Obama Plan that Passed on the March 31st?

[Dizzle831]

I got a call from a friend who was thinking of walking, "who got a call from a friend in real estate" that said Obama had passed something that would give banks money to free up toxic assets. This was created to allow banks to do principal write downs for underwater homeowners. Anyone hear of this or have a link they could share?

I just missed my first payment in March and got my first call from BofA, but if they would write down my loan to the current market value i might consider staying...might!

Thanks!

Dizzle

[Believe]

I, too, have been awaiting more information about the Feds buying up the "toxic loans". The initial news reports said the funds were to buy up toxic loans from "banks". Later reports suggested the funds were to buy up bad Fannie Mae and Freddie Mac loans. But, they just implemented a plan for those loans. What about those of us who don't have Fannie or Freddie loans, and our lenders will not participate in Making Home Affordable? For at least half of us - looks like another failed government plan.

[925girl]

I don't know if any help is coming for the homeowner who is:

1. Underwater (Too many people who pay on time don't care to understand how insane it is to be over paying for a house but would they pay over 100% for anything anymore?)

2. Banks probably have incentive to hold the asset and wait it out.

3. People still think all homeowner's in foreclosure are scum, irresponsible, scammers you know where I'm going on that....

4. I seriously belive no one cares anymore about anyone or anything else since the economy tanked and slid and we got burned out hearing and living it every nite on TV. If we don't know by now that congress etc dosen't care about Main Street what have we learned?

I have no faith in any bailout coming to help. I also don't believe giant govn't. programs are going to be efficient on any level. They never were before. I do believe we should not leave our houses. I don't think the banks even can prove they own the house with all the securities bundled up and sold. Just my 2 cents for what it's worth.

[Irish Gal]

Originally Posted by 925girl

I don't know if any help is coming for the homeowner who is:

1. Underwater (Too many people who pay on time don't care to understand how insane it is to be over paying for a house but would they pay over 100% for anything anymore?)

2. Banks probably have incentive to hold the asset and wait it out.

3. People still think all homeowner's in foreclosure are scum, irresponsible, scammers you know where I'm going on that....

4. I seriously belive no one cares anymore about anyone or anything else since the economy tanked and slid and we got burned out hearing and living it every nite on TV. If we don't know by now that congress etc dosen't care about Main Street what have we learned?

I have no faith in any bailout coming to help. I also don't believe giant govn't. programs are going to be efficient on any level. They never were before. I do believe we should not leave our houses. I don't think the banks even can prove they own the house with all the securities bundled up and sold. Just my 2 cents for what it's worth.

925,

Bingo on all points ! Well said. Wall St. has "captured" Washington and apparently Washington is happy being held hostage by Wall St. The game is over and distressed homeownes have lost, unless you are ok w/ a predatory loan mod for an underwater property. You hit the nail on the head also re banks not even knowing who owns the damn (securitized) mortgages. From what I've read everywhere, the banks have no clue who owns them and they know that most distressed homeowners have no $$$ to sue to make them prove it legally. So, they've won there too. And, unfortunately, there's no decent lawyers willing to represent the cash strapped homeowners in order to beat these banker scum at their games. So, the game is over. I've accepted it and don't spend too much time trying to figure it out anymore. The U.S. is a corrupt, class act . We're all peasants now. Get used to it.

[Shanna 539]

Hello 925 Girl,

I agree with you! There are many home owners like myself that are underwater and there is no help in order to get something going. Not an easy decision to make (leave or stay) but I think about how long it will take for the value to go up and that might be a while......
My home has lost 300,000 dollars. I was considering selling but that would still leave me in trouble either way.


Best of Luck to everyone
Shanna

[chazkeepahoma]

You can continue to be defeated and give up and jump when the government tells you to or you can fight by joining many people hear and participate in the 2nd revolution. This country wasn't built on surrender. We can continue to live our lives and be peasants or tell them we are not going to take this anymore!! Who knows was the outcome will be but at least you gave it your all!! There are many creative people on this forum and if we all put our heads together and organize as ONE then maybe we can make a difference. We need to put our words into action!

