you of your burden. Ask to speak to a supervisor or manager and see if they can waive that $4805. Thanks, __________________ Regards, Faith "Pay it forward"