It's not going to work, here's why:

[Social Apocalypse]

It's always a rush of hope to see news on the latest installment of "fixes" for the mortgage implosion. While I am VERY glad they continue to focus on this mess, I think they are living outside of reality.

a few points

1. LOWERING interest rates is very nice, but it does NOTHING for those in financial peril who now have low fico scores, upside down mortgages, investor-owned sub-prime mortgages... THESE are the people who need help. They cannot get a new mortgage, so that's out. It helps a financially healthy family, NOT mine.

2. The most SERIOUSLY scammed people were scammed by mega-corps like AIG. (and a majority in this nation) They don't have GSL's (Government Secured Loans). They are categorically excluded by most lenders who chant: "We are investor-owned, and not required to do anything."

3. These continual "roll-outs" are causing a "buy it only on sale" mentality, I believe among the lenders. I am convinced that my mortgage company is not helping me yet because they are waiting for the bigger, better deal. My biggest problem is a severely upside down mortgage. They won't even discuss helping me. They are waiting until they get paid to help me. Right now, it's simply not a good value to them, because after all, I am PAYING MY MORTGAGE PAYMENT.

Good luck to everyone and BIG thanks to this AWESOME forum. It has been like therapy for me.

TB in the Pacific Northwest, proud owner of a 145% LTV Mortgage. Yippeeee!

[Believe]

Excellent post, TB - very insightful. A reduced interest rate WOULD help me, however.

[snapple candy]

TB,
I spoke with an attorney last week and he told me the mortgage companies are only giving mods to primarily the lowest risk clients. Like say the librarian whos been on the job for years and just got their hours cut type lowest risk. As you said program designed to only help the financially healthy familiy.

I agree mortgage companies using delay tactics to avoid taking any further losses or to identify legal loopholes. It was confirmed by 3 attorneys now this home affordability program is strictly voluntary with no teeth. Even if you qualify for a modification, they dont have to give it to you. Oh and you cant make them either. TARP funds or not.

[ravengotu]

I ask you this.
Why would a bank help you?
My take is that a bank wants everyone to fail. First before this crisis... If you pay your mortgage for three four years and run into difficulty then they get the home back and resell and start fresh....more intrest pmts.....= more gain for them.
Now jump ahead to now and they still WIN. They get our tax dollars and still get the house back...this is so criminal.
CAPITALISM.....rubbish

[Debating]

Originally Posted by TB98629

It's always a rush of hope to see news on the latest installment of "fixes" for the mortgage implosion. While I am VERY glad they continue to focus on this mess, I think they are living outside of reality.

a few points

1. LOWERING interest rates is very nice, but it does NOTHING for those in financial peril who now have low fico scores, upside down mortgages, investor-owned sub-prime mortgages... THESE are the people who need help. They cannot get a new mortgage, so that's out. It helps a financially healthy family, NOT mine.

I'm sorry you're in a bind as I am too, however this whole mess was caused by the banks loaning money to people who were not financially healthy.

2. The most SERIOUSLY scammed people were scammed by mega-corps like AIG. (and a majority in this nation) They don't have GSL's (Government Secured Loans). They are categorically excluded by most lenders who chant: "We are investor-owned, and not required to do anything."

Mortgages being owned by investors is nothing new and the people who got scammed by AIG weren't homeowner's they were the investors who thought they were buying insurance on those mortgages. Turns out AIG couldn't payoff those claims in the end.

3. These continual "roll-outs" are causing a "buy it only on sale" mentality, I believe among the lenders. I am convinced that my mortgage company is not helping me yet because they are waiting for the bigger, better deal. My biggest problem is a severely upside down mortgage. They won't even discuss helping me. They are waiting until they get paid to help me. Right now, it's simply not a good value to them, because after all, I am PAYING MY MORTGAGE PAYMENT.

I understand. I'm in the same boat and never missed a payment, however I'm not upside down by much. But bailing out homeowner's isn't a solution. The real solution is to let the grossly over valued housing market find a bottom which is probably somewhere around 1997-1999 prices. And the truth is if you're making your mortgage payment the lender has no reason to help you.

I'm not picking on you or trying to make you feel bad but it is what it is. Like me, you bought a house and it didn't work out. Quite frankly the people you should be upset with, and I'm furious with them, are the idiots who hardly put anything down and/or refinanced the living bejesus out of their house so they could live a life style far greater than their income could support. Take away all the refi's and you wouldn't have any of this.

Of course, the nitwits who loaned these financial midgets the money are guilty as well which is why I have no problem with anyone sticking it to the bank and just walking away.

The bottomline is, we are a nation of financial iliterates who feel that we should have whatever we want regardless of whether or not we have earned it. The banking system was more than happy to accomodate those folks and like an addict who's dealer gives them free crack sooner or later there's an overdose.