Thanks for listening to my rants.

[faith]

Originally Posted by Shanna 539

Hello 925 Girl,

I agree with you! There are many home owners like myself that are underwater and there is no help in order to get something going. Not an easy decision to make (leave or stay) but I think about how long it will take for the value to go up and that might be a while......
My home has lost 300,000 dollars. I was considering selling but that would still leave me in trouble either way.


Best of Luck to everyone
Shanna

Hi Shanna,
I lost about #200k when I sold my house via Short Sale approved by Countrywide. The problem I am having right now is they have reported to credit agencies that the 2nd mortgage still owed $88k. When I signed the escrow I have received a letter from CW Negotiator stating that there will be no deficiency judgment against us and the balance owed was cancelled.. I wrote a dispute lette to Transunion but they responded that the report will stay in my credit until 2014, so if a future employer asks for my credit, they will probably hire someone else instead of me.

So whether you foreclose, do a deed in lieu of foreclosure or Short Sale, you are right were still in trouble. At least in my case, the balance was forgiven but the credit report shows a negative remark. I don't think President Obama can help everyone, he's one man to tackle these problems, but at least he's trying to solve it, we'll just wait and see what happens.

Good luck to your plan of selling your home.

[snapple candy]

Hi all,
I just got this email notification from a consumer group out of California:



Don't let 6,000 families face foreclosure today

Insist that your Senators vote for judicial modification
Take Action!

Call today to help prevent foreclosure

Congress and we - the taxpayers - have bailed out the banks and rescued all sorts of financial companies in the wake of this economic crisis. More than 6,000 families lose their homes every day right now. Tell Congress it's time to save the family home.

CALL YOUR SENATORS TODAY to ask them to support the Help Families Save Their Homes in Bankruptcy Act (S.61). This bill is designed - as a last resort - for homeowners who have been unable to modify their mortgages.

It entitles a bankruptcy court judge to reduce a home loan to allow a family to remain in their home. Judges can do this now for a vacation home - why not the family home?

Helping families avoid foreclosure benefits the community and the country, as well as each family. S. 61 is the only help that costs taxpayers nothing.

Your Senators are home this week for recess. Please call and ask that they VOTE FOR S. 61 to prevent families from ending up ********.

[susan spencer]

Wanted to share today's (Tax Day) Wall Street Journal article on foreclosure in light of new plans which are mentioned. Good to know information to stay on top of your game plan for help. Google "Banks Ramp Up Foreclosures."

You can certrainly see who is running the country. My lender is cited along with others. I'm sure there is plenty to come with bank stress test results out at end of April. There is alot of information out there that conflicts. We are far from done with the resolve on this issue. The saga continues as the inventory multiplies. Many recent articles state how banks are holding on to foreclosed inventory not yet counted. And other banks are stalling on proceeding to foreclosure as the costs to hold onto the properties are mounting. There is an espression that the only thing that is certain is change. In these uncertain times, the banks are being challenged which is evident in everything you read. With new laws and legislation pending, there may be some real options to help the masses of homeowners than just the few. If it's not over until the fat lady sings, and your lender is willing to still talk, then don't let the size of the "big bank" allow you to throw in the towel!"

[chefette]

Thank you Susan for the heads up. I was wondering why my bank seemed to be dragging its feet on my foreclosure. I would not qualify for a mod and other than selling my children for money to pay my mort. I have no recourse but foreclosure. I do not fit in Obamas plan. hahahaha. Texas.

[susan spencer]

chefette,
I have not yet been able to qualify for a loan mod "out of the box" but have not given up. Perhaps you have previously posted to allow *** to respond to your situation and where you can obtain the help you need in Texas. I did not expect much from the new plan seeing that half a dozen prior plans have not helped the masses. Do what you can to just stay on top as you are and obtain the best help. Sorry, it is hard work to be a mom, earn a living, and save your home, I'm sure!

[Shanna 539]

Hello Faith,

Sorry to hear about what Countrywide has done to your credit report. Just make sure you have all your paperwork saved if you feel it is in your best interest speak to a lawyer to make sure everything has been done correctly and their should be no further action on you from CW.

