Phony Mortgage Plan
March 13th, 2009 | by geo |Reposting from Dick Morris:
President Obama and his big spenders are moving quickly, to the relief of those who are facing foreclosure on their mortgages. But the program they are offering will do nothing for those most in need.
In the fine print, Obama’s plan provides no relief for any homeowner whose mortgage exceeds the total value of his home. But these folks are the ones who have been conned into taking sub-prime mortgages so loaded with brokerage commissions, interest rate subsidies, bank fees and lawyer and title-company charges that the amount of the mortgage has ballooned. These high mortgage amounts, coupled with declining property values, have turned about 20 percent of American mortgages upside down, so that the debt exceeds the value of the property.
So, here is truth. If you are current on your mortage (i.e. you paid the bank on time every month!) you do not quality for the loan remodication. The second option is that if you are current, you can refinance without costs even though you owe more than your house is worth due to the steep decline in prices. BUT, your loan must be securitized by Fannie or Feddie. Darn! I struck out twice. I continue to make my payments and my loan it is not backed by Fannie or Freedie.
What it boils down to is those who don’t/can’t make their payments and are behind, or those backed by Fannie or Freddie get rewarded. All of the others lick our wounds and tough it out! It pays to be responsible…I think ? ??
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3 Responses to “Phony Mortgage Plan”
By RealDeal on Mar 13, 2009 | Reply
I am not going to hold my breath, but Obama signed 2 Mortgage relief plans last month. The first for those like you said are greedy and purchased a home over there head, have an adjustable rate and now can’t afford it. The second plan has not been ironed out at the banks. It is supposed to help folks like us who pay on time, have a fixed rate, have a steady income, but owe more than the value of their home. I have heard a rumor that the bank may lower your interest rate to reduce your monthly payment, but it would go back up to the prime rate current at that time down the road. I am not sure if I like that idea. What if you get a lower rate now than you had, and then in 5 years or so, it goes back up to the current rate, and it is higher than were you originally started. Another rumor is if your mortgage is more than a third of you monthly income, the plan would help you. So many rumors. I am going to be patient and wait to see what becomes of the second plan. I already contacted my bank, and they said they will contact me once the plan has gone through, and if I do or don’t qualify.
By Riley Carter on Oct 4, 2010 | Reply
i really hate to get a mortgage but sometimes you just can’t avoid getting one`”~
By Eating Disorders Treatment on Oct 19, 2010 | Reply
i really do not like to mortgage any of my property, mortage sucks anyways;.~