Now we need recovery. That means a great number of people who mismanaged their finances are going to suffer a world of pain. The most unfortunate part is that even those who were financially responsible are going to get hurt as well. Thats what ticks me off.


Good luck to everyone and BIG thanks to this AWESOME forum. It has been like therapy for me.

TB in the Pacific Northwest, proud owner of a 145% LTV Mortgage. Yippeeee!

I hear your area is expected to one of the first to rebound economically so perhaps that will help out your home value too.

Good Luck.

[ravengotu]

One more reason it will not work..
This new Obama plan the Make Homeowners affordable plan. Another load of cht..by the political rulers of what was America.
How can people qualify for a loan based on before tax payroll. These people are so out of touch with the normal people in this country.
I wish I could stop paying taxes and keep my money then yeah....I would have enough to pay my mortgage, but with almost 3000 a month in taxes for them to give to all there buddies and car czars.
Oh I forgot the economy is picking up and house sales are rising so soon we can sell your house to some other fool ...that makes way less money than me and all will be forgoton soon by these people .......

What a sham.....

[snapple candy]

I agree raven. It all a sham. And all the tax dollars used to come up with this plan.

Yeah, i heard that real estates sales up this month and the economy improving. NOT!

[ravengotu]

I am so tired of turning on my TV and hearing all of this cht then walk out my door and see on my block alone of twenty homes, that there is 8 rentals now, 3 vacant, and 1 for sale from a auction.
Yep it is getting better in Egypt....

[daglo]

I agree, I tried to get my loan modified, and was told by Indy Mac I do not qualify. They said that doing so would make my payment higher! A lower rate on my mortgage would help some, but not enough. Whenever we contact Indy Mac, they give us an answer, and the head customer service woman named Krstine McCain says "we consider this problem resolved" when it is not!! They did nothing to help us. Don't these banks know that it is better to help the consumer than to let the home go into foreclosure where they lose money? Indy Mac is impossible to deal with. We are seeing a lawyer next Friday to see what options we have. We are not yet late on our mortgage, but we've had to forego all our other payments because our mortgage payment is 60% of our take-home pay after my hours and pay have been cut. I don't know how log we will be able to pay.

[Evan Bedard]

Hi daglo,


Just wondering how your attorney consultation went? Also what type of loan are you currently in?

[steveherb]

Here's why we lose.
Got a phone call from an insurance company trying to find out why my insurance hasn't been paid. Confused I asked, " I put well over 20% down payment to avoid the P.M.I.. I don't pay any mortgage insurance." She said," I'm calling to find out if your still in the home or what stage your in. A modification? A short sale? N.O.D.? What?" My lender considered me to be a high risk borrower and took out insurance on me. So I believe they were trying to collect on the insurance. Now you think if someone would have informed me that the loan I was getting into with 20% down was considered High Risk I would have backed out. On these Option-Arm loans it was a guarantee for you to fail from the start. The servicers don't care and are in no hurry to modify your loan. If you don't qualify for them to add up late payments and service fees to principal creating perhaps a 40 year new extended loan. It doesn't matter they'll still foreclose and collect the insurance.

[daglo]

Moe, we saw the attorney, and he told us we had a great case against Indy Mac. We were advised to stop paying our mortgage if that is what we were told to get our looan modified. We were terrified, as we've never missed a payment in all the years we've been married. So, we just stopped paying. We also filed a complaint with the Office of Thrift Supervison through our Senator. We really have been proactive and did all we could. We never gave up even when we thought we were losing!After three months, just as we were going to file suit, the same day we received a modification in the mail! We were shocked, as we had tried and begged for them to give us a mod. and were told time and time again that "the investor refused to modify our loan." Krisitn McLain told us that if we received a modification, it would make our payment go up. Well, she was wrong. We are saving over $1000 a month. We can't believe it. They did a creative deal to help us. We also had a HUD counselor working with Indy Mac and she couldn't believe the deal we got. So, all of you out there who are fighting with your mortgage lender, contact everyone you can. I wrote to the president of the company, VP's, Office of Thrift, our congressman and Senator, HUD, do it, and don't let them win!!!

[daglo]

Evan, we were ina negative amor. Our principal kept going up!

[mintdeer]

WOW DALGO! I am with IndyMac and they told me the same thing, that a mod would make my payment go up??? And we don't have a negative amortization loan so I don't know what they are smoking over there! They just keep telling me that they are not hiding anything that I could look on the website for all the details.

I e-mailed them back that since Onewest bought IndyMac from the FDIC and that all their losses were gauranteed I guess they won't lose any $ if I don't pay them. They never replied to that e-mail LOL!

I am still waiting to hear something, the guy who takes photos of your house to make sure you are still there came by yesterday. He said there were 5 houses down the street from me that are in foreclosure and that it was a kind of depressing job.

I am going to a lawyer on Tuesday to get some insight, we are now two months behind so we shall see what happens. Wish me luck!