As for any future employer that is up to the employer but as we all know this economy has had and still very serious effects on many individuals (families) so many things are taking into consideration when hiring an individual for employment; such as education, experience, who you know and so on. One step at a time....

I wish you all the best and good luck,
Shanna

[mtg2008]

Hi Everyone,

I am getting a little bit confused now. I knew there were Fannie mae and Freddie mac who were doing the modi for homeowners according to Obama's plan. If you check this link there are more banks are doing this 31/38 ratio to qualify the modificaiton. Is this something new or this is the same?

If I have first with Fannie mae, 2nd with Citi, what is the payment that we use for house payment to calculate the ratio, 1st + 2nd + tax + insurance or just 1st +tax+insurance?

Can anyone answer my quesiton? Thank you.



By Tami Luhby, CNNMoney.com senior writer
Last Updated: April 16, 2009: 10:15 AM ET

NEW YORK (CNNMoney.com) -- The Obama administration's loan modification program is finally underway.

The Treasury Department announced Wednesday the first six participants to sign up for President Obama's plan. They include three of the nation's largest banks: JPMorgan Chase (JPM, Fortune 500), which will get up to $3.6 billion in subsidy and incentive payments; Wells Fargo (WFC, Fortune 500), $2.9 billion; and Citigroup (C, Fortune 500), $2 billion. The others are GMAC Mortgage, $633 million; Saxon Mortgage Services, $407 million; and Select Portfolio Servicing, $376 million.

Additional loan servicers will be added to the list over time, a Treasury spokesman said.

Several major servicers, including JPMorgan Chase and Wells Fargo, said they began modifying loans under the government initiative earlier this month. CitiMortgage signed up for the program on Monday and will start processing applications soon.

"We view this modification program as yet another incremental opportunity for thousands of homeowners to preserve and maintain the dream of homeownership," Wells Fargo said in a statement.

Distressed homeowners and housing counselors have been eagerly awaiting the program's launch since Obama first announced it on Feb. 18. However, it took weeks for the government to clarify the terms and for the financial institutions to update their systems and start accepting applications, frustrating many of those in trouble.

Billed as helping up to 9 million borrowers stay in their homes, the two-part plan calls for servicers to reduce monthly payments to no more than 31% of eligible borrowers' pre-tax income or to refinance eligible mortgages even if the homeowner has little or no equity. The government is allocating $75 billion to subsidize part of payment reduction, as well as provide thousands of dollars in incentives for servicers and borrowers to participate.

The Treasury Department said Wednesday it is capping the payments to servicers to allow more companies to participate. It is allocating $50 billion to the program, with Fannie Mae (FNM, Fortune 500), Freddie Mac (FRE, Fortune 500) and the Department of Housing and Urban Development providing the rest.

The modification plan calls for the servicer to reduce interest rates so that the monthly obligation is no more than 38% of a borrower's pre-tax income, and then the government would kick in money to bring payments down to 31% of income. Servicers can also reduce the loan balance to achieve these affordability levels. The government will share in the cost, up to the amount the servicer would have received if it had reduced the interest rates.

Only loans where the cost of the foreclosure would be higher than the cost of modification would qualify. Also, Treasury will not provide subsidies to reduce rates to levels below 2%.

It was not immediately clear whether the servicers must pay the incentives to homeowners and investors out of their funding share.

In addition to subsidizing the interest rates, servicers will use the Treasury funding to pay for incentives for themselves, homeowners and investors. The program gives servicers $1,000 for each modification and another $1,000 a year for three years if the borrower stays current. It will also give $500 to servicers and $1,500 to mortgage holders if they modify at-risk loans before the borrower falls behind.

Homeowners, meanwhile, will get up to $1,000 a year for five years if they keep up with payments. The funds will be used to reduce their loan principals.

The Treasury Department set the caps based on public data about the mortgages the servicers handle. Though the program mandates that servicers modify all loans that meet the requirements, the department feels the servicers will have sufficient funds to cover all troubled borrowers' applications.

