Did you read the link Jim?

I do understand your point, but the situation of these people "strategically" walking away seems like it will create a lot more problems. I mean the banks are gonna get this property dumped on them anyway. Doesn't it make sense to have someone in there at least paying a portion of the mortgage instead of yet another vacant home on the market?

if the property is upside down, it makes sense for them to take whatever they can get from the owners.....be it by extending term, or lowering rate......half a loaf is better than none..... but writing off principal is a certain loss, not a potential loss, and therefore....not bloody likely.

and no...I'm sorry...i seldom read the link. please to include all pertinent info in your postesses.

If they're upside-down, then foreclosure is also a certain loss. Possibly even a bigger one, as the lendee can probably pay more than the property could sell for at auction.

this means you and I (and our kids) will be paying their mortgages.

I got the impression the government was not paying the mortgage companies the difference, just threatening them with tougher regulations if they didn't "volunteer" with writing the reduction off as bad debt.

yeh sure - wink wink, nudge nudge.

That's the way it's been working in Philadelphia, with court appointed arbitrators.

The other program is the mortgages the fed already owns. There a reduction in the terms, the fed (taxpayers) will have to eat. But there again, it's better to get less, than own an unsellable house sitting empty.

Worse yet, they might give them to those wretched homeless people. cue Dana :haha:

I think that with the current administration we could get a program or a Czar who could identify some of "these mortgages" and perhaps put the lender and the homeowner together in front of an arbitrator or something and work out some type of deal.
Making an attempt to stem the tide of strategic foreclosures could put a real dent in the number of foreclosures. Just a thought.

The fed has the power to do this on there own, with the mortgages they already hold. I read they are trying to get others to go along with that plan.

If thats the case why aren't people trying to get this done in droves? It would seem to me that anyone even remotely close to this situation would be asking for their mortgage to be reduced/restructured. I haven't seen anything on it anywhere till this article.

Because they told me it would be easier with a job or a marriage and I haven't gotten either.

I think you have to be 4 months behind to try for the obama plan...... that's too scary to consider.

I've seen one guy with otherwise perfect credit intentionally not paying his mortgage because he wanted to get into this plan. jerk.

There have been numerous articles in the Philly paper about them trying to figure out why people haven't applied, or applied and never returned the paperwork to get it rolling.

YEAH...

Pro Tip: If you're attempting to get into this plan, and are 3.5 months back on your bricks, don't go out and waste a car salesman's day pretending that you can buy a car.

Economist Bob Walters Deciphers the Loan Modification and Refinance Plan
 

Link
More of an FYI than anything else.

Not mine, I don't have a mortgage, but thanks.;)

Not you specific, just in general. You mortgage is paid off isn't it? I thought you said or implied that somewhere.

I know, just being a smartass.
Yes I have no mortgage. The first couple years, when the principle was peanuts, I paid double principle. I had about 12 years to go on a 30, and I refinanced to lower the interest rate. They said it would lower my payment, but I told them I didn't want to do that. So one day I get a letter saying my last payment would be... surprised the shit out of me, because it's habit, pay the mortgage every month and don't even think about the end... that's like future, way off, someday. Then that day comes and you say, Oh fuck, where'd my life go?

Yeah, we've got a 15-year mortgage, which seems pretty short. But I'll be 50 before we pay it off! :lol:

I paid my 30-year off in 7.5. :)

Of course, it's a one bedroom condo.

I'll be 79 ish when I pay my mortgage off.

I think we pay ours off around the same time I retire.

If you ever get the chance to Refi glatt do it. Best thing we ever did. 30 to a 15 and we only owe 7 years. So any time I sell now will be a much bigger profit.

Hahahaha

We crunched the numbers recently when rates were so low, but couldn't make them work. I wanted to refinance and have our payments stay roughly the same but switch to a 15. Couldn't make it work. The monthly increase was more than we could afford without a lot of pain.