"We're confident we'll have enough money," said Treasury spokesman Andrew Williams.

Separately, major servicers also recently started accepting applications under the refinance portion of the program.

[snapple candy]

Mtg,
I dont think they consider 2nd and its payment in the calculations for modification, only the first. Im not sure about this new loan program but I did hear this AM on news that Obama gave more money (9. 1 million) extra funds for foreclosures to Chase, Citi, and Wells Fargo. BTW: Chases 1st quarter profits up.

[Moe Bedard]

mtg2008,



Here is the link to the payments estimator and the FAQs for homeowners is on the right hand side..........

Making Home Affordable - Payment Reduction Estimator




The article represents servicers that have signed the contracts:

Participating servicers will sign a contract with Treasury’s financial agent, through which they will agree to review every potentially eligible borrower who calls or writes asking to be considered for the program. All loans that meet eligibility requirements and test “positive” for modifications in the NPV model must be modified, unless there is fraud or the modification is prohibited by the pooling and servicing agreement that govern the servicing of the loan. As contracts are signed, a list of participating servicers will be available on the internet at FinancialStability.gov | U.S. Department of the Treasury. Participation will be mandatory for any institution that accepts future funding from Treasury’s Financial Stability Program.

[Opus09]

mtg2008 - what was the date on the CNN Money article you posted? Are those the only banks so far to participate in the program?

Is HSBC eligible to participate in the program since they are a UK based bank?

[Moe Bedard]

Opus,



Unfortunately, HSBC has already indicated that they will not offer mortgage holders the loan re-modification option under the Obama plan effective 3/4/09. HSBC won't work with NACA either.

Their reps state the program is not mandatory and HSBC is not participating. ...

[harmsway]

Does anyone know if Countrywide will be participating in the "Making Home Affordable" program? They are impossibly rude to deal with and their "customer service" doesn't know the meaning of the word! Is there such a thing as "free" help anymore?

[Moe Bedard]

The information on the program through CW along with their process to get started is located here..........
Countrywide Financial - Real Estate Mortgage Lender - Home Loans - Equity Loan Mortgages

[snapple candy]

"Servicers can also reduce the loan balance to achieve these affordability levels. The government will share in the cost, up to the amount the servicer would have received if it had reduced the interest rates.

Only loans where the cost of the foreclosure would be higher than the cost of modification would qualify."

DO you really think the servicers are gonna reduce the loan balance? Fannie Mae has already prohibited it. This is govt. double speak. And then govt. share in the cost? I dont know if I understand what that really means.

[harmsway]

I was recently denied by Countrywide because "I'm still current on payments" !! I'm trying to fix my mortgage so I DON"T fall behind-stupid a##es!! What's the point of this loan modification program if they refuse to help? I have an excellent credit score of 770, my husband is 780. I would like to keep my credit in tact but Countrywide tells me NOT to pay for 3 months (of course our credit would be shot) and maybe then they can help. How ridiculous is that? I would agree that the govt is not helping the right people at all. Who are they going to "pay"? The people who need it the most, or the banks who turn a deaf ear?

[harmsway]

Hi ***, thanks for the link to Countrywide. According to their "call me' request form, it will take 2-3 weeks for a response. I may turn gray waiting, but it's a start. Calling them doesn't work. Maybe I'll get lucky and a compassionate rep will finally call me!

[Moe Bedard]

If this is the only property that you own have you tried contacting NACA instead..............they are HUD approved counseling agency and the services for their Home Save modification are free.............we have several members going through them when they are not getting anywhere with CW.............here is the link to look over the info............
https://www.naca.com/refinance/refinanceTenStep.jsp

[LadyDoveFL]

Is there any assistance for those of us who lost our jobs (alledgely) due to the current economy? (I say alledgely 'cuz the folks way at the top of the company food chain are earning millions for reducing costs, i.e., jobs) My county is at 10.2% unemployment and even the county government is readying for a large layoff...

[dudeobides]

LadyDove... What county would that be? I'm in St. Lucie County n I think it's even worse than that! About 12% last I heard.